GasLog sees LNG spot market boost as China recovers

There has been a marked increase in activity in the spot and short-term market in recent weeks, primarily driven by a resumption in industrial activity in China

GASLOG has taken “extensive measures” to limit the impact of the coronavirus pandemic on its business at a time of increased activity in the spot market for liquefied natural gas carriers.

In an operational update, the Greece-based owner of 35 LNG carriers, including 15 owned by affiliate GasLog Partners, said that it had managed to deliver fleet availability of “close to 100%”.

Measures included suspending shore leave and all crew changes for 30 days from mid-March.

For weeks, shipowners have been highlighting the difficulty of carrying out crew changes in light of national and international restrictions to combat the spread of coronavirus, but the potential benefits of keeping existing crews on board in terms of avoiding infection have also been pointed out.

Among other measures, the GasLog group has instituted a work-from-home policy for all onshore employees. It also “opportunistically” accelerated dry docking during a slowdown of LNG trade in February and March.

The docking of four vessels and the installation of ballast water treatment systems are expected to be completed by mid-April, it said.

All of GasLog’s vessels not on longer-term contracts or in dry dock are currently employed until at least May.

“There has been a marked increase in activity in the spot and short-term market in recent weeks, primarily driven by a resumption in industrial activity in China,” the group said. “As a result, the company expects to secure additional employment for its vessels ahead of the conclusion of their current fixtures.”

During the first quarter, the group’s tri-fuel diesel electric vessels in the spot and short-term market averaged time charter equivalent earnings of about $44,000 a day.

“The coronavirus outbreak has presented many challenges to our business,” said GasLog’s chief executive Paul Wogan.

“I am very proud of the dedication of all our employees, whose health and safety remains our first priority,” he said. “I especially thank our seafarers for their commitment and professionalism while apart from their families and friends,” he said.

GasLog also announced that on Wednesday it had taken delivery of its latest newbuilding, the 180,000 cu m GasLog Windsor, from Samsung Heavy Industries.

It said that the vessel was delivered “on time and on budget”, despite industrial disruption in South Korea due to the virus outbreak.

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