Construction of LNG projects is continuing unabated but there are worries the boom will plateau by the end of the decade.
Massive liquefied natural gas (LNG) projects across the globe continue to chug along both in the construction and planning stages.
And despite ever-present political, trade, and economic uncertainty, the LNG wave isn’t expected to subside in the near future although there are concerns of a potential oversupply looming by the end of the decade.
The list of LNG projects worldwide is long and impressive; North Field Expansion Project – Qatar, Arctic LNG in Russia, Mozambique LNG, Rio Grande LNG in Texas, Arinaga LNG Terminal Spain, Kakinada GBS Floating Terminal India - just to name a few. There are eight LNG export terminal projects in the Gulf of Mexico alone, according to the US Energy Information Administration.
As a result, project cargo, breakbulk, and heavy lift carriers are positioning themselves with a variety of semi-submersible, crane and open-deck vessels designed to get complicated components where they need to be.
LNG One of the Most Active Sectors
“LNG continues to be one of the most active sectors in the world when it comes to project logistics. The scale and complexity of LNG infrastructure, whether it’s for liquefaction, regasification, storage, or distribution, mean that almost every component involved qualifies as project cargo. These aren’t your typical shipments; we’re talking about oversized, critical equipment that requires meticulous planning and coordination,” said Bahadir Erdil, Global Director - Projects for Erie, PA-based Logistics Plus Inc. “We’ve been heavily involved in LNG-related movements for the past 4–5 years, handling around 32,000 to 35,000 freight tons annually just for LNG infrastructure projects alone. On top of that, we manage the global transportation of around 50–60 LPG and cryogenic gas tanks each year. The entire LNG supply chain from initial investment to final commissioning, is a strong vertical for the project logistics industry, and it’s keeping heavy lift carriers busy across the globe.”
The flexibility, reduced footprint, and lower cost structure of offshore LNG facilities for liquification, regasification and storage have brought Floating Liquefied Natural Gas (FLNG) terminals and Floating Storage and Regasification Units (FSRUs) into the global construction mix which present a different set of challenges for project cargo and heavy lift vessels.
“FLNGs and FSRUs are fascinating projects, but they come with their own set of logistical hurdles. Most of the time, we’re supporting newbuild units being assembled in shipyards, which makes the timeline incredibly tight,” Erdil said. “Every component like regasification modules or turret systems has to arrive exactly when needed, not a day early or late. A single delay can throw off the entire shipyard schedule and ultimately push back the vessel’s deployment to sea.”
“Time sensitivity is the biggest challenge here. These aren’t just large components; they’re part of a highly synchronized construction process, and the pressure is always on to deliver precisely on schedule.”
LNG: Critical Buffer
The World Economic Forum (WEF) said LNG has emerged as a “critical buffer,” offering both security and flexibility as an energy source. The WEF said LNG enables rapid response to supply turbulence and supports energy transitions by displacing more carbon-intensive fuels like coal. “In regions such as South Asia and South-East Asia, home to fast-growing populations and rising energy demands, LNG is playing an increasingly central role.”
WEF reports the United States leads global LNG exports, followed by Australia and Qatar, which together account for around 60% of the global supply. US capacity is set to reach 16.4 billion cubic feet per day.
Since 2019, the WEF said the United States has been responsible for over half of all global LNG liquefaction project FIDs (final investment decisions), with Qatar contributing nearly 20 percent. Long-term LNG growth is expected, especially if infrastructure is upgraded and contracts renegotiated, according to the WEF.
Felix Schoeller, Commercial Director at AAL Shipping, said AAL has forward bookings for the autumn delivering component parts to new build LNG projects. Over the last few years AAL has been involved in many LNG project shipments. This has not only been exclusive to North America but also in regions such as the Middle East, he said.
Recent deliveries include HRSG modules for Singapore’s first hydrogen-ready CCGT plant, components for a major LNG project in the United States, and steam generators for new gas-fired plants in Europe to Middle East.
The Americas Trade Lane
AAL also executed a complex operation to transport over 12,800 Freight Tonnes (FRT) of heavy lift project cargo from the South Korean ports of Kunsan and Pyeongtaek to Beaumont in Texas – shipped along its in-demand regular ‘Asia to The Americas Trade Lane’ and onboard its 31,000-deadweight heavy lift vessel, the AAL BRISBANE. The shipment was part of a major LNG project in Texas.
The high value project cargo was installed at the LNG facility’s new processing plant. It comprised of multiple sized components, the largest of which was a 607-metric tonne AGR Absorber that measured just under 39 metres, used to remove H2S, CO2 and other organic sulphurs from raw feed gas. Some of the other large heavy lift units included a 40-metre and 436-metric tonne HP MR Absorber and three Dehydrators weighing just shy of 200-tonnes each.
“Our new Super B-Class vessels are fitting into our fleet and service profile perfectly. We now have four of the 32,000 dwt, third-generation units in the water – the ‘AAL Limassol’, ‘AAL Hamburg’, ‘AAL Houston’ and ‘AAL Antwerp’,” Schoeller said. “The Super B-Class vessels feature 150 m-long deck space – this deck length will be pivotal in ensuring our fleet can not only serve the current pipeline of energy projects but also future projects for which we expect component sizes will be both larger and heavier.”
Richard Seeg, President of Intermarine (which is part of the JSI Alliance of heavy lift carriers) also sees LNG as a major “driver” in the project/heavy lift sector, “Global LNG expansion is certainly a driver for today’s demand in project and heavy lift shipping. The components involved – from large tanks to modules and complex plant parts – are exceptionally heavy, oversized, and logistically challenging. Specialized carriers with the right fleet and project expertise are essential to make this infrastructure expansion possible. Intermarine and the JSI Alliance bring decades of experience in managing complex transports under challenging conditions.”
Of course, with the rapid expansion of LNG and other projects, there is the question of whether there is enough heavy lift capacity available, and Seeg says, “Demand for project and heavy lift capacity is increasing significantly alongside global LNG expansion. Overall, the industry is well-positioned, but continuous investment in modern, flexible vessels is required. Within the JSI Alliance fleet, Intermarine is well-positioned to reliably meet this demand.”
Intermarine has also six D Class vessels that are suited for ports “limited infrastructure or depth restrictions” that address a niche capability. Seeg says the “D-Type vessels are flexible and can operate worldwide, including within the Americas as part of Intermarine’s liner service. Within the JSI Alliance, we are already seeing opportunities where these vessels can support specific projects that we are bidding on, including LNG projects globally. The D-Types are compact, highly flexible, and extremely powerful. At around 120 m in length and equipped with two cranes of 250 t each (combinable up to 500 t!), they are true “mini monsters” in the world of MPP and heavy lift shipping. Their specialized design allows them to handle particularly heavy, oversized, and sensitive project cargo – especially in ports with limited draft or lacking infrastructure.”
Logistics Plus managed the transport of three regasification modules - the biggest measuring 20 x 10.5 x 14.6 meters and weighing 425 metric tonnes - from the production facility to the shipyard where they are being installed onto the very first FSRU LNG vessel ever built in China.
Logistics Plus also safely loaded a 24.2 x 5.7 x 6 meters, 105-ton cryogenic gas tank for transit from Turkey to Norway as well as the transport of four massive empty NH tanks from the yard in Onsan, South Korea to the Vigor Shipyard in Portland, Oregon.
Erdil said each tank in that project measured an impressive 30 x 24 x 17 meters, with individual weights reaching up to 1,038 metric tons. He said the tanks’ final destination makes the project even more remarkable - they form the cargo hold of an LNG vessel currently under construction in Portland.
AAL’s Schoeller said he believes there enough current project/heavy lift capacity to meet LNG global infrastructure expansion.
“The order book for MPP project vessels is currently healthy, with many of the newbuild project vessels having been commissioned directly by shipowner operators who know the markets and industries they serve extremely well. These vessels – built with specific market demand in mind - ensure there will be sufficient capacity available to cater to LNG sector requirements,” he said.
IEA: Over Supply by 2030?
The rapid growth of LNG utilization and the subsequent infrastructure expansion prompted the International Energy Agency to warn of a potential LNG oversupply by 2030 due to a surge in new liquefaction capacity. Schoeller said if it comes to pass, AAL’s fleet is designed to pivot.
“From what we can see, it is likely that the appetite for further LNG plants will wane beyond 2030. It is believed that capacity will be sufficient beyond that threshold. However, until then there will be numerous LNG projects in the pipeline, which AAL is able to support with our ocean transport solutions and our new Super B-class vessels,” he said.
Erdil said heavy lift capacity is not an issue right now. He echoed Schoeller’s thoughts on fleet flexibility.
“If you had asked me this during the height of the pandemic, I’d probably have said no. But today, it’s a different picture. Right now, there’s excess capacity in the market. Compared to 3–4 years ago, ocean carriers, heavy haulers, rigging teams everyone seems to have a bit more breathing room,” Erdil said. “Unless we’re hit by another global disruption, I don’t foresee any major capacity shortages over the next 5 years. The heavy lift sector has learned some tough lessons over the last few years - from the COVID crisis to the Ever Given in the Suez, Panama Canal issues, and more. These events exposed the vulnerabilities in global logistics, but they also made the industry more resilient. One key takeaway for us has been the importance of diversification.”
“At Logistics Plus, we don’t put all our eggs in one basket. Yes, we’re strong in LNG, but we also support aerospace, nuclear, thermal energy, industrial manufacturing, and construction clients. That kind of balanced portfolio is essential for sustainability, especially in such a volatile global market.” he said.
Flexibility the Key
“If LNG demand plateaus or we see a slowdown due to oversupply, I believe the project logistics industry is better positioned now than it was in the past to adapt. The key word is flexibility. Heavy Lift carriers and Project Logistics companies that have diversified their client base and developed expertise across multiple sectors, like renewables, aerospace, and large-scale industrials—will be able to shift gears,” said Erdil. “Of course, no one likes to see a slowdown in such a major sector, but at the same time, it can open up room for innovation and redirection. Carriers who’ve relied solely on oil & gas or LNG will face a tougher time, but those with a more balanced portfolio will weather the shift better. That’s the approach we’ve taken - stay agile, stay diversified, and never bet everything on a single industry.”
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