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The need for LNG bunkering in the marine industry is growing due to the increasing popularity of maritime trade. Maritime commerce plays a crucial role in the global economy, transporting the majority of goods across the seas. With the rising demand for commodities and raw materials from different countries, the maritime sector is expanding. As more ships are built and put into service to meet this demand, the need for fuel also rises.
Ship owners and operators are facing the challenge of cutting fuel costs while meeting stringent environmental standards. In response, LNG (liquefied natural gas) is emerging as a favorable option. Compared to traditional marine fuels, LNG burns more cleanly, enabling shipping operators to reduce emissions and improve air quality. Additionally, especially during times of high oil prices, LNG tends to be more cost-effective than conventional marine fuels.
LNG also helps maritime businesses comply with emission regulations such as the International Maritime Organization's (IMO) worldwide sulphur cap. Using LNG as a fuel allows ships to meet these standards without the need for expensive exhaust gas cleaning systems, as the sulphur content in LNG is significantly lower than that of conventional marine fuels.
These advantages have contributed to the growing preference for LNG bunkering in shipping-based commerce. The trend is expected to continue as the world's population increases, the demand for goods rises, and more ships adopt LNG as a fuel source.
Maritime trade is vital to the movement of goods globally. As the world population grows, so does the demand for commodities and raw materials from various countries. To meet this demand, the maritime sector is expanding, leading to the construction and deployment of more ships. However, this growth comes with challenges, particularly in terms of fuel costs and environmental impact.
Ship owners and operators are increasingly turning to LNG as a solution to these challenges. LNG offers a cleaner burning alternative to traditional marine fuels, helping shipping companies reduce their emissions and contribute to better air quality. Moreover, the economic appeal of LNG, especially during periods of high oil prices, makes it an attractive choice for cost-conscious operators.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Market Opportunities | · Improvements to the LNG distribution network |
| Market Dynamics | · Growing use of LNG as a fuel for ships while putting a greater emphasis on sustainable development· Rise in the production and exploration of gas |
Europe LNG Bunkering Market Highlights:
Europe LNG Bunkering Market Overview
The LNG Bunkering Market industry is projected to grow from USD 645.67 Million by 2032, exhibiting a compound annual growth rate (CAGR) of 15% during the forecast period (2023 - 2032). One major market driver influencing the expansion of the LNG (liquefied natural gas) bunkering business is the rise in exploration activity in offshore locations.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
LNG Bunkering Market Trends
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Rapid expansion of ferries in Europe is driving market growth
Vessels used to transport freight over water are called ferries. Passenger ferries are utilized for transportation as water taxis or buses. In addition to the double-ended, hydrofoil, hovercraft, catamaran, roll-on/roll-off, cruise ferry (RoPax), rapid RoPax ferry, and others, there are various types of ferries. Additionally, the main fuels used by these boats are marine gas oil and heavy fuel oil. Notwithstanding, governmental mandates concerning the discharge of sulfur, carbon dioxide, and additional contaminants promote the utilization of LNG as a marine fuel. A rise in LNG-fueled ferries and OSVs is anticipated during the next five years, given the volume of orders for these vessels. During the projection period, there is a chance that the need for LNG bunkering services would rise. The European Commission created the European Green Deal in 2019, a package of legislative measures aimed at achieving carbon neutrality in Europe by the year 2050. It highlights the use of LNG as fuel for vehicles and marine vessels and briefly highlights the significance of LNG in accomplishing this goal.
In the market for LNG bunkering, innovation is a major trend that is growing in popularity. To maintain their position in the market, major players are concentrating on introducing novel activities, such as ship-to-containership LNG bunkering. In January 2022, for example, the first ship-to-containership LNG bunkering operation in Marseilles was initiated by the French shipping and logistics company CMA CGM and the integrated energy and petroleum company TotalEnergies. During cargo operations, TotalEnergies' Gas Vitality, the first LNG bunker vessel based in France, refueled CMA CGM BALI, a 15, 000 TEU LNG-powered containership on the MEX 1 service connecting Asia and South Europe, with approximately 6, 000m3 of LNG through a ship-to-ship transfer alongside the Eurofos container terminal. Thus, driving the LNG bunkering market revenue.
LNG Bunkering Market Segment Insights:
LNG Bunkering Product Type Insights
The Europe LNG Bunkering market segmentation, based on product type includes Truck-to-Ship, Port-to-Ship, Ship-to-Ship, and Portable Tanks. The ship-to-ship segment dominated the market mostly. The direct transfer of LNG between two ships is known as "ship-to-ship bunkering," and it usually involves a specialized LNG bunkering vessel and the receiving ship. This technique works especially well for bigger boats and enables bunkering to take place when both are anchored or at sea.
Figure 1: Europe LNG Bunkering Market, by Product Type, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
LNG Bunkering Application Insights
The Europe LNG Bunkering market segmentation, based on application, includes Container Fleet, Tanker Fleet, Cargo Fleet, Ferries, Inland Vessels, and Others. The tanker category generated the most income. Various tanker fleets are available, with differences in tanker capacity: small tanker, intermediate tanker, large range 1 (LR1), large range 2 (LR2), very large crude carrier (VLCC), and ultra-large crude carrier (ULCC). Bulk gases and liquids are stored or transported using tanker fleets. These serve as storage and delivery systems for a variety of goods, including vegetable oil, wine, freshwater, molasses, and gas.
LNG Bunkering Regional Insights
Europe held a sizable portion of the world market for LNG bunkering. This is explained by the region's early use of LNG as a maritime fuel and the existence of emission control areas (ECAs). Additionally, strict environmental rules are being framed by European nations to reduce air pollution, which is anticipated to promote the use of LNG as a maritime fuel in the area. Moreover, the growing need for LNG to lessen the maritime industry's carbon impact is a major driver of the LNG bunkering market. Moreover, LNG is a superior substitute fuel, and governments have been implementing measures to accommodate LNG. Furthermore, strict environmental rules are being framed by European nations to reduce air pollution, which is anticipated to promote the use of LNG as a maritime fuel in the area.
Figure 2: Europe Lng Bunkering Market Share By Region 2022 (Usd Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
LNG Bunkering Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the LNG bunkering market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, LNG bunkering industry must offer cost-effective items.
Key Companies in the LNG bunkering market include
- Petroliam Nasiona Berhad (Petronas)
- Shv Energy
- Exxon Mobil Corporation
- Korea Gas Corporation
- Polskie Lng S.A.
- Total Se
- Royal Dutch Shell Plc
- Crowley Maritime Corporation
- Klaw Lng
- Gasum Oy
- Harvey Gulf International Marine
- Broadview Energy Solutions B.V.
LNG Bunkering Market Segmentation
LNG Bunkering Product Type Outlook
- Truck-to-Ship
- Port-to-Ship
- Ship-to-Ship
- Portable Tanks
LNG Bunkering Application Outlook
- Container Fleet
- Tanker Fleet
- Cargo Fleet
- Ferries
- Inland Vessels
- Others
LNG Bunkering Regional Outlook
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Sweden
- Denmark
- Luxembourg
- Norway
- Austria
- Rest of Europe
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