LNG faces growing shipping constraints

New regulations are likely to restrict an already limited pool of vessels capable of transporting gas

LNG carriers are set to remain in short supply this year, as an already tight market for the vessels narrows further due to new emission reduction regulations introduced by the International Maritime Organization (IMO). Recent years have seen sustained underinvestment in new LNG carriers, a situation that has been exacerbated by Europe turning to gas via ship to replace Russian pipeline supplies following the invasion of Ukraine. The structural shortfall will be worsened by new CO₂ emissions requirements for shipping that took effect at the start of this year. These will restrict sailing speeds for vessels that use steam turbine and dual- or tri-fuel diesel-electric engines due to their high