The Liquefied Natural Gas and Liquefied Petroleum Gas Shipping Markets

A gas carrier (or gas tanker) is defined as a ship designed to transport liquefied petroleum gas (LPG), liquefied natural gas (LNG), or liquefied chemical gases in bulk. These specialised vessels transport cargo in a liquid form employing either refrigeration, pressure, or a combination of the two. The LNG and LPG shipping markets are traditionally considered niche shipping markets. However, with rapidly growing global seaborne LNG and LPG trade as the world turns to cleaner energy sources, both shipping markets have experienced dramatic expansion in the past decades. With the growing LPG and LNG trade, the fleet of LPG and LNG carriers continues to grow tremendously. This chapter reviews the world gas shipping market. Specifically, it analyses world LPG/LNG production and consumption, changes in trade patterns, shipping supply and demand fundamentals, and freight dynamics. The unique characteristics of the gas shipping market compared to other bulk shipping markets (dry bulk and tanker) will also be discussed.