Lloyd’s Register (LR) has released its latest ‘Fuel for thought: LNG’ report, offering a refreshed and data-driven assessment of LNG’s evolving role as a mature and significant fuel in transition for the shipping industry.
Industry data shoes that as of March 2026, the dual-fuel LNG fleet has reached 1,665 vessels, with an additional 982 on order — expanding the gas-fuelled fleet. Although recent developments may have created uncertainty that has impacted investment in alternative fuels, LR believes that LNG continues to be the key alternative fuel in the existing orderbook.
Growth is being driven particularly by the container sector, which is on course to more than double its LNG capable fleet, while cruise, tanker and PTCC/ro-ro operators are accelerating their uptake.
LR’s economic modelling confirms LNG remains the most cost-effective alternative fuel pathway to 2050 under any proposed framework so far.
The report shows that blending LNG with bio-LNG and e-LNG could strengthen this advantage further, allowing LNG-fuelled vessels to generate compliance surpluses in the early years of new regulatory regimes.
A major focus of the updated report is the significant progress in methane slip reduction. High-pressure two-stroke engines are now achieving slip as low as 0.2 g/kWh, while low-pressure engines fitted with exhaust gas recirculation are delivering reductions of more than 60%.
However, these improvements are not yet reflected in the emissions factors under both FuelEU Maritime and the IMO’s Lifecycle Assessment guidelines. The report argues that updating these factors will be essential to ensure that regulation reflects current technology and incentivises genuine emissions reductions rather than penalising early movers.
The report also underlines the importance of upstream emissions and fuel certification. Cleaner LNG production, reduced methane leakage and the growth of independently verified certification schemes are essential if shipowners are to realise the full emissions reduction potential of cleaner supply chains. Additionally, the operational considerations of LNG-fuelled vessels during drydocking are examined with recommendations for planning, execution and safety.
Constantinos Chaelis, LR Global Gas Segment Director, said: “LNG represents an immediately deployable, scalable, and well-established fuel in transition that aligns with both operational imperatives and emerging regulatory requirements. As global bunkering infrastructure continues to expand, renewable gas supply chains mature, and emissions control technologies become more widely adopted, LNG is expected to remain a central component of the maritime sector’s transitional energy landscape.”
Panos Mitrou, LR SVP Shipping Strategy, added: “The findings in our new report underline that this continued interest in LNG is not solely a bridge to other fuels, but a strategic response to tightening global and regional regulation. We need to intensify our focus on methane emissions, clean LNG variants and improving the LNG value chain GHG footprint.”
The Fuel for thought: LNG report is available for download here.
