Monaco-based GasLog said it continues to believe the medium to long-term outlook for LNG shipping demand is positive, despite the decline in prices and spot charter rates over the last six months.
“There are a number of new projects in progress that have firm off-take agreements, secured financing or are under construction, and we expect a number of these to come online in 2015, which will materially increase global LNG production capacity,” the LNG shipping company said in its first-quarter report.
The projects that have reached final investment decision (FID) stage, but are yet to start production, represent over 120 million tons per annum of new LNG capacity, and GasLog currently expects that these facilities will come online even if the current low commodity price environment continues.
“By the end of 2019, we forecast that the number of ships needed for LNG production from new and existing terminals will be greater than the current global on-the-water fleet and orderbook,” GasLog added.
The company also said it remains positive on the medium to long-term demand for LNG carriers.
LNG World News Staff; Image: GasLog