LNG Shipping Market Will be Short of Capacity by 2020: GasLog

by Ship & Bunker News Team
Wednesday January 3, 2018

Rising demand for liquefied natural gas (LNG) will see the LNG shipping market short of capacity by 2020, according to GasLog Ltd [NYSE:GLOG] (GasLog).

The comments by Chief Executive Officer Paul Wogan came alongside an announcement Tuesday by the LNG carrier owner/operator that it has ordered a dual-fuel capable newbuild 180,000 cubic meter capacity vessel from Samsung Heavy Industries.

Delivery of the new vessel is scheduled for the third quarter of 2019.

"I am very pleased to announce this expansion in our fleet. We have secured this vessel at a very attractive cost and she will be equipped with the latest propulsion and cargo containment technology which will result in highly competitive unit freight costs," said Wogan.

"The vessel is expected to deliver into a strong LNG shipping market which, according to our estimates, will be short of capacity by the winter of 2019/2020."

Data released this week by PIRA Energy Group has also indicated rising demand for LNG shipping pushed up average LNG tanker speeds in December to over 12 knots, their highest since February 2015.

GasLog's newbuild will be powered by a Winterthur Gas & Diesel (WinGD) low-speed X-DF dual-fuel engine, a version of which is also set to power a series of nine historic dual-fuel 22,000 TEU capacity mega-container ships ordered last year by CMA CGM.

GasLog's fully-owned fleet includes 15 LNG carriers, including 10 ships in operation and 5 LNG carriers on order.

Ship & Bunker News Team
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