Two thirds of the LNG orders placed this year have been speculative, according to Norwegian owner Awilco LNG, in a sign of the changing scene in this historically conservative sector.
A total of 42 newbuilding orders have been placed year to date of which about 27 are assumed speculative, Awilco LNG stated in its latest quarterly report.
Historically the LNG sector had a very small spot market, with the hugely expensive newbuilds tending to be ordered with long term contracts already secured. However, with the entrance of many new players in recent years the ratio of long term versus spot has changed considerably in the LNG trades.
The current orderbook for LNG vessels above 100,000 cu m – excluding FSRUs and FLNGs – is 93 vessels, of which 37 are potentially available for contract, Awilco LNG stated.
“Although the orderbook represents almost 20% of the fleet, market analysts expect the 91 MTPA of new LNG production scheduled to start up from 2018 to 2021 to require more vessels than the current available tonnage and orderbook during periods of high ton-mile demand,” the Norwegian owner stated yesterday.