LPG Tanker Market Report Scope & Overview:

The LPG Tanker Market size was valued at USD 185.22 million in 2022 and is expected to grow to USD 282.10 million by 2030 with a growing CAGR of 5.4% over the forecast period of 2023-2030.

Liquefied petroleum gas (LPG) tankers are gas carriers that are used to carry large amounts of petroleum gases. LPG tankers are made up of many reservoirs that are stacked inside cargo holds. Small pressurised tanks, shielded or chilled seagoing tanks, and semi-pressurized tanks are the most often used LPG tankers. They are powered by a controlled propeller and geared-diesel system and come in sizes ranging from very large to gigantic, big, medium, and small. These tankers also deliver ammonia, vinyl chloride, and propylene. They are so extensively used in many different industries, including the oil and gas, petrochemical, automotive, and refinery sectors. Liquefied petroleum gas is a cleaner fuel than coal. Consequently, it is projected that switching to LPG as a residential fuel will boost LPG demand.

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The need for LPG tankers will rise in the next years as a result of the increased demand for liquefied petroleum gas for HVAC and culinary applications, which increases the need for secure liquefied petroleum gas storage and transportation. The market is anticipated to develop in the shale gas output. Due to the volatility of crude oil prices, improvements in hydraulic fracturing, and horizontal drilling techniques, major companies have turned their focus to generating oil and gas from shale rock.

MARKET DYNAMICS

KEY DRIVERS:  

• Growing Trade Relations

• High Production of Shale gas

• Technological Improvements

Due to a number of additional variables as well, the market for LPG tankers is anticipated to continue to develop rapidly through the conclusion of the forecast period of this study. Shale gas output has increased significantly, and LPG trading has grown along with it. Moreover, as the need for LPG for HVAC and culinary equipment grows, so does the need for LPG to be transported and stored safely.

RESTRAIN:

• CNG market is growing faster than LPG

• Increasing demand for the use of CNG and natural gas.

Compared to CNG, LPG has a larger calorific value and burns more quickly. It produces less greenhouse emissions than LPG and is used as a petrol alternative in cars. It is furthermore lighter than air. Therefore, if it spills, it spreads very rapidly. It is often used in cars and locomotives, is typically less expensive than LPG, and presents a threat to the expansion of the LPG tanker industry. Light-duty trucks, medium-duty trucks, and large commercial vehicles in the United States have all been equipped with CNG.

OPPORTUNITY: 

• Energy consumption in developing APAC nations is at an all-time high.

• Technological Advancement in LPG Tanker

CHALLENGES:

• High Pricing LPG

• Rising demand for natural gas and CNG

IMPACT OF RUSSIA-UKRAINE WAR

Energy-related payments are now exempt from financial sanctions imposed on Russia by the US, EU, UK, and others, which should allow ongoing flows on existing contracts, but a lot of global trade firms are avoiding doing new business with Russia. LPG shipments from the Baltic and Black Seas have steadily decreased as local petrochemical usage increased. From 3.5 MMt/y, Russian seaborne exports were about 1 MMt/y in 2021. Exports were expected to rise to 1.5 MMt/y in 2022 along with increased gas output before the conflict, but the future of that expansion is now questionable. The Baltic Sea accounts for over 75% of Russia's exports of LPG via sea. The Mediterranean and Eastern Europe each receive roughly 30% of it, with two thirds going to Northwest Europe. Due of the tiny total amounts, it looks that Europe will be the region to have the most impact.

IMPACT OF ONGOING RECESSION

A recession would affect the industrial and power production sectors' needs for natural gas. The industrial sector is often capital-intensive and can only quickly adjust to economic disruptions. by making marginal changes to manufacturing, such as shifts worked, personnel, closed plants, and, thus, the quantity of energy used. This industry directly uses natural gas. and indirectly through the use of electricity. over the past eight years, the industrial sector's demand for natural gas has largely decreased, and This pattern would only get worse during a recession. The amount of natural gas used in the power generation industry might change during a recession. by decreasing the need for power in other areas sectors. Throughout much of the nation, natural gas is typically the source of marginal generation, Consequently, the age group most likely to see the immediate impacts of a decline in demand.

KEY MARKET SEGMENTATION

By Vessel Size

• Very Large Gas Carriers (VLGC)

• Large Gas Carriers (LGC)

• Medium Gas Carriers (MGC)

• Small Gas Carriers (SGC)

By Refrigeration & Pressurization

• Ethylene

• Full Refrigerated

• Semi Refrigerated

• Full Pressurized

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REGIONAL ANALYSIS

Europe dominated the liquefied petroleum gas tanker market, With approximately 29.30% of market revenue in 2021. Government initiatives and limited domestic LPG production are the main factors driving the industry in Europe, which results in increasing need for LPG tankers to transport the fuel. encourage import. Because liquefied petroleum gas shipments to places like Europe are expanding and the major geographical markets are in Asia Pacific, North America, the Middle East, and Western Africa. supporter of LPG tankers.

In 2021, North America will export LPG worth $40 billion, or 15.0% of the world's total LPG exports. Furthermore, Due to its usage as a cooking fuel, LPG demand is anticipated to increase in the United States, Canada, and Mexico fuel. LPG is also employed in these nations' residential structures' heating systems throughout the winter. Asia Pacific was the second-largest region in 2021 in terms of revenue. China, Japan, and India are the most common the marketplace here. Asia Pacific produces more than 70% of the world's LPG tankers, especially in Japan and South Korea.

REGIONAL COVERAGE:

North America

• US

• Canada

• Mexico

Europe

• Eastern Europe

  • Poland

  • Romania

  • Hungary

  • Turkey

  • Rest of Eastern Europe

• Western Europe

  • Germany

  • France

  • UK

  • Italy

  • Spain

  • Netherlands

  • Switzerland

  • Austria

  • Rest of Western Europe

Asia Pacific

• China

• India

• Japan

• South Korea

• Vietnam

• Singapore

• Australia

• Rest of Asia Pacific

Middle East & Africa

• Middle East

  • UAE

  • Egypt

  • Saudi Arabia

  • Qatar

  • Rest of Middle East

• Africa

  • Nigeria

  • South Africa

  • Rest of Africa

Latin America

• Brazil

• Argentina

• Colombia

• Rest of Latin America

RECENT DEVELOPMENTS

• Due to monopolistic concerns, the EU banned the proposed combination of Hyundai Heavy Industries and DSME in January 2022. The European Commission declared that by forbidding the union, the market for LNG and LPG carriers would be less competitive.

• Crystal Trinity, an LPG carrier by Kawasaki Heavy Industries, was delivered to Kumiai Navigation in January 2022. It was Kawasaki's second LPG carrier and had an 84,000 cbm capacity.

• The Great Indian Shipping Co. Ltd. purchased a used mid-size LPG carrier with a 35,000 cbm capacity in May 2021. This is the sixth LPG carrier for the corporation.

• The world's biggest dual-fuel LPG carrier, with a capacity of 88,000 ebm, was delivered to EXMAR in June 2021.

KEY PLAYERS

The Major Players are BW Group, Dorian LPG Ltd., EXMAR, Hyundai Heavy Industries Co., Ltd., Kawasaki Heavy Industries, Ltd., Mitsubishi Heavy Industries, Ltd., Namura Shipbuilding Co., Ltd., PT Pertamina (Persero), StealthGas Inc., The Great Eastern Shipping Co. Ltd., and other players are listed in a final report.

Dorian LPG Ltd-Company Financial Analysis