Why does Wood Mackenzie warn that Asian shipbuilding dominance could hinder global LNG expansion?

Wood Mackenzie warns that the record global LNG supply expansion—led by the U.S., Qatar, and Africa—could be slowed because over 260 LNG carriers ordered for delivery from 2027 onward are overwhelmingly concentrated in South Korean and Chinese shipyards (around two-thirds in South Korea, most of the remainder in China), creating a critical dependency on a supply chain the industry does not control and cannot quickly replicate; this concentration raises risks of delays and rising vessel costs, threatening the sector’s ability to physically move future LNG supplies—a bottleneck as vital as liquefaction project development itself.

What structural risk does Wood Mackenzie identify in the global LNG trade system, and how is it described?

Wood Mackenzie identifies an 'hourglass' system in global LNG trade, where growing supply from a handful of major exporters (U.S. Gulf Coast, Qatar, Africa, Australia) and demand concentrated in Europe and Asia converge through a narrow transport link—the global LNG carrier fleet—making the industry’s physical movement capacity as crucial as liquefaction infrastructure, yet highly vulnerable due to its geographic and industrial concentration in just two countries.

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Asian shipbuilding dominance could thwart LNG expansion, Wood Mackenzie says

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Wood Mackenzie warns that Asian shipyard dominance may delay global LNG expansion due to concentrated vessel construction capacity in South Korea and China. This bottleneck poses significant risks to energy security as over 260 new carriers are needed by 2027.

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