The LNG sector is experiencing a significant uptick in vessels sent to scrapyards, data from Clarksons Research has revealed.

The trend is increasing particularly in South Korea, a global shipbuilding powerhouse. In the past week alone, four LNG steam turbine vessels were sold to scrapyards, according to shipbroker Clarksons.

Among the vessels sent for demolition were two 135,000 cubic steam turbine vessels built by Hyundai Heavy Industries at its Ulsan shipyard. The Hyundai Aquapia was constructed in 2000, while the Hyundai Technopia was built in 1999.

The two vessels were sold at a price of about $545 per light displacement tonne, which equates to about $19.2mn each.

Meanwhile, Hyundai LNG Shipping also sent two ships to the scrapyard, namely HL Ras Laffan and HL Sur. The two LNG carriers were both constructed in 2000.

The sale of the four vessels to scrapyards marks a growing trend in the industry of ageing and inefficient smaller vessels being dismantled because they are unable to meet sustainability requirements.

In total, seven LNG tankers have been sent to shipyards already this year to be stripped down and recycled. In 2024, a total of eight LNG carriers were sent for demolition.

The International Maritime Organization has introduced stiffer climate legislation requiring LNG vessels to improve their green credentials. For instance, a new fuel standard for ships is set to be formally adopted in October and will come into force in 2027. The legislation will apply to all large-ocean traveling ships above 5,000 gross tonnage.

A widening performance gap is emerging between fuel-efficient two-stroke or tri-fuel diesel electric vessels compared to legacy steam turbine ships. Moreover, with emissions standards and fuel efficiency playing a bigger role in chartering decisions, legacy vessels are increasingly finding themselves unable to compete and destined for the scrapyard.