The number of LNG bunkering vessels and the port infrastructure to support them is rapidly increasing globally, supporting demand for LNG as a marine fuel.
The amount of LNG consumed by LNG-fuelled ships has already seen a steep increase, with more than 500 per cent growth registered between 2020 and 2024.
There were 191 ports with active LNG bunkering facilities in 2024, such as LNG storage tanks, dedicated berths for LNG bunkering vessels, and ready access to LNG supply, while a further 81 ports have facilities under construction.
The Port of Singapore hosts the world’s largest ship bunkering hub and the country’s port and maritime authority has signalled it plans to diversify fuel offerings in line with its push for maritime decarbonisation.
There are currently 642 LNG-powered vessels in operation, excluding LNG carriers, according to DNV’s Alternative FuelsInsights platform – of these, 169 were delivered in 2024, setting a new record.
There were 264 new orders for LNG-fuelled vessels in 2024, another record and more than double (103 per cent) the number of orders in 2023.
DNV has projected the growth curve to get even steeper, with the number of LNG-powered vessels in operation set to double by the end of the decade.
Maritime consultancy Clarksons reported that about 8 percent of new builds on order had opted for LNGpropulsion, while alternative fuelled ships represented 50 per cent of all new orders placed last year.
Global hubs also broke records for LNG bunkering during2024, with preliminary data from Singapore showing more than a million cubic metres, and the first three quarters of the year at Rotterdam showing sales upwards of 639,000 cubic metres.
In China, Shanghai Yanshan delivered 444,000 cubic metres, Shenzhen Yantian 300,000 cubic metres, and Ningbo Zhoushan 60,000 cubic metres.
The main difference between loading LNG into fuel tanks and loading heavy fuel oil is that LNG is carried as a boiling, cryogenic liquid, which means temperature and pressure influence its behaviour.
The liquid is at its boiling point of about negative 162 degrees Celsius, so exposure can be hazardous to both personnel and any conventional steel structures or piping. A third difference is that vapour from LNG bunkering can form explosive clouds in confined spaces and requires special handling of the vapour when bunkering.
However, bunkering methods have been developed where no vapour is emitted from the tanks or is returned to the bunkering vessel or terminal. Conducting safe ship-to-ship LNG bunkering operations is important for the continued growth of LNG as a fuel in shipping, according to Shell Global Downstream LNG General Manager Tahir Faruqui.
He said: “Shell believes LNG is the first step to decarbonise the shipping sector, as it offers immediate emissions reductions.
“LNG is a fuel in transition as it has the potential to get to net zero emissions through bio-LNG and synthetic LNG (from green hydrogen).”
In its outlook for 2025, Shell said the global trade in LNG was set to rise significantly by 2040, driven by Asian economic growth, the need to decarbonise heavy industry, and the emerging growth in the energy-intensive tech sector.
Shell said: “LNG is becoming a cost-effective fuel for shipping and road transport that can bring down emissions – longer term, existing gas infrastructure could be used to import bio-LNG or synthetic LNG and also repurposed for the import of green hydrogen.”
Noting that negligible supply growth and resilient Asian demand kept prices elevated in 2024, Shell reported global trade in LNG reached 407 million tonnes last year, an increase of just three million tonnes from 2023 and the lowest annual supply addition in a decade.
Demand for LNG strengthened in Asia during the first half of 2024, as China took advantage of lower prices and India bought more cargo to help meet strong power demand arising from hot summer weather. On the other hand, European imports fell by 23 million tonnes or 19 per cent, due to strong renewable energy generation and continued weakness in industrial gas demand.
Prospects for LNG are strong, according to Shell, with more than 170 million tonnes of new LNG supply set to come to market by 2030, helping to meet the growing long-term global demand for gas.
Shell added: “Europe and Japan will continue to require LNG to fill a widening gap between energy diversification ambitions and actual investment levels.”
