Shortage of CO2 Tankers Predicted

Credits: Shraga kopstein/Unsplash

Shipyards ought to expect imminent signings of many carbondioxide (CO2) tankers to match all the planned CO2 storage projects pencilled in around the world, reports Splash247.

Shortage of CO2 tankers

Brokers Gibson has warned that if many of the CO2 projects currently undergoing feasibility studies get approved, there could be a shortage of shipping capacity. Currently, just two CO2 carriers are on order and will be dedicated to the Northern Lights project, which commences in 2024.

Given current newbuilding lead times and uncertainty over designs, projects coming onstream, which require shipping capacity in the 2026 period, could find themselves short of specialised tonnage, if orders are not placed soon,” Gibson noted in its latest weekly report.

For ship owners, this could create an opportunity for a speculative order, Gibson suggested. However, with most projects still in their infancy, the risk of ordering the wrong size/design cannot be ignored. Yet, with yards researching designs which can carry ammonia and LPG, as well as CO2, it may not be long until shipowners can mitigate the risk through cargo flexibility.

If projects are to be developed by the late 2020s, then time is running out to secure dedicated vessels, which could create an opportunity for those brave enough to order ahead of the crowd,” Gibson concluded

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Source: Splash247


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