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LNG carrier charter cancelled

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LNG Industry,

Awilco LNG ASA has announced that the charter deal for its WilForce LNG carrier has been cancelled by the charterer.

According to the statement, the vessel is currently at a yard in Singapore for repairs following a collision, which caused damage to the hull only, and no harm to life or environment. Awilco claims that repairs are progressing as planned, and are scheduled for completion by the end of August or early September, with costs covered by insurance.

When the WilForce collided with another vessel, it was employed on a 9 – 12 month time charter contract, which commenced in September last year. Yesterday, the charterer notified Awilco of its decision to cancel the remaining period of the time charter contract due to the prolonged off-hire period required to repair the vessel. This is a right the charterer has in accordance with the charter party terms. The vessel has loss of hire insurance in line with market rate levels, which compensates for most of the lost time charter hire.

In the statement, Awilco claims that, based on a preliminary assessment of facts, it holds the other vessel fully and completely liable for the collision. The company expects to recover all costs and expenses, including insurance deductibles, off-hire and lost time charter hire in due course.

It is expected that the carrier will be available for new chartering opportunities ahead of the seasonally stronger Northern Hemisphere winter period. Awilco sees the chartering market tightening in 4Q19 on the back of newbuilding deliveries tapering off in 2H19, combined with most of the new LNG production capacity scheduled for startup this year being commissioned in the second half of the year, and of course increased demand before winter.

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