SIBCON22: Panel Warns of Potential LNG Bunker Barge Shortage

Sibcon gathered a panel of LNG bunker industry experts to discuss their views on the market. Image Credit: Ship & Bunker

A panel of LNG bunkering experts at the Sibcon industry event in Singapore have highlighted a potential shortage of delivery vessels for the alternative fuel.

LNG bunker demand has grown rapidly in recent years; at Rotterdam more than 600,000 m3 was sold in 2021, up from just 224 m3 five years earlier, and one major producer forecasts it taking up 10% of global marine energy demand by 2030.

But orders of LNG bunker barges may not be coming in at the pace required to keep up with this growth, a panel of six LNG industry experts said at Sibcon on Thursday. The panel was held under the Chatham House rule, meaning individual speakers cannot be identified without their consent in the interests of holding a freer discussion.

Asked if they saw the potential shortage was a risk for the industry, an LNG supplier representative said, "Yes. The growth in demand is probably quicker than the growth of the infrastructure.

"The industry needs barges.

"LNG supply is not an issue; the LNG market is about 400 million tonnes, and the LNG bunker market is two or three percent of this.

"The issue is the downstream assets that we need to put at your disposal."

Classification society DNV has warned of the same issue earlier this year.

But another panellist with a fleet of LNG bunker barges on Wednesday suggested there were still vessels available for those that need them.

"I have a lot of capacity available; those who are concerned about it, come and see me and I will sign you up," the panellist said.

"Once I've got my capacity full, I will order more vessels."