LNG as a Bunker Fuel Market by Vessel Type (Offshore Tugs & Service, Ferries, Oil & Chemical Tankers, Container Ships, Gas Carriers, Cargo, and Others) and by Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) is estimated to be valued at US$ 483.1 Mn in 2024 and is expected to exhibit a CAGR of 17.3 % during the forecast period (2024 -2031 ), as highlighted in a new report published by Coherent Market Insights.
LNG bunkering is the practice of providing liquefied natural gas fuel to a ship for its own consumption. Ship owners have turned to liquefied natural gas (LNG) as the bunker fuel of choice to curb air pollution from shipping, since it emits significantly fewer air pollutants and contains 30% less carbon than HFO (Heavy Fuel Oil). In January 2020, Atlantic Gulf and Pacific ( AG&P), the global downstream gas and LNG logistics company, had expanded its portfolio of proprietary technologies for small-scale bunker vessels and LNG-to-power barges in response to the growing global demand for cleaner and cheaper fuel.
LNG as a Bunker Fuel Market– Impact of Coronavirus (COVID-19) Pandemic
The World Health Organization (WHO) designated the illness caused by the Severe Acute Respiratory Syndrome Coronavirus 2 (SARS-CoV-2), which first appeared in Wuhan (province of Hubei, China) in the last months of 2019 as "coronavirus disease 2019" or COVID-19. This virus spread quickly and had a serious negative impact on the economies, social behaviors, and healthcare of every country in the world.
COVID-19 affected the economy in three main ways: by directly affecting production and demand, by creating disruptions in distribution channels, and through its financial impact on firms and financial markets. Due to the lockdown, several countries, such as India, China, Brazil, and others, faced problems with regard to the transportation of drugs from one place to another.
Lockdowns and mobility restrictions led to disruptions in the supply chain of LNG, affecting its production, liquefaction, and distribution infrastructure. This could have caused temporary constraints in the availability of LNG as a bunker fuel in certain regions.
The focus of governments and international bodies on managing the health crisis might have delayed regulatory progress in pushing for cleaner shipping fuels, like LNG, under international maritime regulations.
COVID-19 introduced new operational complexities, such as the need for crew changes under strict health protocols, affecting the normal operations of bunker vessels and the refueling infrastructure.
The plummeting oil prices made traditional oil-based bunker fuels more economically attractive compared to LNG in the short term, potentially slowing down the shift toward LNG as a marine fuel.
Health risks and safety concerns for crew and staff involved in LNG bunkering operations required additional measures, possibly increasing costs and affecting bunkering schedules.
The LNG as a Bunker Fuel Market resilience, combined with the maritime industry's commitment to reducing emissions, may offset short-term impacts, as LNG remains a key transitional fuel for achieving lower emissions in shipping.
LNG as a Bunker Fuel Market– Key Developments
In January 2022, the U.S. shipbuilder Fincantieri Bay Shipbuilding commenced the construction of the largest LNG bunkering barge in the U.S. The LNG bunkering barge will consist of a 126.8 m vessel, which will have a capacity of 12,000 m3 of LNG. The expected completion year of the project is 2023.
Browse 36 Market Data Tables and 33 Figures spread through 180 Pages and in-depth TOC on “LNG as a Bunker Fuel Market, by Vessel Type (Offshore Tugs & Service,, Ferries, Oil & Chemical Tankers, Container Ships, Gas Carriers, General Cargo, and Others) and by Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa)
Key Takeaways of the LNG as a Bunker Fuel Market:
- The LNG as a bunker fuel market is expected to exhibit a CAGR 17.3 % during the forecast period. The merger with emerging economies offers lucrative growth opportunities for players in the LNG as a bunker fuel market.
- Among regions, North America is expected to be dominant the LNG as a bunker fuel market, owing to the presence of major players such as a Bunker Fuel Market include BP P.L.C., Conocophillips Corporation, Chevron Corporation and other key market player contributing to the growth in this region
- Major players operating in the LNG as a bunker fuel market include BP P.L.C., Conocophillips Corporation, Chevron Corporation, China National Petroleum Corporation, ENI S.P.A., Equinor ASA, Exxon Mobil Corporation, PJSC GAZPROM, Petronas, Rosneft Oil Company, Royal Dutch Shell PLC, and Total S.A.