Maersk Changes Its Tune on LNG

(Bloomberg) —

Shipping giant A.P. Moller-Maersk A/S is in the process of securing 50-60 vessels as part of its fleet renewal program, including ships that will be able to run on liquefied natural gas, a fuel the company has criticized in the past.

The order is for a mix of owned and chartered dual-fuel vessels totaling 800,000 twenty-foot equivalent units — a measure of how much cargo is transported, according to an emailed statement from the company. The order also includes carrying capacity that will be able to run on methanol.

A spokesperson for Maersk said that using LNG to fuel these vessels isn’t the firm’s intention, but it couldn’t be ruled out. The ships will also be able to use a cleaner version of the fuel, so-called bio-LNG. And they will be able to run on conventional oil-derived fuel.

“It would be risky for us as a company to bet only on one technology,” Maersk Chief Executive Officer Vincent Clerc said in a presentation in Copenhagen on Wednesday. He said he expects different green technologies to co-exist and compete for some time, before the market may settle on one.

The shipping industry is under pressure to decarbonize but still largely relies on oil-derived fuel. 

Maersk has begun the process of securing offtake agreements for liquefied biomethane — bio-LNG — to ensure that the new dual-fuel gas vessels provide emissions reductions in this decade, according to the company’s statement.

Between 2026 and 2030, an expected 800,000 TEU of capacity will enter Maersk’s fleet, replacing other vessels. These ships will be dual fuel but not all orders are final, meaning other propellants can’t be ruled out, a Maersk spokesperson said. The container behemoth has previously announced orders of 25 owned dual-fuel methanol vessels.

© 2024 Bloomberg L.P.

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