Liquefied natural gas (LNG) is used as an alternative marine fuel for ships. It produces fewer emissions making it a much cleaner option compared to conventional marine fuels such as heavy fuel oil and marine gas oil. LNG is supplied to ships as a bunker fuel either through ship-to-ship transshipment of LNG in smaller coastal bunker vessels or through LNG bunker terminals located at ports. The global LNG Bunkering Market is estimated to be valued at US$ 1084.62 Mn in 2023 and is expected to exhibit a CAGR of 8.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Growing LNG bunkering infrastructure is expected to propel the Global LNG Bunkering Market Size over the forecast period. Governments across various countries are investing significantly towards developing LNG bunkering facilities at ports to encourage the adoption of LNG as a cleaner marine fuel. For instance, Port of Rotterdam, the largest sea port in Europe, has developed an extensive LNG bunkering network comprising of transshipment terminals and bunkering vessels. Similarly, in Asia, ports such as Shanghai, Singapore, and Kobe are developing their LNG bunkering facilities with aim to attract more LNG fueled vessels. Steady rise in sea borne trade and growing global fleet of LNG fueled vessels are prompting governments and port authorities to develop new LNG bunkering facilities as well as expand the existing infrastructure, which in turn is expected to drive the demand for LNG as a bunker fuel over the coming years.
SWOT Analysis
Strength: LNG bunkering infrastructure provides environmental benefits as LNG bunkering reduces emission of sulfur oxides, particulate matter and nitrogen oxides. It is more economical in terms of fuel costs compared to conventional fuels like heavy fuel oil or marine diesel oil.
Weakness: Initial capital investment required for establishing LNG bunkering infrastructure is high. LNG bunkering facilities need specialized shipping vessels and terminals with very stringent safety standards that increases overall project costs.
Opportunity: Stringent emission regulations by International Maritime Organization to reduce pollution from ships is driving demand for cleaner marine fuels. Growing fleet of LNG powered ships and expansion of LNG infrastructure is opening up opportunities.
Threats: Volatility in natural gas prices can impact demand and supply dynamics of LNG as bunker fuel. Technological advancements in other cleaner marine fuels like biofuels poses competition to LNG bunkering market.
Key Takeaways
The global LNG bunkering market is expected to witness high growth.
Regional analysis: The Asia Pacific region currently dominates the LNG bunkering market owing to proactive government policies and initiatives to establish LNG bunkering infrastructure. Countries like Korea, Japan and China are aggressively pushing LNG as a marine fuel.
Key players operating in the LNG bunkering market are Medtronic, Becton Dickinson and Company (BD), Boston Scientific Corporation, Cook Medical, B. Braun Melsungen AG, Koninklijke Philips N.V., Opto Circuits (India) Limited, Terumo Corporation, Surmodics, Inc., and Biotronik.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it