Global LNG trade: The impact of oil tankers on the economy and energy

Liquefied natural gas (LNG) transport plays a key role in the global energy market. With gas companies, countries around the world can use a cleaner source of energy than oil and coal, which is natural gas, regardless of the distance and the gas infrastructure.

Countries with a LNG tanker fleet

Qatar is one of the largest LNG exporters in the world. This country has a large fleet of modern LNG tankers, whose main operator is Qatastas. These ships regularly transport LNG to Europe, Asia and North America and make Qatar the leader in the global LNG trade.

Australia also plays a key role in the LNG market, having an impressive methane fleet. Australian companies, such as Woodside Petroleum and Santos, manage LNG transport ships mainly to Asian countries such as Japan, South Korea and China.

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Thanks to the shale revolution, the United States has become one of the leading natural gas producers. The U.S. ports, in Texas and Louisiana, from which exports take place, are key points of shipping LNG worldwide. The US LNG tanker fleet is constantly being developed to meet the growing demand of the global market.

Japan, although not a natural gas producer, has one of the largest LNG tankers fleets. The country is the largest LNG importer in the world and Japanese companies such as Mitsui O.S.K. Lines, are leading cryogenic ship operators that supply LNG from Qatar, Australia, the United States and other countries.

China, as the largest energy consumer in the world, is intensively developing its LNG tanker fleet. State-owned companies, such as China National Offshore Oil Corporation (CNOOC), invest in new units to meet growing demand for cleaner energy.

Economics of LNG tankers

Building a modern LNG tanker is an expensive undertaking. The price of building one ship can range from $200 to $300 million, depending on its capacity and technological advancement. The largest LNG ships can carry up to 266,000 cubic metres of liquefied natural gas.

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The LNG tanker charter also has high costs. The average daily charter rate of such a ship can range from 60 to 100 thousand US dollars, depending on market conditions, route and availability of units.

Despite high construction and charter costs, LNG transport is cost-effective. For example, transporting one cubic metre of LNG from Qatar to Japan can bring a net profit of several dollars, which, at full load, can generate a profit of several million dollars. Furthermore, the growing demand for cleaner energy makes the prospects for the LNG market very promising. This translates into long-term profits for operators of these units.

Importance of LNG vessels

Thanks to advanced technology used in these ships, natural gas can be transported safely and efficiently. They contribute in a way to reducing carbon dioxide emissions and protecting the environment. They also allow countries around the world to benefit from cleaner and more sustainable energy sources.

Written by Marcin Szywala