LNG carrier newbuilding market is overheating and industry players started to express worries.

Massive oversupply has led many vessels to lay-up and profitability faced a big drop.

But LNG demand is surging recently and rates soared four times on last summer. Against this backdrop, some players are placing speculative orders for LNG newbuildings for the first time in around seven years.

Industry pundits, however, stress that it's necessary to stay cool-headed and avoid speculative ordering.

As LNG market heats up, new LNG carrier orders sharply increased with speculative orders totaling 15 plus 5 options of the entire 24 plus 11 options inked so far this year.

LNG carrier speculative ordering (without securing long-term charter contracts) is for the first time since 2003-2004 boom period.

But the over-ordering led to over-supply of modern tonnage after 2007, making many LNG players suffer from slump in rates.

Speculative ordering started to appear since the turn of this year as optimism prevails in the market.

But some are concerned that the speculative ordering may be premature as LNG supply projects could lag behind the surging demand.



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