MSI Consultancy Case Study – LNG Carrier Investment

Timing  of investments – especially in complex and costly shipping markets like LNG – calls for a unique combination of expertise and experience. This energy shipping market is among the most dynamic, with booming infrastructure matched by growing interest from a wide range of investors.

MSI was recently called upon to advise a leading international alternative investment firm that specialises in infrastructure and real assets.

The company was asked to provide an independent assessment of an investment opportunity in the LNG carrier space with a focus on the most widely available engine types in the sector and the risks associated with them.

MSI performed the following tasks:

• A comprehensive overview of recent trends in the LNG market, including regional gas production, export and import capacity and developments in the energy demand mix and its flowthrough impact on LNG trade.
• A high level overview of historical and forecast LNG carrier demand and supply trends and the commercial implications for the different segments by engine types prevalent in the market (steam turbine, DFDE, gas injection).
• The impact of demand and supply factors on sector utilisation rates and achievable earnings.
• A detailed focus on LNG carriers by engine type, including trends in fleet development, fleet employment and sale and purchase activity.
• Asset valuations, including forecast fair market residual value and one year timecharter rates for the specific LNG carriers under review.
• A cohort analysis of the specific LNG carriers under review.

MSI delivered a presentation to the client that incorporated all parts of the scope and detailing our latest analysis and forecasts with supporting data provided in Excel. After delivery of the presentation, the client was given the opportunity to compile a list of questions, which were then addressed by MSI during a conference call.

To learn how MSI’s Consultancy Services can help your business understand and profit from market dynamics in shipping, offshore and shipbuilding, please get in touch.