Dual-fuel vessels powered by liquefied natural gas (LNG) account for a significant share of new shipbuilding orders. According to a forecast by KPI OceanConnect, their number is expected to reach 1,200 by 2028, substantially increasing the demand for LNG supply.
However, in the long term, shipowners relying on fossil-based LNG will need to transition to low-carbon alternatives such as biomethane or e-methane.
As discussed in recent sessions of the International Maritime Organization (IMO), blending these components into conventional fuel will be necessary to comply with both international and regional regulations, especially starting in the early 2030s.
As of 2024, LNG bunkering volumes have doubled compared to 2023, as has the number of dual-fuel vessel orders.
Nevertheless, despite growing interest, LNG currently remains more expensive than very low sulfur fuel oil (VLSFO), limiting its short-term appeal.
Prices are expected to decrease starting in 2026, when over 200 million tonnes per year of new global liquefaction capacity comes online.
Ship bunkering accounts for only about 5 million tonnes per year out of the approximately 400 million tonnes of global LNG production.
Small-scale bunkering volumes (typically ranging from 250 to 12,000 cubic meters) and high last-mile delivery costs make the LNG supply chain more complex and less standardized compared to conventional LNG logistics.
Under FuelEU Maritime regulations and the IMO’s global fuel standard, LNG will remain the most cost-effective way to meet environmental compliance requirements until 2035.
After that, gradual incorporation of bio-LNG will be needed for continued compliance.
Bio-LNG, consisting of pure methane, can be used in existing vessels without engine modifications.
It is produced from organic waste materials—including food scraps, agricultural residues, wastewater, and slaughterhouse waste—and has a low carbon footprint.
According to the International Energy Agency (IEA), while current production stands at 35 million tonnes per year, the potential could reach up to 700 million tonnes annually.
LNG is currently available in about 180 ports worldwide, primarily in Europe and Asia.
However, infrastructure development remains a key challenge in regions such as Central and South America.
Major LNG terminals in Europe were initially designed to supply gas distribution networks rather than support small-scale marine bunkering.
Specialized bunker vessels with a capacity of around 10,000 cubic meters are helping to close this gap by providing flexible delivery options.
These insights were shared during KPI OceanConnect’s webinar “Simplifying the Green Transition,” held on February 20, 2025. Panelists included Gary Regan (Landsowne Moritz), Ed Glossop (Bunker Holding), Michael Bemerburg (Bunker One), and Jesper Sørensen (KPI OceanConnect).
According to them, LNG remains a flexible option for reducing carbon emissions, and modern technologies have significantly reduced non-methane hydrocarbon emissions, which were previously a concern.
KPI OceanConnect, Inc. is a global supplier of marine energy solutions, including conventional, alternative, and environmentally responsible fuels. The company also offers advisory services on carbon markets and regulatory compliance.