The Importance of Shipping in LNG
Article from: OGEL 1 (2006), in Liquefied Natural Gas (LNG)
Introduction
This article addresses the current business environment for LNG shipping, the role and benefits of the independent shipowner, and the potential future risk of lower operating standards due to the industry's push for reduced costs. Bulk shipping is not a business for the faint-hearted investor. Ships have to be ordered tree to four years in advance of service and have a working life of 20-30 years. Investment decisions have to be made with a historic backdrop of low returns, continuous overcapacity, fierce competition and lack of long-term commitment from the customers. ...