Liquified Natural Gas (LNG) Tankers Rise in Price
Liquified natural gas (LNG) tankers are the most expensive ships in the world – and prices are rising due to limited competition from inferior Chinese ship builders and rising worldwide demand for LNG, particularly in Asia.
The average price for a 160,000 m3 ship is $200 million – the same price as in 2010 before the current global recession. The vessels are primarily made by Samsung Heavy Industries, and Deawoo Shipbuilding, the 2 South Korean construction giants.
However the prices are now expected to drop a bit as the Chinese government is financing orders from local ship builders instead of the Koreans. International firms are much more hesitant to order from the Chinese due to the high level of complexity and sophistication from these LNG tankers. All 14 orders in 2012 were to Korean firms, but there is estimated to be 140 new orders for LNG tankers in the next 5 years, so competition is heating up. The Japanese also have several capable ship yards accepting LNG tanker orders.
Liquified natural gas (LNG) is natural gas that is cooled to -160 degrees Celsius which converts to gas to a liquid. As a liquid, it is much more dense and therefore more efficient to transport. As worldwide demand grows for natural gas, LNG is becoming more popular as a transport method.
