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ENGINE Q&A: LNG bunker market set for low prices and rapid demand growth

In an interview with ENGINE, Emma Richards of BMI Research argues that a global gas supply glut will weigh down on LNG prices and create fresh bunker demand from both new and existing vessels.

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After the LNG bunker market was shook by Russia’s invasion of Ukraine and skyward prices, it now faces a period of oversupply, low prices and soon a doubling of the global LNG-fuelled fleet.

The LNG bunkering market faces an upswing which will be driven by a notable increase in LNG-fuelled vessels in operation. With 509 operational LNG-fuelled vessels reported until now, and an additional 524 on order, the industry braces itself for significant expansion. Amidst this growth, the dynamics between sellers and buyers could change.

In an interview with ENGINE, Emma Richards argues that a global gas supply glut will weigh down on LNG prices and create fresh bunker demand from both new and existing vessels. She is an associate director of oil and gas at BMI Research and has over 10 years of experience as an analyst and researcher, with LNG as one of her specialisms.

How are industry players preparing themselves to tackle the expected growth of the LNG bunkering market in the coming years?

The LNG bunkering market is set for rapid expansion over the coming years, with DNV reporting 471 LNG-fuelled vessels operational as of 2023 and another 523 currently on order and set to begin commercial operations within the next five years.

Bunkering infrastructure is already fairly well-established along most major trade routes and industry players are ramping up their spending to cope with the expected increase in demand, via investment in bunkering terminals and ship-to-ship and truck-to-ship LNG bunkering capacity.

Traditional demand centres in North America, Europe and East Asia will continue to pull the lion’s share of capex, but we’re also seeing increased spending in other regions, such as MENA.

As well as individual investments in local facilities, some players are also partnering up, to build out global bunkering networks. This entails strengthening ties across existing hubs, as well as exploring new markets to penetrate along key shipping routes.

As with investments in the LNG sector more broadly, GHG emissions levels are growing in importance and measures to reduce carbon intensity are a common feature of many new projects under development.

Will the extra natural gas production and LNG export capacity that is set to come online in the US and Qatar over the coming years lead to an LNG glut?

Yes, it looks very likely to be the case. Qatar and the US are both set for significant export growth over the next five years, but there’s a whole host of other markets that are also ramping up their exports – Mozambique, Malaysia, Russia, Nigeria, Indonesia and Australia, to name just a few.

We don’t see underlying LNG demand growth being strong enough to absorb these exports in full, so – assuming liquefaction capacity comes online as planned – we’re looking at quite a loose market balance over the mid-to-late 2020s.

Based on our forecasts, 2026 and 2027 will represent the peak of the supply glut, with imports playing catch-up from there. To be clear, we’re very bullish on demand growth, it’s just a highly cyclical industry, and recurrent periods of surplus followed by scarcity are part and parcel of that.

If so, will that also permeate down to a glut on the LNG bunkering side and pressure prices down?

Yes, changes in LNG prices feed very directly into the bunkering market and prices will need to adjust downwards, to incentivise discretionary purchases and encourage fuel switching towards LNG. Sellers have generally had the upper hand over the past few years, but it’ll be the buyers’ turn soon.

Spiraling costs in the wake of Russia’s invasion of Ukraine in 2022 definitely took their toll on the LNG bunkering sector, pressuring demand to the downside and triggering the cancellation or delay of several LNG-fuelled vessels and bunkering projects. But the combination of lower LNG prices and tightening environmental regulations in the maritime sector paint a pretty bright picture for demand going forward.

By Debarati Bhattacharjee

 

Source: ENGINE
Photo credit: Shaah Shahidh on Unsplash
Published: 11 March, 2024

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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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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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