![Greek ships will carry American LNG to Europe](https://www.ot.gr/wp-content/uploads/2022/03/lng.jpg)
Greek shipping intends to play a dominant role in the supply of the European Union with liquefied natural gas (LNG) in the coming years, as about one in five ships of the global LNG transport fleet belong to Greek interests. According to the brokerage firm Poten, by January 2022 the global fleet of LNG Carriers (with a capacity of more than 100,000 cubic meters ) consisted of 582 ships, while another 151 ships were under construction, of which 122 are already linked to long-term contracts. Out of the 733 LNG Carriers (in operation and under order), 156 belong to shipping companies of Greek interests which play a leading role in the global LNG trade by sea.
The US-EU agreement to supply an additional 15 billion cubic meters of liquefied natural gas (LNG) by the end of 2022, as well as the EU decision to diversify its sources of gas supply in general, are expected to increase demand for LNG transport ships. The additional 15 billion cubic meters LNGs are equivalent to 37% of the LNG procured by the 27 EU Member States from March to December 2021, based on ship monitoring by Lloyd’s List Intelligence.
According to a report by ING Bank, the increase from the US by 15 billion m3 LNG quantities are possible, but the quantities are far below needs in order to replace Russian gas imports. Europe imports – through pipelines – from Russia 40% of the gas it needs, a quantity equivalent to 155 billion cubic meters in 2021. In total, gas consumption in the EU amounted to 399 billion cubic meters in 2021, according to a document from the European Commission.
In any case, a very large part of the quantity that the EU used to get through pipelines will now be supplied by ships. Already, under the deal, the US has pledged at least 50 billion cubic meters of LNG by 2030 for European countries to replace about a third of Russia’s gas supplies.
Analysts estimate that the EU-US agreement is expected to lead to an increase in demand for LNG Carriers in the second quarter of this year and an increase in fares during a period that is seasonally characterized by low interest in chartering these ships.
However, it is estimated that the very high price of natural gas as a product may adversely affect charters in the spot market. Analysts say shifting more ships to the spot market in US-EU instead of US-Asia trade has reduced tonnage of cargo due to a shorter US-EU distance from US-Asia, meaning more ships available for cargo. Negative rates in US-EU trade have already occurred recently.
For this reason, given the very high prices of natural gas, charters lasting one year or more are of particular interest to shipowners. The majority of LNG shipments internationally are served by long-term contracts, usually four to twelve years, while less than 40% of all LNG shipments are spot market and short-term contracts. Total LNG shipments (long-term contracts and spot market) amounted to 356.1 million tons in 2020, according to the International Group of Liquefied Natural Gas Importers.
Fares
Drewry recently estimated (before the US-EU agreement) that European LNG imports would increase as EU countries reduced their Russian gas imports. Nevertheless, LNG freight rates will remain low as most ships will head to Europe, as trade will increase to the shorter US-Europe route instead of the US route to Asia, reducing demand for LNG tons by 2022. .
He also added that the removal of EU countries from Russian gas would boost investment in gas liquefaction projects in the US and Africa. But LNG supply is expected to remain limited for the next five years, which will keep LNG prices high with an increased chance of replacing LNG with carbon.
![ot.gr](/wp-content/themes/whsk_otgr/common/imgs/fav.ico/favicon-32x32.png)
![ot.gr](/wp-content/themes/whsk_otgr/common/imgs/fav.ico/favicon-32x32.png)
Latest News
![Greece’s Labor Market Trends; Job Vacancies Surge](https://www.ot.gr/wp-content/uploads/2024/04/ot_tourismos_ergazom-600x352.png)
Greece’s Labor Market Trends; Job Vacancies Surge
According to the latest data job openings soared to a record high of 70,826 positions in the first quarter of 2024, marking a remarkable 115.6% annual increase.
![Eurostat: Inflation in Greece and Euro area at 2.5% in June](https://www.ot.gr/wp-content/uploads/2024/07/inflation-2048x1365-1-600x400.jpg)
Eurostat: Inflation in Greece and Euro area at 2.5% in June
Final figures on inflation for Greece came in slightly worse than the preliminary figure of 2.4%, released by ELSTAT at the start of July
![Greece Acts to Protect Consumers amid Soaring Electricity Prices](https://www.ot.gr/wp-content/uploads/2024/07/photo_2024-07-17_16-15-21-600x399.jpg)
Greece Acts to Protect Consumers amid Soaring Electricity Prices
Skylakakis outlined the government's initiatives but withheld specifics regarding the emergency tax and bill subsidies, which are slated for finalization by late July.
![Cruise Industry Opposes New EU Plan for Piraeus Port](https://www.ot.gr/wp-content/uploads/2024/07/396121953_881827319967534_9198009856198617419_n-1024x793-1024x793-1-1-600x465.jpg)
Cruise Industry Opposes New EU Plan for Piraeus Port
According to the Plan, cruise ship passengers will be transported by shuttle boats from Piraeus port to the Peace and Friendship Stadium (SEF), so that they can then travel to Athens
![Greek State to Reopen 3.875% Bond on Wed.](https://www.ot.gr/wp-content/uploads/2024/07/bonds-2048x1365-1-600x400.jpg)
Greek State to Reopen 3.875% Bond on Wed.
Bond of 3.875% is set to mature on March 12, 2029
![Critical Week for Greece-Cyprus Cable](https://www.ot.gr/wp-content/uploads/2024/07/kalodio_elladas_cyprus_israil.jpeg)
Critical Week for Greece-Cyprus Cable
The study concluded that the social benefits of the interconnection, totaling 8 billion euros, far outweigh its 1.9 billion euros construction cost, resulting in a net social benefit exceeding 6 billion euros.
![Roberta Metsola Re-elected President of European Parliament](https://www.ot.gr/wp-content/uploads/2024/07/2024-07-16T110250Z_1107936467_RC2BW8AZP0U4_RTRMADP_5_EU-PARLIAMENT-2048x1366-1-600x400.jpg)
Roberta Metsola Re-elected President of European Parliament
Her second term will be for a period of two and a half years
![ELSTAT: 1.5% Increase in Business Turnover in May 2024](https://www.ot.gr/wp-content/uploads/2024/07/epixeiriseis_2-600x414.jpg)
ELSTAT: 1.5% Increase in Business Turnover in May 2024
The most significant increase in turnover in May 2024 compared with May 2023 was recorded from the enterprises of the Accommodation and Food Service Activities, sector which grew by 14.8%.
![Cosco: Container Traffic Decline at Piraeus Port Continues](https://www.ot.gr/wp-content/uploads/2024/07/olp1-scaled-1-2048x1312-1-600x384.jpg)
Cosco: Container Traffic Decline at Piraeus Port Continues
This strategic shift has diminished Piraeus's standing as a prominent Mediterranean port and a key transshipment hub post-Suez Canal.
![Gov’t Eyes Return of Power Subsidies Amid Spike in Rates](https://www.ot.gr/wp-content/uploads/2024/07/power-lines-2048x1365-1-600x400.jpg)
Gov’t Eyes Return of Power Subsidies Amid Spike in Rates
According to reports, the government will resume an electricity subsidization program, given that forecasts cite disruptions – i.e. higher rates