The order potential for LNG ship designs is "robust" according to Hwang.
CIMB Securities analyst KJ Hwang says that in recent years liquefied natural gas (LNG) bunkers have cost about 40 percent less than their heavy fuel oil counterpart, IHS Maritime 360 reports.
However there have been few vessels capable of taking advantage of the potential savings, as there are reportedly only 59 LNG-powered ships currently operating worldwide.
"In the past years, LNG bunker costs approximately 40 percent cheaper than heavy fuel oil, and have shown a stable price trajectory compared with other alternative fuels," saidHwang.
The report also said that as demand for cleaner fuels rises and LNG bunkering becomes more popular, the number of orders for LNG-powered ships is also expected to grow.
Legislative changes such as falling permissible sulfur content levels for marine fuel, with recently within Emissions Control Areas (ECAs) and upcoming rules globally, were noted as key drivers for LNG adoption.
The first LNG bunkering vessel expected to come into service in 2016.
Earlier this month Carnival Corporation & plc (Carnival) told Ship & Bunker it was undeterred by the current lack of LNG bunkering infrastructure when it made its multi-billion dollar order for four LNG-powered mega-cruise ships.