The number of LNG-fueled newbuilding contracts has grown in the first four months of this year compared to 2021, says an article published on Seatrade Maritime quoting the latest data from DNV’s Alternative Fuels Insight (AIF) platform.
Large ships Fuel Power
According to the AIF, orders for large ships fueled by fuel totaled 121 in the first four months, with 51 new contracts signed in April alone.
There are now 775 LNG-fueled ships in operation or on order, with a further 221 LNG-ready ships.
Likely to slow down
Owners are hesitant to place new orders because of rising fuel and new ship prices, thus the faster contracting pace witnessed in the first four months of 2022 is anticipated to slow.
Insufficient LNG bunkering
When gas prices return to a level “where LNG bunkering makes sense,” according to DNV’s lead consultant in the classification society’s Maritime Advisory business unit, there will be inadequate LNG bunkering capacity to service all the ships.
“It’s easy to understand fuel suppliers’ hesitance to increase their bets and contract more tonnage in this challenging market,” he said.
Continued growth
On the general contracting picture, he commented: “Last month’s orders alone for LNG-fuelled ships added about half a million tonnes of LNG demand. Should this trend continue at the same pace, we could reach the 1000-vessel mark by the end of this year. However, although we expect growth to continue, it is likely to be more modest for the rest of the year.”
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Source: Seatrade Maritime News
