Major shippers of liquefied natural gas (LNG) have been expecting the market to grow tighter as demand outpaces production growth, but geopolitical tensions are requiring transporters to stay on their toes, according to Flex LNG Ltd.

Flex management reported last week that the fluctuating market dynamics worked out in its favor last year, with significant revenue growth and increased volumes delivered from key suppliers.

Flex CEO Oystein Kalleklev said during an earnings call that 4Q2021 was particularly lucrative, as the company recorded its best time charter equivalent (TCE) rates. The TCE jumped sequentially to $95,908/day from $68,341/day in 3Q2021 and from $73,712/day in 4Q2020. The breakeven rate for LNG shipments during the year was reported at $43,700/day.

Kalleklev said the...