Liquefied Natural Gas (LNG) Tanker shipments to Asian countries are increasing day by day due to several reasons. First of all of the price of crude oil is touching an all-time large. This has made Asia a more significant 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 markets will be the significant consumers of LNG over the next ten years.
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 need for it. Therefore, the availability of LNG in the marketplace plays a decisive role in determining the purchase price of gas in the market. The demand for LNG is increasing in spite of the fact that there’s little supply of the commodity on the planet. If we carefully analyze the supply scenario of the future, it is evident that in the next few years, the world will require a lot more LNG than the supply available today. This will have a substantial impact on the costs of natural gas.
Due to the high demand for LNG, there are particular governments which are offering lucrative tax concessions to businesses and individuals who buy LPG tankers. These governments believe that the high costs of natural gas should be controlled or taxed sufficiently in order to offer the consumers with an adequate amount of energy. In america, the government is looking at several alternatives to tax the export of LPG. For example, it may impose a tax on the expense of transporting the LPG across state lines.
Additionally, it proposes to levy an import tax on LPG to curb the over-supply of the 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, remained mum on the matter. There are several reasons why the U.S. is not contemplating taxing the export of natural gas.
According to a recent report prepared by the Natural Resources Defense Council, U.S. lacks the experience to safely transfer LPG through water. Experts in the area of ocean 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 is also a threat of land accidents as oil tankers do not have sufficient space to move at safe speeds along the seas.
A natural gas tanker could be a suitable solution to meet the increasing demand from 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 since they are cheaper and quicker. They have better capacities to transport volumes of pure gases. A normal natural gas carrier ship can handle about 200 tons of natural gas. However, most natural gas carriers need a license for transporting bulk quantities of natural gas.
The expense of a natural gas tanker varies from one carrier to another. There are several factors that influence its cost including the fuel density of the natural gas and its speed. Prices of natural gases have taken 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.
The natural gas carrier company will negotiate with the manufacturer of the natural gas in order to get the best price for his cargo. It’s better to take a look at prices of different carriers online before investing. This will give you an idea of the cost that can 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’s in transit to get an idea of its storage capacity. Once you know how much you can invest, you will have the ability to gauge whether you will have the ability to earn a profit when you purchase a natural gas tanker.