LNG Ship Glut Foreseen

The liquefied natural gas market may have a ship surplus in 2014 and 2015 as new vessels launch faster than production plants complete.

There are 78 ships on order, amounting to 21 percent of the existing fleet, the Hamilton, Bermuda-based Hoegh LNG AS, owner of seven carriers, informs in its quarterly report as reported by Bloomberg Business News.

While annual world output of the fuel, known as liquefaction, will be 330 million metric tons in 2017, from 242 million tons in 2011, some of the new ships will arrive before production expands, Hoegh's report stated.

Source: Bloomberg