Sunday, May 28, 2023
HomeGasTight Asia capacity limits room for new LNG ships – Korea Shipbuilding...

Subscribe

To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

Tight Asia capacity limits room for new LNG ships – Korea Shipbuilding exec

Korea Shipbuilding & Offshore Engineering (KSOE) 009540.KS has mostly filled its order book for the next 2-1/2 years as the pandemic drove demand for container ships, leaving little room to meet the needs of the liquefied natural gas (LNG) sector, a senior company executive said.

With U.S. LNG exports rising, more LNG carriers are travelling longer distances to customers in North Asia and Europe while European countries have snapped up floating storage and regasification units (FSRUs) as they ramp up LNG imports to replace Russian gas supplies in the wake of the Ukraine crisis.

However, shipyards in South Korea and China are unable to accommodate demand for new LNG vessels as they work to meet a flood of orders for new container ships following global supply chain disruptions and port congestion that have held up ships in the United States and China. This supports spot chartering rates for LNG carriers which have hit all-time highs.

“A huge volume of new-build orders have taken up slots in China and South Korean shipyards,” K.W. Kim, senior vice president at Hyundai Heavy Industries 329180.KS, flagship unit of the world’s largest LNG carrier builder KSOE, told Reuters.

KSOE’s capacity is nearly full with orders stretching to 2025, he said, adding that container ships and LNG carriers each account for about 30% of slots. KSOE builds 20 to 22 LNG carriers per year.

South Korean shipyards are also struggling to operate due to labour shortages while grappling with prices nearly doubling for key material steel plates, Kim said.

“At this moment, we can’t receive new orders for FSRUs,” he added.

In 2020, Qatargas and TotalEnergies had booked shipbuilding slots for LNG projects in Qatar and Mozambique respectively, he said, while U.S. LNG producers are also seeking more vessels as they ramp up exports.

“Shipowners enjoy good charter rates,” Kim said.

About half of the new-build orders for commercial vessels are for ships equipped with dual fuel engines – either LNG or methanol – with oil, he added. Hyundai Heavy is building container ships for A.P. Moller-Maersk that run on methanol.

Kim said there is also a rise in demand for smaller oil tankers – Aframax and Medium-Ranged sized vessels – as Europe looks to import more oil products from elsewhere to replace Russian supplies.

Source: Reuters

Related Posts

Video

Finance & Economy
Shipping News
Ports

Seanergy ‘well positioned to benefit from positive trend in Capesize market’

Seanergy Maritime Holdings Corp., announced its financial results for the first quarter ended March 31, 2023, and declared a quarterly dividend of $0.025 per...

Dorian LPG sees Q1 revenue more than double year-on-year

Dorian LPG reported its financial results for the three months and fiscal year ended March 31, 2023. Highlights for the Fourth Quarter Ended March 31, 2023 Revenues of $133.6 million.Time...

Navios Holdings Posts $14.5 Mln Net Income in Q1

Navios Maritime Holdings Inc., reported its financial results for the first quarter ended March 31, 2023. Navios Holdings owns (i) a controlling equity stake...

BW LPG posts ‘strongest quarterly performance on record’

BW LPG has recorded its ‘strongest quarterly performance on record’ in the first three months of 2023. The company was boosted by strong exports...

ONE, Wan Hai agree to pay civil penalties to FMC

Ocean Network Express (ONE) will pay a US$1.7 million civil penalty to avoid a formal investigation by the US Federal Maritime Commission (FMC) for...

Nikolaus H. Schües elected BIMCO President

BIMCO has elected Nikolaus H. Schües , CEO and owner of Reederei F. Laeisz,...

Baltic Dry Bulk Index Ends Worst Day In Over Three Months

The Baltic Exchange’s main sea freight index declined the most since mid-February on Thursday...

Maritime UK appoints new Chief Executive Officer

Maritime UK, the umbrella organisation for the UK’s maritime sector, has appointed Chris Shirling-Rooke...

Baltic dry bulk index extends slide for 10th straight session

The Baltic Exchange’s main sea freight index of shipping rates for dry bulk commodities...

Baltic index hits over two-month trough on lower rates across vessels

The Baltic Exchange’s main sea freight index slumped to its lowest level in over...

DP World Completes Terminal Expansion Project Vancouver Port

DP World has completed the AED954 million ($259.78 million) Centerm expansion project, increasing container throughput at the Port of Vancouver by 60 percent. The terminal...

DP World completes AED 954 million Vancouver port expansion

DP World and the Vancouver Fraser Port Authority have celebrated two historic events – the completion of the Centerm Expansion Project at DP World...

Alexandroupolis port gets 24 million euros of EU funding

Greece has secured 24 million euros ($26 million) in European Union funding to upgrade its northern Aegean Sea port of Alexandroupolis, privatisation agency HRADF...

Port Hedland Iron Ore Exports Down 5% in April

Pilbara Ports Authority (PPA) has delivered a total monthly throughput of 57.7 million tonnes (Mt) for April 2023. This throughput was a two per cent...

APM Terminals Reveals $1 Billion Investment in Brazil

APM Terminals’ CEO Keith Svendsen has pledged an investment of about US$1 billion in the company's Brazilian operations up to 2026. The amount includes around...