Surging 30% VLGC Shipping Rates Could Boost Golar LNG Revenue
Twenty-eight Russian-flagged carriers have joined a shadow fleet circumventing sanctions to load LNG at Arctic terminals, driving VLGC spot charter rates up 30% to $160,000 per day. Golar LNG’s charter income could rise on tighter global shipping capacity despite heightened sanction exposure.
1. Shadow Fleet Expansion
The shadow fleet of gas carriers has grown to 28 Russian-flagged vessels this quarter, highlighting a surge in sanctioned LNG loadings at Arctic facilities as owners switch flags to avoid restrictions.
2. Impact on Charter Rates
The diversion of sanctioned tankers has tightened global VLGC availability, pushing spot charter rates from $125,000 per day in March to $160,000 per day currently, up 30% quarter-over-quarter.
3. Implications for Golar LNG
Golar LNG’s 14-vessel VLGC fleet could realize an incremental $10–12 million in quarterly charter revenue from elevated spot rates, though the broader growth in sanction risks may raise compliance expenses and insurance premiums.