LNG newbuilding orders for first nine months top total in 2020

Shipbuilders have racked up at least 60 orders for LNG carriers in the first nine months of this year, topping the total of 53 for 2020.

First-half LNG newbuilding orders surprise as options trickle in

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In the last quarter — from the start of July until the end of September — at least 30 LNG newbuildings were confirmed.

All of the ships ordered were contracted against term business or project use, with some being options that were firmed up and others resulting from earlier slot reservations by charterers.

Price push

Rising yard prices and vanishing berth spaces have helped push contracting parties to firm up newbuildings, brokers said.

The year opened with LNG carriers being contracted at prices of between $183m and $184m apiece but quickly rose into the $190m range by mid-year. The most recent orders, which were for pre-reserved berth slots, were concluded at just over $200m.

Shipyards have been quoting prices in excess of $210m and delivery slots in 2024 and beyond are likely to seem some way out for those looking to book a vessel.

The price hike has prompted one company to take a step back, with Adnoc Logistics & Services postponing its LNG shipping tender until 2022.

Sovcomflot and NYK ink order for up to six LNG carriers for Novatek

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Of the 30 LNG orders confirmed in the past three months, independent owner Celsius Shipping was the most active, confirming six vessels at Samsung Heavy Industries during July and August.

This figure was only matched by Russian shipowner Sovcomflot (SCF Group), which booked two LNG carriers against charters with French energy major TotalEnergies, and a quartet in partnership with Japan's NYK Line for Novatek business.

Shell continued to expand its chartered fleet, signing up three shipowners — Knutsen OAS Shipping, Pan Ocean and JP Morgan interests — to two vessels each, bringing the major's total for on-order LNG newbuildings to 24 ships.

Unlike the first six months of this year, when at least eight LNG bunker vessels were ordered, just one was contracted in the third quarter. However, it was something of a groundbreaking unit in that it looks set to become the largest Jones Act vessel of its kind when it goes into operation in 2024.

More to come

Four more LNG orders have been inked in October with others expected during the final three months of 2021.

Qatar Petroleum orders four LNG carriers at Hudong-Zhonghua in deal worth in excess of $769m

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Newbuilding watchers said companies including Celsius, South Korean steel maker Posco, Poland's importer Polskie Gor­n­ic­two Naftowe i Gazownictwo (PGNiG), Chinese shipping interests and possibly some independent Greek owners may still come to the table with orders.

Industry players are also watching to see how many of its reserved berths Qatar Petroleum opts to firm up at South Korea's big three shipyards this year, after confirming four slots in China.

A lingering question mark also hangs over the 17 LNG carrier berths for the vessels agreed with four shipowners at two South Korean yards that were pencilled in to serve the TotalEnergies-led Mozambique LNG project, which is currently on hold.