LNG-Fueled Ships Surge to 2% of Global Shipping Fleet

The maritime industry is witnessing a substantial shift towards liquefied natural gas (LNG) as a fuel source, with LNG-powered vessels now comprising over 2% of the global shipping fleet, according to industry coalition SEA-LNG.

This percentage is set to increase to 4% by vessel numbers or 6% by deadweight tonnage (DWT) when considering current order books.

The growth in LNG-fueled vessels has been remarkable, rising from just 21 ships in 2010 to 590 in operation globally today. With an additional 564 vessels on order, the total number of LNG-powered vessels is projected to reach 1,154 by the end of 2028. When including LNG carriers, over 2,000 of the world’s 60,000 largest vessels are now LNG-powered.

“LNG is the only practical and realistic alternative fuel pathway available today – even for those shipowners that may also be considering other such pathways,” said Peter Keller, Chairman of SEA-LNG. He added that the LNG pathway, which includes the use of liquefied biomethane and eventually hydrogen-based e-methane, “currently provides the only viable option to making progress towards 2050, starting with immediate carbon reductions, now.”

The environmental advantages of LNG are significant, with virtually zero SOx and particulate matter emissions, up to 95% reduction in NOx emissions, and up to a 23% reduction in GHG emissions. The industry is also addressing the challenge of methane slip, with manufacturers having reduced levels by more than 85% over the past 25 years for low-pressure 4-stroke engines.

Supporting this transition, LNG bunkering infrastructure has expanded considerably. LNG bunkers are now available in 185 ports, with an additional 50 expected next year. The bunkering vessel fleet has grown from a single vessel in 2010 to 60 in operation today, with 13 more on order.

Recent data from DNV’s AFI platform shows continued momentum in the alternative fueled orderbook. In September 2024, 17 new orders for alternative fueled vessels were placed, with LNG accounting for nine of these orders. This follows strong performance in July and August, where LNG was the main fuel of choice.

“Despite a slow month in September, a broader view confirms that the momentum in the new order market towards alternative fuelled vessels remains strong. LNG is clearly the headline story since the summer, accounting for around 60% of all alternative fuelled new orders in the third quarter mainly thanks to a strong uptake in the container segment,” said Jason Stefanatos, Global Decarbonization Director at DNV Maritime.

As the maritime industry continues to seek ways to reduce its environmental impact, the growth in LNG-powered vessels and supporting infrastructure positions LNG as a significant player in the long-term maritime decarbonization efforts.