LNG Carrier Construction Activity in 2026: Orderbook Trends, Shipyard Capacity, and Delivery Timelines
- Dushyant Bisht
- 1 day ago
- 8 min read
Updated: 7 hours ago
Key Takeaways
The LNG carrier orderbook is at a record level: 400+ ships on order, equal to roughly 45–50% of the active fleet. That scale can reshape charter rates and asset values over the next 3–5 years.
Headline orderbook numbers can mislead. The real question is delivery pace per year vs. demand growth, because deliveries are phased (not all hitting the market at once).
Korean yards hold most orders (~70–75%) with premium pricing and longer lead times, while Chinese yards have grown market share (~25–30%) with lower prices but often slightly weaker resale perception.
Newbuild prices are roughly $200–220M for a standard LNG carrier, reflecting tight yard capacity and higher costs.
Demand growth is strong, but if deliveries outpace demand absorption, the market could face rate pressure and secondhand value softness from 2027–2028 onward.
Table of Contents
Introduction: Why the LNG Orderbook Matters in 2026
The LNG Carrier Orderbook: Record Construction Activity
What’s Driving the Boom
Shipyard Landscape: Who Is Building the Fleet
Delivery Timelines and Capacity Constraints
Newbuild Pricing and Construction Cost Breakdown
Market Impact: Charter Rates Outlook
Market Impact: Secondhand Values and Asset Pricing
Ownership Decisions: Buy Now or Wait?
Delivery Risks and Uncertainties
Conclusion: What the Orderbook Means Through 2028
FAQs: LNG Carrier Construction Activity
The global LNG carrier orderbook reached unprecedented levels in early 2026, with over 400 ships under construction representing nearly 50% of the existing fleet [13].This construction boom, driven by energy security concerns and the global transition toward natural gas, will fundamentally reshape charter markets and ship values over the next 3-5 years. For aspiring ship owners evaluating LNG carriers, understanding orderbook is essential for timing market entry and assessing value trajectories.
The LNG carrier market faces a supply inflection point. Massive orderbook additions promise to increase fleet capacity substantially, but shipyard constraints and delivery timelines create important context that raw numbers don't capture. A 400-ship orderbook delivering gradually over four years has vastly different market impact than 400 ships in a single year.
This article analyzes current orderbook trends, examines shipyard capacity and delivery capabilities, and explains what LNG carrier construction activity means for charter rates, ship values, and ship ownership decisions.
The LNG Carrier Orderbook: Record Construction Activity
As of Q1 2025, the global LNG carrier orderbook contains over 400 ships under construction, representing approximately 47% of the existing fleet of roughly 850 operating ships [1]. This establishes a new historical record both in absolute numbers and as percentage of fleet, surpassing the 2006-2008 peak when approximately 180-200 ships represented 35-40% of the then-smaller fleet.
The orderbook composition reflects industry standardization: approximately 80% are conventional 174,000 cbm ships, 15% are larger 180,000-200,000+ cbm ships for specific long-haul routes, and 5% are smaller ships serving regional trades [2]. The vast majority specify membrane-type containment systems, the dominant technology in modern LNG carriers.
Why It Matters:
This orderbook magnitude creates a supply wave impacting charter markets through 2027-2028. Aspiring owners must assess whether they're entering a market heading toward oversupply and rate pressure, or whether demand growth will absorb new capacity without materially affecting earnings.
The drivers extend beyond cargo demand. Energy security following 2022 disruptions accelerated long-term LNG purchase contracts and shipping commitments. European nations seeking pipeline gas alternatives, Asian countries securing energy supplies, and emerging markets accessing cleaner fuels all contributed to unprecedented project sanctioning requiring dedicated ship capacity [3].
Shipyard Landscape: Korean and Chinese Dominance
South Korean Shipyards:
Three major Korean yards dominate, holding 70-75% of the global orderbook: Hyundai Heavy Industries, Samsung Heavy Industries, and Daewoo Shipbuilding [4]. Korean yards command premium pricing at $215-220 million for 174,000 cbm carriers [5], reflecting quality, proven track records, and lower delivery risk.
However, Korean capacity operates near maximum with orderbooks extending into 2027-2028. New orders placed in 2025 face delivery slots in late 2028 or 2029, creating 3.5-4 year lead times [4]. This capacity constraint supports charter rates for existing Ships as supply additions face extended timelines.
Chinese Shipyards:
Chinese yards capture 25-30% of orderbook, up from negligible levels in 2015 [6]. Major players include Hudong-Zhonghua and Jiangnan Shipyard. Chinese yards offer 10-15% cost advantages at $200-210 million [5], though some ship owners report longer commissioning periods and more specification adjustments compared to Korean yards.
For aspiring ship owners, ships built in Chinese yards may trade at 2-5% discounts to Korean-built equivalents in secondhand markets, affecting long-term value considerations.
Delivery Timelines and Capacity Constraints
Current construction timelines range from 30-36 months from steel cutting to delivery [7]. Korean yards maintain orderbooks through 2027, with new orders facing 2028-2029 delivery. Chinese yards show somewhat more availability but still face 32-38 month timelines.
Delivery Schedule Distribution:
Of 400+ ships on order: 2025 deliveries (60-70 ships), 2026 (100-120), 2027 (110-130), 2028+ (120-150) [1]. This phasing matters enormously. Extended timelines mean supply additions occur gradually over 3-4 years rather than flooding markets simultaneously, allowing demand growth to partially absorb new capacity.
Delay Risks:
Historical LNG carrier delays average 2-4 months [7]. Complex specifications and LNG-specific equipment create more delay risk than conventional ships. Shipyard labor constraints, supply chain issues for specialized equipment, and financing delays for some orders all contribute.
From the Helm: Common Misconception
Aspiring owners sometimes see large orderbooks and assume immediate charter rate collapse. But delivery timelines matter enormously. A 400-ship orderbook delivering over 4 years (100 annually) has a vastly different impact than 400 in one year. Always ask: "What's the annual delivery rate versus demand growth?" not just "How big is the orderbook?"
Construction Costs and Newbuild Pricing
Current newbuild prices range from $200-220 million for 174,000 cbm conventional carriers [5]. Korean yards at premium ($215-220M), Chinese yards at discount ($200-210M). Prices up 15-20% from 2020-2021 lows due to yard capacity constraints.
Cost Components:
Hull and construction (40%), LNG-specific equipment (30%), propulsion systems (20%), outfitting/commissioning (10%) [8]. Specification variations affect pricing: dual-fuel diesel electric versus two-stroke ($5-10M difference), reliquefication systems ($3-5M), ice-class strengthening ($5-8M premium).
How Orderbook Affects Charter Rates and Ship Values
Charter Rate Implications:
Current LNG charter rates range $60,000-120,000/day depending on contract term and ship age [9]. The large orderbook creates rate pressure concerns for 2027-2028+ delivery periods.
Supply-Demand Balance:
Global LNG liquefaction capacity is projected to grow from ~400 million tonnes per annum (2023) to 550-600 MTPA by 2028, requiring approximately 150-200 additional carriers [10]. With ~400 on order minus ~100 older ships likely scrapping, net fleet growth of 280-300 ships serves demand growth requiring 150-200. This suggests potential oversupply of 50-100 ships by 2028 unless demand exceeds projections.
Existing Ship Values:
Secondhand values reflect orderbook overhang. Five-year-old carriers value ~$165-180M (versus $210M newbuild). Ten-year-old ships: ~$140-155M. Values face pressure as newbuilds deliver with modern specifications and 15-20% superior fuel efficiency [11].
Ownership Timing:
The question: purchase existing tonnage now capturing remaining strong rates, or wait for potential value declines as deliveries accelerate? This depends on demand growth views, delivery adherence, and personal risk tolerance.
Specifications and Technology in New Orders
Modern LNG carriers incorporate dual-fuel propulsion (standard), enhanced insulation reducing boil-off to 0.08-0.10% per day (versus 0.15% older ships), and IMO EEDI Phase 3 compliance [2]. These specifications create operational advantages over older tonnage.
Newbuilds with 15-20% better fuel efficiency enjoy $3,000-5,000/day fuel cost advantages. Over 20-year life, that's $20-35 million cumulative savings, directly affecting charter competitiveness and earnings [2].
Delivery Risks and Uncertainties
Historical delivery patterns show 15-20% of ships deliver 2-6 months late [7]. Cancellation risk during downturns can reach 5-10% of orderbooks [12]. However, current strong LNG fundamentals suggest lower cancellation risk than historical averages.
Not all ordered ships ultimately deliver. Financing failures, market deterioration, or specification disputes can delay or cancel orders. For the existing ship market, delays extend the period before supply additions materialize, potentially supporting current values and rates longer than orderbook suggests.
Conclusion
The LNG carrier orderbook represents unprecedented construction with 400+ ships delivering through 2028, creating supply additions equivalent to 47% of the existing fleet. This creates legitimate concerns about rate sustainability and value trajectories.
However, delivery phasing spreads additions gradually at ~100 ships annually rather than concentrated delivery. Projected LNG demand growth requiring 150-200 additional ships provides absorption potential, though net fleet growth of 280-300 ships suggests possible oversupply of 50-100 absent demand exceeding projections.
For aspiring owners, the construction boom creates a challenging but not impossible environment. Understanding orderbook dynamics, shipyard constraints, and delivery phasing empowers informed decisions rather than reacting to headline numbers without context.
Disclaimer:
This material is provided for informational purposes only and does not constitute financial, investment, or legal advice. All digital assets carry inherent risks, including potential loss of capital. Past performance is not indicative of future results. Please review the relevant offer and risk disclosures carefully before making any financial decision.
FAQS For LNG Carrier Construction Activity
How many LNG carriers are currently under construction?
As of Q1 2025, over 400 LNG carriers are under construction globally, representing approximately 45-50% of the existing fleet of ~850 Ships. This represents the largest orderbook in LNG shipping history by percentage of fleet.
Which shipyards build LNG carriers?
South Korean shipyards (Hyundai Heavy Industries, Samsung Heavy Industries, Daewoo Shipbuilding) hold approximately 70-75% of the global LNG carrier orderbook, with Chinese shipyards (Hudong-Zhonghua, Jiangnan) capturing 25-30%. Korean yards are known for premium quality and proven track record, while Chinese yards offer 10-15% cost advantages.
What is the delivery timeline for new LNG carriers?
Current LNG carrier construction timelines range from 30-36 months from steel cutting to delivery. Korean shipyards have orderbooks extending through 2027-2028, meaning new orders placed in 2025 face delivery slots in late 2028 or 2029. Deliveries of the current 400+ Ship orderbook will occur gradually through 2028+.
How much does a new LNG carrier cost?
Current newbuild prices for a conventional 174,000 cbm LNG carrier range from $200-220 million. Korean-built Ships command premiums of $215-220M, while Chinese-built Ships cost $200-210M. Prices have increased 15-20% from 2020-2021 lows due to shipyard capacity constraints.
How will new LNG carrier deliveries affect charter rates?
The large orderbook creates potential for charter rate pressure as Ships deliver through 2026-2028. However, phased deliveries over 3-4 years and projected LNG demand growth of 150-200 MTPA by 2028 suggest the market may absorb new capacity without severe oversupply, though this depends on actual demand realization and delivery schedule adherence.
Dushyant Bisht
Expert in Maritime Industry
Dushyant Bisht is a seasoned expert in the maritime industry, marketing and business with over a decade of hands-on experience. With a deep understanding of maritime operations and marketing strategies, Dushyant has a proven track record of navigating complex business landscapes and driving growth in the maritime sector.
Email: [email protected]
References
[1] Clarksons Research. (2024). LNG carrier orderbook and fleet statistics. Retrieved from https://www.clarksons.com/services/research/
[2] GTT. (2024). LNG containment systems and carrier technology. Retrieved from https://gtt.fr/technologies
[3] International Gas Union. (2024). World LNG report 2024. Retrieved from https://www.igu.org/resources/lng-2024-world-lng-report/
[4] Korean Shipbuilders' Association. (2024). Orderbook and capacity statistics. Retrieved from http://www.koshipa.or.kr/
[5] ShipsValue. (2024). LNG carrier newbuild and secondhand values. Retrieved from https://www.Shipsvalue.com/
[6] China Association of the National Shipbuilding Industry. (2024). Chinese shipyard LNG construction data. Retrieved from http://www.cansi.org.cn/
[7] Lloyd's Register. (2024). LNG carrier construction and delivery analysis. Retrieved from https://www.lr.org/en/lng-carriers/
[8] DNV. (2024). LNG carrier specifications and construction. Retrieved from https://www.dnv.com/maritime/lng/
[9] Baltic Exchange. (2024). LNG carrier charter rate assessments. Retrieved from https://www.balticexchange.com/
[10] International Energy Agency. (2024). Gas market report Q1 2024. Retrieved from https://www.iea.org/reports/gas-market-report-q1-2024
[11] Clarksons Platou Securities. (2024). LNG shipping market analysis. Retrieved from https://www.clarksons.com/
[12] Drewry Maritime Research. (2024). Orderbook analysis and cancellation trends. Retrieved from https://www.drewry.co.uk/