LNG Expansion Halted by Shipbuilding Bottleneck

The global liquefied natural gas (LNG) industry is facing a potential bottleneck in its expansion plans, according to a report from Wood Mackenzie. The company notes that most of the ships needed to transport the fuel are being built in South Korea and China.

Over 260 LNG carriers are currently on order for delivery from 2027 onwards to support export projects led by the United States, Qatar, and Africa. Two-thirds of these vessels are being constructed in South Korean shipyards, with the remainder built in Chinese facilities.

The concentration of LNG carrier construction in a few countries raises concerns about potential delays and rising vessel costs. Ekram El Loumi, director of research at Wood Mackenzie, highlights that the industry's reliance on this supply chain is a critical dependency that it cannot quickly replicate.