LNG

LNG carriers will need new finance model

Shipowners could struggle to finance new vessels as charter lengths shrink and spot trades grow in importance Shipowners could struggle to finance new vessels as charter lengths shrink and spot trades grow in importance.
By Andrew Walker 15 June 2017 0 26394
Höegh secured an innovative funding model for a recent FSRU that could be applied to the carrier market. (Höegh)

Banks must come up with innovative ways of financing new LNG carriers if a vessel shortage in the coming years is to be avoided, delegates at the KNect365 LNG Shipping conference in London heard on Wednesday.

The increase in LNG spot trading is making it tough for shipowners to secure the long-term charters they need to persuade banks to finance new vessels.

More than a quarter of all LNG trading in 2016 was based on contracts of four years or less, according to figures from GIIGNL, an...