LNG Bunkering Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The bunkering of liquefied natural gas is expected to grow rapidly, with a forecast of $2,173,000,000 in 2025 and a staggering $6,526,000,000. By then the annual increase will be 45.8 per cent, which is a very high rate, and will be a result of the ever-increasing demand for cleaner fuels and the tighter regulations. The shift towards liquefied natural gas (LNG) as a preferred alternative to traditional marine fuels is driven by the shipping industry’s commitment to reducing its carbon dioxide emissions and complying with IMO regulations. Technological advances in the bunkering of natural gas, such as the development of more efficient vessels and the establishment of strategic bunkering hubs, are expected to accelerate this growth. The major players in the market, including Shell, Total Energy and Gasum, are investing heavily in the development of bunkering facilities and entering into strategic alliances to enhance their services. Shell, for example, has been expanding its LNG bunkering network around the world, while Total Energy has been actively promoting the use of LNG as a marine fuel. These strategic moves not only demonstrate the potential of the market but also the industry’s commitment to sustainable practices and the role of LNG as a cornerstone of future maritime operations.

Regional Market Size

Regional Deep Dive

The LNG bunkering market is growing at a significant rate in many regions, driven by increasing demand for cleaner marine fuels and the increasingly stricter regulations on emissions. Government initiatives and investments in infrastructure are also accelerating the shift towards using LNG as a marine fuel in North America, Europe and the Asia-Pacific region. The market is characterised by a mixture of established players and newcomers who are all competing to benefit from the shift towards more sustainable shipping practices. Each region offers opportunities and challenges that are influenced by local regulations, economic conditions and technological developments.

Europe

• The European Union's Green Deal aims to reduce greenhouse gas emissions, leading to increased investments in LNG bunkering infrastructure, particularly in ports like Rotterdam and Antwerp.
• Innovative projects, such as the LNG Bunkering project by Gasum in Finland, are setting benchmarks for sustainable practices in the region, showcasing the integration of renewable energy sources in LNG production.

Asia Pacific

• China is rapidly expanding its LNG bunkering capabilities, with the government supporting initiatives to establish LNG as a primary fuel for shipping, particularly in major ports like Shanghai and Guangzhou.
• The introduction of the International Maritime Organization's (IMO) 2020 sulfur cap has prompted many shipping companies in Asia-Pacific to transition to LNG, leading to a surge in demand for bunkering services.

Latin America

• Brazil is exploring LNG as a cleaner alternative for its shipping industry, with government support for LNG bunkering projects in key ports like Santos and Rio de Janeiro.
• The recent partnership between Petrobras and Shell aims to develop LNG bunkering facilities, reflecting a growing recognition of LNG's potential to reduce emissions in the maritime sector.

North America

• The U.S. Coast Guard has implemented new regulations that promote the use of LNG as a marine fuel, encouraging shipping companies to invest in LNG bunkering infrastructure.
• Major players like Shell and Total are expanding their LNG bunkering services along the U.S. East Coast, with new facilities being developed in ports such as Jacksonville and New York, enhancing accessibility for shipping companies.

Middle East And Africa

• The UAE is positioning itself as a key player in the LNG bunkering market, with the establishment of the first LNG bunkering facility in the Middle East at the Port of Fujairah, enhancing regional trade.
• Saudi Arabia's Vision 2030 initiative includes plans to diversify its energy sources, which is expected to boost investments in LNG infrastructure and promote its use in maritime transport.

Did You Know?

“LNG is considered to be 20% cleaner than traditional marine fuels, significantly reducing sulfur emissions and particulate matter, which is crucial for meeting international environmental standards.” — International Maritime Organization (IMO)

Segmental Market Size

Liquefied natural gas is a fuel which is being increasingly used as a cleaner alternative to the usual ship's fuels. The demand for it is being driven by stricter regulations on greenhouse gas emissions and the maritime industry's shift towards a more sustainable approach. Also, improvements in technology and the availability of LNG are encouraging more shipping companies to adopt the technology. The current market is in a phase of gradual deployment. Leading companies such as Shell and Total are investing in the construction of LNG bunkering terminals in Europe and Asia. The main application is for large vessels such as container ships and ferries, such as the AIDAnova, the first cruise ship to be powered by LNG. The 2020 sulfur cap of the International Maritime Organization (IMO) and the growing global emphasis on the sustainable development of the maritime industry are the main drivers of growth. The use of digital solutions for the bunkering of LNG is also shaping the development of the industry and enhancing the efficiency and safety of this process.

Future Outlook

The bunkering of Lng is a market with great future prospects, and is expected to rise from $ 2.17 billion to $ 65.26 billion by 2035, with a CAGR of 46.08%. Lng is a cleaner alternative to the use of petroleum products, and it is expected to grow explosively in the coming years, mainly due to the international regulations imposed on the reduction of greenhouse gas emissions. The use of Lng in ships is expected to rise to about 30% by 2035, which will greatly increase its penetration in the shipping industry, especially in large ships and in fleets converting to more sustainable fuels. Technological advances, such as the development of more efficient Lng bunkering infrastructure and the integration of digital solutions for logistics and supply chain management, will also facilitate this growth. In addition, the governments and international maritime organizations, such as the IMO, are expected to support the investment in Lng bunkering facilities and the establishment of Lng bunkering hubs in strategic locations. In the coming years, the trend of greater collaboration between shipping companies and Lng suppliers, as well as the development of small-scale Lng bunkering solutions, will also play a major role in shaping the market and making Lng the mainstay of the maritime fuel sector.