A surge in global demand for liquefied natural gas (LNG) increased ship orders by 25% in 2024, with South Korea and China emerging as the primary ship suppliers, according to data from Veson Nautical.
The Russia-Ukraine war and the subsequent shift in energy supply dynamics, particularly in Europe, have further amplified the need for LNG transportation, benefiting the shipbuilding industry.
On the supply side, countries like Qatar are making substantial strides to enhance their LNG liquefaction capacities, while on the demand side, countries such as China and South Korea are experiencing a growing need for LNG.
These factors are fueling significant growth within the LNG shipping sector.
Global LNG exports increased by 1.6% in 2024 compared to the previous year, reaching 411.5 million tons.
The rise in global LNG demand has been a key driver behind the surge in ship orders. LNG ship orders rose by 25% year-on-year in 2024, reaching 109 vessels, according to Veson Nautical's 2024 Market Report.
- South Korea and China dominate market
The report revealed that South Korea and China secured the majority of ship orders, further solidifying their dominance in the shipbuilding sector.
South Korea continued to lead the market with 68 orders, followed by China with 41 orders in 2024.
Meanwhile, Qatar emerged as the largest buyer, placing orders for 40 vessels as part of its fleet renewal and expansion strategy.
China, a major player in the global LNG trade, placed an order for 17 ships, ranking second, followed by Greece with 10 orders.
- 62 new LNG vessels delivered to operators
In 2024, 62 new LNG vessels were delivered to operators, although the market faced a slowdown in new ship demand, driven by delayed projects, an influx of ship supply, and elevated inventory levels.
The market value of LNG vessels continued to rise, with both newbuild and second-hand ship trading accelerating.
Oversupply of vessels and high stock levels contributed to a 52% year-on-year decline in daily lease rates for LNG vessels, bringing the average rate down to $55,000.
Despite the expansion of the global LNG fleet, seven LNG vessels, including one small-scale ship, were scrapped in 2024 due to rising operational costs and challenges in meeting new environmental regulations.
By Fuat Kabakci
Anadolu Agency
energy@aa.com.tr