Page 55: of Maritime Reporter Magazine (March 2018)

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Statistics & Analysis Courtesy of VesselsValue.com

GasGas

US Propane Exports

There is a tale of two markets for gas set some demand for LPG. Domestic and carriers. LNG rates have surprised to the transportation uses for LPG have been upside as global demand for natural gas increasing at a far more gradual rate. has increased. China’s shift away from The combination of low freight rates coal is heavily polluted regions has led to and rising production/exports from the hunger for natural gas imports, leading to US again will encourage a market use higher spot market levels for LNG carri- for LPG, and in turn drive ton mile de- ers. The market has softened in the past mand higher. There has been market several weeks but remains much stronger chatter about using LPG as a bunkering than would have been expected a year ago. fuel, an idea that has gained limited trac-

LPG carriers haven’t seen the same tion so far but could be a practical solu- boost as the oversupply of large gas car- tion for some owners looking for 2020 riers has weighed on the market. Much of bunker fuel compliance alternatives. the incremental global demand for LPG Asset values are mostly negative from is coming from petrochemical plants in a year ago, but older and smaller semi-

Asia for plastics, and the growth has been refrigerated and pressurized ships have lower than expected. The ability to sub- seen a modest rebound. Asset prices stitute certain naphtha grades being pro- could be the bottom of the cycle as global duced from condensate splitters has off- trade patterns for these ships balance out.

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