LNG Dominates Alternative Fuel Vessel Orders as Methanol Demand Wanes

LNG is remaining the dominant choice for alternative-fueled vessel orders in late 2024, accounting for 23 of the 27 new orders placed in November, according to new figures from international classification society DNV.

The container shipping segment continues to lead the charge in LNG adoption, contributing 15 vessels to November’s orderbook, while the car carrier segment added six LNG-fuelled vessels. Additionally, four ammonia-fuelled vessels were ordered during the same period.

This follows an exceptional October, which set a new record with 97 alternative-fuelled vessel orders. LNG dominated these orders with 66 vessels, including 58 from the container segment alone.

“Although these results show a slowdown of new orders for alternative-fuelled vessels in November, this follows the strongest month ever in October, and the overall trend remains strong,” said Jason Stefanatos, Global Decarbonization Director at DNV Maritime.

The surge in LNG orders marks a notable market shift from 2023, when methanol briefly led the alternative fuel race.

However, methanol’s appeal has diminished significantly, with orders for methanol-powered containerships dropping from 51% of new capacity in 2023 to just 21% in 2024, according to a recent report from liner industry analyst Alphaliner. The decline is attributed to various challenges, including supply chain issues, increased processing costs, and production delays.

“LNG remains the headline story with exceptional activity since the summer months. This is clearly being driven by the container segment, where the vast majority of new orders in 2024 have been for alternative-fuelled vessels,” Stefanatos noted.

Unlock Exclusive Insights Today!

Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.

Sign Up