Global LNG Supply Expansion Faces Shipping Bottleneck

A record-setting global LNG supply expansion led by the United States and Qatar may face delays due to a lack of shipping vessels, primarily built in South Korea and China, according to a Wood Mackenzie report. The industry's dependency on external supply chains poses challenges to its growth.

The LNG supply expansion, spearheaded by the United States and Qatar, is on track to be the largest on record. However, it may be impeded by a shortage of ships required for transportation. This shortage is particularly critical as most ships are under construction in South Korea and China, according to a Wood Mackenzie report released on Wednesday.

Ekram El Loumi, director of research at Wood Mackenzie, highlighted in the report that while the LNG industry frequently discusses energy security, diversification, and resilience, there’s a significant dependency issue. 'The ability to physically move gas rests on a supply chain it does not control and cannot quickly replicate,' El Loumi stated.

The report outlined key considerations for the industry, emphasizing the need to address critical dependencies in shipping logistics to ensure a steady expansion of the global LNG supply.