Take up of LNG will be steady. File image / Pixabay
Demand for liquified natural gas (LNG) as bunker fuel will most likely see steady growth over the next decade, a new study has found.
The report, from the Oxford Institue for Energy Studies, surveys the current state of the LNG bunker market to examine prospects for growth.
It concludes that the 2020 0.50% sulfur cap "is unlikely to trigger a huge surge in LNG demand for bunkering as shipowners race to retrofit their vessels".
It makes more economic sense to build a new ship with LNG capability rather than retrofit an existing vessel which means that demand for LNG bunker fuel will grow incrementally, the report also finds.
"LNG-fuelled shipping may be 'phased in' over an extended period, in a manner that reflects the long lifespans and low turnover of vessels" it added.
The regional market most open to LNG bunkering is Northern Europe, according to the study.
For the full report, click here.