Advantages to Korea with LNG carrier strengths
This year, as the price of liquefied natural gas (LNG) soared in the aftermath of the cold wave and the like, the charter fee for LNG carriers is also struggling high.
In addition, if eco-friendly policies such as decarbonization are accelerated, the demand for new LNG carriers will increase significantly, leading to a prospect that the Korean shipbuilding industry will benefit.
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According to OilPrice.com, a media specialized in energy on the 19th, the price of LNG in the Korean and Japanese spot markets recorded 19.70 dollars per million BTU (calorie unit) on the 12th, the highest in six years.
Considering the drop to $2 at the end of April last year due to the aftermath of the novel coronavirus infection (Corona 19) and seasonal effects, it has soared nearly 10 times in eight months.
It is interpreted that the surge in heating demand due to the record cold in Asia has raised the price of LNG.
In particular, as demand from Japan, the world’s largest importer of LNG, surged, LNG prices in Asia increased by nearly 10 times compared to that of the United States, the largest natural gas exporter.
As LNG prices soar, charter rates for LNG carriers are also rising significantly.
Compared to the increasing demand for LNG, there are not enough LNG carriers to carry it.
According to Clarkson Research, a British shipbuilding and shipping market analysis company, on July 3 last year, the charter fee for a 160,000 CBM (㎥)-class LNG carrier spot (single-shot), which fell to $27,000 per day on July 3, was more than 7 times as high as 190,000 on the 8th. It rose to five thousand dollars.
In addition, the spot charter fees for some popular sections such as the United States and Japan, and the United States and Europe have soared to between 250,000 and 350,000 dollars.
Accordingly, foreign media such as Tradewinds reported that British Petroleum (BP) paid $350,000 per day to rent one LNG carrier on a round-trip route between the United States and Europe.
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The shipbuilding and shipping industries predicted that the demand for LNG carriers will continue to increase due to the launch of the US Biden administration and the acceleration of European decarbonization policies, which will benefit Korea.
LNG carriers, which must maintain the temperature below -163 degrees Celsius and minimize the amount of gas dissipated, are evaluated as Korea’s unrivaled technological prowess.
Clarkson Research also predicted that 51 large LNG carriers will be ordered annually from this year to 2025 at the Clarkson Postcast Club announced last year.
An industry official said, “Like the increase in demand for container ships as the container ship freight index rose due to the increase in cargo volume, the LNG carrier market is likely to fluctuate as the LNG price rises.”
/yunhap news
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