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Discussion Starter · #1 ·
A very rare event in the shipping markets this week - two LNG carriers have reportedly been sold.

The METHANE ARCTIC and METHANE POLAR, both around 71,500 cbm and built in 1969 at Kockums, were sold by BG Group for around $80 million en-bloc to undisclosed interests.

The high price - for vessels that in other sectors of shipping would be classed as obsolete due to their age - reflects two things. Firstly, the fact that so few LNG carriers ever come on to the second hand market and any that do thus command a premium. Secondly, their superior construction means that they can trade well beyond the approximate 25 year lifespan that is commonplace for standard tankers and bulkers.

Phil
 

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Metals

Or maybe, the exotic stainless in their construction makes them "premium" scrap buys.

Just a thought.......

Dave R.
 

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Discussion Starter · #3 ·
Hi Dave,

Yes, their stainless steel content would make them attractive to the scrappers, but they would never pay that sort of price. Current scrap prices from Bangladesh are around the $400/ldt mark for standard tankers and around $500-550/ldt for stainless steel chemical tankers. An LNG carrier of this size, should it come into the demo market, would possibly get slightly more than $550. That's still under $8.5 million - a lot less than the $40 m per ship just obtained.

These ships still have a few years left in them and should be a sound investment for their new owners.

Cheers
Phil
 

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Worth their weight........

Hi Phil,

Good point! Maybe I'm traumatised seeing as the first vessel I was sent to work on was the Nestor in Loch Striven, reactivation to take her to Le Havre for guarantee work. She never once carried a cargo for BF/Ocean.

I agree with you that these vessels should have a few years left in them. Also, the bulker/tanker existing market is on the up seeing as there are some very large contracts for very large container vessels. I believe a cape size bulker to be worth around 35M and a new build about 45-50M? Again, I think on a global scale, this was another factor pushing steel prices up.

Saludos!

Dave
 
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