What is the potential of LNG as a future fuel for shipping vessels?

By vessel count: In 2025, green vessel new orders totaled 357 units, accounting for 18% of all new orders. By gross tonnage: Vessels powered by alternative fuels accounted for 37%. By main engine power: Green propulsion systems accounted for 43%. I. Powertrain Technology Pathways: LNG reigns supreme; methanol cools off; ammonia and hydrogen remain works-in-progress. If today’s green shipping industry were to appoint a spokesperson, it would undoubtedly be LNG (liquefied natural gas). Although the industry loudly champions the ‘zero-carbon’ goal, shipowners have demonstrated remarkable pragmatism in actual commercial decisions. Currently, LNG commands an 80% market share in the green vessel segment. Whether for container ships or tankers, LNG dual-fuel propulsion is unequivocally the mainstream choice. The rationale is straightforward: proven technology, favorable economics, and relatively mature bunkering infrastructure. Over 200 ports worldwide already offer LNG bunkering capabilities, and LNG delivers an immediate 20–25% reduction in carbon emissions. For the thin-margin shipping industry, LNG represents the most cost-effective ‘lifeline’ available today. II. Which vessel type is the ‘greenest’? Container ships lead by a wide margin. Over half of all green vessel orders in 2025 are container ships. Even more strikingly, 62% of new container ship orders feature alternative-fuel capability. The intensity of green transition varies dramatically across vessel types—largely determined by route predictability and cost-bearing capacity. Container ships (the ‘progressives’): Account for half of all green vessel orders. In 2025, 68% of new container ship orders adopted alternative-fuel propulsion. This stems from liner operators (e.g., Maersk, MSC) operating fixed-route networks—facilitating bunkering station planning—and possessing strong bargaining power to pass environmental costs onto shippers. Bulk carriers (the ‘conservatives’): Exhibit the lowest degree of green adoption, at just 4.8%. Bulk carriers typically operate on irregular routes, while global green fuel infrastructure lags far behind; coupled with narrow profit margins in bulk shipping, owners remain reluctant to invest in costly green vessels. Data shows that in 2025, as many as 41% of bulk carrier new orders featured ‘alternative-fuel-ready’ designs—a telling sign of owners’ ambivalence: verbally committed to transition, yet financially cautious—opting only for minimal, low-cost preparatory measures. III. The ‘darkest hour’ for zero-carbon fuels: Methanol, ammonia, and hydrogen strive to break through. Though LNG dominates today, it is not the ultimate solution. True zero-carbon fuels—methanol, ammonia, and hydrogen—are struggling to gain traction, each facing distinct challenges. Methanol: Currently the ‘runner-up’. Widely applied in container ships, its technology is relatively mature. Yet its biggest weakness is the severe shortage of ‘green methanol’ production capacity. Global green methanol supply currently amounts to only a fraction of projected demand, resulting in prohibitively high prices—the supply chain remains its greatest bottleneck. Ammonia: A ‘dark horse’ for the future. Carbon-free and ideal for zero-emission operation, ammonia has recently taken a major step forward: in March 2026, China certified its first low-speed ammonia-fueled engine—marking the transition from concept to reality. However, ammonia’s toxicity, corrosiveness, and the near-total absence of port-side ammonia bunkering infrastructure deter most shipowners from early adoption. Hydrogen: The ‘pioneer’ for short-haul operations.

What is the outlook for marine LNG?

3. Securing reliable natural gas supply; 4. Advancing related R&D. First, national policy actively encourages the use of natural gas in maritime transport. Natural gas utilization aligns with national strategic priorities—including energy structure optimization and environmental protection. To date, the Ministry of Transport has issued guiding opinions offering subsidies for newly built LNG-powered vessels and launched pilot demonstration projects for LNG application in waterborne transport—aimed explicitly at promoting marine LNG development. Broadly speaking, the state supports marine LNG development, and relevant regulations and supervisory policies will steadily mature over time. Second, LNG bunkering demand for marine applications can be met. Two LNG bunkering barges are already operational along China’s Yangtze River, with several additional bunkering stations under construction. Existing facilities possess sufficient capacity to serve approximately one thousand vessels. Moreover, guidelines for the layout of marine LNG bunkering stations are imminent, and approval procedures for LNG-related waterfront land use will gradually be streamlined. In the short term, limited LNG refueling infrastructure poses some constraints on the promotion of LNG-powered vessels. However, as the fleet size grows, energy enterprises will inevitably expand their network of LNG bunkering stations—meaning refueling accessibility will not become a critical bottleneck for long-term development.

Singapore Marine Fuel Supplier Equatorial Eyes Higher LNG Bunker Demand from 2028

19 hours ago

Singapore bunker supplier Equatorial Marine Fuel plans to expand into LNG shipping fuels using 2026 profits, expecting demand growth from 2028 as new production capacity and dual-fuel vessels come online globally.

reuters

2026-10-13

Singapore Marine Fuel Supplier Equatorial Eyes Higher LNG Bunker Demand from 2028

Singapore Marine Fuel Supplier Equatorial Eyes Higher LNG Bunker Demand from 2028

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