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LNG newbuilding values at record high

The number of LNG newbuilding orders has more than doubled from the same period last year when 34 orders were placed, compared to 78 in the first five months of 2024, an increase of about 129 per cent.

Newbuilding prices for the Large LNG sector of 174,000 CBM are currently at an all-time high of USD269 million, up by over six per cent.

Values for LNG vessels have increased across all sub sectors and age categories since the start of the year, with 20YO Large LNG vessels of 140,000 CBM up by around USD 10 million from USD 62.85 million to USD 72.40 million, equating to a 15 per cent increase since 1 January 2024 .

At the moment, the orderbook for the Large LNG sector specifically, stands at 64 per cent in comparison to the live fleet.

The majority of orders placed so far this year are in the Large LNG sector, representing 74 per cent, followed by QMAX with 23 per cent.

Historically, the only other orders taken for the QMAX sector were in the 2000s, indicating that the recent orders could be part of a fleet renewal programme.

Qatar has lead orders in 2024 with a share of 44 per cent, the UAE represents 13 per cent and in third place, China with nine per cent.

Earnings are currently stable but at low levels, which is usual for the time of year. Although LNG spot rates are up by 12 per cent month-on-month. Year on year earnings are down slightly by one per cent.

However, positive sentiment for this sector stemming from geopolitical uncertainties and an increased amount of LNG being delivered to EU ports to replace the Russian Gas formerly shipped by pipeline, in combination with a push towards newer, greener vessels, have ensured that newbuilding demand for the LNG sector has remained firm.

Notable new orders include ten Large LNG vessels of 174,000 CBM by ADNOC scheduled to be built at Samsung and Hanwha Ocean and set to be delivered in 2028.

Ships Montly - January 2024

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