Alphaliner data show that the annual orders of LNG propulsion vessels have exceeded the methanol-fueled ones.
The data that Alphaliner has shared to the public, show that LNG propulsion has reaffirmed its status as the main choice for carriers that are on their journey towards decarbonization. In contrast, methanol-powered vessels accounted for only 21% of new capacity orders in 2024. This makes it a significant decline from the 51% recorded in 2023.
Concerns about a lack of methanol supply have increased this year due to higher than anticipated processing costs and delays in production. After leading the newbuilding market last year, the share of methanol-fueled contracts has sharply decreased in the first ten months of 2024.
As of October 14, Alphaliner reported that 2024 is shaping up to break record with a total of 264 orders (across all propulsion types) amounting to 3.11 Mteu. Notably, 77.5% of the ordered capacity is classified as ‘green’ tonnage.
📢 LNG orders significantly overshadow methanol in 2024!
♻️ Concerns over the future availability of green methanol are clearly reflected in carriers’ newbuilding orders this year. After dominating the newbuilding market last year, the proportion of methanol-fuel contracts has… pic.twitter.com/WAJc9YScHn
— Alphaliner (@Alphaliner) October 16, 2024
SFOC on its report also predicts a massive oversupply of LNG shipping capacity now and into the future under all IEA scenarios since the pace of new orders and construction is not showing any signs of slowing down.
