Oslo: There’s a risk of overcapacity in the liquefied natural gas shipping scene in the coming couple of years, says one of the world’s top LNG owners in Maritime CEO’s regular Friday shipowner slot.
Sveinung J.S. Støhle, president and ceo of Höegh LNG, tells Maritime CEO: “Since many of the new carriers will be delivered before the new LNG production comes on stream, we expect that there will be a period of oversupply of LNG transportation capacity from 2013 to 2015, so in that sense some of the vessels are delivered too early.” About 100 new LNG carriers have been ordered for delivery in the period from 2013 to 2016.
Höegh LNG currently owns and operates two floating storage and regasification units (FSRUs) and six LNG carriers. The company has four additional FSRUs on order for delivery in 2014 and 2015 from South Korea.
Expect to see Höegh LNG continue to lead in the floating gas infrastructure sector.
“Our plan,” says Støhle, “is to continue growing our FSRU business, which provide floating LNG import terminals, as well as expanding our LNG carrier portfolio and to own and operate floating liquefaction facilities (FLNG) if attractive long-term contracts and financing is obtained.”
A big game changer for Støhle is fracking. US shale gas has changed the global energy landscape, transforming North America from a net importer of natural gas to becoming one of the leading LNG exporters in the future.
“While the trade flows are changing, the need for FSRU infrastructure and transportation services will continue to increase,” notes Støhle. “The growth of shale gas production in the US and other places will lead to more LNG exports, which again will lead to increased demand for Höegh LNG's services, thus fracking is good for our growth potential.” [16/08/13]
NEED TO KNOW: Höegh LNG
Norway’s Höegh LNG is a pioneer in LNG transportation with 40 years of experience dating back to the delivery of Norman Lady in 1973. Currently owns and operates two floating storage and regasification units (FSRUs) and six LNG carriers. The company has four additional FSRUs on order for delivery in 2014 and 2015.