Despite looming VLGC newbuild deliveries, shipowners bullish on LPG outlook

摘要

A powerhouse panel of shipping executives from the LPG sector painted a positive picture during a panel discussion at Marine Money Week 2022 in New York in June. The rosy outlook came despite the volatility created by the Russia-Ukraine war and the large number of newbuilds that will join the fleet next year. Moderated by Fearnley Securities equity research analyst Oystein Vaagen, the panel discussion, titled, 'LPG -A steadily growing market that has recently been supercharged', explored the current state of the LPG shipping market and the outlook for demand. Participating in the panel were Dorian LPG cfo Ted Young, Navigator Gas chief commercial officer Oeyvind Lindeman and Avance Gas executive chairman 0ystein Kalleklev. The Russia-Ukraine war and the geopolitical tensions surrounding it have injected uncertainty into the global energy market, and LPG is no different. When reporting its Q1 2022 results, Dorian LPG said the conflict between Russia and Ukraine had driven up the price of Brent crude oil, on average, US$123 per metric tonne in March 2022. Subsequently, all product prices (propane, butane and naphtha) also increased. However, the price of propane and butane compared to crude oil fell both East and West within Q1 2022 from Q4 2021.