IBIA CONVENTION 2025: Fewer LNG Bunker Ports Mean Buyer Has Less Leverage

A panel was discussing the bunker market landscape at the IBIA event in Hong Kong. Image Credit: Ship & Bunker

LNG is considered the most mature alternative marine fuel, but patchy global availability is limiting shipowners' ability to switch bunkering ports, delegates at the IBIA Annual Convention 2025 in Hong Kong said on Wednesday.

The fuel is currently available at far fewer ports worldwide than conventional marine fuels, according to a panel discussion at the industry event.

"The challenge for LNG is its uneven availability at global ports," a panelist said, who was speaking under the Chatham House rule, allowing her comments to be reported but not attributed by name.

As a result of this, the panelist added that "the balance of power between seller and buyer is totally different from conventional bunkers."

The reduced flexibility shifts more leverage toward suppliers and may increase operational risk for LNG-fuelled ship users.

"If you need to change the port or schedule for the LNG bunkering, it's not so easy to find another one in another country," the panelist argued.

She added that this can be somewhat tackled by building a partnership with LNG suppliers, calling it 'critical.'

"We collaborate very well to narrow down to the bunkering dates or volume," the panelist said.

Despite these constraints, LNG-fuelled ships are typically equipped with dual-fuel engines, allowing them to switch to conventional marine fuels if necessary.

But doing so means the vessel can't take full advantage of the LNG capability the owner has invested in. This effectively undermines the benefits of choosing an LNG-capable ship over a conventional one.