LNG carrier current orderbook/fleet ratio remains below average levels at ~28.5% of existing fleet
Speculative ordering remains limited due to significant capital requirements, limited bank financing availability, and technical expertise required
Relatively few shipyards possess technical know-how to build an LNG ship; existing newbuilding orders placed at only 8 shipyards.
China has yet to get up the learning curving on building LNG ships with just 1yard building ships and at a higher cost than South Korean builders.
The majority of LPG production is sourced from the Middle East with LPG being a byproduct of oil and gas production
Middle East LPG production expected to grow 9% per annum in 2013 and 2014, which should allow the region to continue to satisfy demand growth
LPG exports represent an attractive opportunity for US producers to profitably make use of immense shale gas reserves
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