LNG-Fuelled Ships to More Than Double by 2020: Energy Aspects

by Ship & Bunker News Team
Thursday April 27, 2017

Energy Aspects Ltd. (Energy Aspects) suggests the number of liquefied natural gas (LNG)-fuelled vessels will more than double by 2020 from 2016 numbers, growing to 200 from 77 last year, Bloomberg reports.

"People need to find more customers for LNG," said Michael Newman, a shipbroker at Fearnleys A/S (Fearnleys)

"Big mega-projects are increasingly being replaced by smaller trains and smaller volumes, such as those for use of LNG as a transport fuel."

Alongside a LNG supply glut, the spot price of LNG is reported to have dropped by two-thirds since 2014, pushing the industry to find new avenues of demand.

Meanwhile, tighter environmental regulations has more shipowners mulling the possibility of using LNG as fuel.

As such, Energy Aspects estimates that LNG as a marine fuel will account for just under 2 percent of total demand by 2025.

The firm suggests that, within that context - and excluding fuel burned by LNG carriers - LNG bunkering demand is set to grow to 1 million tonnes over three years, and to an estimated 5 to 7 million tonnes by 2025.

"Ports are also largely indicating the willingness to move quickly to support demand, once it begins to strengthen," the International Gas Union said recently.

In January, SEA\LNG said a collaborative approach to understanding the opportunities and addressing associated commercial barriers to LNG is "crucial" to encouraging the adoption of the fuel as an alternative to traditional bunkers.

Ship & Bunker News Team
To contact the editor responsible for this story email us at editor@shipandbunker.com