by The global LNG Bunkering Market is estimated to be valued at US$ 1084.62 Mn in 2023 and is expected to exhibit a CAGR of 11% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
LNG bunkering refers to the provision of liquefied natural gas (LNG) to ships for their operation and propulsion. LNG as a bunker fuel is gaining acceptance as it emits fewer emissions compared to conventional bunker fuels such as heavy fuel oil. It reduces emissions such as sulfur oxides and particulate matter by almost 100% and reduces nitrogen oxides by around 85%. The growing marine trade coupled with stringent IMO regulations to reduce emissions from ships is anticipated to drive the demand for LNG as a bunker fuel. Major shipping routes and ports are encouraging the use of LNG through infrastructure development programs. This is expected to provide afillip to the LNG bunkering market during the forecast period.
Market key trends:
One of the major trends in the LNG bunkering market is the increasing adoption of dual-fuel technology in ships. Dual-fuel technology allows ships to operate on either LNG or conventional bunker fuels. For instance, in November 2022, two new dual-fuel RoRo vessels ordered by Brittany Ferries became the largest dual-fuel vessels in service. This can help in gradual transition to LNG as a bunker fuel. Another key trend is the development of LNG bunkering infrastructure across major ports. For example, in January 2023, CMA CGM announced plans to set up a liquefied natural gas bunkering vessel and build an LNG terminal at Tangier Med port in Morocco by 2025. Investments in bunkering vessels and terminal facilities will facilitate greater LNG adoption as ship fuel. Growing focus on sustainability in the shipping industry and multi-government efforts to develop an ecosystem to support emission reduction goals bode well for the LNG bunkering market during the forecast period.
Porter’s Analysis
Threat of new entrants: The LNG bunkering market has moderate threat of new entrants due to high capital investments required for infrastructure, storage terminals and bunker vessels.
Bargaining power of buyers: The buyers have moderate bargaining power due to availability of alternative fuels like traditional bunker fuels. However, stricter regulations are increasing preference for LNG.
Bargaining power of suppliers: The suppliers have high bargaining power due to concentration of manufacturers of LNG carriers and bunkering vessels.
Threat of new substitutes: There is low-medium threat of substitutes due to limited availability of alternatives to LNG as a cleaner marine fuel.
Competitive rivalry: High competitive rivalry exists between existing players to gain greater market share.
Key Takeaways
The Global LNG Bunkering Market Size is expected to witness high growth, exhibiting CAGR of 11% over the forecast period, due to increasing regulations to lower emissions and stringent norms by International Maritime Organization (IMO) for sulfur content in marine fuels.
Regional analysis: Asia Pacific region is expected to dominate the global LNG bunkering market over the forecast period. Presence of major shipping trade lanes and ports, and rapid growth of natural gas fleet in countries like China, Japan, and South Korea are driving the market in the region. Countries like India and Australia are also expected to offer significant growth opportunities with expansion of LNG bunkering infrastructure.
Key players operating in the LNG bunkering market are Royal Dutch Shell Plc., Skangas, ENN Energy, Korea Gas Corporation, Prima LNG, Harvey Gulf International Marine LLC, Bomin Linde LNG GmbH & Co KG, Fjord Line, Crowley Maritime Corporation, and Polskie LNG. Key players are focusing on enhancing their global presence through strategic partnerships and expansion of infrastructure.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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