LNG is steady compass to net zero, SEA-LNG found

Global adoption and the growth of the liquefied natural gas (LNG) pathway in the maritime industry has witnessed ‘record’ heights in the year 2024, a new analysis from industry coalition SEA-LNG has found.

According to SEA-LNG’s annual “View from the Bridge” report, the growth of LNG-fueled vessels in operation worldwide per year has experienced an uptick of 33%, having already risen from 590 ships the coalition unveiled in an October 2024 analysis to 683 units today.

Moreover, as per the “View from the Bridge”, LNG dual-fueled vessels, of which 169 are said to have entered service last year, accounted for 70% of alternative-fueled tonnage ordered in 2024— excluding LNG carriers—which represents an upward trend from the 43% recorded in 2023.

In the October report specifically, SEA-LNG revealed that, on top of the then-590 ships, there had been an additional 564 ones on order. Given this course, the coalition believes that the industry could be looking at well over 1,200 active LNG-powered vessels by the end of 2028.

What this means is that soon, around 6% of the global fleet will be powered by liquefied natural gas.

That said, when accounting for LNG carriers, as per the London-headquartered coalition’s October information, the 772 active carriers and the 341 that were on order as of the end of 2023 bring the total of vessels powered by this clean fuel to over 2,000—with potential to balloon further given the maritime industry’s increasing interest in liquefied natural gas.

This record expansion sails in the wake of the skyrocketing availability of LNG bunker fuel beyond the traditional bunkering hubs. As disclosed, presently, LNG bunkers are accessible in around 198 ports worldwide—a jump from the 185 ports as found in a 2023 analysis—with plans underway to construct facilities in 78 more ports. SEA-LNG has highlighted that this as ‘particularly significant’ since over 60 LNG bunkering ships are in operation today, indicating a 22% increase from 2023.

“We continue to believe that the shipping industry is heading towards a successful multi-fuel future where LNG will always play a critical role. To deliver net zero by 2050 across the global shipping fleet, a basket of fuels is required and the LNG pathway will continue to lead the way. This is not a case of my fuel versus your fuel but rather which fuel best allows the industry to reach its stated goals. The LNG pathway provides the path to net zero,” Peter Keller, Chairman of SEA-LNG, underscored.

“View from the Bridge” also accentuated other significant steps the LNG pathway has taken in 2024, with liquefied biomethane making ‘considerable’ contributions to decarbonization efforts, on top of regular renewable e-methane supplies anticipated by 2026.

It is understood that SEA-LNG members—among which are Swiss shipping colossal Mediterranean Shipping Company (MSC) which joined in April 2023, Germany’s maritime services company Bernhard Schulte Shipmanagement (BSM) which joined in August 2024 and Japan’s gas company Osaka Gas that became a member that same month—are ready to offer biomethane bunkers in roughly 70 ports worldwide, with ‘multiple’ bunkering operations already taking place.

One such example was the biomethane bunkering pilot done as part of the Methane Track within the Rotterdam-Singapore Green and Digital Shipping Corridor (GDSC). As informed, this was the ‘first’ practical delivery of any international Green Corridor since the announcement was done as part of the Clydebank Declaration at COP 26 held in 2021 in Glasgow, Scotland.

SEA-LNG’s latest analysis has also provided a sneak peek into the progress made in addressing the pervasive issue of the methane slip. According to Keller, advances in eliminating methane slip, together with bio- and e-methane, provide a “clear, effective and viable long-term pathway toward net zero emissions.”

“Shipowners and operators can be confident that the vessels ordered today are future-proofed for their lifespan. With a proven track record of technical improvements to reduce methane slip and upstream emissions, coupled with tighter regulations from global and regional authorities, we continue to believe methane slip will be a non-issue by the end of this decade,” Keller spotlighted.

With the FuelEU Maritime regulation in force since January 1, 2025, SEA-LNG expects it to play a ‘key’ role in pushing the shipping industry’s decarbonization efforts forward. The coalition’s analysis suggested that FuelEU could pave the way toward a ‘favorable’ environment for the LNG pathway as LNG-fueled ships are currently compliant until 2039 given their ability to slash up to 23% of greenhouse gas (GHG) emissions.

As for liquefied biomethane and e-methane, the estimate is that their use can extend compliance through 2050 and beyond.

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