"New LNGC Demand Rising"

Source:Asiasis
2013.04.01
1236

New orders for liquefied natural gas (LNG) carrier are increasing, backed by growing LNG sales with a long-term contract.  
Analyst Kim Seung-Churl at Meritz Securities of Korea has said, “Due to the sales of LNG under a long-term agreement, demands for LNG carrier are on the increase. Also, considering 12~16 vessels to be additionally ordered for Yamal LNG project, new orders for LNGC are expected to continue,” and added “The Big3 domestic builders’ LNG-carrier market share accounts for around 80% that the expanding LNGC market seems positive to domestic shipyard.”
The analyst estimated that new orders for LNG carrier attributed to sales of LNG with a long-term contract will be the level of 30 vessels on an annual average over the next three years.
However, he advised to wait and see for a while regarding an increase in orders from the US' shale-gas exports. The LNG carriers for imports are likely to be ordered at domestic shipyards that it needs to examine carefully if the LNGC orders to transport shale gas to be imported to Japan or China are placed ay Korean shipyards or not.
Kim added that, “Since 2011 of the Great East Japan Earthquake, speculative orders for LNG carriers have increased that the LNGCs with no charterers are reported to be 35 vessels now, thus, there is little possibility to see LNGC orders attributed to the expanding spot tonnages in the future.”

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