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Article: Is LNG Shipping’s Long Term Answer to Climate Change?

Pacific Green Technologies informs on the issues of using LNG as a marine fuel by the shipping industry.
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Scrubber technology firm Pacific Green Technologies (PGT) on Tuesday (19 November) published the following article informing the shipping industry on the issues of using LNG as a marine fuel by the shipping industry:

Experience tells us that popular opinion is rarely correct. It’s too black and white, too lacking in nuance and interest in the nitty gritty world of detail and fact.

Popular opinion, for instance, says that low sulphur fuel oil (LSFO) is a much safer bet for ships to burn. It claims that alternative fuels, like liquefied natural gas (LNG), are the safest of all.

Of course, it’s good that there is a debate being had – even an occasionally misinformed one.

After all, the International Maritime Organisation’s (IMO’s) new sulphur oxide and nitrous oxide emissions standards is scheduled to take effect on 1 January 2020.

These laws had to be passed. The global shipping industry is one of the largest producers of greenhouse gases (GHG) and the damage done to human health by high SOx emissions, especially, has been increasingly significant.

But the move towards IMO 2020-compliant solutions has seen a trend towards overkill driven by emotion and the belief that the further one moves from burning HSFO the better for the environment.

If LNG is the answer, we’re asking the wrong question

Though it seems fair to assume that burning LSFO is better for the environment than burning HSFO, it isn’t. With the responsible use of an exhaust gas cleaning system, HSFO has been shown to outperform LSFO in toxic emissions, particulate matter (PM) and carbon footprint.

Similarly, the claims that LNG is the best fuel for marine de-carbonisation appear plausible on the surface. Yet, closer scrutiny reveals that LNG is not the panacea it is promoted to be.

Though most of the noise over the last 18 months in the maritime sector has been about IMO 2020, these regulatory changes are part of a broader IMO strategy. Envisaged legislation aims to reduce shipping output of particulate matter, and cut the industry’s CO2 emissions in half by 2050.

SEA/LNG, the industry coalition tasked with advocating the use of LNG fuel, rightly acknowledges this.

“Modern ships have a life expectancy of around a quarter of a century,” says SEA/LNG Chairman, Peter Keller.

Methane accounts for approximately 95% of the LNG used in marine propulsion

“Investors need to know how the capital expenditures for installed engines and their operational costs, including choice of fuel, will be impacted by current and future environmental legislation.”

However, it is primarily this scale of timeframe that counts against LNG.

Though LNG has a lower carbon impact than oil-based fuels, it is not as pronounced as common sense science suggests it might be (LNG only provides a 20-25% reduction in CO2 emissions compared to diesel).

This difference could be even less depending on how the lifecycle of fuel is measured from well to wake.

A solid argument exists for writing off the GHG emissions associated with HSFO production, as this residual fuel oil is essentially a byproduct of the manufacturing process for lighter fuels like diesel. SEA/LNG disagrees.

Then there’s the methane problem.

Methane accounts for approximately 95% of the LNG used in marine propulsion. Though most of it is combusted, some of it escapes during fuel consumption in a phenomenon known as ‘methane slip’.

Though slipped amounts are small, they have a disproportionately high impact on climate change. Methane has a global warming potential which is 28 times higher than that of CO2 over a 100 year perspective, and 84 times higher over 20 years.

Methane slippage can therefore reduce, or even negate, the potential gains for LNG from lower CO2 emissions.

This flips the claim that LNG offers decarbonisation benefits that accrue in proportion to its representative mix within existing vessel fleets: the more LNG vessels, this views maintains, the greater the benefits.

But, if burning LNG actually has a marginally detrimental effect on our climate, then the more LNG ships we see the more we need to worry.

“I think people automatically say that we can go to LNG and clean up the environment,” says Jose Femenia, Professor of Engineering at the United States Merchant Marine Academy at Kings Point, N.Y. "You have to take that with a grain of salt."

LNG gases are also not free of particulate matter. A study for the European Commission found that, though LNG particle emissions were lower by volume than oil-based fuels, they were concentrated in the ultrafine range.

According to the research, ultrafine particles can penetrate the respiratory system and be transported to other parts of the body via the blood, where they can cause widespread inflammation.

“Very small particles may also play a role in atmospheric processes, dictating the amount and lifetime of clouds, which can influence climate.”

On the spectrum of potential alternative energy sources there are a number, like hydrogen or battery power, that promise greater long-term benefits. The only factor counting in LNG’s favour is that it is a more mature technology with more established supply side actors.

Whether LNG is a fuel for 2050 is questionable.

It is for these various reasons that University Maritime Advisory Services (UMAS) has concluded that the European Union’s (EU) projected spending on LNG bunkering infrastructure would have no significant climate benefits.

Marine exhaust gas scrubbers, however, do have a positive short-, medium-, and long-term effect.

In the move towards long-term alignment with climate policy, LNG is in danger of being a diversion. And, with the amount of money that needs to be spent to develop the currently sparse global LNG bunkering infrastructure, that diversion could be very costly.

Source: Pacific Green Technologies
Published: 20 November, 2019
 

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Alternative Fuels

Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.
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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) and South Korean shipbuilder Hanwha Ocean on Wednesday (2 September) signed a shipbuilding contract for six 13,000 TEU class LNG dual-fuel container vessels. 

The contract was signed by Dr. Chuck Tsai, Chairman of Yang Ming, and Mr. Charles Kim, CEO of Hanwha Ocean. The vessels are scheduled for delivery between 2028 and 2029. 

They will complement Yang Ming’s existing fleet of 10,000+ TEU vessels and serve as key vessels on East-West services, with deployment flexibility across trade lanes connecting Asia with the East and West Coasts of North America, South America, and the Mediterranean. 

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

“As Yang Ming transitions toward net-zero emissions, LNG provides a relatively mature and economically viable alternative fuel solution, capable of reducing greenhouse gas emissions by approximately 20%,” the company said. 

“At the same time, ammonia can serve as a carbon-free fuel by utilising converted LNG storage facilities, while offering relatively lower conversion costs and comparatively well-developed supply chains and infrastructure. The Ammonia Fuel Ready design will therefore provide Yang Ming with greater flexibility in responding to increasingly stringent international regulations on greenhouse gas emissions.”

In addition, the vessels will be equipped with Type B LNG fuel tanks with a design pressure of 1.0 bar to enhance the safety and efficiency of LNG operations, together with a range of energy-saving technologies, including Wind Shields, Rudder Bulbs, Pre-Swirl Stators, and Shore Power Systems. Smart ship technologies and cybersecurity protection features will also be incorporated to enhance operational efficiency, safety, and reliability while effectively reducing fuel consumption and greenhouse gas emissions.

Deliveries under Yang Ming’s next-generation fleet optimization plan commenced earlier this year. By 2030, a total of 24 new vessels are expected to enter service. 

This includes 18 LNG dual-fuel vessels—comprising five 15,500 TEU, seven 16,000 TEU, and the six 13,000 TEU vessels under this contract—alongside six 8,000 TEU methanol dual-fuel-ready ships. 

 

Photo credit: Yang Ming Marine Transport
Published: 4 September, 2026

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Alternative Fuels

LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Both secured AiP for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.
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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Lloyd’s Register (LR) and the Marine Design and Research Institute of China (MARIC) on Thursday (3 September) have secured Approval in Principle (AiP) for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Announced at SMM 2026, the concept addresses one of the biggest investment challenges facing shipping today: the need to develop vessels and capabilities that can support a range of alternative fuel options and pathways as technologies, infrastructure and regulations evolve.

While LNG is already a mature fuel pathway, methanol and ammonia remain at an earlier stage of development, with questions around global fuel availability, infrastructure development, economics and long-term adoption.

The 114,000 DWT tanker concept has been designed as a product and crude oil carrier that can accommodate future conversion to LNG, methanol or ammonia as technologies, regulations and fuel supply chains mature. By incorporating conversion readiness at the design stage, the concept aims to reduce future retrofit complexity and provide owners with greater confidence when planning long-term fleet investments.

The design concept was reviewed against LR’s July 2026 class rules and regulations, including requirements relating to ships using gases and other low-flashpoint fuels, alongside relevant IACS Common Structural Rules for oil tankers. Final classification and statutory approval remain subject to full compliance with all applicable rules and regulations.

Theo Kourmpelis, Global Business Director for Tankers, Lloyd’s Register, said: “Shipowners are being asked to make major investment decisions today despite continued uncertainty around which fuels will dominate in the decades ahead. Alternative fuel solutions each offer potential pathways to compliance, but fuel infrastructure, regulation and economics continue to evolve at different speeds around the world.

“Designs that preserve flexibility will be critical in helping owners manage risk while preparing for multiple future scenarios.”

Si Nan, Marine & Offshore Marketing Department Vice Director, MARIC, said: “As the industry explores different decarbonisation pathways, shipowners need vessel designs that can adapt alongside technological and regulatory developments. This concept was developed specifically to provide greater fuel flexibility and long-term resilience, allowing owners to respond to changing market requirements without being locked into a single fuel strategy.

“Receiving Approval in Principle from Lloyd’s Register is an important milestone that validates the design concept and supports its future development.”

 

Photo credit: Lloyd’s Register
Published: 4 September, 2026

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Alternative Fuels

DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

LNG-fuelled vessels accounted for the vast majority of August activity while the strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year.
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September 4, 2026

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform alternative-fuelled vessel ordering was strong in August, with 52 new vessels added to the platform.

This is the highest monthly total since October 2024 and follows another active month in July, when 47 vessels were added to the database.

LNG-fuelled vessels accounted for the vast majority of August activity, with 46 orders recorded. The container segment led the way with 30 orders, while the car carrier segment contributed a further 12 LNG-fuelled vessels. In addition, four ethanol-fuelled bulk carriers and two hydrogen-powered bulk carriers were added during the month, as well as one LNG bunker vessel.

The strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year. In total, 242 alternative-fuelled vessel orders have been placed in the first eight months of 2026, representing a 27% increase compared with the same period in 2025.

LNG remains the dominant fuel choice, accounting for 63% of all alternative-fuelled vessel orders registered so far this year. Container vessels represent the largest share of these LNG orders (59%), followed by car carriers (30%).

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “The past two months have been particularly strong for alternative-fuelled vessel ordering, with August recording the highest monthly total we’ve seen since October 2024. This has helped lift year-to-date orders to a level well above the same period last year.

“LNG remains the leading fuel choice, driven largely by activity in the container and car carrier segments. These sectors have been among the earliest adopters of alternative fuels, supported by predictable liner operations and increasing demand from cargo owners to reduce emissions across supply chains. 

“For many owners, LNG offers a combination of emissions reductions, fuel availability and future flexibility while the longer-term fuel landscape continues to evolve. 

“At the same time, the latest figures include orders for ethanol- and hydrogen-fuelled vessels, highlighting that owners continue to explore a range of decarbonization pathways. Different segments are making different fuel choices, but the overall level of activity demonstrates continued investment in lower-emission shipping.”

Screenshot 2026 09 04 at 12.29.26 PM Screenshot 2026 09 04 at 12.29.36 PM

 

Photo credit: DNV
Published: 4 September, 2026

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