667 views | Akpan Akata | July 30, 2019
The global trade in Liquefied Natural Gas (LNG) has continued its upward climb with an expected 7.4 percent growth next year, going by a Clarksons Research forecast.
Clarksons Research is respected worldwide as the most authoritative provider of data and intelligence for global shipping. According to them, ‘’global trade in LNG continues its strong growth phase, with an expected 8.4% growth in 2019 and 7.4% in 2020 (11.5% and 12.3% by tonne miles).
The researchers pointed out that the recent export growth has been dominated by Australia and the US, while China has driven import growth (60% of import growth in 2018).
With 93mt pa of export capacity under construction, and a further 313mt pa of capacity at FEED, growth potential remains strong. This trade expansion, combined with high day rates for vessels trading on the short term market over the past twelve months, has supported newbuilding orders totalling $17 billion since start 2018 and helped build a total new building order book of 25% of the fleet ($24.5 billion).
‘’Our longer term modelling now suggests that the LNG fleet will outnumber the VLCC fleet by 2026. We also see growing interest in small scale LNG, FSRU, FLNG and, increasingly, LNG as a marine fuel’’, Clarksons said.
As the annual review of the LNG shipping markets LNG Trade & Transport is available from Clarksons Research, its Managing Director, Steve Gordon, commented that other highlights of the review include: