Global LNG tanker market is gaining momentum despite ambiguity surrounding the war against Iran
Kyiv • UNN
Global orders for LNG tankers are set to recover thanks to rising gas production in the US. A record number of vessels are expected to be delivered this year.
Global orders for LNG carrier construction are expected to recover this year after a 2025 slump, as rising LNG production and improved vessel fuel efficiency drive demand, according to industry executives and analysts, Reuters reports, according to UNN.
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The growth in orders offsets fears that supply disruptions due to the US-Iran war could reduce short-term demand for maritime transport and put pressure on freight rates.
According to consulting firms Poten & Partners and Drewry, shipbuilders in South Korea and China have received more orders since late last year: 35 contracts for new LNG carrier construction were signed in the first quarter.
For comparison, 37 LNG carriers were ordered in 2025, while a record 171 orders were recorded in 2022. Each tanker costs $250-260 million, and construction takes over three years.
Future LNG production in the US, Africa, Canada, and Argentina will drive demand for tankers, as well as increased fuel efficiency and accelerated vessel scrapping, said Pratiksha Negi, Drewry's lead LNG shipping analyst, noting that a phased decommissioning of steam turbine tankers and diesel-electric vessels is expected.
The global LNG carrier fleet numbers over 700 vessels, handling more than 400 million tons of LNG per year.
Last year, about 72 million tons per year of new LNG production capacity was approved worldwide, and over 120 million tons of LNG from the US will enter the market in the next 3-4 years, said Fraser Carson, principal global LNG analyst at Wood Mackenzie.
According to him, the growth in US LNG supply volumes and flexible supply terms are creating trade patterns that require increased maritime transport volumes.
US LNG is typically sold on FOB (free on board) terms with flexible destination options, allowing for mid-voyage diversions, which can lead to longer vessel tie-ups.
Japan's Mitsui O.S.K. Lines, the world's largest owner of a gas carrier fleet (107 vessels), expects investments in US LNG supplies to stimulate tanker orders, said CEO Jotaro Tamura. The company plans to increase its LNG carrier fleet to approximately 150 vessels by 2035.
However, the war with Iran is creating conflicting signals for shipping. Supply disruptions are pushing Asian LNG buyers toward alternative sources, such as supplies from the Atlantic Basin, increasing distances for vessels. This could also increase demand for LNG projects in other regions, raising overall demand for more tankers, Wood Mackenzie's Carson said.
On the other hand, however, the war has also disrupted LNG supplies through the Strait of Hormuz and knocked out 12.8 million tons per year of Qatari capacity for three to five years, which could limit demand for maritime transport and put pressure on freight rates at a time when an "avalanche" of vessel supply is already looming, he said.
Qatar, which operates over 100 LNG carriers, will add 70-80 new vessels over the next 3-4 years, while the UAE's ADNOC is expected to double its fleet to 18 vessels within 36 months, Carson said.
"Most of these new vessels were intended to serve LNG projects under construction that are now facing delays," he said.
"The longer these delays persist, the higher the likelihood that these vessels will be offered to the market on sub-charter terms, which will significantly lower rates," he noted.
Poten & Partners and Drewry expect a record number of LNG carriers to be delivered this year—90-100, compared to 79 in 2025.
However, Drewry's Negi stated that seven of the nine LNG carriers originally scheduled for delivery this year and now pushed back to 2027-2028 are linked to QatarEnergy.
Irving Yeo, senior LNG analyst at Poten & Partners, said some companies might delay placing large orders for new vessel construction due to uncertainty caused by the war.