On June 27th, the 2nd Lloyd's Register Global LNG Forum was held in Shanghai, highlighting the robust growth and promising future of the LNG market. Bo Gao, a shipbroker from Fearnleys LNG, presented an optimistic forecast, predicting that LNG production capacity will exceed 1000 million tonnes per annum (mtpa) by 2030-2035. This means the market will require at least 80 new LNG carriers annually, reaching a total of 1300 LNG ships by 2030!
Key Highlights:
LNG as Core Energy: Andy McKeran, Chief Commercial Officer at Lloyd's Register , emphasized that the LNG value chain is in a super cycle of continuous growth, with an annual growth rate of 5%. Current projects could increase capacity to nearly 700 mtpa within a decade.
Strong Demand:
Bo Gao noted that China's long-term sales and purchase agreements (SPA) bolster the LNG market's supply and demand. The growing market will need 70-80 new LNG ships annually, driven by aging fleets, retirements, and vessel repurposing.
High-Value Assets:
LNG carriers are notable for their high value. A single 174,000 cbm LNG carrier costs $250 million, meaning 300 new LNG ships represent a total investment of $75 billion!
LNG carriers are notable for their high value. A single 174,000 cbm LNG carrier costs $250 million, meaning 300 new LNG ships represent a total investment of $75 billion!
Market Outlook:
Andy McKeran predicts the decommissioning of 330 LNG carriers by 2030.
Clarkson's data shows 361 LNG carriers currently under construction, ensuring ample room for new builds to meet the projected demand.
The future of LNG shipping is undoubtedly bright, fueled by the increasing production capacity and the need for modern, efficient vessels.
by Xinde Marine News Chen Yang
The opinions expressed herein are the author's and not necessarily those of The Xinde Marine News.
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