Yard capability must rise to satisfy LNG provider demand [Gas in Transition]

Abstract

A brand new LNG provider ordered at the moment is unlikely to end in supply earlier than 2026. A scarcity of shipyard capability suggests development of different essential LNG infrastructure, reminiscent of FLNG vessels and FSRUs, might face delays. [Gas in Transition, Volume 2, Issue 9]

LNG provider (LNGC) constitution charges are climbing once more as Europe continues to import giant volumes of LNG forward of winter, amidst main shortfalls in Russian pipeline gasoline imports. In June, Clarkson Analysis mentioned charges to constitution an LNGC have been close to their highest degree in a decade at $120,000/day, up greater than 50% on a yr earlier.
On the identical time, Asia is shifting to extend shares forward of the chilly season, a reminder that the overwhelming majority of world LNG demand is topic to the northern hemisphere winter. Extra Asian journeys will increase the variety of lengthy haul journeys, that means LNGCs keep longer on the water, lowering transport availability.
The state of affairs is unlikely to enhance within the close to time period. New regasification capability coming on-line in 2023, notably in Europe, as international locations rush to put in floating storage and regasification models (FSRUs), will solely enhance demand for LNG cargoes, whereas the hoped-for return to full operation of Freeport LNG within the US and start-up of Eni’s Coral South mission in Mozambique will enhance provide.&nb…