Norway-based liquefied natural-gas carrier Golar LNG has posted a modest $11.7 million second quarter net income despite a “difficult” spot market for freighters of the liquid gas fighting high bunker prices with engines on idle.

The result came on revenues of $52.5 million and was helped by changing interest rates and more gas in the market. The supply of LNG rose year-on-year by 1.4 billion cubic feet per day by June 2008 on booming Japanese, Korean and Italian imports.

Though gas prices doubled in the United States — and the “pull of European and Eastern markets is expected to continue for some time” — U.S. prices fell away from plus-$13in August.

While gas prices failed to help, five new liquefaction projects (chronicled in Scandinavian Oil-Gas this year) come on stream over the next nine months. They could “loosen” the current tight market for LNG carriers with an extra 3.8 bcf/d by summer 2009.

Still, with the world LNG tanker fleet at 270 and the order book for new vessels at 112, the midstream market is in turmoil.

“The Board is disappointed with the development of the LNG carrier spot market which has been softer than anticipated,” a statement said.

“The Board anticipates that earnings from the Company`s spot market vessels will show some improvement in the third quarter but will remain unsatisfactory,” leadership continued.

Tags: Golar LNG