Global LNG bunkering infrastructure

China focus

LNG bunkering

• The use of LNG as a marine fuel is likely to increase gradually as ship operators look to natural gas as a lower-cost means of compliance with industry sulfur caps, and also as a way to prepare for possible future regulations of marine sector greenhouse gas emissions.
• A significant barrier to the build out of the LNG-powered fleet is the availability and capacity of LNG bunkering infrastructure at major bunkering locations around the world. As the global fleet of LNG-powered vessels expands, there needs to be significant build out of LNG bunkering infrastructure to meet demand. There is limited capacity at several major Asian ports – Singapore, Incheon and Yokohama – but currently no operational capacity in the Middle East, for example.
• BloombergNEF LNG bunkering database shows more than 90 ports and 30 vessels are in operation, with a majority in Europe – mostly in Scandinavia and the Amsterdam-Rotterdam-Antwerp region. More than 100 ports are being considered or currently have plans under way to provide LNG bunkering services. China in particular is trying to push forward with inland waterways LNG bunkering, especially along Yangtze River and Pearl River Delta. There are three LNG bunkering ports in operation and more than 40 currently being proposed.

 

Global LNG bunkering assets map

 

Source: BloombergNEF

China inland waterways LNG bunkering assets map

Source: BloombergNEF.

Bloomberg News snapshots

The shipping sector is seen as one of the hard-to-abate sectors and LNG is considered one of the immediate options to reduce emissions from the industry. There are however a number of other alternatives that the industry is considering, which includes hydrogen and ammonia. Bloomberg News covers all the various developments by institutions and companies with regards to the debate around the various marine fuel options available for the decarbonization of the shipping sector. 

Source: How Shipping Is Tackling Its Carbon Emissions Problem: QuickTake

Source: Tax Shipping's Emissions Or Delay Energy Transition: Trafigura