INSIGHT: LNG/LBM/E-Methane, A Titanic Trio

Michael Schaap is commercial director of Titan Clean Fuels. Image Credit: Titan Clean Fuels

At Titan, we have the specialist skillset, equipment, and experience for handling various gaseous fuels, and we are therefore open to delivering any alternative marine fuel that can substantially decarbonise shipping.

Each fuel pathway has its pros and cons, but here we will particularly underline why the LNG route makes environmental, commercial and regulatory sense.

LNG and liquefied biomethane (LBM/bio-LNG) are already working together to deliver significant emissions reductions, and e-methane will join them in the near future. E-methane should not be overlooked as an e-fuel option because all e-fuels will be derived from renewable hydrogen, and therefore cost advantage will come from the foundation that their 'grey' and bio precursors have created.

These 'LNG pathway fuels' can be blended together at any ratio.

This offers ship operators the flexibility to introduce LBM or e-methane at a ratio that aligns with their and their customers' needs. Blending is a feature of other fuel routes, but the LNG pathway does have one key advantage over other options: a head start.

LNG offers a lower well-to-wake emissions starting point than methanol and ammonia.

This means that to achieve their emissions targets, LNG-fuelled ships require less bio- or e-fuel in a blend compared to alternatives. Considering bio- and e-fuels are more expensive than their 'grey' counterparts, this creates clear commercial benefits for ship operators as they progress towards net-zero.

LBM and e-methane can also be used in established and widespread LNG bunkering infrastructure with little to no modification required – offering immediate cost and availability advantages for LBM and e-methane.

Additionally, this means that supply-side investment can be focused on scaling up fuel production, rather than building bunkering infrastructure from the ground up.

LNG pathway fuels can all be 'dropped into' LNG dual-fuel vessels too. As a result, the significant commercial investments in LNG-fuelled assets are futureproof and represent important demand signals for LBM and e-methane.

Essentially, the substantial commercial weight that has been placed behind LNG for decades has set a rock-solid foundation for its green counterparts to thrive.

As an established marine fuel, LNG also provides a proven safety basis for LBM and e-methane. LNG
has been safely shipped around the world for 60 years with no major incidents, rigorous safety standards are in place, and crews have had thorough training on how to handle, store and bunker it, as well as operate LNG dual fuel engines.

With growing recognition of the LNG pathway as a pragmatic route, demand for LNG bunkering also
continues to grow.

As outlined in a new SEA-LNG report, in Q1 2025, volumes in the Port of Rotterdam increased by 7% compared with the same period in 2024, and Singapore reported 18% growth over the first five months of 2025 versus 2024. LNG bunkering is also increasingly available worldwide.

At Titan, our bold prediction for the global bunkering market is that, by 2026, LNG will constitute almost 10% of the total volume of marine fuel in use worldwide.

This is a realistic forecast based on the orderbook of LNG dual fuel vessels that will be delivered and start operations soon, as well as expansions in LNG carrier capacity and commodity supply.

So, what about regulatory compliance?

Titan's bunkering customer, UECC (United European Car Carriers), is one company already leading the way. It is achieving FuelEU Maritime overcompliance using LBM – right now. The result is a powerful commercial advantage gained by 'banking' the compliance surplus for future use or 'pooling' with other vessels that have a compliance deficit.

There are critical details still to be confirmed regarding the IMO's Net-Zero Framework, so the performance of each fuel pathway within the framework is not completely clear yet.

However, as long as the default emissions factors for each fuel accurately represent the well-to-wake emissions of those fuels, the commercial case for the LNG pathway will remain as clear as it already is in the EU.

In a nutshell, there is a clear environmental, commercial and regulatory case for shipowners and operators to use LNG and LBM today, and e-methane in the near future. As a result, going forwards the market will experience some scheduling difficulties and the spot market will become more challenging.

We would recommend that those who can plan ahead should sign long-term multi-delivery offtake agreements and book capacity well in advance.

To summarise, LNG and its infrastructure have matured significantly over decades. LBM is no longer a future fuel, it's already commercially available. And e-methane is expected to be the most cost- competitive e-fuel when they all materialise.

Shipowners and operators are already recognising these facts, and that is why both the LNG-fuelled fleet and bunkering demand continue to grow. This titanic trio has already started to deliver on maritime decarbonisation.