GTT CEO: LNG carrier replacement market poised for significant growth

to more efficient and environmentally compliant vessels,” he said.

“However, the current LNGC spot market combined with the high workload of shipyards may be a challenge for the replacement market to significantly grow in the short term,” he said.

“Finally, while many aging LNGCs will require replacement, the decision to scrap or convert them—such as into floating storage and regasification units (FSRUs)—will depend on vessel-specific conditions and market opportunities,” Choimet added.

One example of owners getting rid of steam vessels is a recent move by SK Shipping to sell four steam LNG carriers for scrap.

Choimet had just returned from Asia, where he visited South Korean and Chinese shipyards.

He recently said GTT expects shipyard slots for LNG carriers to increase to about 85 per year by early 2026, mainly due to ramping up of capacity at Chinese shipyards.

“Back in 2020, we estimated the capacity to be around 55 slots compared to approximately 70 slots today. We anticipate this rising to around 85 slots by early 2026, mainly due to the ramping up of Chinese shipyards,” he said during GTT’s third-quarter earnings call.

Chomiet said that GTT believes that the number of slots could keep rising.

The number of slots could increase by “10 to 15 slots” in 2028 compared to 2026.

LNG carrier orders

GTT booked orders for 68 LNG carriers in January-September of this year.

The company received orders for 73 LNG carriers last year, down from record 162 orders for LNG carriers in 2022 and higher than 68 orders in 2021.

Many of these orders are related to QatarEnergy’s massive shipbuilding program.

Including QC-Max LNG carriers, QatarEnergy’s shipbuilding program entails the construction of 128 vessels.

As of September 30, 2024, GTT’s order book, excluding LNG as fuel, stood at 350 units.

This includes 325 LNG carriers, 16 ethane carriers, two FSRUs, two FLNGs, and five onshore storage tanks.

The order book for LNG fuel stood at 61 units, all containerships.