Asian Shipbuilding Dominance May Slow LNG Expansion

The biggest expansion of global LNG supply on record, led by the United States and Qatar, could be slowed because most of the ships needed to carry the fuel are being built in South Korea and China, a Wood Mackenzie report said.

More than 260 LNG carriers are on order for delivery from 2027 onwards to support export projects led by the United States, Qatar and Africa. Around two-thirds are being built in South Korea, with most of the remainder under construction in China — a concentration that raises the risk of delivery delays and rising vessel costs.

The report describes an "hourglass" system in which supply and demand depend on a narrow transport link formed by the global LNG carrier fleet. Building alternative centres for LNG carrier construction, it notes, would require years of investment and tens of billions of dollars.