LNG Carrier Market

LNG Carrier Market Analysis

The LNG Carriers Market is expected to register a CAGR of greater than 3.6% during the forecast period.

COVID-19 moderately impacted the market in 2020. Currently. The market has reached pre-pandemic levels.

• Over the medium period, factors such as flexible deployment capabilities, increased efficiency, and increasing global consumption of LNG driven by supportive government regulations and demand from several end-user industries, including power generation and industrial, are expected to drive the market in the coming years.
• On the other hand, with the new carrier fleet entering the market and with regional shipping imbalances, carriers' charter rates have fluctuated, which may hinder the market's growth during the forecast period.
• Nevertheless, many terminals are adjusting to accommodate small-scale and bunkering vessels to comply with emissions targets and capture new commercial opportunities. Conventional oil-based fuels will remain the main fuel option for most vessels in the future. At the same time, commercial opportunities of LNG are interesting.

LNG Carrier Market Trends

Membrane-Type Containment to Dominate the Market

• The membrane-type segment held the largest market share owing to its higher carrying capacity and other advantages. This containment segment is expected to dominate the global market throughout the forecast period.
• Gaztransport and Technigaz (GTT) designed the most common membrane tank systems. Several GTT systems have already been implemented onboard LNG carriers for many years, and other designs from different companies have been developed.
• Moreover, in December 2022, Samsung Heavy Industries (Shi) awarded Gaztransport & Technigaz (GTT) two contracts for the tank design of seven new LNG carrier vessels. The contracts were awarded on behalf of both a European and an American shipowner. Each LNG vessel will be 174,000m3 in size. The vessels are expected to be delivered in the first and fourth quarters of 2026 and 2027.
• By 2021, 518 units of the active fleet had a GTT membrane-type containment system which accounted for 81% of the current fleet count. It continued to lead the order book as the preferred containment option.
• Due to technological advancements, membrane-type containment has a superior capacity to bear the immense pressure of LNG and its compact shape to carry large LNG volumes compared to moss-type containment.

Asia-Pacific to Dominate the Market

• The Asia-Pacific accounted for the largest LNG carrier market share due to increased demand for natural gas because of high industrial growth and the adoption of clean energy sources. Therefore, the region is expected to continue its dominance in the market throughout the forecast period. Most of the demand in the region came from China.
• Meanwhile, China has accelerated its policy of reducing emissions and pollution through coal-to-gas conversion, increasing its LNG consumption by 15.0%. Several other Asian countries and regions, notably South Korea and Chinese Taipei, will dramatically expand LNG imports in 2021. As of 2021, Asia Pacific accounts for 72% share of total global LNG imports
• China imported 109.5 billion cubic meters of liquefied natural gas (LNG) in 2021, an 16.8% increase compared to 2021. Therefore, China became a vital contributor to the global LNG industry's development and prosperity. Net LNG imports in Asia Pacific in 2021 increased by 7.3%.
• The growing LNG consumption by various end-user industries, such as manufacturing, petrochemicals, and fertilizers, is on a consistent rise in China and South Korea. Japan prevalently consumes LNG for power generation. These countries are expected to aid in the growth of the Asia-Pacific market.

LNG Carrier Industry Overview

The LNG carrier market is moderately fragmented. A few major companies operating in the market (not in a particular order) include Royal Dutch Shell PLC, Nippon Yusen Kabushiki Kaisha, Mitsui OSK Lines Ltd, MISC Berhad, and Seapeak, among others.

LNG Carrier Market Leaders

LNG Carrier Market News

• December 2022: GAIL (India) Ltd agreed to time charter a new liquefied natural gas (LNG) carrier with Japan's Mitsui O. S. K. Lines Ltd (MOL) and acquired a stake in an existing LNG carrier. The new LNG carrier, built by South Korea's Daewoo Shipbuilding & Marine Engineering Co Ltd, will be the second MOL Group LNG ship to serve GAIL and will commence time chartering in 2023.
• October 2022: GTT announced that it earned two Approvals in Principle (AiP) from DNV and Bureau Veritas for its revolutionary three-tank LNG tanker design (BV). The three-tank LNG carrier concept reduces construction costs by eliminating one cofferdam, one pump tower, and all related cryogenic equipment (liquid and gas domes, valves, piping, radars, etc.).