TMR: LNG bunkering market to rise during next decade
Transparency Market Research (TMR) sees the global LNG bunkering market rising at CAGR of 63.6 per cent in the period between 2021 and 2031.
Firstly, it sees the stricter implementation of environmental regulations for marine vessels as shaping the revenue potential of the market. LNG as a fuel is preferred in shipping transportation, notably in ferries and OSVs, thus offering extensive profitable avenues.
The report says this bunkering market is to rise at CAGR of 63.6 per cent during the forecast period (2021–2031), and reach a volume worth of 432.16 million tonnes by 2031.
A number of ongoing projects on LNG bunkering system design will boost the prospects of LNG as a fuel. The adoption of the fuel oil has risen, finds the TMR study, when the ships are within emission control areas (EMA).
Steadily growing demand for marine diesel oils in the maritime industry will expand frontiers for market players to capitalize on during the forecast period. The adoption of these fuels is underpinned by continuing shift toward low-sulfur fuel oils. Attractive pricing of LNG has also helped push the demand for fuels in the market.
The LNG bunkering market key drivers include a growing number of LNG-fueled vessels and advancements in infrastructure for refueling of LNG-powered ships at ports. A case in point is the investment on developing LNG bunkering terminals in Norway.
Some of the prominent companies in the market are Gazpromneft Marine Bunker, Shell, Gasnor, Korea Gas Corporation, and Harvey Gulf International Marine.
Key findings of TMR LNG bunkering market study
The maritime industry’s various regulations and standards on emission control have enriched the LNG bunkering market landscape, the report says. IMO 2020 in particular has led the initiatives toward promoting very low sulfur fuel oil (VLSFO) in marine vessels. Stricter imposition of these regulations in North America has pushed revenue generation in the LNG bunkering market.
LNG bunkering has witnessed significant adoption in Europe, with inland ferries and offshore support vessels as the early adopters. Massive demand from the ferries and OSVs is expected to propel massive revenue gains, find the authors of the study.
The use of LNG as a marine bunkering fuel has increased in other vessels in recent years increasingly in the U.S. The adoption of LNG bunkering in China and South Korea is expected to spur revenue growth.
Advancements in LNG bunkering facilities will also result in more demand for marine diesel oil, thus generating growth opportunities for firms in the market.
North America is expected to witness substantially profitable avenues during the forecast period of 2021–2031. Updates in regulations by IMO are significantly catalyzing the prospects of the regional market.
On the other hand, Asia Pacific is projected to be an emerging LNG bunkering market. The revenue growth has been driven by rising in the adoption of LNG fuel in tankers and container ships. Furthermore, the imposition of maritime emission regulations is pushing the shift toward LNG.