ARTICLES

As global oil prices remain unstable, gas markets become deregulated in the US and Europe, US energy demand continues to increase and the whole affair is further exaggerated by environmental concerns (especially global warming), the whole world is inclined towards ‘green fuel’ – liquefied natural gas (LNG). With the entrance of oil majors into gas markets (‘from well to wire’), dwindling supply and increasing demand worldwide and stronger enforcement of the majority-agreed Kyoto protocol, the global demand for LNG via shipping is in an unprecedented growth phase.

Past Liquefied Natural Gas Shipping Activity
For the past 40 years (without a single loss of cargo containment in more than 40,000 voyages), the LNG shipping fraternity has safeguarded an exceptional safety track record with the support of committed, trained and competent human resources (on board ships and ashore) by adhering to certain standards:

• all involved understand LNG is ‘different’;
• LNG shipping activities are managed by full service companies;
• all involved recognise early the negative impact of an accident;
• all recognise human error and its potential impact on the LNG shipping fraternity;
• all LNG ship operators put significant resources into training;
• LNG sea-going officers are well groomed;
• overall LNG ship management and operation are good;
• growth of the whole LNG shipping business was steady; and
• all sectors were able to maintain experienced human resources.

In 2005 there were about 13 LNG producers and 13 LNG importers worldwide, with about 170 LNG ships manned and operated by about 3,500 active/serving LNG sea officers.

Current Liquefied Natural Gas Shipping Activity
As of September 2007 there were 239 LNG ships in service and 139 on order (new builds) for delivery up to 2010. Currently, a 145,000–152,000m3 LNG ship costs about US$220 million. As per the new builds delivery schedule, 52 LNG tankers were due to be delivered by the end of 2008. If all goes as per the delivery schedule, the global LNG fleet will hit the figure of 378 ships by the end of 2010. By 2012, it is projected that there will be about 22 LNG producers and 15 LNG importers worldwide. In conclusion, the LNG shipping business is booming.

Future Liquefied Natural Gas Shipping Activity – The Manpower Concern
As LNG demand is expanding globally, the LNG tanker shipping business is moving away from the ‘elite group’ or handful of experienced entities (those with long-term contracts involving committed buyers, sellers and shippers) to newly emerging LNG players (new owners without any LNG experience). Today, the greatest challenge for all in the LNG business is to find sufficient experienced crews/human resources on board and ashore to safely manage the LNG value chain, especially the LNG ships afloat.

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