LNG Carriers Market Size, Share, and Industry Analysis, By Containment Type (Moss and Membrane), By Propulsion Type (Steam Turbines, Slow-speed Dual Fuel Engine, Steam Re-heat, and Stage, and others), By Storage Capacity (Under 120,000 cubic meters, 120,000-160,000 cubic meters, and Above 160,000 cubic meters), and Regional Forecast, 2025-2032

A Liquefied Natural Gas (LNG) carrier is a vessel designed to transport liquefied natural gas in its refrigerated tanks. There are about 360 such advanced specialized ships in the world, which are mainly used for the transportation of liquefied natural gas. Compared to traditional ships, LNG ships emit less greenhouse gases thanks to their natural gas propulsion system. As gases are transported in liquid form and due to their physical properties, they are transported either at pressures well above atmospheric pressure, at very low temperatures, or a combination of the two.

• In December 2022, Samsung Heavy Industries (Shi) signed two contracts with Gaztransport and Technigaz (GTT) to design seven new LNG tanks. Contracts were concluded on behalf of both European and American ship owners. The volume of each LNG ship is 174,000 m3. The ships are anticipated to be sent in the fourth quarter of 2026 and 2027, respectively.

LNG carriers are built with double hulls and have four or five large tanks for storing liquefied gas. These tanks usually consist of several layers of material to prevent leaks and keep the LNG at the cold temperature necessary to keep it in liquid form. These tanks are also highly insulated, which minimizes the amount of LNG that boils or evaporates when the gas is transported. Some ships actually use that "boost" as fuel for the ship itself. The tanks themselves are usually made of aluminum or 9% nickel steel. In addition to being advanced in their ability to hold LNG, these vessels are armed with innovative fire and gas detection and suppression systems to ensure that even the most minor leak triggers a response. This makes a catastrophic fire on an LNG ship highly unlikely.

The COVID-19 pandemic reduced global demand for LNG by up to 8% compared to pre-COVID levels, and a quick return to previous demand levels does not seem likely. The exception is China, where the government is belligerently trying to revive its economy.

KEY INSIGHTS

The report covers the following key insights:

• Recent Advancements in the LNG Carriers Market


• Key Industry Trends


• Regulatory Landscape for the LNG Carriers Market


• Key Industry Developments (Mergers, Acquisitions, and Partnerships)


• Impact of COVID-19 on the Market

SEGMENTATION

 ANALYSIS BY CONTAINMENT TYPE

Based on containment type, the market is bifurcated into moss and membrane. Membrane type dominates the market in terms of market share. Membrane type contains higher carrying capacity and due to technological development, the membrane-type protective building can perfectly withstand the considerable pressure of LNG, and its compact shape can carry a large amount of LNG compared to moss. Moss-type protection systems have been used for several decades and have proven their reliability and safety. This long and successful experience inspires confidence in LNG ship operators, shipbuilders, and investors. Many LNG vessels equipped with Moss-type insulation systems have operated safely and efficiently, which has contributed to their continued use.

ANALYSIS BY PROPULSION TYPE

Based on propulsion type, the market is distributed among steam turbines, slow-speed dual-fuel engines, steam re-heat and stage, and others. Slow-speed dual-fuel engines offer significant propulsion efficiency advantages over both DFDE and steam turbines, the most popular propulsion systems for LNG ships in the early stages of development. The two leading manufacturers have chosen their technical paths with slow-speed dual-fuel engines. The supremacy of steam turbines in LNG ships has gradually broken down. To date, there is no standard propulsion system suitable for all types of LNG ships. Others include, Dual Fuel Diesel Engine/Tri-Fuel Diesel Engine (DFDE/TFDE), M-type Electronically Controlled Gas Injection (ME-GI), and XDF Two-stroke Engine.

ANALYSIS BY STORAGE CAPACITY

Based on storage capacity, the market is segmented into under 120,000 cubic meters, 120,000-160,000 cubic meters, and above 160,000 cubic meters. The 120,000-160,000 cubic meter segment accounted for the leading market share and is projected to grow rapidly during the forecast period. 120,000-160,000 cubic meter LNG carriers are versatile and well-suited to many LNG cargo routes and terminal configurations. They can effectively serve both large LNG terminals and smaller, more remote terminals, offering great flexibility to meet different market needs. These carriers strike a balance between cargo volume and operational efficiency. Under 120,000 cubic meters is used in shallow waters and comparatively fewer applications than others. Above 160,000 cubic meters is used in exceptional cases for explorations mainly.

REGIONAL ANALYSIS

The LNG carriers market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. Asia Pacific holds the major share of the LNG carriers market, driven by increased demand for natural gas due to the strong adoption of clean energy sources and industrial growth. Therefore, the region is expected to continue its dominant position during the forecast period. Most of the region's demand came from China. Meanwhile, China accelerated its policies to reduce emissions and pollution by converting coal to gas, increasing its LNG consumption by 15.0%. A number of other Asian countries and regions, particularly South Korea and Chinese Taipei, will sharply increase LNG imports in 2021.

Demand for LNG in Europe is growing due to the need to reduce dependence on imported oil and gas. The U.K. is Europe's largest importer of liquefied natural gas, followed by France and Spain. Demand for LNG in North America is increasing due to the development of new LNG export terminals in the U.S. and Canada. The U.S. is the largest exporter of LNG in the world and is expected to continue to increase its LNG exports in the coming years.

In Latin America and the Middle East & Africa, the LNG market mainly works as the exporter to the region mentioned above, which in turn makes these regions provide an end. So, the LNG carriers market is steadily growing in these regions.

KEY PLAYERS COVERED

The report includes profiles of key players, such as Samsung Heavy Industries Co. Ltd, Hyundai Samho Heavy Industries Co. Ltd, Daewoo Shipbuilding and Marine Engineering Co. Ltd, STX Offshore and Shipbuilding CO., LTD., Mitsubishi Heavy Industries Ltd, Kawasaki Heavy Industries Ltd, China Shipbuilding Trading Co. Ltd, Japan Marine United Corporation, HJ Shipbuilding & Construction Company, Ltd., Mitsui O. S. K. Lines Ltd (MOL), and GTT.

KEY INDUSTRY DEVELOPMENTS

• In December 2022, GAIL (India) Ltd entered into a charter agreement with Japan's Mitsui O. S. K. Lines Ltd (MOL) for a new liquefied natural gas (LNG) vessel and acquired an investment in an existing LNG vessel. Built by South Korea's Daewoo Shipbuilding and Marine Engineering Co Ltd, the new LNG carrier is the second MOL Group LNG carrier announced to serve GAIL and will begin commissioning in 2023.


• In October 2022, GTT announced that it had won two Approvals in Principle (AiP) from DNV and Bureau Veritas for a revolutionary three-tank LNG tanker (BV) design. The three-tank LNG storage concept reduces construction costs by eliminating one dam, one pump tower, and all associated cryogenic equipment (liquid and gas covers, valves, pipes, and radars).