Trio planning LNG shipping venture

Norwegian based LNG transportation provider Awilco confirmed it has entered talks with other shipowners to establish a joint liquefied natural gas shipping venture. 

Following media reports that a trio consisting Awilco LNG, Golar LNG and TMS Cardiff Gas, is about to launch a joint venture named the Cool Company consisting of 16 vessels, in order to benefit from a strong LNG shipping market, Awilco said no agreement has yet been reached.

Golar LNG, in its quarterly report issued in November, noted that activity in the LNG shipping market gained positive momentum in September as strong end-user demand and rising oil prices fed through to increasing LNG prices, vessel fixtures, and spot rates approaching $100,000 per day.

The company also said it is working with other ship owners to establish a consolidated structure that will allow LNG shipping investors more direct exposure to the LNG shipping market, adding that progress has been made during the previous quarter.

However, responding to the latest media reports, Awilco LNG said that no agreement has yet been reached and it is not possible to say whether the parties will reach one.

Golar LNG fleet comprises 26 vessels, 16 of which are LNG carriers, Awilco LNG has two vessels while the Greek shipowner TMS Cardiff Gas has five vessels in operation and further eight vessels on order.

LNG World News Staff