An Liquefied Natural Gas (LNG) tanker is a heavy tank boat designed for transportation of liquefied petroleum gas (LPG) at sea. As crude oil prices continue to remain at current prices, the demand for LPG has increased along with the number of LPG ships in the sea has increased. The amount of ships using LPG as fuel continues to increase while the capacity of the ships is decreasing. Because of this, demand for tankers who have the ability to transport LPG in large quantities and at regulated temperature rises.
Liquefied Natural Gas (LNG) Tanker shipments to Asian countries are increasing day by day due to a number of reasons. First of all of the price of crude oil is touching an all-time large. This has made Asia a more important buyer of LNG than Europe or North America. Asia’s population is growing considerably and so is its need for energy. It is now evident that more Asian economies will be the major consumers of LNG over the next decade.
The demand for LNG is directly proportional to the volume of gas in the ground compared to the annual consumption. If there is not much natural gas in the ground, then there will be no demand for it. As a result, the availability of LNG on the market plays a decisive role in determining the price of gas in the industry. The demand for LNG is growing despite the fact that there is very little supply of the commodity on the planet. If we carefully assess the supply scenario of the future, it’s evident that in the next few years, the world will want a good deal more LNG than the supply available today. This will have a substantial influence on the prices of natural gas.
Due to the high demand for LNG, there are certain governments which are offering lucrative tax concessions to companies and individuals who purchase LPG tankers. These governments feel that the high prices of natural gas ought to be controlled or taxed sufficiently in order to provide the users with an adequate amount of energy. In the United States, the government is considering several alternatives to tax the export of LPG. For instance, it may impose a tax on the cost of transporting the LPG across state lines.
Additionally, it proposes to levy an import tax on LPG to suppress the over-supply of this commodity. Some European Union countries like Ireland and Norway have issued a restriction on the export of LPG. But, the United States has so far, stayed mum on the matter. There are lots of reasons why the U.S. isn’t considering taxing the export of natural gas.
According to a recent report prepared by the Natural Resources Defense Council, U.S. lacks the expertise to safely transport LPG through water. Experts in the field of sea shipping say that there is a high risk of oil spill in the event of ocean transport of natural gas. Oil transported by sea is subject to piracy and oil spills are prone to occur. There’s also a threat of property accidents as oil tankers do not have sufficient space to maneuver at safe speeds along the oceans.
A natural gas tanker could be a suitable solution to meet the increasing demand in the U.S. for fuel. There are two unique types of natural gas carriers, namely, surface-carrying and offshore-transit vessels. Most natural gas will be transported by surface-carrying vessels as they are cheaper and quicker. They have better abilities to transport volumes of natural gases. A normal natural gas carrier ship can handle about 200 tons of natural gas. But, most natural gas carriers need a license for transporting bulk amounts of natural gas.
The expense of a natural gas tanker varies from one carrier to another. There are several factors that influence its cost such as the gas density of the natural gas and its speed. Prices of natural gases have shot up recently as demand for it has increased. If you are looking to invest in a natural gas tanker, there are particular points you have to consider.
First, the natural gas carrier company will negotiate with the producer of the natural gas in order to obtain the best price for his freight. It’s much better to take a look at prices of different carriers online before investing. This will give you an idea of the price that may be charged by different companies for transporting natural gas. Additionally it is important to figure out how the gas is carried and stored once it is in transit to get an idea of its storage capacity. As soon as you know how much you can invest, you will be able to gauge whether you’ll have the ability to make a profit when you purchase a natural gas tanker.