Offshore plant sector to recover | Global Maritime Social Network

Offshore plant sector to recover

Written by Perter Clarkson Thursday, 09 July 2009 08:37

Following the aggravation of shipping market and the fall in prices for raw materials amid global economic downturn, newbuilding prices have also dropped which became an obstacle to market recovery.

If the imbalance of supply and demand and market jitters are not resolved in a short period by the second half of the year, depressed newbuilding market situation is expected to continue.

But most analysts in the industry said there are some chances of market rebound as many newbuilding tenders are expected to be launched from the second half of the year due to the increasing development of deep-sea oil and gas fields.

The demand for large offshore plants is expected to grow going forward including FPSOs and FSRUs in both oil and LNG sectors, analysts said.