Application of PU Insulation in LNG Carriers
The transportation and storage of liquefied natural gas (LNG) involve highly intricate processes in which polyurethane(PU) insulation technology plays a crucial role. In the manufacturing of LNG carriers, PU foam panels, specifically using polymeric methylene diphenyl diisocyanate (PMDI), are employed to form the highly insulating tank structures. This not only aids in maintaining LNG at its ultra-low temperature during voyages but also ensures the quality and safety of the liquefied natural gas. Upon the arrival of LNG carriers at the shore, the transportation process relies on a PU insulated piping system. This advanced insulation technology resists temperature fluctuations during transport, reducing energy loss and ensuring that LNG maintains its ideal temperature throughout the transportation process. Thanks to PU insulation technology, onshore storage tanks can effectively store LNG, reduce evaporation losses, and improve the overall system’s energy efficiency. Therefore, PU insulation plays an indispensable role in the production, transportation, and storage of LNG, providing crucial technical support to ensure the sustainability, safety, and cost-effectiveness of the entire process.
Review of LNG Carrier Orders in 2022 and 2023
The trading volume of new LNG carriers surged to 182 in 2022, more than double the record set in 2021, which was 85 LNG carriers, according to Clarksons Research, the world’s largest shipbroker. In 2022, Chinese shipbuilders received a total of 59 LNG carrier orders, representing a 32% market share, while South Korean shipbuilders secured 122 orders, claiming a 67% market share. The only remaining LNG carrier order was for a 3,500 cubic meter LNG bunkering vessel undertaken by Mitsubishi Shipbuilding in March.
In the first 11 months of 2023, global new shipbuilding orders amounted to 1,554 vessels and 38.09 million compensated gross tonnage (CGT), a 20% decrease from the same period last year, which saw 1,811 vessels and 47.77 million CGT. In particular, Chinese shipbuilders secured orders for 973 vessels and 22.09 million CGT, maintaining the top position with a 58% share, while South Korea claimed a 25% share (191 vessels, 9.63 million CGT), ranking second. “China has received a large number of orders, mainly for low-cost vessels, but for us, quality is key, not quantity. The orders received by South Korean shipbuilders are mainly for high value-added vessels, such as LNG carriers, which are much more profitable than those from China,” said a South Korean industry insider.
In the segment of eco-friendly vessels, the most representative being LNG carriers, South Korea had a higher order volume. In 2023, from the beginning of the year until the end of November, South Korea and China respectively bagged ** and ** LNG carrier orders, with an estimated total of ** for the entire year. Additionally, there were reports of additional LNG carrier orders this year due to a previous contract for 40 vessels between Qatar Petroleum and Korean shipbuilders. Of these 40 vessels, Hyundai Heavy Industries has already signed contracts for the construction of 17 vessels in advance, and Samsung Heavy Industries and Hanwha Ocean are planning to sign contracts for the remaining vessels soon.
Major Manufacturers and Their Upstream Suppliers of Chinese LNG Insulation Panels
LNG carriers need to transport liquefied natural gas at an extremely low temperature of -163 degrees Celsius, demanding high requirements for the transportation system and materials. They are regarded as one of the jewels in the crown of global shipbuilding. LNG carriers have a high risk factor and are challenging to manufacture, often referred to as “dormant hydrogen bombs”, placing extremely high demands on core materials such as LNG insulation panels. Yoke Technology is China’s first enterprise to achieve the production of LNG insulation panels, breaking the foreign monopoly. It is also the only Chinese supplier to have obtained certification from France’s GTT, currently without any competitors domestically. Yoke Technology currently holds a substantial number of orders for LNG panels. The company has established strategic cooperative relationships with major shipyards such as Hudong-Zhonghua Shipbuilding, CSSC Jiangnan Shipyard, and Dalian Huarui Heavy Industry. On September 15, 2022, it announced a CNY 20.66 billion order from Hudong-Zhonghua Shipbuilding. The increasing orders for LNG carriers have enabled insulation panel manufacturers like Yoke Technology to obtain a large number of orders. Due to a certain degree of lag in LNG insulation panels production, the growth in LNG carriers in 2022 was only reflected in the insulation panel sector in 2023. In the first half of 2023, Yoke Technology’s sales of LNG insulation composite materials reached CNY 488 million, a year-on-year increase of 169.4%. Wanhua Chemical, one of Yoke Technology’s isocyanate suppliers, provided *** tonnes of isocyanates in 2022 and is expected to supply *** tonnes in 2023.
As environmental awareness gradually increases, the rise of LNG carriers has become a crucial step for the shipping industry to move towards a more sustainable future. The cooperation and competition between South Korea and China in this field will drive continuous innovation and improvement in industry technology. With enterprises like Yoke Technology continuously overcoming technological barriers and providing reliable support for the production of LNG insulation panels, we can expect to witness a more extensive global application of LNG transport systems, injecting new vitality into the future of energy transportation. Therefore, PU insulation technology, as an essential part of the LNG industry chain, will continue to play an indispensable role, leading the green, safe, and efficient development of liquefied natural gas.
If you are interested in Chinese LNG insulation panels market and its impact on MDI consumption, you can subscribe to Asia-Pacific MDI Market Research Report 2023, published by PUdaily, via Tel: 86-21-61250980 and E-mail: marketing@pudaily.com.
