LPG Introduction and Fundamentals

The LPG tanker fleet consists of approximately 50 million cubic meters (M CBM) of capacity.

Very Large Gas Carriers (VLGCs) are the dominant type of LPG tanker, making up more than two-thirds of the fleet's total capacity.

Medium Gas Carriers (MGCs) and smaller gas carriers, along with VLGCs, contribute to the diverse composition of the LPG tanker fleet.

The global LPG trade is expected to grow at an average rate of around 3% in the coming years.

The US and the Middle East are anticipated to remain the primary exporters of LPG.

China is projected to lead the way in LPG imports.

India and Southeast Asia are also expected to maintain a positive trend in LPG imports.

The year 2023 saw a notable increase in contracts for new LPG tankers.

LPG carriers that transport gases both under refrigerated and pressurized conditions. They adjust temperature and pressure as needed, making them suitable for various cargoes and long routes without needing modifications.

They are designed for transporting large volumes of LPG at very low temperatures and atmospheric pressure. These carriers are typically the largest, enabling economical long-distance transport and connecting major LPG markets globally.

Propane, butane, and mixed butane make up the majority of LPG.

LPG is derived from both natural gas processing and crude oil refining.

Compared to other energy sources, LPG has relatively lower emissions.

LPG has various end uses, including cooking, heating, transportation fuel, and industrial processes.

The Middle East is the largest exporter of LPG, while Asia is the largest importer.

LPG carriers can either be fully pressurized, semi-refrigerated, or fully refrigerated.

LPG carriers are specialized vessels designed to transport liquefied petroleum gas (LPG), ammonia, and other petrochemical gases.

LPG carriers use advanced cargo containment systems to keep the cargoes in their liquid state at specific temperatures and pressures.

LPG carriers are categorized into three types: Pressurized, Semi-Refrigerated, and Fully Refrigerated, each suited for different cargo needs.

Pressurized LPG carriers transport LPG and other gases at ambient temperatures under high pressure, maintaining the cargo as a liquid without refrigeration.

Pressurized LPG carriers are typically smaller and ideal for short sea or coastal trades, as they can operate in ports with less advanced infrastructure.

VLGC stands for Very Large Gas Carrier, and the VLGC market is experiencing focused investment, with a significant increase in contracting for these vessels.

The global fleet of LPG carriers is growing rapidly, particularly in the VLGC segment, which has seen a surge in new contracts.

The rate of fleet capacity expansion is expected to slow down in the near future, though a considerable increase is still anticipated after this phase.