Prices of liquefied natural gas (LNG) carriers are skyrocketing. Analysts expect a further rise in LNG carrier prices as a big change is underway in the global LNG supply and demand system and demand for eco-friendly energy will increase.

The price of an LNG carrier (174,000 cubic meters) in July stood at US$236 million, up US$5 million from the previous month, according to Clarkson Research, a U.K. shipbuilding and shipping market research company. The Clarkson Newbuilding Index reached 161.57 points, extending the growth streak to 20 months since December 2020.

A steady increase in demand for LNG carriers is pushing up Korean shipbuilders’ global market share, as they have technological advantages in LNG carriers. Looking at the cumulative order intake from January to July this year, Korean shipbuilders recorded 11.13 million CGT, logging a market share of 47 percent. China accounted for 10.07 million CGT, representing 42 percent. The Japanese shipbuilder posted a market share of only 7 percent.

A total of 103 LNG carriers were ordered globally in the first seven months this year, the largest figure since 2000. This is an increase of 184 percent from the same period of 2021. However, orders for container ships and bulk carriers, sectors where Chinese shipbuilders are strong, fell by 70 percent and 82 percent, respectively, during the same period.

The rising demand for LNG carriers is expected to continue in the second half of 2022 as marine transportation of LNG is increasing following Russia’s invasion of Ukraine.

Source: Hellenic Shipping News