LOWER OIL PRICES DRIVE UPTICK IN
The precipitous drop in oil prices since mid-
2014 has led to an uptick in global oil demand
and a boost in shipborne tanker trade and
freight rates. Newbuilding of crude oil tankers
is on the rise as well.
Unlike dry bulk shipping, the drop in
crude oil price has resulted in increased
consumption/demand. While there is
an oversupply of crude oil, there is a
healthy demand which is driven by low
prices, availability of funds in developed
countries and refineries throughput.
Who will you meet?
- Oil & gas product tanker owners and builders
Suppliers and product manufacturers
Tank services and supplies
Tank terminal/storage operators
Tanks and storage fabrication
Asia will continue to play an important role in the global demand for LNG. As it is, Asia Pacific accounts for more than three-quarters of global LNG demand. LNG demand in Southeast Asia is also expected to rise. Between 2000 to 2013, we have already seen energy demand in this region (Southeast Asia) increase more than 50%.
Opportunities for LNG in transport are also increasingly being realised. “The reason for our optimism is that almost 125 million tonnes of capacity is currently being built and there are plans for more. As a majority of the supply from plants under construction has been contracted on long term agreements, it is likely that LNG will be traded so requiring more vessels”, said Shresth Sharma, Drewry’s lead LNG shipping analyst.
“By virtue of its geography, Singapore enjoys provides a natural location from which larger LNG carriers could break-bulk and re-load onto smaller regional barges for “milk-run” LNG deliveries.” said Mr Seah Moon Ming, Group Chief Executive Officer, Pavilion Energy Pte Ltd.