LNG to be 10% of Bunker Market by 2030: Study

by Ship & Bunker News Team
Tuesday February 4, 2014

A new Wood Mackenzie study finds that demand for liquefied natural gas (LNG) for shipping will represent 10 percent of the overall bunker market by 2030, the Telegraph reports.

Overall, the use of natural gas for transportation is predicted to quadruple to 160 billion cubic metres per year by that year.

"Gas has traditionally played a niche role in global transport but it is now garnering greater attention due to two principal drivers," said Noel Tomnay, head of global gas research for Wood Mackenzie.

"First, oil and gas price differentials are now making investment in gas refuelling infrastructure worthwhile and second, increased environmental restrictions on emissions are encouraging wider global uptake."

Marine gas oil (MGO) and diesel used for lorries and busses will face the most displacement by natural gas.

The use of natural gas in China is expected to grow especially fast, as the nation urbanises and seeks less-polluting fuels

"Demand in China is at present being propelled by a combination of winning factors," Tomnay said.

"These include the most favourable economics, due to the low cost of vehicles; strong vehicle market growth, encouraging fleet investments in gas; and financial support from regional governments, keen to reduce emissions in cities where particulate pollution and smog is a growing problem."

State-owned China National Offshore Oil Corp. (CNOOC) said last week that it will build a new LNG import terminal to help supply natural gas to the nation.

Ship & Bunker News Team
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