LNG tanker fleet set for major expansion

The increasing global demand for LNG will necessitate a three-fold rise in the number of LNG tankers by 2030 according to the latest report from the Oxford Business Group. Citing Lloyds?List, Oxford Business Group said the international demand for LNG could rise from last year?s 226 billion cubic metres (165 million tonnes) to 320 billion cubic metres (233.6 million tonnes) by 2010 and 790 billion (576.7 million tonnes) by 2030.

To help meet this demand, the world?s LNG tanker fleet would have to be increased from existing 260 vessels, with a combined carrying capacity of 33 million cubic metres, to about 700 ships (78 million cubic metres) by 2030. Of the 112 LNG tankers either under construction or on the order books of shipyards around the world, some 25 are destined for Qatar Gas Transport Company. These include 14 of the new Q-Max class of LNG tankers, the largest afloat with the capacity to carry 266,000 cubic metres. The company plans to have some 56 tankers in its fleet by 2010, making it one of the biggest LNG carriers in the world, it said.

One factor driving the increasing demand for LNG is the growing concern over greenhouse gas emissions, especially in developing markets such as China and India. If these two countries are to meet their commitments under the Kyoto climate agreement, LNG will play a greater role in their energy mix, said Faisal al-Suwaidi, Qatargas CEO.

Oxford Business Group said Qatar was stepping up its efforts to take advantage of the growing international demand for liquid natural gas, expanding into new markets and strengthening its production, processing and shipping capacities. Qatar announced plans last year to ramp up annual production to 77 million tonnes by 2011, from the present output of 31 million tons, and has subsequently begun expanding into the European market, as well as its more traditional export destinations of Asia.

To meet this target, Qatargas has set up a new processing plant and storage tank farm due to come on line by the end of the year. Another new facility, with a capacity of 7.8 million tonnes, is due to commence operations in 2009, near the main North Field site. The company has also just taken delivery of a prefabricated loading berth at Ras Laffan to speed up gas transfers.

Qatar?s other LNG producer, RasGas, is also building up production, with output set to increase to 37 million tonnes annually by 2009, up from the current 20.7 million tonnes. The company is constructing two new processing facilities, with an annual capacity of 7.8 million tonnes each, one of which is scheduled to commence operations this year and the other in 2009. Global LNG output may rise 14% in 2009.