LNG Bunkering Market

LNG Bunkering Market Size (2024 - 2029):

The Global LNG Bunkering Market size is estimated at USD 14.19 billion in 2023 and is projected to reach the valuation of USD 21.90 billion by 2029, and is predicted to register a CAGR of 9.07% between 2024-2029.

New LNG projects around the world have also boosted the market. Natural gas is a combination of a few gases and is colorless; however, it is generally made of methane with an average composition of 70-99% by mass, depending on the calm. The different constituents generally present inflammable gases are ethane, propane, and butane. Natural gas is one of the cleanest fuels available today with a negligible amount of sulfur or burning debris. When employed in an engine, it emits low levels of nitrogen dioxide and carbon dioxide. Refueling is a procedure for refueling ships. The supply of fuel is carried out through pipelines associated with a terminal or direct exchange of trucks or ships.LNG has become an alternative fuel for maritime transport and has been highly adopted by shipping companies, due to strict regulations and respect for the environment. The use of LNG bunker fuel is one of the advantageous solutions to be employed in ferries and other vessels using defined routes. The most widely employed fueling solutions are trucks and terminal supplies. However, these solutions are considered less feasible because trucks deliver small volumes and have a high operating cost. On the other hand, ship fueling is more flexible because it covers multiple locations while offering a lower cost.

Market Trends:

Developing the world's supply of LNG in ship-to-ship and shore-to-ship fueling is of utmost importance for LNG suppliers to make LNG an alternative to conventional fuel. Therefore, considerable investments are made in port developments to simplify the process of filling LNG on ships.

Market Drivers

The global LNG bunkering market is predicted to grow at a high expansion rate during the foreseen period due to the escalating call for marine fuel. Additionally, strict environmental regulations established by the government triggered the need for efficient fuel systems that meet environmental standards and regulatory requirements. For example, the transport sector, which is the largest contributor to oil call in many countries around the world, focuses on cost reduction. LNG-powered ships manage to save up to 25% of the total cost of fuel. LNG sourcing is experiencing the highest expansion rate in both developed and developing countries. The increase in the number of ships using LNG due to the need for cleaner fuels in accordance with strict government regulations to reduce air pollution and maintain sustainability is the main engine driving the expansion of the market. This particular factor is the driving force behind the development of the LNG Bunkering market.

Market Restraints:

The maritime industry is experiencing a downward trend due to reduced offshore oil and gas activity. The low expansion of the offshore oil and gas industry is affecting the call for offshore service vessels, which in turn restricts the expansion of the LNG Bunkering market. Furthermore, factors such as huge capital investments for the development of LNG bunkers and the availability of alternatives to LNG to reduce the sulfur content, that is, with the use of scrubbers, hinder the expansion of the market to some extent.

Market Opportunities:

Technological advancements and escalated research and development activities for the development of innovative products, due to strict government policies, are predicted to create potential revenue opportunities for players operating in the target market during the foreseen period. The worldwide LNG sourcing market is predicted to experience a very high expansion rate during the foreseen period due to the various planned LNG projects, some of which are completed and some of which are under development. The escalating adoption of liquefied natural gas (LNG) as bunker fuel and technological advancements in ship-to-ship LNG Bunkering is the main trends observed in the LNG fuel supply market. LNG produces less sulfur and greenhouse gas emissions than traditional marine fuels such as heavy fuel oil, marine diesel, and marine diesel. LNG Bunkering is the practice of delivering LNG to ships for consumption. Many laws passed by international organizations and governments aim to encourage the adoption of LNG as a marine fuel, which in turn supports the expansion of the worldwide LNG Bunkering market.

Market Challenges:

High transportation costs and the security required for the transportation process are the main factors that can slow the expansion of the worldwide market during the foreseen period. Additionally, the lack of infrastructure to supply LNG to fueling sites is another factor that may hamper the expansion of the target market in the near future.

LNG BUNKERING MARKET REPORT COVERAGE:

Market Segmentation:

LNG Bunkering Market - By Product Type:

• Portable Tanks
• Ship-To-Ship
• Port-To-Ship
• Truck-To-Ship

Based on product type, the ship-to-ship LNG Bunkering segment is predicted to record significant revenue expansion over the foreseen period, due to its advantages such as fast transfer operations and a high capacity of 700 to 7,500 tons.

LNG Bunkering Market - By End User:

• Ferries
• Cruise-Ships
• Bulk And General Cargo Fleet
• Offshore Support Vessels
• Tanker Fleet
• Container Fleet

On an end-user basis, the offshore support vessel segment is predicted to dominate the worldwide market in terms of revenue during the foreseen period, due to its profitable exploration and production activities.

Market Regional Analysis:
The Global LNG Bunkering Report includes the segmentation of Regions with their respective Countries.

• North American - U.S., Canada.
• Europe - The UK, France, Spain, Germany, Italy, Russia, Sweden, Denmark, Switzerland, Netherlands, Turkey, Czech Republic & Rest of Europe.
• Asia Pacific - India, China, Japan, South Korea, Australia & New Zealand, Thailand, Malaysia, Vietnam, Philippines, Indonesia, Singapore & Rest of APAC.
• Latin America - Brazil, Mexico, Argentina, Chile & Rest of LATAM.
• Middle East & Africa - KSA, UAE, Israel, the rest of GCC countries, South Africa, Ethiopia, Kenya, Egypt, Sudan, and the rest of MEA.

Historically, Europe has represented a significant part of the worldwide LNG Bunkering market. This can be attributed to the early adoption of LNG as a marine fuel and the presence of Emission Control Zones (ECAs) in the region. Furthermore, European countries are developing strict environmental regulations to reduce air pollution, which, in turn, should encourage the adoption of LNG as a marine fuel in the region. North America is also an important market for LNG Bunkering. The market in the region is mainly driven by the increase in shale gas exploration and the strict environmental regulations implemented by the government. The European market is predicted to dominate the worldwide market in terms of revenue during the foreseen period, due to strict government regulations on emissions related to escalated offshore oil and gas exploration and production activities in several countries in the region. The Asia-Pacific market is predicted to register the fastest expansion during the foreseen period, due to the escalating call for energy in various industrial applications and the escalating use of LNG as a marine fuel. in several countries in this area. The North American market is predicted to register significant expansion in terms of revenue during the foreseen period.

Market Key Players:

The key players in the global LNG bunkering market are

1. Barents Naturgass AS
2. Bomin Linde LNG GmbH & Co. KG
3. ENI Norge AS
4. Gasnor AS
5. Harvey Gulf International Marine LLC
6. Korea Gas Corp
7. Polskie LNG SA
8. Statoil ASA
9. Skangas AS
10. SEA\LNG Ltd

Market Key Developments:

• Japan's first LNG-fueled ship is to be launched in 2021. The ship, scheduled for delivery by the end of the year 2021, will be the very first LNG bunkered ship to work in Japan.
• Singapore's first LNG bunker was launched at the Keppel Nantong shipyard in China. The vessel is under construction for Fuel LNG, a joint venture between Keppel Offshore & Marine and Shell Eastern. The ship joins the growing number of LNG bunker ships around the world. At the beginning of 2019, only six bunkering vessels were operational worldwide.