Capital Gas linked to LNG carrier demolition as scrapping hits new record

Shipbrokers report that 2002-built Trader II, with a light displacement tonnage (ldt) of 29,920, will be delivered in Singapore before heading to recycling yards for demolition. The sale price is estimated at around US$480 per ldt.

Trader II joined Capital Gas’ fleet in 2022, during a period when the Greek owner was actively exploring the secondhand market. Notably, another vessel of the same vintage, Trader III, which joined Capital Gas in 2023, has also been sold for recycling this year.

Capital Clean Energy Carriers Corp (CCEC), the publicly listed company associated with Evangelos Marinakis, operates a fleet of 12 latest-generation LNG carriers and has a newbuilding programme for six more vessels, in addition to other gas carriers.

Rising LNG carrier demolition trends

Market observers note a marked rise in vessel demolitions in 2025. According to a CCEC presentation in late July, 10 ships have been removed from the fleet so far this year, surpassing the previous record of eight vessels demolished in all of 2024.

“The commercial removal of older, smaller, and less efficient vessels has been accelerating and is expected to continue at this pace, as these ships face increasing pressure from a stricter regulatory environment,” CCEC stated.

Shipbroker Intermodal attributes the rise in demolitions to current market conditions, tighter environmental regulations, and the declining competitiveness of older technology units.

CCEC notes that older steam turbine LNG carriers still number around 200 vessels, representing approximately 30% of the global fleet in operation. Idle rates for these steam turbine carriers have also climbed, reaching 18% at the end of July, up from 12% in June – further supporting the scrapping trend, according to Intermodal data.