Demand for LNG as marine fuel seen to double by 2030

Demand for liquefied natural gas as a marine fuel will at least double by 2030 as abundant supply and rising emissions regulations spur orders for ships that can run on it. Massive LNG export projects in the US and Qatar are expected to cause a supply glut by 2030, reducing prices and improving their competitiveness against conventional and more-polluting fuel oil. LNG is pulling ahead of other fuels in decarbonising shipping, which accounts for nearly 3% of emissions, as supply and infrastructure hurdles cloud the outlook for cleaner alternatives such as methanol and ammonia. Owners ultimately will choose the fuel that gives them the lowest cost, said Tuomas Maljanen, Associate Director for LNG and New Energy at shipbroker Fearnleys. LNG is great because the infrastructure is there. It’s readily available… maybe later on it’s going to be, hopefully, quite cheap as well, he added, as per a report.

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