LNG Carrier Orders Set to Rebound Amidst Growing Demand and Geopolitical Uncertainty
Translated from English, summarized and contextualized by DistantNews.
TLDR
- Global orders for liquefied natural gas carriers (LNGC) are expected to rebound this year after a slump in 2025, driven by increased LNG output and demand for fuel-efficient vessels.
- Shipbuilders in South Korea and China have seen a rise in LNGC contracts, with 35 new builds ordered in Q1, compared to 37 for all of 2025.
- The Iran war creates conflicting signals, potentially increasing shipping distances and demand for carriers, while also disrupting key transit routes.
Asharq Al-Awsat reports on a significant rebound expected in the global liquefied natural gas carrier (LNGC) market. After a subdued 2025, industry executives and analysts anticipate a surge in new vessel orders, fueled by burgeoning LNG production and a growing emphasis on fuel efficiency.
The rise in orders is offsetting concerns that supply disruptions from the US-Iran war may reduce near-term shipping demand and pressure freight rates.
The article highlights the robust order book, with South Korean and Chinese shipyards securing 35 new LNGC contracts in the first quarter alone, a figure nearing the total for the entirety of 2025. This demand is further bolstered by upcoming LNG projects in the US, Africa, Canada, and Argentina, alongside a push to phase out older, less efficient vessels.
Drewry's lead analyst, Pratiksha Negi, points to the increasing global LNGC fleet size and the substantial new LNG capacity approved last year as key drivers. Wood Mackenzie's Fraser Carson emphasizes how the growth of flexible US LNG supply creates complex trading patterns that necessitate more shipping capacity.
Upcoming LNG production in the US, Africa, Canada and Argentina will generate tanker demand, along with a push towards fuel efficiency and accelerated vessel demolitions
However, the report also addresses the complicating factor of the Iran war. While disruptions may push Asian buyers towards alternative, longer-haul routes, potentially increasing demand for carriers, the war also poses risks to critical transit points like the Strait of Hormuz. This creates a complex and uncertain outlook for the shipping sector.
The growth of US LNG and flexible LNG supply creates trading patterns that require more shipping
From the perspective of Asharq Al-Awsat, this story is crucial as it touches upon global energy dynamics, geopolitical influences, and the maritime industry's response. The anticipated boom in LNGC orders signifies a robust global appetite for natural gas, while the impact of the Iran conflict underscores the interconnectedness of geopolitics and energy security. The article provides a nuanced view, balancing market optimism with the realities of international conflict.
The company plans to grow its LNGC fleet to approximately 150 vessels by around 2035.
DistantNews Editorial
Originally published by Asharq Al-Awsat in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.
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