“LPG Tanker Market spending will reach $9.7 billion by 2030”, says Visiongain
27 September 2019
Visiongain assesses that LPG Tanker Market spending will reach $9.7 billion by 2030. There are currently 235 tankers worldwide in operation for liquefied natural gas (LNG). The median capability of new LNG tankers is three billion cubic metres, saving about $260 million each. LNG tankers differ from traditional oil tankers because their liquefied natural gas cargo must be cooled to extremely low temperatures (-260 ° F) and has mildly distinct features than oil (including a greater burning propensity). Typically, LNG tankers use various distinct holdings or rooms-each holding up to LNG's 888,867 cubic feet. In traditional oil tankers, storage compartments typically hold only one-tenth as much.
The top three developments that give the worldwide LPG tanker industry a rise are: increased output of shale gas from previously untapped stocks, increased international gas trade, and ongoing use of LPG as a cooking fuel.
The volatility in crude oil prices has led to the extraction of shale gas and oil by the sector. Because of technological advances in fracking methods, this was feasible on a big scale. The quantity of shale gas shifting from the U.S. to nations in the Asia Pacific and North Africa areas is increasing not only because supply is increasing, but also because transport expenses have now fallen due to a drop in oil prices. However, the erratic behavior of crude oil prices has led to the prices of LPG becoming stronger, which has diluted demand to some degree. This factor could hurt the demand for LPG tankers.
Factors such as enhanced global gas trade, enhanced output of shale gas from untapped stocks, and ongoing use of LPG as a cooking fuel are boosting the development of the industry for LPG tankers. In addition, the volatility in crude oil prices has driven the industry towards oil and shale gas extraction. This was done on a big scale due to the technological changes in the methods of excavation. The quantity of shale gas transferred from the United States to other areas such as Asia-Pacific and North Africa has increased.
High supply for boiling LPG is further fueling this market's development. Due to the decline in oil prices, transportation costs have decreased and the market for LPG transportation is catching momentum as a result. The unexpected conduct of crude oil prices, however, has resulted in elevated LPG rates, hampering supply to some point.
Increasing the adoption of alternative, clean and low-carbon energy sources for generating electricity, has reduced the margins of oil and gas firms.
The changing energy mix, shifting market circumstances and technological inclusion forced conventional energy firms to change their attention to their operating strategies and restructure their oil and gas company segments. Such actions show that the industry for oil and gas is transitioning through joint ventures and acquisitions to company development. This is leading to market consolidation, which is enabling the oil and gas market to expand its reach a compete with other energy sources such as renewables, these mergers will also result in higher price power in a situation where freight rates are highly volatile. Therefore, this is expected to have a positive impact on the growth on the global LPG tankers market.
The Global Market For LPG Tankers Is Expected To See Strong Growth Over The Forecast Period Due To Increased Trade In LPGs Across Different Countries
The global market for LPG tankers is expected to see strong growth over the forecast period due to increased trade in LPGs across different countries. It is further anticipated that strong development in petroleum oil manufacturing will increase supply for LPG tankers over the next seven years. Volatile crude oil prices combined with advances in horizontal drilling and hydraulic fracturing methods led to significant sectors focusing on shale rock petroleum & gas manufacturing. Focusing on shale oil manufacturing is anticipated to further increase industry development over the projected era.
Increasing demand for LPG gas for residential cooking and heating applications is one of the key factors driving the market
Increasing demand for LPG gas for residential cooking and heating applications is one of the key factors driving the market over the past few years and it is expected that the trend will continue over the forecast period. Increasing trade relations for petroleum fuel between the U.S. and Asia Pacific area is anticipated to boost supply for LPG tankers over the projected era as a result of reduced shipping costs. Volatile crude oil prices resulted in increased demand from petrochemical industries for LPG, which over the forecast period is expected to fuel demand from LPG tankers. However, volatile crude oil prices led in higher LPG rates, which is anticipated to result in lower supply, which is expected to inhibit market growth over the forecast period.
Based on volume, the industry for LPG tankers can be divided into very big gas transporters (VLGC), big gas transporters (LGS), medium gas transporters (MGC) and tiny gas transporters (SGC). LPG tankers are further segmented into ethylene (additional cooling), fully refrigerated, semi-refrigerated, and fully pressurized based on cooling and pressure concentrations. VLGCs are widely used for long-distance shipping of LPG gas across nations.
Leading Regional & National Analysis
The main variable driving the VLGC industry is increasing LPG trade ties between different nations including Middle East and Asia, West Africa, and the U.S. and Europe
The worldwide industry for LPGs can be divided by location into: North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa (MEA). Since the Middle East was the centerpiece of oil production, this region's LPG gas tanker market is large. However, owing to the spike in shale oil production in the U.S. and Canada, these areas ' gas and petroleum businesses spend enormous quantities on energy travel.
The main variable driving the VLGC industry is increasing LPG trade ties between different nations including Middle East and Asia, West Africa, and the U.S. and Europe. The main variable driving MGC and LGC economies is increasing greenhouse oil output and national LPG transport. SGC demand is expected to witness lucrative growth over the next seven years due to higher demand for LPG from residential applications.
Due to increased exports of LPG to various countries including Asia Pacific and Europe, North America, West Africa, the North Sea and Middle East are the major regional markets for LPG tankers. The Middle East arose as Asia Pacific's biggest industry for LPG tankers. Because of strong demand for LPG from Japan, India, South Korea and China, the Asia Pacific market is expected to see significant growth. Europe's market is expected to see substantial growth due to increased domestic heating imports of butane and propane gas.
It will therefore contribute to an increase in supply in these nations for LPG tankers. Technological advances in gas extraction techniques have also contributed to the development of the industry. In emerging APAC countries, energy demand has also been constantly high. This will result in the creation of multimillion dollar opportunities for the LPG tanker market in this region. In China, the petrochemical plants have led to the demand for LPG. There has been an unprecedented upsurge in the demand for LPG tankers for imports by India, thus leading to the huge growth of this market.
Hyundai Heavy Industries
Kawasaki Heavy Industries
Mitsubishi Heavy Industries
Chantiers du Nord et de La Mediterranee (NORMED)
Shin Kurushima Hashihama Dockyard Hashihama
Meyer Neptun Papenburg
Mhi Nagasaki Shipyard & Engine Works
Shitanoe Shipbuilding Usuki
Kyokuyo Shipbuilding & Iron Works
Dok & Perkapalan Kodja Bahari
Several LPG carriers and tanker companies have either already expanded their capacity or are planning to do so in the near future as a result of the several positive factors acting on the market. This study examines how the fast development of the industry for gas energy will affect the dynamics of the worldwide economy for LPG tankers. The study uses a healthy combination of main and secondary research to introduce a extremely realistic assessment and supports it with the autonomous assessment of our experienced research analysts. The study highlights the most profitable national economies for LPG tankers and the sort of LPG tankers with the greatest supply.
The comprehensive report offers market estimation and forecast for the period ranging 2020-2030 for leading national markets and rest of the world. Moreover, the report contains dedicated leading companies covering 10 leading producers in the field of LPG Tanker. The LPG Tanker Market Report 2020-2030 report will be of value to anyone who wants to better understand the LPG Tanker market and its various segments. It will be useful for businesses who wish to better comprehend the part of the market they are already involved in, or those wishing to enter or expand into a different regional or technical part of the LPG Tanker industry.
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