LNG Bunkering Market Overview:
Global LNG Bunkering Market was valued at $214 million in 2016, and is expected to reach $10,185 million by 2023, registering a CAGR of 58.5% from 2017 to 2023. The global shipping industry faced an IMO legislation to significantly limit sulfur emissions from ships, firstly in North America and then northern Europe, in 2015. LNG is a potential solution for meeting these requirements due to its negligible sulfur content, and its combustion produces low NOx compared to fuel oil and marine diesel oil. LNG is not only a cleaner-burning fuel, but has economic advantages on a calorific value basis. Even higher LNG prices in Asia-Pacific are lower than global bunker fuel prices. As a result, there have been recent developments to promote use of LNG as a bunker fuel.
The International Maritime Organization’s regulations of sulfur cap of 0.50% m/m (mass/mass) in 2020 for marine fuels, increase in ocean-borne trade, especially in ton-km travelled, and the lower cost of LNG bunker fuel than other variants of ECA-compliant fuels are the factors that drive the growth of the global LNG bunkering market. However, the demand-supply gap for LNG bunkering is expected to increase with the implementation of IMO regulations; hence, supply must expand rapidly to meet global demand and premium priced Asia-Pacific demand in particular. The key market players have adopted merger as their key strategy to widen their brand portfolios and expand their market reach.
Ships currently using natural gas are short-haul ferries and offshore supply vessels operating in northern Europe. These vessels travel short distances in between bunkering and take fuel in small quantities delivered by truck. Tankers and dry bulk vessels also have more unpredictable schedules, in terms of time and geography, than other segments in the industry and need availability of LNG at the majority of ports they are expected to visit.
The global LNG bunkering market is segmented based on end user and geography. By end user, it is categorized into tanker fleet, bulk & general cargo, offshore vessels & ferries, and others. Geographically, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Top Investment Pocket
In 2016, the offshore vessels & ferries segment, in terms of revenue, accounted for around one-third of the global LNG bunkering market share. The offshore vessels & ferries is the most lucrative segment for investment in the global LNG bunkering market, as these vessels travel short distances in between bunkering and loading fuel in small quantities delivered by truck. Thus, this segment is anticipated to show high growth rate along with significant return on investment for the stakeholders, owing to its notable revenue contribution.
Global LNG Bunkering Market Analysis
Asia-Pacific has the maximum potential for growth in the global LNG bunkering market on account of the high marine trade volume. In Europe, countries, such as Belgium, Spain and the Netherlands, are expected to witness highest demand for LNG bunkering, owing to stringent regulations in ECAs.
Netherlands LNG bunkering Market, 2016-2023 ($Million)
Major companies have adopted product development, expansion, and merger strategies to sustain the intense market competition. The key players profiled in the report include Skangas AS, Gasnor As, Statoil ASA, Barents Naturgass As, Engie SA, Bomin Linde LNG GmbH & Co. KG, Eni Norge AS, Harvey Gulf International Marine Llc., Polskie LNG SA, and Korea Gas Corp.
The other market players (not profiled in report) in the value chain include, Galp Energia SGPS SA, Gazprom PJSC, Gaz Metro, GDF SUEZ S.A., Hornbeck Offshore Services Inc., Gulfmark Offshore Inc., and Compañía Espanola de Petroleos SAU.
Key Benefits for Stakeholders
- This report provides an extensive analysis of the current trends and emerging estimations and dynamics in the LNG bunkering market.
- In-depth analysis of the market is conducted, and estimations for key segments between 2016 and 2023 are provided.
- Comprehensive analysis of the factors that drive and restrain the growth of the market is provided.
- Industry analysis is conducted by following key product positioning and monitoring the top competitors within the market framework.
- Key market players are profiled and their strategies are analyzed thoroughly to provide a competitive outlook of the industry trends.
LNG Bunkering Market Key Segments:
By End User
- Tanker Fleet
- Bulk & General Cargo
- Offshore Vessels & Ferries
- North America
- The Netherlands
- Rest of Europe
- South Korea
- Rest of Asia-Pacific
- Rest of LAMEA