Global technology research company Technavio foresees the LNG bunkering market size to grow by $755.39 million from 2021 to 2026 due to an increase in the supply of LNG.
LNG bunkering refers to providing LNG fuel to a ship for its own consumption. The need to cut emissions caused by ship transportation is driving forward the demand for environmentally sustainable marine fuel such as LNG. Technavio says this has encouraged ports to develop LNG bunkering facilities.
According to Technavio, the global LNG bunkering market is expected to grow by $755.39 million from 2021 to 2026. In addition, the growth momentum of the market will accelerate at a CAGR of 19.47 per cent during the forecast period.
The increase in the supply of LNG is driving the growth of the market.
As per the IEA, a rise in the production of natural gas in the U.S. will account for 40 per cent of the growth in global natural gas output by 2022. By 2022, the US is expected to produce 890 billion cubic metres, or 22 per cent of the global natural gas production.
Moreover, the Middle East is expected to add 70 billion cubic metres to global natural gas production because the production is expected to rise to 650 billion cubic metres by 2022.
Russia is the second-largest producer of natural gas after the U.S. It has a high underutilised natural gas production capacity in the Yamal Peninsula. Therefore, the increase in natural gas production has led to a rise in the production of LNG, which is projected to boost market growth during the forecast period.
The tanker segment will contribute the highest market share growth during the forecast period. This growth is due to the development of fuel-efficient technologies for tankers and stringent regulations.
The report is titled ‘LNG Bunkering Market Analysis Report by End-user (Tanker, Ferry and ro-ro, Container, and Others) and Geography (EMEA, APAC, and Americas) Forecasts, 2022-2026’.