LNG newbuilding orders poised for rebound after slow first half of the year

Eight LNG newbuilding orders were concluded in the first half of this year — a big turnaround on the 30 vessels recorded in the same period of 2019.

Newbuilding outlook darkens as pandemic clobbers demand

Read more

But the figure for the first six months of this year could almost triple in the second half of 2020, if projected orders are inked.

Of the eight units contracted in the first half, only three — PetroChina and Cosco Shipping Energy Transportation (CSET) joint venture's 174,000-cbm vessels — were conventional LNG carriers.

The other five were distinctive units for specific trades and project business.

Two were rarely-ordered medmax-size vessels of 79,960 cbm contracted by K Line against charters with Petronas, while another was a supersize floating storage and regasification unit ordered by Mitsui OSK Lines for Uniper’s long-planned Wilhelmshaven LNG import project.

LNG orders may save the day for South Korean shipbuilders

Read more

The other pair were for a class of vessel not seen before.

GTLK, Russia’s state leading transport company, ordered two 360,000-cbm LNG floating storage units, which will be located on the Northern Sea Route as Russia looks to boost its Arctic LNG exports.

Just two shipyards — Hudong-Zhonghua Shipbuilding Group of China and South Korea’s Daewoo Shipbuilding & Marine Engineering — bagged the eight contracts.

In contrast, TradeWinds recorded that eight LNG carriers were inked in the second quarter of 2019 alone, with independent owners and investors placing all of the orders on an apparently speculative basis.

The trend towards project business looks set to continue in the second half of this year, with contracts for a further 23 vessels being finalised.

DSME primed to land up to 12 LNG newbuildings for Novatek

Read more

Up to 17 vessels are set to be inked by four independent owners at Hyundai Heavy Industries and Samsung Heavy Industries against term contracts with the Total-led Mozambique LNG project.

At least six more LNG carriers are due to be signed at DSME for Russia’s Novatek, while the battle continues for a similar number of optional ships.

While Qatar Petroleum’s senior officials said the first LNG berths would be firmed up later this year following its huge slot reservation deals in China and South Korea, newbuilding players appear to think contracts are likely to slip into 2021.