LNG AS A BUNKER FUEL MARKET ANALYSIS

Regional Analysis

LNG as a Bunker Fuel Market Regional Insights:

• Europe's LNG bunkering market has grown significantly in recent years. This expansion can be described to supportive government policies and an increase in LNG bunkering in the area because it is more environmentally friendly than other fuels. For instance, Gas LNG Europe (GLE) introduced the small-scale LNG map of Europe to aid interested market participants in getting a general overview of the upcoming and planned LNG infrastructure in the area.
• Asia Pacific accounted for 27.4% share of the global market in 2023 Singapore has been the world’s largest hub for conventional bunker fuels, with annual sales close to 50 million metric tons in 2020. India is also a leading country of the LNG bunkering market due to ongoing projects for the construction of new ports. Some of these ports would be constructed with dedicated LNG bunkering facilities; for instance, Mangalore port LNG bunkering facility would be constructed by Singapore-based LNG Alliance.
• North America dominated the largest-market share in 2023 with 40% presence. One of the primary drivers of LNG bunkering in North America is the regulatory framework. The implementation of strict emissions regulations, including the International Maritime Organization's (IMO) sulfur emissions limits, has prompted the maritime industry to seek cleaner fuel alternatives. LNG, with its substantially lower sulfur and nitrogen oxide emissions, has gained favor as a solution for compliance. Both the U.S. and Canadian governments have supported the adoption of LNG as a marine fuel through regulatory incentives and initiatives.

Figure 1. LNG as a Bunker Fuel Market Share (%), by Region, 2024