Morgan Stanley sends re-export cargo of LNG to Japan
(Bloomberg; March 23) - An LNG tanker hired by Morgan Stanley is hauling a cargo about 14,500 miles from the U.S. to Japan. The Arctic Spirit, owned by Teekasy LNG Partners and on a long-term charter to Morgan Stanley, left the U.S. Gulf Coast on Feb. 23. The tanker, sailing to Tokyo Bay, can carry about 16 percent of Japan's daily LNG imports.
The shipment is a re-export of foreign LNG brought into the Gulf Coast terminal, offloaded, stored, and then reloaded for delivery to an overseas destination. The Department of Energy allows such re-export from select U.S. terminals of imported LNG to new destinations. Marketers and others profit from the spread between the original purchase price for the gas and what they are able to resell it at during periods of higher pricing.
Morgan Stanley has chartered the Arctic Spirit since April 2011, said Mark Kremin, vice president of Teekay Gas Services, adding that further details are private. Morgan Stanley booked at least 149 vessels to haul commodities ranging from oil to coal last year, exceeding the combined charters of Goldman Sachs Group and Barclays Capital, data from shipbroker Clarkson show. Morgan Stanley hired a tanker last month to ship 60,000 tons of jet fuel to Alaska from South Korea, according to shipbroker reports.