The LNG (liquefied natural gas) shipping market is experiencing significant growth, driven by increased newbuilding orders and rising vessel values. This trend is influenced by geopolitical factors and the push for greener vessels, resulting in a robust demand for new LNG carriers.
Surge in Newbuilding Orders
In the first five months of 2024, LNG newbuilding orders have more than doubled compared to the same period last year, with 78 orders placed, marking an increase of approximately 129%. This surge highlights the growing demand for LNG transportation and the industry’s confidence in future market prospects.
Record-High Newbuilding Prices
Newbuilding prices for large LNG vessels of 174,000 CBM have reached an all-time high of USD 269 million, reflecting a 6.1% increase. This price hike is indicative of the rising costs associated with constructing new, technologically advanced, and environmentally friendly LNG carriers.
Fleet Expansion and Renewal
The order book for large LNG vessels stands at about 64% relative to the live fleet, with the majority of orders placed this year being in the large LNG sector (74%), followed by QMAX vessels (23%). Notably, Qatar has led the newbuilding orders with a 44% share, followed by the UAE (13%) and China (9%). Significant orders include 10 large LNG vessels by ADNOC, scheduled for delivery in 2028, emphasizing ongoing fleet expansion and renewal efforts.
Overall, the LNG shipping market is poised for continued growth, supported by strong newbuilding demand and strategic investments in fleet modernization
