Up to five steam turbine-driven LNG carriers controlled by South Korea’s SK Shipping are being floated for sale as they near the end of their long-term charters.
Brokers said SK Shipping has started by inviting offers on the 138,306-cbm SK Sunrise (built 2003) held in a joint venture with Japan’s Iino Kaiun.
But others also name four South Korean-built sister ships — the 138,000-cbm SK Summit (built 1999), SK Supreme, SK Splendour and SK Stella (all built 2000) — as potentially up for sale.
They said domestic charterer Kogas is set to start redelivering the ships from their long-term contracts as they start to expire at the end of this year.
TradeWinds has contacted SK Shipping for comment.
SK Shipping and other South Korean owners contracted a raft of LNG carrier newbuildings in the 1990s to serve Kogas’ requirements.
But the state-controlled importer, long expected to re-enter the market for replacement tonnage, has reportedly decided not to renew the charter contracts.
Brokers said the vessels are coming up for scheduled special surveys and dry-dockings.
Several pointed to a growing mass of steam turbine LNG tonnage due to come off long-term charters towards the end of this year and into 2025, with the expectation that the number of these ships being offered for sale will start to rack up.
They point to owners such as BW LNG, which has eight 138,000-cbm steam ships.
Last month, the shipowner was seen offering one vessel — the 138,059-cbm BW Boston (built 2003) — for sale and announcing a conversion project for another to a floating storage unit.
But brokers said the number of opportunities for conversions is limited as are interested secondhand buyers.
Owners and brokers have also become more concerned about compliance issues after Russian-related buyers picked up at least nine LNG carriers for trading — four of which were elderly vessels.
“If you can’t sell to Russians, no one else is buying [secondhand LNG] ships,” one said.
But it has emerged that one owner has found a buyer.
Brokers reported that NYK had sold its large LNG steamship, the 149,700-cbm Grace Cosmos (built in 2008), to Chinese buyers.
The South Korean-built, membrane-type vessel that passed its last special survey in March 2023 is said to have fetched a price in the mid-$50m range.
Sino Commerce Offshore is the name being mentioned as the purchaser of the vessel.
The ship is among the larger-capacity, more modern LNG steamships, and brokers said other 138,000-cbm over 20 years old, which have not been acquired by Russian-linked interests, have sold for between $30m and $40m each.
Elsewhere, fresh offers have been invited on the Adnoc Logistics & Services LNG steamship, the 137,500-cbm Ghasha (built 1995).
Bids are due at the end of this week on the Moss-type vessel, which is being offered on a charter-free basis in Fujairah.
The vessel was originally pushed out for sale around the middle of this year.
