LNG Carrier Market Trends

Growth Drivers

• Emerging Shift in the Fuel Mix in the Shipping Industry – International Convention for the Prevention of Pollution from Ships (MARPOL), has raised limitations on sulfur emissions by ships owing to which the operators will consider alternatives such as liquefied natural gas (LNG) as a marine transport fuel which is anticipated to boost the demand for LNG carriers.
• Rising Number of LNG Tanker Fleet – The increasing technological advancements and innovations in liquefied natural gas infrastructure together with the augmenting trade of LNG are certainly expected to foster the market in the given years. In the year 2021, there were over a total of 700 vessels constituting the global liquefied natural gas (LNG) tanker fleet.

Challenges

• High Cost Required for Manufacturing & Accommodate LNG Carrier - LNG pipelines are difficult and expensive to construct because LNG requires a temperature of -160 °C (-260 °F) [3] to remain liquid, significant insulation must be included in LNG pipelines to maintain this low temperature and prevent re-gasification.
• Lack of Encouraging Infrastructure
• Extended Delivery Time