- The number of LNG carriers scrapped in 2025 has already matched the total for 2024, signaling an accelerating phase-out of aging vessels.
- Despite a sharp decline in new orders, the shipbuilding sector expects demand to rise as older ships are dismantled.
- Regulatory pressure from the IMO and increased idle vessels may further boost future scrapping and replacement activity.
This year has seen a slowdown in new liquefied natural gas (LNG) carrier orders, while the scrapping of aging vessels has gathered momentum. Industry experts anticipate that the rise in decommissioned ships will soon translate into increased orders for newer, more efficient LNG carriers, according to Chosunbiz.
Modern Cosmopeia Sold for Scrap at $580 Per Ton
According to the shipbuilding industry on July 19, Hyundai LNG Shipping’s Modern Cosmopeia, a 135,000㎥ LNG carrier built in 2000, was sold for dismantling at $580 per ton. The vessel, which operates using a first-generation steam turbine engine, is widely regarded as inefficient in both fuel consumption and cargo capacity compared to modern designs.
Scrapping Activity Matches Previous Year’s Total by Mid-Year
The sale of the Modern Cosmopeia brings the total number of LNG carriers dismantled in 2025 to eight—equaling the full-year figure from 2024. According to Clarkson Research, only one LNG carrier was scrapped in 2022, followed by seven in 2023 and eight last year. Reaching the same number by early July indicates a significant uptick in ship retirements.
IMO Regulations Tighten Operational Lifespan of Older Ships
The International Maritime Organization (IMO) has enforced stricter efficiency standards, including the Energy Efficiency Existing Ship Index (EEXI) and the Carbon Intensity Indicator (CII). The CII grades vessels from A to E based on emissions per ton of cargo per nautical mile. Ships receiving a D grade for three consecutive years or an E grade for a single year must develop an improvement plan or risk operational restrictions if they fail to comply.
Growing Number of Idle LNG Carriers Could Be Next for Scrapping
Currently, approximately 60 LNG carriers are in standby status—remaining moored and inactive for extended periods. The industry believes that if these vessels fail to secure new contracts, many will likely be dismantled. Clarkson Research also reports that 93 LNG carriers—about 12% of the global fleet—are over 20 years old and nearing the end of their operational life.
Newbuilding Demand Expected to Rise Amid Fleet Renewal
The LNG vessel replacement cycle is beginning to accelerate, although new orders have dropped sharply. From January to June 2025, new LNG carrier orders fell by 82% year-over-year to just 1.05 million CGT.
Han Young-soo, a researcher at Samsung Securities, noted, “Considering the establishment of new LNG production plants, 295 new vessels will be needed by 2028, while 300 LNG carriers are scheduled for delivery by then,” adding, “More LNG carriers are needed, but shipowners have postponed orders.”
Eom Kyung-ah, a researcher at Shinyoung Securities, predicted, “In the future, more than 200 vessels will be scrapped or enter the retrofit market.”
As aging vessels are phased out and regulations tighten, the LNG shipbuilding market is expected to regain momentum in the coming years.
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Source: Chosunbiz
