LNG faces growing shipping constraints
New regulations are likely to restrict an already limited pool of vessels capable of transporting gas
LNG carriers are set to remain in short supply this year, as an already tight market for the vessels narrows further due to new emission reduction regulations introduced by the International Maritime Organization (IMO). Recent years have seen sustained underinvestment in new LNG carriers, a situation that has been exacerbated by Europe turning to gas via ship to replace Russian pipeline supplies following the invasion of Ukraine. The structural shortfall will be worsened by new CO₂ emissions requirements for shipping that took effect at the start of this year. These will restrict sailing speeds for vessels that use steam turbine and dual- or tri-fuel diesel-electric engines due to their high

Also in this section
30 November 2023
The region’s rapidly evolving infrastructure has a lot to be commended for, but some of the capacity may not be ready in time for the 2024 heating season
30 November 2023
Burgeoning middle class and long-term growth from a low base at odds with energy transition efforts
28 November 2023
Countries such as Pakistan will require fossil fuels for a long time to come, requiring a reframing of the narrative around the energy transition
28 November 2023
Rising LNG demand and supply risks are outpacing shipping logistics amid Panama and newbuild challenges