Wartsila executive Roger Holm believes long lead-in times for new LNG vessels will bring ordering levels down from their 2022 peak.
The Finnish ship technology group called last year’s gas ship contracting “extraordinary”, driven by capacity extensions in Qatar and other supply projects making progress in places such as the US.
Holm, president of the marine power division, tallied 178 new LNG carrier orders last year.
“The challenge is that the delivery times are so long, so that will have an impact,” he told TradeWinds.
Vessels being ordered now will not be handed over until 2026 or 2027, he said.
“It’s not necessarily the delivery times the customers are expecting. I don’t think going forward we will see that [2022] level.”
But he does expect the LNG market in general to develop favourably.
The executive is also overseeing rapid changes in fuel choices.
In December, Wartsila landed a hybrid propulsion system order for four heavylift vessels being built by Germany’s SAL Heavy Lift in China.
Flexible system
Holm called this a “prime example” of where the world is moving.
The engines are capable of running on green methanol but the hybrid design also features battery power.
“The flexibility it creates for an owner that intends to own the vessel long-term is very high. These are the things we will see much more in the future,” he said.
Wartsila will reveal its ammonia engine solutions this year, he said, with products released to the market soon afterwards.
“I am not concerned about the capabilities to use engines running on ammonia or methanol, but acceleration of green fuel availability needs to happen very, very fast so we get an uptake in the market.”
