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LNG Bunkering

GECF: Current state and prospects of global LNG bunker fuel market

Recommends GECF countries to become first movers instead of just taking a wait-and-see position.
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The following paper was written by Aydar Shakirov, Gas Transportation & Storage Analyst, Gas Exporting Countries Forum, Gas Market Analysis Department. It examined the factors impacting the development of the LNG bunker fuel market, forecasted the growth of this market, determined the prospective subsectors for its usage, assessed the current state of LNG bunkering infrastructure as well as made some proposals on how to promote LNG bunker fuel:

LNG has served as a bunker fuel for many decades, but predominantly on LNG carriers as boil-off gas. However, the recent years have witnessed the growing consumption of LNG bunker fuel by non-LNG carriers. Today LNG is becoming a technically and economically feasible option as an alternative fuel for shipping. Numerous ships have been adopting it, with an increasing number of new-builds on order. Currently, LNG-fueled vessels represent a marginal share of the global fleet. There are only over 120 LNG-fueled vessels (not including LNG carriers) on the global market which is less than 0.2% of the market. However, the number is expected at least to double by 2020, if we take into account vessels on order.

According to GECF GGM, in 2040 global consumption of bunker fuels will reach 319 mtoe, with global LNG bunker fuel consumption increasing to 41 mtoe (or 33 mtpa, or 45 bcm). Thus, in 2040 LNG bunker fuel share is expected to reach 13% of the bunker fuel market, while its share in the global natural gas market is anticipated to be at around 1%.

Successful LNG bunker fuel penetration in the global shipping industry depends on a set of regulatory and economic driving forces. The key regulatory driver is the stricter environmental policy designed to reduce or control traditional air emissions. With International Maritime Organization introducing the new sulphur cap of 0.5% from 2020, demand for LNG bunker fuel is expected to rise, since LNG enables almost complete reduction of sulphur oxide emissions and a very significant reduction of NOx and CO2 emissions. Meanwhile, the key economic drivers are high LNG bunker fuel availability and relative competitiveness of LNG prices. Thus, depending on the circumstances, LNG can be the most cost-efficient option.

However, LNG bunker fuel long term growth pace is subject to various regulatory and economic challenges. The key regulatory challenge is to mitigate the negative impacts of LNG-fueled shipping, such as methane leakages and hence the overall greenhouse gas impact of LNG bunker fuel. Given the continuing pressure on the shipping industry to improve its GHG footprint, ship owners may prefer to wait for new lower carbon options. Meanwhile, the key economic challenges are costs of LNG bunkering infrastructure and costs of retrofitting conventional ships to use LNG bunker fuel. LNG infrastructure, although expanding fast, still remains limited. The routing possibilities for LNG-fueled vessels remain limited due to a relatively small number of ports providing LNG bunker fuel. 

Today only a small number of major shipping operators have made a clear commitment to new build LNG-fueled ships. Many ship owners and operators are reluctant to risk significant investments in this climate and have adopted a wait-and see approach to see how technology and prices evolve. In this regard, various recent developments in the industry could serve as a trigger. These developments include the commissioning of the first LNG bunkering vessels in Europe, the first large order of 9 LNG-fueled container ships by CMA CGM, large orders for cruise ships and oil tankers. If other major companies start to follow the suit, this will be a key indication that LNG will be a significant fuel in marine transport in the long term.

GECF countries should consider becoming first movers instead of just taking a wait-and-see position, since the LNG bunkering market promises to be highly competitive. The countries have great potential to become international LNG bunkering hubs. Moreover, LNG bunker fuel allows GECF countries not only to export LNG, but also to develop national LNG market and stimulate demand in their own countries. The countries have various competitive advantages.
First, GECF as a whole is the largest producer and exporter of LNG. It implies that the economics of their LNG bunkering projects may differ from many non-GECF countries. Various non-GECF European and Asian countries, which have ambitions to become major LNG bunkering hubs, are dependent on LNG imports. In this regard, GECF countries may be more competitive.

Second, many GECF countries already have the relevant LNG infrastructure, developed first of all for large scale LNG exports. They need to make relatively lower investment only to adjust the existing infrastructure to the needs of the shipping industry, in particular to build specific LNG bunkering facilities.

Third, many GECF countries have high maritime trade volumes which paves the way for building LNG bunkering hubs in their respective countries. Moreover, some of the countries are notable for favorable geographic location in their respective regions (Middle East and North Africa, Latin America and the Caribbean, Sub-Saharan Africa, Europe) close to the major global trading routes. That may facilitate the usage of their LNG bunkering infrastructure by the largest global shipping companies.

Photo credit: Gas Exporting Countries Forum
Published: 31 December, 2018
 

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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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September 4, 2026

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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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September 4, 2026

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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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