Demand for New LNG Carriers Rises Amid Environmental Regulations

Hanwha Ocean announced on Jan. 21 through a disclosure that it won an order for two LNG carriers from a shipowner in the Oceania region for 738.3 billion won.

The company has won orders for a total of 5 vessels this year, including 3 very large crude carriers (VLCCs) and 2 LNG carriers, worth $890 million.

This appears to be a smooth start compared to winning an order for 1 VLCC in January last year.

The company explained, “While charter rates are showing weakness in the short term due to the recent impact of large-scale LNG carrier deliveries, considering the strengthening of environmental regulations and fuel efficiency requirements, demand for replacing aging vessels is expected to continue in the medium to long term,” adding, “Furthermore, with numerous LNG terminal development plans scheduled after 2028, particularly centered on the United States, demand for new LNG carrier construction is expected to continuously increase.”

The company stated, “We plan to maintain our selective order strategy focused on high value-added large vessels while flexibly responding to market volatility.”

Source: Businesskorea