The global LNG bunkering market was valued at US$0.38 billion in 2019, and is projected to reach US$5.14 billion by 2027, growing at a CAGR of 45.2% from 2020 to 2027.
The global shipping industry faced an International Maritime Organization (IMO) legislation to significantly limit sulfur emissions from ships, firstly in North America and then Northern Europe in 2015. LNG is a potential solution to meet these requirements due to its negligible sulfur content, and its combustion produces low NOx compared to fuel oil and marine diesel oil. LNG is not only a cleaner burning fuel but also possesses economic advantages on a calorific value basis. Even higher LNG prices in Asia-Pacific are lower than global bunker fuel prices. As a result, there have been recent developments to promote the use of LNG as a bunker fuel.
The IMO’s regulations of sulfur cap of 0.50% m/m (mass/mass) in 2020 for marine fuels, increase in ocean-borne trade, especially in t/km travelled, and the lower cost of LNG bunker fuel than other variants of ECA-compliant fuels are the factors that drive the growth of the global LNG bunkering market. However, the demand-supply gap for LNG bunkering is expected to increase with the implementation of IMO regulations; hence, supply must expand rapidly to meet global demand and premium priced Asia-Pacific demand in particular. On the contrary, increase in investment and financing toward LNG bunkering are expected to create opportunity for key players in the LNG bunkering market during the forecast period.
The global LNG bunkering market is segmented on the basis of product type, application, and region. Depending on product type, the market is categorised into truck-to-ship, port-to-ship, ship-to-ship, and portable tanks. The applications covered in the study include container fleet, tanker fleet, cargo fleet, ferries, inland vessels, and others. Region wise, it is analysed across North America, Europe, Asia-Pacific, and LAMEA.
