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Argus Media: LNG bunkering market weathers high prices

Even though there has been an astronomical price differential between conventional fuels and LNG, the shipping sector still has belief in LNG as a bunker fuel, says Kanfer Shipping MD Stig Hagen.

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Record high global LNG prices of last year weighed heavily on LNG bunkering demand throughout 2022, but environmental incentives leave firms seeing a robust future for LNG as a marine fuel.

2 February 2023

High prices fed straight through to the spot LNG bunkering market, prompting many firms to operate dual-fuel vessels on alternative fuels, or let LNG-fuelled vessels run warm, in a bid to avoid the substantial costs and volatility involved with LNG fuelling. Many firms were also able to increase utilisation of other ships.

Spot LNG delivered-on-board (dob) prices were often at wide premiums to corresponding marine gasoil (MGO) prices in 2022.

The high prices have also prompted some firms to reconsider their plans to use LNG as a marine fuel. Costly LNG prompted Norwegian ferry operator Fjord Line to announce it was going to add MGO as a fuelling option to two LNG-fuelled ferries. Last year also saw some cancellations of orders for both LNG-powered ships and LNG bunkering vessels or projects.

That said, LNG prices have held at much lower levels in 2023, with the Argus prompt LNG dob price around 78pc lower in recent weeks compared with its all-time high in August, though they remain higher than in 2020 and much of 2021. As soon as prices were making broadly consistent falls, the “phone began ringing”, Jacob Granqvist, vice president of maritime operations at Finnish firm Gasum, tells Argus. Firms are still open to indexing contracts to the Dutch TTF gas hub but some have shifted approaches to pricing supply, with more demand for fixed priced deals, he adds.

And high prices have not deterred some firms from ordering new LNG-powered vessels and planning new LNG bunkering projects. Around 108 LNG-fuelled vessels were delivered last year, bringing the global fleet to around 361, compared with 246 on the water in 2021 and 186 in 2020, according to Norwegian shipping certification society DNV. A further 500 LNG-powered vessels are set to be delivered by the end of 2026.

“Even though there has been an astronomical price differential between conventional fuels and LNG, the shipping sector still has belief in LNG as a marine fuel”, Norwegian firm Kanfer Shipping managing director Stig Hagen says. Kanfer sees LNG prices likely falling in the coming years, as global LNG production steps higher in the middle of the decade, while more environmental incentives to switch away from traditional fuels are being introduced by authorities globally, which could further boost demand for LNG as a marine fuel.

Granqvist takes a similar view on the prospects for LNG bunkering, as new environmental regulations drive firms to boost usage of LNG in their fleets. The inclusion of maritime shipping in the EU’s emissions trading system (ETS) will require shipowners to pay for 40pc of their emissions from 2025, 70pc from 2026 and 100pc from 2027. But the use of LNG as a fuel in fleets will enable operators to compensate for emissions, meaning that “lesser emitting vessels such as LNG-fuelled vessels can compensate for dirtier conventional vessels”, Granqvist says.

In the short term, tighter availability of alternative marine fuels such as MGO may also lead to stronger demand for LNG use as a bunkering fuel. The EU ban on Russian oil products set to come into force on 5 February could have a knock-on effect of limiting MGO supplies.

LNG bunkering availability needs to grow

As the number of dual-fuel vessels and LNG-fuelled vessels is set to increase sharply in the coming years, the bunkering sector is trying to keep up.

Gasum has its eyes on a global LNG bunkering network, partnering with China’s CNOOC and Singapore’s Pavilion Energy under a preliminary agreement signed in November last year, seeking to strengthen ties across the world’s main bunkering hubs from the Nordics and northern continental Europe.

Kanfer’s Hagen similarly sees a need for more strategic LNG bunkering hubs around the world, with the firm targeting high traffic shipping routes. Kanfer plans to start up an LNG bunkering facility at the Suez Canal, tapping into one of the busiest shipping corridors in the world, and sourcing LNG from Egypt. The firm aims to reach an final investment decision (FID) on the Suez Canal project in the first half of this year and to bring the facility on line in mid-2025. “Existing hubs in Singapore and northeast Asia do not produce LNG, meaning they have to import LNG then resell it onto the maritime market,” Hagen says, but Egypt’s own production capabilities give it the “competitive edge”.

The firm also has preliminary plans to develop an LNG bunkering project in the Panama Canal, with potential LNG supply likely available from the US’ expanding liquefaction capacity. More LNG bunkering availability in the US Gulf coast could come from Texas’ Freeport export terminal, which aims to bring on line its marine barge by early 2025.

And China has plans to build on its LNG bunkering presence, with state-controlled firms receiving support from local authorities, with its southern city Shenzhen aiming to become Asia’s largest offshore bunkering centre.

By Ellie Holbrook

 

Photo credit and source: Argus Media
Published: 3 February, 2023

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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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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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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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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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