US market intelligence company Transparency Market Research says that stricter implementation of environmental regulations and standards for marine vessels, particularly on emissions to air, are shaping the revenue potential of the LNG bunkering market.
LNG as a fuel is being preferred in shipping transportation, notably in ferries and offshore support vessels (OSVs), thus offering lucrative avenues. The global LNG bunkering market is projected to rise at a CAGR of 63.6% during 2021–2031, and reach volume worth of 432.16m tons by 2031.
A number of ongoing projects on LNG bunkering system design will boost the prospects of LNG as a fuel. The adoption of the fuel oil has risen, finds the TMR study, when the ships are within Emission Control Areas (EMA).
Meanwhile, steady growth in demand for marine diesel oils in the maritime industry is poised to expand frontiers for market players to capitalise on during the forecast period. The adoption of these fuels is underpinned by continuing shift toward low-sulphur fuel oils. Attractive pricing of LNG has also helped catalyse the demand for fuels in the LNG bunkering market.
Various regulations and standards on the emission control by the maritime industry have enriched the LNG bunkering market landscape. IMO 2020 in particular has spearheaded the initiatives toward promoting very low sulphur fuel oil (VLSFO) in marine vessels. Stricter imposition of these regulations in North America has catalysed revenue generation in the LNG bunkering market. Some other agencies supporting the shift toward low-sulphur fuel oils are Oil Companies International Marine Forum and Society of International Gas Tanker and Terminal Operators.
The study finds that LNG bunkering has witnessed significant adoption in Europe, with inland ferries and offshore support vessels being among early adopters. Massive demand from the ferries and OSVs is expected to propel massive revenue gains. The use of LNG as a marine bunkering fuel has increased in other vessels in recent years increasingly in the US. The adoption of LNG bunkering in China and South Korea is expected to spur revenue growth. Advancements in LNG bunkering facilities will further lead to increased demand for marine diesel oil, thus generating vast growth opportunities.
