LNG Tanker "Dream Run" Over as Supply Outpaces Demand

by Ship & Bunker News Team
Friday March 22, 2013

With 81 vessels set to join the global fleet of liquefied natural gas (LNG) carriers from 2013 to 2015, operators of the tankers may face a glut in the market, according to an emailed newsletter from Drewry Maritime Research.

"LNG shipping enjoyed a dream run during 2011 and 2012, owing largely to increasing tonne-mile demand and an almost stagnant fleet," Drewry said.

But the research group said between now and the end of 2015 there could be 81 additional new vessels, and with only 10 ships as candidates for demolition, it could mean a 20 percent increase in the fleet to 430 ships.

In the second half of the decade, new liquefaction plants coming online in Australia and the U.S. could create a market for more vessels, but the demand will not be ready to meet ships arriving in the next two years.

"Reports of a possible re-start of Japanese nuclear facilities could also return the market to the times when vessels waited for months waiting for employment or for commissioning of the project with which they were ordered," Drewry said, adding that Japan was expected to be single largest factor driving the LNG market in 2013.

Hoegh LNG AS [HLNG:Oslo] also predicted in December that the LNG shipping market may have a glut of tankers in 2014 and 2015 but said long-term prospects for the carriers are strong.

Ship & Bunker News Team
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