WSJ: Greek Shipowners Splash the Cash on Liquefied-Natural-Gas Carriers
Greek shipowners, closely followed in the shipping industry for their investment choices, have splashed a record $1.8 billion this year to buy 11 new LNG carriers.
The owners are betting that falling energy prices will spur demand for such vessels as European countries move to became less dependent on Russian gas pipelines. The U.S. is also expected to start exporting liquefied natural gas in substantial volumes in 2018.
At around $200 million apiece, LNG carriers cost at least three times as much as other types of vessels of similar size. But while the market for ships such as container vessels, tankers and dry-bulk carriers is marred by overcapacity reaching up to 25% above demand, leading to unsustainable freight rates, LNG carriers are usually linked to lucrative contracts that stretch to more than 10 years, racking in substantial earnings for their owners.