The requirements for LNG shipping look set to grow as the global natural gas markets are being reshaped as more existing and emerging markets look at increasing imports of LNG.
With many countries looking to diversify energy dependency on Russian gas exports, Europe is looking to the US to increase its imports of LNG. Poland already imports its LNG from the US.
Germany is also looking to import from the US with the German chancellor offering support for a gas shipping terminal in the north of Germany.
Demand in China also looks set to increase dramatically as it switches from coal to gas for its energy generation.
Japan is also importing LNG from Australia with its new Naoetsu import terminal opening
All the above has resulted in spot rates for LNG shipping more than doubling since August due to the rising demand. This increase is also having an effect on contract lengths as suppliers look to lock in carries so they can keep up with demand.
Shell as also warned in its second annual LNG outlook that markets could face a shortage of LNG by the mid 2020’s if more investment is not made in new projects.