LNG tanker fleet to triple by 2030

Increasing global demand for liquefied natural gas (LNG) will lead to a threefold rise in the number of tankers carrying the fuel by 2030, says a new Oxford Business Group report. Output could rise by as much as 14 per cent next year as ventures in Qatar and Indonesia start production.

International demand could rise from last year's 226 billion cubic metres (165 million tonnes) to 320bn cubic metres (233.6m tonnes) by 2010 and 790bn (576.7m tonnes) by 2030.

To help meet this demand the world's LNG tanker fleet would have to be increased from the existing 260 vessels, with a combined carrying capacity of 33m cubic metres, to about 700 ships (78m cubic metres) by 2030, says the report.

Twenty-five of the 112 LNG tankers either under construction or on the order books of shipyards around the world will fly the Qatar Gas Transport Company flag.

These include 14 of the new Q-Max class of LNG tankers, the largest afloat with the capacity of 266,000 cubic metres. The company plans to have 56 tankers in its fleet by 2010, making it one of the biggest LNG carriers in the world.

Global LNG trade rose 7.3 per cent to 165.3m tonnes last year, according to the BP Statistical Review of World Energy June 2008.

Egypt produced 5.2m tonnes in the first six months of 2008, compared with a potential 6.1m tonnes, to meet energy demand at home, while Nigeria supplied 8m tonnes, or about 72 per cent of its first-half capacity.

Abdullah Al Shuraim, Chairman of Gulf Navigation Holding, said: New LNG projects are starting up in Qatar, Indonesia, Yemen, Australia and Russia and all these will necessitate an increase in LNG tankers. Demand is increasing worldwide.

He said Qatar was stepping up its efforts to take advantage of the growing demand, expanding into new markets and strengthening its production, processing and shipping capacities.

The country has begun to ship LNG to the European market as well as continuing to supply its traditional export destinations in Asia.

Qatargas CEO Faisal al-Suwaidi said one factor driving the increasing demand for LNG was the growing concern over greenhouse gas emissions, especially in developing markets such as China and India. LNG would have to play a greater role in the two countries' energy mix if they are to meet their commitments under the Kyoto agreement.

Qatar announced plans last year to ramp up annual production to 77m tonnes by 2011 from the present output of 31m tonnes. To meet this target Qatargas has set up a new processing plant and storage tank complex which are due to come on line by the end of the year. Another new plant, with a capacity of 7.8m tonnes, is due to commence operations in 2009 near the main North Field site. The company has just taken delivery of a prefabricated loading berth at RasLaffan to speed up gas transfers.

Qatar's other LNG producer, RasGas, is also building up production, with output set to increase to 37m tonnes annually by 2009, up from the current 20.7m tonnes.

The company is constructing two new processing facilities with an annual capacity of 7.8m tonnes each, one of which is scheduled to commence operations this year and the other in 2009.