78 newbuild orders placed in 2024, doubling LNG orders of 2023

Posted by dynasty

THE number of LNG newbuilding orders have more than doubled from the same period last year where 34 orders were placed, compared to 78 in the first five months of 2024, an increase of 129 per cent, according to Boston-based maritime software consultancy Veson Nautical.

Newbuilding prices for the Large LNG sector of 174,000 CBM are currently at an all-time high of US$269 million, up 6.1 per cent, said Veson Nautical analyst Rebecca Galanopoulos Jones.

“At the moment, the orderbook for the Large LNG sector specifically, stands at 64 per cent in comparison to the live fleet, it said. The majority of orders placed so far this year are in the Large LNG sector, representing 74 per cent, followed by QMAX with c.23 per cent,” said Ms Galanopoulos Jones.

Historically, the only other orders taken for the QMAX sector were in the 2000’s, 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 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.