LNG AS A BUNKER FUEL MARKET ANALYSIS

Lng As A Bunker Fuel MarketSize and Trends

The LNG as a bunker fuel Market size is valued at US$ 483.1 Mn in 2024 and is expected to reach US$ 1,621.8 Mn by 2031, growing at a compound annual growth rate (CAGR) of 18.9% from 2024 to 2031.

LNG as a Bunker Fuel Market Trends:

Rising investments in bunkering facilities: The rising investments in bunkering facilities are having a significant impact on the adoption of LNG as a bunker fuel in the shipping industry. As more ports and terminals are developing infrastructure and retrofitting vessels to enable in-port LNG bunkering, ship operators are finding it easier to utilize natural gas over conventional fuels. Several ports across major shipping hubs like Northern Europe, Asia Pacific, and North America have launched LNG bunkering operations over the past couple of years.

For instance, Rotterdam opened its first dedicated LNG bunker vessel in 2021. This facility allows oceangoing vessels to load LNG while docked and has facilitated a smoother transition for Dutch and Belgian flagged ships operating on shorter European routes. Similarly, the Singapore Maritime and Port Authority invested in building an LNG bunker vessel that commenced commercial operations in 2020. It has supported LNG-fueled vessels plying between Southeast Asian countries.

Increasing liquefaction capacity additions: The liquefaction capacity additions trend has been significantly influencing the LNG as a bunker fuel market in recent years. As more LNG liquefaction terminals have come online globally, particularly in the U.S., Australia, and Russia, it has substantially boosted available LNG supply volumes that can be utilized for bunkering. The increased supplies have benefited the bunkering market by easing supply tightness and reducing price volatility risks compared to earlier times when LNG availability was more limited. With larger liquefaction capacities, suppliers now have greater output to allocate for bunkering demands as the sector grows.

This growing supply availability has helped further reduce the price differential that previously existed between LNG and conventional marine fuels. The increased supply option has also encouraged more shippers and port authorities to include LNG bunkering in their long-term fuel strategies, given confidence in consistent supply sources. Rising global LNG supplies through capacity additions are hence positively enabling greater growth of the bunker fuel market over the coming years.