Page 37: of Maritime Reporter Magazine (June 2019)

world yearbook

BY COURT SMITH, SENIOR ANALYST, VESSELS VALUE

Infrastructure continues to expand, carriers has increased over the past the spectrum and pulling spot rates sition in US based LNG projects has and pricing incentives will continue several years. More than 60 countries upwards. ignited a new surge of interest in the to shift as the market matures. The have imported LNG cargoes in the Supply growth across the total gas future of LNG as a key part of the en-

LNG markets look like they may re- past quarter, and 14 of these countries markets has slowed, but recycling ergy mix going forward. semble the clean product tanker mar- imported no LNG in 2013, highlight- activity has been robust, particularly The market is evolving rapidly, as ket in several years, which is highly ing the growing ecosystem available given the rising sentiment for both are trade lanes the ships operate on. arbitrage driven. We look to see an for sellers. Of the 63 countries that LNG and LPG carriers. There are The rise in spot market activity will increased number of portfolio play- imported LNG, 38 have seen a growth many older vessels such as steam tur- move hand in hand with the com- ers working the spot market, which in the ton mile demand they drive bine LNG carriers that are at the end moditisation of the fuel. Day rates for will drive the commoditization of the when compared with 2013 Q1. of their already prolonged service life. large LNG carriers rose in early 2019 space and enable further demand. The LPG markets gained as well, The recent announcement that Saudi after demand in Europe ? lled the gap

The total ton-mile demand for LNG with ton-mile demand surging across Arabia will begin to take a sizable po- left by China after a warm winter.

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