2025 becomes record year for LNG carrier scrapping

The LNG carrier demolition market is experiencing a significant surge in 2025, with a record number of vessels being sold for recycling. This trend highlights a broader industry shift away from aging steam turbine vessels, particularly in light of persistently low spot rates. Recent reports indicate that Abu Dhabi’s Adnoc Logistics & Services has sold its two oldest gas carriers, marking a pivotal moment in the sector.

Record Sales and Market Dynamics

Adnoc Logistics & Services has recently sold its two oldest LNG carriers, Ghasha (built in 1995) and Al Khaznah (built in 1994), for recycling at impressive prices exceeding $20 million each. These vessels, equipped with Moss-type containment systems, are rich in valuable non-ferrous metals like aluminium. The sale price of $615 per let reflects the high demand for their scrap metal composition and the value of the onboard bunkers.

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This transaction contributes to a growing trend in the LNG demolition market, with the total number of vessels dismantled in 2025 reaching nine, already surpassing last year’s total of eight. The increasing number of demolitions underscores the ongoing challenges within the LNG carrier sector, as many owners are opting to retire older steam turbine-powered vessels. According to Clarksons Research, the current soft market conditions are likely to prompt further retirements in the coming months.

The shift towards recycling older vessels not only reflects economic pressures but also indicates a strategic move by companies to modernize their fleets. As the industry adapts to changing market dynamics, the focus on sustainability and efficiency is becoming increasingly important. The ongoing developments in the LNG carrier demolition market signal a transformative period for the sector, with potential implications for future vessel design and operational strategies.