SEA-LNG: LNG-powered fleet will reach more than 2,000 vessels as demand grows

Industry coalition SEA-LNG has unveiled that over 2,000 of the world’s 60,000 largest vessels will be powered by liquefied natural gas (LNG) in the near future, as LNG-fueled vessels keep increasing their share of the global fleet.

According to SEA-LNG, active LNG-fueled vessels now represent over 2% of the global shipping fleet. When factoring in vessels on order, this figure rises to 4% by number and 6% by deadweight tonnage (DWT). Nearly every day, fleet owners announce new investments in LNG-powered ships.

The number of LNG-fueled vessels has surged from just 21 in operation in 2010—mostly smaller, regionally operating ships—to 590 globally today, including some of the world’s largest containerships, which are now twice the size of those operating a decade ago. With an additional 564 vessels on order, the total is expected to reach 1,154 by the end of 2028.

In addition to this, there are currently 772 LNG carriers in operation, with another 341 on order as of the end of 2023, bringing the total of LNG-powered vessels among the world’s 60,000 largest to over 2,000, according to SEA-LNG.

According to DNV, LNG dual-fuel vessels also constitute one-third of the new build order book. In terms of deadweight tonnage (DWT), the combined LNG-powered fleet in operation and on order, totaling 142.5 million DWT, represents 6% of the world’s overall total of 2,224 million DWT.

“It is gratifying that LNG is finally gaining favour amongst so many shipowners. LNG is the only practical and realistic alternative fuel pathway available today – even for those shipowners that may also be considering other such pathways. While we have always said that a basket of fuels will be required for shipping to meet the 2050 emissions reduction targets, the rationale for the LNG pathway remains unchanged,” Peter Keller, Chairman, SEA-LNG, said.

He also pointed out that the LNG pathway using 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.
 
It is said that LNG has virtually zero SOx and particulate matter emissions, up to a 95% reduction of NOx emissions, and up to a 23% reduction in GHG emissions. SEA-LNG highlighted that with continued collaborative engineering efforts across the value chain, methane slip could be eliminated for all engine technologies within the decade.

Moreover, 2-stroke diesel cycle engines account for approximately 75% of the LNG-fueled vessel order book today, according to the coalition. These engines have effectively eliminated slip already, the For low-pressure engine technologies where methane slip remains a challenge, manufacturers have already cut the levels of slip from low-pressure 4-stroke engines by more than 85% over the past 25 years. 
 
In support of this expansion in LNG dual fuel vessels, LNG bunkers are currently available in 185 ports, with an additional 50 being added next year.

The bunkering vessel fleet has increased from a single vessel in 2010 to 60 in operation today, with a further 13 on order and significant interest in the maritime community to continue to invest in these needed assets.

SEA LNG further stated that this expanding infrastructure is immediately ready for liquefied biomethane (bio-LNG) as it scales, and eventually, e-methane (renewable synthetic or e-LNG), providing ship owners and operators with the confidence that vessels ordered today are future-proofed for 2050 and beyond.

Additionally, the use of liquefied biomethane as a marine fuel is expected to reduce GHG emissions by up to 80% compared to marine diesel on a full well-to-wake basis. When produced from the anaerobic digestion of waste materials, such as manure, methane that would otherwise be released into the atmosphere is captured, resulting in negative emissions of up to -190% compared with diesel.
 
The recognition of the LNG pathway and the growth in the asset base is positioning LNG to play a significant, long-term role in maritime decarbonization, the industry coalition concluded.