Report summary
Thirty-three new LNG ships have been ordered so far this year, compared to 19 in the whole of 2017 and just six in 2016. Owners have been tempted by higher spot/short-term charter rates, still low newbuilding prices and rapidly growing LNG trade. New LNG supply from Australia, Russia and the USA is being absorbed far more easily than many expected by booming demand in Asia. A new wave of FIDs on new supply projects is expected to create even more demand for shipping. But owners need to be careful they don’t over order. There is still a huge number of ships ordered in the 2011-2014 LNG newbuilding boom to be delivered to the fleet and there is a long history of new ships arriving before new supply. Trade growth will slow down, temporarily, in the early 2020s between the current wave of new LNG supply and the anticipated next pre-FID wave that will come on-stream in the mid 2020s.
Table of contents
- Executive summary
-
Introduction
- New LNG supply is creating new trade routes
- Record demand from China (and elsewhere in Asia)
- US LNG exports are creating more seasonality in shipping
- FIDs imminent on next wave of LNG supply
- Still low yard prices
- Design and technology improvements give new ships a big advantage
- Huge orderbook to be delivered
- Conclusion
Tables and charts
This report includes 13 images and tables including:
- LNG ship orders, deliveries and orderbook
- Vessel requirement by source and destination
- New LNG supply 2015-2023 (cumulative)
- China LNG imports by source v rates
- China LNG imports by source (annualized)
- South Korea LNG imports by source (annualized)
- Japan LNG imports by source (annualized)
- US LNG exports by destination
- US LNG export tonne-miles v charter rates
- Historic and forecast LNG FIDs
- Pre-FID LNG supply forecast
- LNG ship newbuilding price v number of orders
- LNG trade growth v LNG fleet growth
What's included
This report contains:
