LNG Bunkering Market Analysis

LNG Bunkering Market Analysis

Ship-to-ship LNG bunkering market is predicted to witness growth over 60% by 2024 owing to its high capacity and quick transfer operations. Ability to allow the movement of cargo and bunkering operation to occur simultaneously will further complement the industry landscape. In 2017, Belgium received the delivery of world’s first purpose built LNG bunker vessel Engie Zeebrugge with a capacity of 5000 cu. meters.
 

Availability of pipeline on ports along with larger hose to increase the bunkering rate will positively impact port-to-ship market size. Low cost and quick transfer operation will encourage the adoption of truck to ship operations.
 

RO-Pax LNG bunkering market is set to witness strong growth pertaining to its high fuel consumption. RO-Pax consists of cruise-ships, ferries and Roll-On Roll-Off car carriers. Positive outlook towards international maritime trade along with stringent environmental regulations will drive bulk carriers and container vessels LNG bunkering market. Heavy vessel traffic especially in Asia Pacific region will further boost the product demand.
 

Offshore Support Vessels (OSVs) in 2016, accounted for over 25% of global market share. Increasing hydrocarbon exploration and production in offshore fields coupled with strict emissions regulation will fuel the industry growth. Rising investments toward FLNG projects including FPSO and FSRU will further complement the industry size. In 2012, Shell announced to invest USD 12.6 billion in FLNG project in Australia which is expected to commence its operation in 2018.
 

U.S. LNG bunkering market size was valued over USD 100 million in 2016. Ongoing shale production with strict emission norms will augment the business growth. In 2015, the U.S. Environment Protection Agency implemented the TIER III norms under MARPOL annexure VI governed by IMO with an aim to reduce sulfur and NOx emissions from marine vessels across Emission Control Areas (ECAs). The U.S. Coast Guard regulations regarding ship building with gas fueled engines will further augment the business.
 

Norway LNG bunkering market dominates the European region with over 18000 bunkering operations. Increasing focus to maintain fossil fuel sustainability along with rising concern to minimize environmental impact will drive the business growth. Growing investments towards the upgradation and rebuilding of LNG infrastructure will further complement the industry outlook. In 2014, EU announced to invest USD 85.44 million to build GATE terminal in Rotterdam to facilitate rapid access to gas for foreign ships.
 

Increasing demand for gas fueled vessel owing to rising environmental concerns along with government initiatives towards adoption of clean fuel will drive the Singapore market share. In 2017, Ministry of Port Authority (MPA) of Singapore announced to provide USD 1.45 million funding for vessels under pilot program.