Although it is a record year for LNG tanker delivery, the needs for gas are skyrocketing. There is a shortage short term and a strong momentum for demand for the next decade at least as China and Southeast Asia will convert more and more power stations from coal to gas.
In the meantime, Gas production near where the demand is suffers huge disruption forcing more cargoes to travel much longer journeys. The ton mile equation is soaring, and we are just at the end of summer. If winter is cold, it should be a very good vintage for LNG tankers with day rates going from $100,000
A day nowadays to over $200,000 a day by December. We should enjoy a further rally and FLEX LNG with the best fleet will benefit a lot. The LNG market should add from 70 MMtpa to 160 MMtpa by 2025 in production as demand grows from 200 million tons per year to 600 by 2030. This will require more tanks, more Lng Tankers … GTT ( Gas Transport and Technology) which has a monopoly on separation membranes for LNG tanks will most likely benefit a lot.
Q4 is going to be the Acid test for oil and product tankers. Rates are starting to go up and with oil inventories close to the 5Y lows, we are on the camp that sees a rally for tanker equities this winter.