LNG Vessel Charter Rates
Below is a snapshot from the ICIS Charter Assessment Table.
“Prompt” refers to spot vessels, while “mid-term” and “long-term” are self-explanatory.
Vessel Types:
- Steam: Propelled by steam turbines using BOG (boil-off gas) for boilers.
- TFDE (Tri-Fuel Diesel Electric): Runs on LNG, MDO, and HFO using electric motors for propulsion.
- Two-Stroke: Low-speed diesel engines using LNG or HFO.
Though Steam vessels still account for a large share numerically, most of today’s newbuilds use low-speed dual-fuel engines like MEGI or X-DF.
Spot vs. Mid-Term vs. Long-Term Charter Rate Differences
Charter rates for older, less fuel-efficient Steam vessels are the lowest. Two-stroke vessels command the highest rates.
This is clearly visible in the chart below.
Interestingly, the U.S. treasury yield curve beyond 1-year bonds resembles this trend: long-term rates sit around 4% but gradually slope downward—mirroring LNG charter rate structures.
LNG Purchase Cost Slopes and Market Mechanics
If we exaggerated and visualized LNG costs as slope-only charts, they’d look something like this (purely for humor).
While LNG purchase prices start with calorific value differences, real-world prices shift based on supply and demand.
The price of money (interest rates) also stems from supply-demand dynamics—but unlike LNG, it’s not pegged to an index. Rather, it’s determined independently by those forces.
Seasonal Patterns in LNG Charter Rates
Charter rates for spot LNG vessels have historically spiked in winter.
What’s notable is the rising peak in winter rates since 2018.
This likely ties to increasing spot trading activity, as shown in the chart. As spot opportunities grow, so does spot vessel demand intensity. (Of course, supply of ships plays a role too.)
LNG Shipping Routes and Trading Activity
The satellite map of LNG vessels shows:
- Yamal LNG has active vessels.
- The Panama Canal looks quiet.
- Red Sea has visible LNG traffic.
- Cape of Good Hope route is busiest.
- Highest vessel density: Europe (Atlantic) and Asia (Pacific).
Charterers and Portfolio Capabilities
Roughly 723 LNG vessels are currently in operation. Who’s chartering them?
Shell tops the list with 78 vessels—over 10% of the global fleet. That speaks volumes about its market presence.
Yellow-highlighted names on the charterer list include portfolio majors like TotalEnergies, BP, and Cheniere. Even project-specific companies like NLNG are chartering directly, likely leveraging operators for both marketing and logistics.
Also noteworthy: Japan’s gas companies like JERA, Tokyo Gas, and Osaka Gas dominate as charterers. Thanks to a strong domestic maritime and shipbuilding industry, Japan appears more FOB-tolerant than others.
Owners and Operators are typically shipping companies that either build and own vessels or lease them out (via BBCHP structure) to charterers listed on the far left.
Charterer Rankings – Top Highlights:
- Shell: 78 vessels
- QatarEnergy LNG: 43
- TotalEnergies: 41
- BP: 28
- Cheniere: 27
- Yamal LNG / RasGas: 26–27 each
- KOGAS, PETRONAS, NLNG, Tokyo Gas: Prominent regional players
Japan’s Tokyo Gas, Osaka Gas, Mitsui, and trading houses remain heavily invested. Interestingly, BP also appears under ownership categories—uncommon among other portfolio players.