According to Reuters, the demand for liquefied natural gas (LNG) to fuel ships is expected to increase this year due to attractive prices and the growing number of dual-fuel vessels joining the global fleet.
Prices of LNG delivered as marine fuel in key hubs like Singapore are currently at steep discounts compared to conventional fuels, driven by ample supply and decreased winter demand. Despite previous spikes in prices due to geopolitical factors like Russia’s gas crisis in 2022, LNG prices have stabilized at lower levels, Reuters reports.
Consultancy Rystad forecasts that LNG bunker sales will continue to rise, with global sales in the first three months of 2024 already reaching 1.9 million cubic meters. In Singapore alone, LNG bunker sales hit a record high in March, Reuters informs. Major players like BHP are capitalizing on this trend, with BHP refueling its ships with 100% LNG on specific routes, citing both cost benefits and emissions reductions compared to traditional fuel oil.
As stated by Reuters, the growth in LNG bunker demand is further fueled by the increasing number of dual-fuel vessels being delivered, particularly in segments like container ships, car carriers, and tankers.
Furthermore, Reuters informs that SEA-LNG anticipates a significant rise in the number of dual-fuel LNG vessels operating globally, projecting over 1,000 such vessels by the end of 2027, compared to around 400 at present, though this still represents a small fraction of the overall merchant fleet.
