LNG carrier newbuilding orders have spiked to the highest level since the global financial crisis with this year seeing the most ships contracted since 2004, Stifel says.
Following GasLog’s double order at Samsung Heavy Industries analyst Ben Nolan says 65 large LNG carriers have been inked in 2018.
The figure is well clear of the 52 ships placed in the past three years combined, Nolan said in a report today.
“Although we believe the long-term growth of LNG shipments is solidly upward sloping, we expect there could be a period of limited cargo growth between 2021 and 2023 as a result of a lack of export terminal start ups,” he said.
GasLog chief executive Paul Wogan has himself raised over ordering concerns.
At a Nordea event in London in December Mark Kremin, chief executive of Teekay LNG, also urged owners to show restraint in contracting new tonnage.
"Shipowners are like miners," he said. “Once they find a little bit of gold they dig a big hole."
Nolan said three projects saw final investment decisions taken in 2018, creating a combined demand for around 29 new vessels.
“Consequently, we expect the LNG carrier market could move into oversupply and ultimately be as much as 30 ships oversupplied until more new projects start up.
"Every new ship - including these two - adds to the problem,” he reasoned.
