In an era of change, one of the dominant trends in today’s shipping industry is the growing importance of Liquefied Natural Gas (LNG) and its transportation from source to market. Not only is LNG playing an ever more influential role in the global energy industry and as a shipped and traded commodity, it has also emerged as an viable alternative fuel source for international shipping, prompting significant investment in LNG bunkering infrastructure and technological advances in LNG-powered vessels. But it is also placing new demands on providers of support services to the LNG shipping sectors, and highlighting the crucial role played by the ship agent in meeting the needs of LNG carriers.
CHANGE STIMULATING GROWTH
Long-term contracts continue to drive the market – they accounted for 69% of global LNG trade in 2014 – and they also advance the oil and natural gas production technology. Output continues to grow rapidly, with global demand for LNG expected to increase by more than 50% between now and 2030. These global energy market trends are set to transform the maritime industry, with major investments to be ploughed into new LNG terminals and huge projected growth in exports expected in the coming years. Many countries are now starting to build up their infrastructure in recognition of the new opportunities and a growing LNG market will generate. Trades that once seemed uneconomic have become attractive…
