The sale of large and old LNG (liquefied natural gas) cargoes is still ongoing, while the secondary market is facing uncertainty due to escalating tensions in the Strait of Hormuz and disruptions in regional LNG exports. The latest sale was made by the shipping and management group Kmarin from South Korea, which sold the 18-year-old Kmarin Diamond with a capacity of 152,000 cubic meters to Indonesian buyers for approximately $65 million.
Purchasing Activities of Indonesian Buyers
Indonesian buyers have been among the most active purchasers of old gas ships this year. Meanwhile, the Japanese company Nippon Yusen Kaisha (NYK) is also among the sellers, having sold two ships. One of these ships, the steam-powered LNG vessel Tangguh Batur, is 18 years old with a capacity of 145,700 cubic meters and was sold for $30 million, with its name changed to Eagle M. Market rumors suggest a connection between GMS and this deal.
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Other Sales and Recycling Trends
NYK also sold the ship Grace Dahlia, built in 2013 with a capacity of 177,427 cubic meters, to Golar LNG for conversion into a liquefied natural gas unit. In this context, the Singaporean shipbuilding group Seatrium has signed an EPCIC contract with Excelerate, known as the buyer of the Methane Patricia Camila ship, which was built in 2010 and sold for approximately $79 million.
In August, Kawasaki Kisen Kaisha (K Line) sold the Arctic Voyager, a 20-year-old ship with a capacity of 142,759 cubic meters, for $28.5 million to Karpowership interests. This steam-powered ship is intended to be converted into a floating storage and regasification unit (FSRU).
This week, BW sold the LNG ship Kano, built in 2007 and reported to have cracked cargo tanks, for recycling in India at a price of $530 per ton of piping. LNG Kano is the seventh LNG ship sent for recycling this year.
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