Cleaner Marine Fuel Demand to Push LNG Bunkering to over USD 12 Bn by 2024
Expanding emission regulations and a growing demand for cleaner marine fuel are expected to bring the LNG bunkering market size to over USD 12 billion by 2024, Global Market Insights said in a report.
US LNG bunkering is predicted to exceed 3,000 kilotons by 2024 owing to the advent of shale gas, the report noted, adding that an increase in liquefaction plants and the production of liquefied natural gas is enabling its adoption as marine fuel.
One of the main drivers of LNG bunkering growth are rising environmental concerns coupled with government initiatives towards adoption of natural gas as ship fuel, according to the report.
In 2015, the International Maritime Organization (IMO) introduced Tier III norms to curb NOx emissions from marine vessels among emission control areas (ECAs) under maritime boundaries.
Additionally, container vessels are set to expand by over 40% through to 2024. A high speed transfer rate, location flexibility and the ability to transfer large volumes of gas will drive the ship-to-ship LNG bunkering market. Worth noting is the fact that Germany holds the largest container base in Europe with an over 170 newbuild container vessels orderbook.
The report further said that abundant availability of LNG along with measures to reduce carbon footprints would stimulate Qatar’s LNG bunkering market. The country is expected to become the prime source for flexible liquefied natural gas supply with the capacity of 77.8 mtpa.