Liquefied natural gas (LNG) continues to be the fuel of choice for lower-carbon shipping, according to analysis by Rystad Energy, despite the rise in orders for vessels equipped with dual-fuel methanol and ammonia engines.

The price competitiveness, abundant supply, and well-developed infrastructure of LNG give it an advantage over alternatives, especially in bunkering at ports.

Globally, more than 2,400 vessels are equipped to operate on LNG, with another 1,000 vessels ordered but yet to be delivered.

This includes a significant number of car carriers, with over 75 per cent of new car carrier orders in 2023 being for dual-fuel LNG engines.

The adaptability of these ships to alternative clean fuels makes them sustainable in the long term.

However, methane slip remains a significant challenge for the maritime sector.

Methane slip occurs when unburned methane escapes into the atmosphere, affecting the environmental benefits of LNG as a fuel.

The industry is urged to work closely with regulators and policymakers to establish strict standards and best practices for bunkering operations to mitigate methane emissions effectively.

LNG bunkering has shown no signs of slowing down, with a record 4.7 million cubic metres delivered globally in 2023, up 62 per cent from 2022.

Ship-to-ship (STS) transfers accounted for a significant portion of this, with 2.9 million cubic metres delivered.

STS operations are expected to accelerate, particularly in Europe, given its position as a major maritime hub with many LNG bunkering ports.

Ro-Ro/passenger vessels and container ships are leading in STS LNG bunkering, with passenger vessels seeing 632 bunkering operations and container ships with 201 operations in 2023.

This dominance is due to their regular refuelling needs and the growing presence of LNG-powered vessels in their fleets.

The surge in LNG bunkering demand is driven by stricter regulations, economic benefits, and expanding infrastructure.

Sales in 2024 are off to a strong start, suggesting the potential for significant growth by year-end.

Total LNG bunker sales could surpass seven million cubic metres by the end of 2024, highlighting LNG’s importance in maritime business and trade.