Gibson predicts shortage of CO2 tankers

Shipyards ought to expect imminent signings of many carbon dioxide (CO2) tankers to match all the planned CO2 storage projects pencilled in around the world.

Brokers Gibson has warned that if many of the CO2 projects currently undergoing feasibility studies get approved, there could be a shortage of shipping capacity.

Currently, just two CO2 carriers are on order and will be dedicated to the Northern Lights project, which commences in 2024.

Given current newbuilding lead times and uncertainty over designs, projects coming onstream, which require shipping capacity in the 2026 period, could find themselves short of specialised tonnage, if orders are not placed soon, Gibson noted.

For shipowners, this could create an opportunity for a speculative order, Gibson suggested. However, with most projects still in their infancy, the risk of ordering the wrong size/design cannot be ignored. Yet, with yards researching designs which can carry ammonia and LPG, as well as CO2, it may not be long until shipowners can mitigate the risk through cargo flexibility.