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 11% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
LNG bunkering involves refueling of ships and vessels with LNG instead of conventional marine fuels like heavy fuel oil and marine diesel oil. It provides advantages such as reduction in emission of CO2 and SOx. Growing maritime trade and stringent environmental regulations are fueling the demand for LNG bunkering.
Market key trends:
One of the key trends in the LNG bunkering market is the shift towards utilizing LNG as a cleaner marine fuel. The International Maritime Organization (IMO) has implemented strict regulations such as sulfur cap 2020 to reduce emissions from ships. Using LNG instead of conventional bunker fuels helps meet these stringent emission norms. Many ports and shipping companies are actively promoting the use of LNG due to its clean burning property compared to fuel oil. This is expected to significantly drive the adoption of LNG bunkering in the maritime industry over the forecast period.
SWOT Analysis
Strength: The LNG bunkering market has strong government support through regulations promoting the use of cleaner fuels such as LNG. Many countries and ports have set emission control areas that will drive more ships to switch to LNG fuel to reduce emissions.
Weakness: The infrastructure for LNG bunkering is still underdeveloped in many regions. There is a lack of standardized regulations globally for LNG bunkering operations which adds complexity. Establishing an LNG bunkering network requires huge capital investments.
Opportunity: The international maritime organization’s stricter sulfur emission norms effective 2020 provides a big opportunity for the LNG bunkering market. As ship operators look to comply with new emissions norms, demand for LNG as a marine fuel is expected to significantly increase. Many countries are also offering tax incentives and subsidies to encourage early adoption of LNG bunkering.
Threats: Low oil prices threaten the competitiveness of LNG as a marine fuel compared to conventional fuels. Geopolitical issues in major gas producing regions also add supply security risks. Technology advancements in other clean fuels like methanol could emerge as alternatives to LNG and capture market share.
Key Takeaways
The Global LNG Bunkering Market Size is expected to witness high growth, exhibiting CAGR of 11% over the forecast period, due to increasing demand from the shipping industry to meet new stringent environmental regulations. The International Maritime Organization has put restrictions on sulfur emissions from ships which is driving the adoption of cleaner alternatives like LNG.
Regional analysis: The European region currently dominates the global LNG bunkering market due to supportive regulatory policies and presence of large LNG infrastructure. Countries like Norway and Germany have established major bunkering hubs. Asia Pacific is expected to be the fastest growing market for LNG bunkering led by China, Japan and South Korea. These countries are heavily investing in developing LNG terminals and bunkering vessels to cut emissions.
Key players operating in the LNG bunkering market are Royal Dutch Shell Plc., Skangas, ENN Energy, Korea Gas Corporation, Prima LNG, Harvey Gulf International Marine LLC, Bomin Linde LNG GmbH & Co KG, Fjord Line, Crowley Maritime Corporation, and Polskie LNG. Major players are engaged in capacity expansions and partnerships with port authorities to develop LNG infrastructure across key ports.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
