Simpson Spence Young is predicting that the industry’s increasing acceptance of LNG as a viable alternative to traditional fuel means ‘the number of LNG dual-fuelled tankers will soon overtake LNG-ready vessels’.
In an article published in its latest monthly shipping review, SSY said: ‘As confidence in LNG as a bunker fuel has grown alongside improved vessel refuelling infrastructure and accessibility, more shipowners have in the last two years committed to LNG dual-fuelled ships rather than LNG-ready vessels.’
SSY continued: ‘Currently, there are about 43 LNG-ready and 30 LNG dual-fuelled tankers in the existing tanker fleet. But with 55 LNG dual-fuel tankers currently on order and none contracted as LNG-ready status, the number of LNG dual-fuelled tankers will soon overtake LNG ready vessels.’
SSY noted that there has been a shift in terms of demand, as: ‘While European shipowners have traditionally been on the forefront of LNG-capable shipping, Asia is currently the top contracting region.’
Asia is also the region where most of the LNG-powered ships are being built. ‘In DWT terms,’ said SSY, ‘South Korean yards have received 53% of the LNG dual-fuelled orders so far this year (about 845K DWT comprising 2 VLCCs and 2 Suezmaxes), retaining the top spot from last year. But this was down from a market share of about 75% in 2019, as Chinese shipyards eroded South Korea’s lead.’