Cosco to receive three LNG carriers in 2020

China-based shipowner Cosco is set to receive three LNG vessels this year, closing the firm's outstanding orderbook.

Cosco has a total fleet of 35 LNG carriers, 29 of which are owned as part of joint ventures, including 14 Arc7s chartered to Russia's 16.5mn t/yr Yamal LNG facility. Cosco holds 50pc of equity in six of the Arc7 vessels, and minority stakes in the remaining eight.

The firm's three LNG vessels slated for 2020 delivery have an average capacity of 174,000m³, in line with most of the global orderbook, indicating that they are probably more modern two-stroke vessels, which the market has moved towards in recent years.

Cosco's LNG fleet grew by nine vessels in 2019, with an average capacity of 172,000m³. The owner's 26-strong fleet in 2018 had an average size of 167,000m³, in line with older tri/dual-fuel diesel-electric vessels that the global market coalesced around in the early 2010s.

Short-term oversupply

The global LNG freight market is set to be oversupplied in the short-term, Cosco said, mirroring statements in recent months by other shipowners.

Cosco, which has a limited spot exposure, expects the global fleet to grow by 7.1pc annually to 2024, with 133 carriers under construction. And a relatively young global fleet — with an average age of 10.9 years and 87pc less than 20 years old — suggests the scrapping of vessels is likely to remain low, the firm noted.

But Cosco expects the market to balance as new liquefaction projects come on line, with around 86pc of the orderbook tied to term charter agreements.

By Samuel Good