LNG Bunkering Market Growth Analysis | 2024-2030

Market Insights

The LNG bunkering market was estimated at USD 1.5 billion in 2023 and is likely to grow at a CAGR of 30% during 2024-2030 to reach USD 9.46 billion in 2030.

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Market Dynamics

Introduction

Liquid natural gas (LNG) bunkering is the method of transferring liquefied natural gas fuel from storage to a ship’s fuel tank for consumption. The stored LNG is transported at cryogenic temperatures, allowing it to be condensed into a liquid state. These kinds of operations are conducted widely at ports, onboard vessels, etc. using various methods such as truck-to-ship, shore-to-ship, etc.

COVID-19 Impact

The LNG bunkering market has suffered due to the COVID-19 pandemic. This is attributed to the temporary prohibition on maritime trade and transportation activities. This also affected the supply chain and the demand for gasoline from the shipping industries.

Market Drivers

The major factors driving the growth of the LNG bunkering market are:

• Stringent environmental regulations: LNG bunkering is considered a cleaner way to traditional heavy fuels. It emits lower levels of sulphur oxides (SOx), nitrogen oxides (NOx), etc. There are different organizations like the International Maritime Organization (IMO) that are focusing on reducing sulphur oxide emissions by limiting the global sulphur content of ships’ fuel oil. LNG bunkering ensures more sustainable fuel options for ships, reducing sulphur oxide, and other harmful emissions and improving air quality.
• Cost Effectiveness: LNG bunkering offers cost advantages over traditional methods. The use of LNG can lead to operational cost savings due to lower maintenance requirements, also it provides a long engine life. This simultaneously saves the cost of the operator. Though the initial costs of infrastructure are high, LNG can result in long-term benefits compared to any other method. Additionally, LNG bunkering can also save transportation costs in certain regions where natural gas is easy availability.
• Increasing investments in LNG infrastructure: Investments in LNG bunkering infrastructure are increasing to cater for the rising demand for cleaner marine fuels. In January 2023, a Houston-based investment manager - Arroyo Investors, invested in an integrated shore-side LNG production and maritime transportation logistics; Seaside LNG in the U.S. In June 2023, Titan fuel supplier has signed a long-term time agreement with Fratelli Cosulich – a global shipping organization; for an 8200Cbm capacity LNG bunker vessel. With investments like this, LNG infrastructure, including storage facilities, bunkering vessels, terminals, etc. will be easily available. The increasing availability of LNG will enable the supply chain for LNG bunkering, which will further ensure a reliable source of fuel.

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Key Players

Some of the key players in the market are:

• Bomin Linde LNG GmbH & Co. KG
• Eagle LNG Partners.
• Engie SA
• ENN Energy Holdings Limited.
• Gasnor AS
• Harvey Gulf International Marine LLC.
• Korea Gas Corporation
• Polskie LNG
• Royal Dutch Shell plc.
• Skangass AS.

Note: The above list does not necessarily include all the top players in the market.

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Segment Analysis

By Product Type

The LNG bunkering market is segmented as truck-to-ship, port-to-ship, ship-to-ship, and portable tanks. The ship-to-ship segment is expected to observe an expansion of over 60% by 2024, owing to its quick transfer operations and high capacity. Capacity to allow the movement of cargo and bunkering operations to occur simultaneously, which will further glorify the industry landscape during the forecast period. On the other hand, the availability of pipelines on ports along with larger hoses to elevate the bunkering rate, will positively influence the port-to-ship market size. Low cost and quick transfer operations will go a long way in promoting the acceptance of truck-to-ship operations.

By End-Use Type

The market is segmented into RO-Pax (Cruise-ships, ferries, and Roll-On and Roll-Off car carriers), Container Vessels, bulk Carriers, and Offshore Support Vessels. The RO-Pax segment is likely to experience strong growth over the forecast period on account of its high fuel consumption. The segment consists of cruise ships, ferries, and Roll-On and Roll-Off car carriers. Sanguine outlook towards international maritime trade coupled with stringent environmental regulations to steer the market with lucrative returns.

Regional Insights

North America led the market for LNG bunkering in 2023 and is expected to maintain its indubitable lead during the forecast period. The growth of the region can be attributed to the current shale production with stringent emission norms, which will flourish business growth. Furthermore, increasing focus to maintain fossil fuel sustainability along with rising concern to reduce environmental impact will lead the market growth. Also, growing investments towards the upgradation and rebuilding of LNG infrastructure to further augment the industry outlook. Europe and Asia-Pacific are also expected to have substantial growth opportunities over the forecast period.

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Research Methodology

• This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects LNG bunkering market realities and future market possibilities for the forecast period.
• The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market Segmentation

This report studies the market covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The LNG bunkering market is segmented into the following categories:

By Product Type

• Truck-to-Ship
• Port-to-Ship
• Ship-to-Ship
• Portable Tanks

By End-Use Type

• RO-Pax (Cruise-ships, ferries, and Roll-On and Roll-Off car carriers),
• Container Vessels
• Bulk Carriers
• Offshore Support Vessels

By Region

• North America (Country Analysis: the USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, the UK, Russia, Spain, and Rest of Europe)
• Asia-Pacific (Country Analysis: China, Japan, India, South Korea, and Rest of Asia-Pacific)
• Rest of the World (Sub-Region Analysis: Latin America, the Middle East, and Others)

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Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to 3 players)
• SWOT analysis of key players (up to 3 players)

Market Segmentation

• Current market segmentation of any one of the product types by end-use type.

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com.

Recent Developments

October 2022-Pavilion Energy and Mitsui O.S.K. Lines name newbuild LNG bunker vessel

Pavilion Energy and Mitsui O.S.K Lines (MOL) recently held a ship naming ceremony at Sembcorp Marine’s flagship Tuas Boulevard Yard. Read More...