Oslo: The only way is up for the LNG shipping sector. That’s the view of the ceo of Norway’s Awilco LNG, Jon Skule Storheill, who admits current trading conditions could barely be worse.
“The LNG shipping market is currently at a very weak point due to a prolonged period with reduced LNG production and several newbuildings delivered since 2013,” Storheill says. Nevertheless, with several new liquefaction plants having just started and expected to start operations later this year the future, according to the Norwegian executive, is looking much brighter for 2015. Moreover, by the end of the year or early 2016 the first US export facility will commence operations further increasing demand for LNG vessels.
In the medium term, prospects look even better, Storheill says. There are LNG production facilities under construction with capacity to increase LNG transportation by 50% with startup planned over the next three to four years.
“There is no question that with all this new product on the water there will be many opportunities for LNG shipping companies,” says the shipping veteran.
With this in mind Storheill is keeping an eye out for more tonnage to go alongside the five ships in his fleet. The company was founded by Norway’s Awilco in 2011.
“We are constantly considering to expand and will do so when the right time is here,” Storheill says.
Prior to his appointment as ceo of Awilco LNG, Storheill was managing director of Awilco, director of S&P/Projects with Frontline Management and director/partner of shipbroking company P.F. Bassøe. Storheill has also been the chairman of the board of Wilhelmsen Marine Services.
