LPG Carrier Size Doubles in Two Years

by Ship & Bunker News Team
Monday March 11, 2013

Driven by rising demand for liquefied petroleum gas (LPG), the average size of LPG carriers being ordered doubled between 2010 and 2012, according to the latest LPG Forecaster from Drewry Maritime Research.

The United Kingdom-based firm reports that growing consumption in emerging economies and rising exports from the U.S. and Russia have boosted the market for the carriers.

Five very large gas carriers (VLGCs) were ordered in 2010, and four in 2011, but the number rose to 11 in 2012.

The average vessel capacity jumped from 15,179 cubic meters (cbm) in 2010 to 32,125 cbm in 2012.

"Clearly, owners have shown a growing preference for larger vessels in the past few years so as to reap economies of scale, and as infrastructural facilities at ports have been improving," said Shantanu Bhusan, editor of Drewry's LPG Forecaster publication.

"Saturated" LPG markets such as Japan and South Korea will also see strong demand, Drewry predicts, thanks to government support and increasing consumption in sectors other than the residential sector.

One U.S. LPG supplier, Enterprise Products Partners L.P. [NYSE:EPD] announced last week that it has started operations of an expanded export facility on the Houston Ship Channel and is considering a further expansion, citing strong international demand for U.S. propane.

Ship & Bunker News Team
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