A 21-year-old steam turbine-driven LNG carrier is being offered for sale, with the number of older-generation vessels entering the market in this sector expected to double by the year’s end.
Brokers said BW LNG’s 138,059-cbm BW Boston (built 2003) is up for sale.
BW LNG has been weeding out its older tonnage as it takes delivery of two-stroke LNG newbuildings.
This month, the company announced that it was converting one of its steamships into a floating storage unit for use in Jordan.
BW LNG has not named the vessel and TradeWinds understands the company could also opt to select the BW Boston for the project if it chooses to convert it rather than sell the ship.
BW LNG has also sold off LNG steam tonnage. Brokers pointed to the sale of the vessel’s sister ship, which was sold in May 2023 for $46m as the BW Everett to Taiwan’s Eddie Steamship.
The ship was later sold by the Taiwanese party and has since resurfaced in Russia’s shadow fleet, now trading as the 138,000-cbm Everest Energy (ex-Metagas Everett) and sanctioned by the US.
Brokers said at least 15 steam turbine LNG carriers are now up for sale — from more than 200 that remain in the global trading fleet of around 710 ships.
But one said he expects this number to double to nearer 30 by year-end when looking at the number of ships due to be redelivered from long-term charters.
Others put the figure higher than 30.
TradeWinds has been reporting on some of these vessels as they have emerged throughout the year.
They include Adnoc Logistics & Services’ 137,500-cbm, Moss-type vessel Ghasha (built 1995)
NYK circulated its 149,700-cbm steamer Grace Cosmos (built 2008) for sale mid-year.
Sinokor’s laid-up LNG tonnage is often quoted for sale. The company is sitting on several elderly vessels, which it has yet to trade.
Capital Gas is also believed to be open to buyers on its remaining secondhand purchase, according to some brokers.
In May, the company sold its 137,231-cbm steamship Trader IV (built 2002) for $40m. The vessel is now trading as the Asya Energy under interests linked to Russia and has been sanctioned by the US.
In the past few months, brokers have drawn attention to new or unknown buyers prepared to pay high prices for elderly LNG steamships.
Other steam turbine LNG vessels are expected in the market. Among these are at least five steamships controlled by South Korean interests.
They were ordered in the mid to late 1990s against long-term charters from domestic state-run gas buyer Kogas. They are anticipated to come up for sale early next year.
The LNG steamship story is finally starting to play out after several years when the vessels were expected to exit the market but traded on.
However, as emissions regulations tighten, the ships are being redelivered from long-term business and charterers said they will prove difficult, if not impossible, to fix for global trading.
They also rank as small and inefficient when compared to modern two-stroke LNG carrier newbuildings that are set to deliver in record numbers over the next two years.
There are opportunities to utilise some tonnage for conversions into floating LNG production, regasification or storage projects. Interest in these older vessels is said to have picked up among developers.
But brokers said the number of steamers potentially looking for new homes could also put downward pressure on secondhand prices.
