Flex in hurry to take LNG carrier delivery as spot market explodes

Flex LNG will take delivery of its twelfth vessel ahead of schedule as it looks to benefit from an unbelievable surge in the spot market due to a cold snap in Asia.

The average LNG price for February delivery into northeast Asia hit a record high of around $21.45 mmBtu last week, according to S&P Global Platts.

In addition, freight rates are racing as charterers scramble to find ships. LNG freight rates topped $300,000 a day in the Atlantic, Spark Commodities said on Friday.

Norway-based Flex previously planned to take delivery of the 174,000-cbm Flex Volunteer from South Korea’s Hyundai Samho at the end of February.

“However, given the strong market and the fact she has been uncommitted, we are now talking her out in second half of January,” Flex said.

Flex Volunteer features WinGD’s XD-F dual-fuel propulsion and GTT’s Mark III Flex containment system. It also has a reliquefaction system with a boil-off rate of 0.085% per day.

Additionally, Flex has also one more carrier on order at Hyundai, Flex Vigilant. This is a sister ship to Flex Volunteer.

Following delivery of this vessel in the second quarter, Flex will wrap up its newbuild program with thirteen ships on water.

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