LNG Transportation Technologies And Perspectives

LNG ships carrying capacity increased, over time, first from the original 125,000 m3. A further increase in vessels size to 135,000 m3 and then to 145,000 m3 materialized recently, resulting in reduced LNG transportation costs and overall landed cost. The paper explores economies of scale and cost implications of these larger LNG carriers, through an analysis of fixed and variable operating costs of new ships. Ship propulsion type, size, fuel costs, travelling distance and trading volumes are all important factors influencing the choices available today for a new carrier. In fact, capacity and transportation cost reduction can both affect new LNG ships size and transportion routes. The study provides an overview of the LNG vessels market, analyzing order book and delivery schedule for new ships. It also tries to assess how carrying capacity growth can reduce time charter rates in the future. Size growth goes together with significant changes in the way LNG ships are propelled, with a current preference to shift from steam turbine propulsion to duel-fuel engines. Finally, the work looks at how, in the future, growing LNG vessel capacity and new technologies could help develop a natural gas spot market