Industry coalition SEA-LNG has published its annual ‘View from the Bridge’ report, highlighting 2024 as another year of growth for the LNG pathway.
Analysing data from SEA-LNG members, the report found that global market adoption and growth reached record heights in 2024. SEA-LNG reported an annual vessel growth of over 33 per cent to 638 LNG-fuelled vessels in operation worldwide today.
Looking forward, over 1200 vessels are expected to be operating by the end of 2028. In 2024, LNG dual-fuelled vessels accounted for 70 per cent of alternative-fuelled tonnage ordered, excluding LNG Carriers, up from 43 per cent in 2023.
This record expansion is driven by the increasing availability of LNG bunker fuel beyond traditional hubs. Currently, LNG bunkers are accessible in approximately 198 ports worldwide, and plans are underway for bunkering facilities in an additional 78 ports. Currently, more than 60 LNG bunkering vessels are in operation, a 22 per cent increase from 2023.
The report also underscores a major milestone for the LNG pathway in 2024, with liquefied biomethane contributing to decarbonisation and regular renewable e-methane supplies expected by 2026.
SEA-LNG members are prepared to offer biomethane bunkers in some 70 ports globally, with multiple bunkering operations already taking place. A highlight was the successful biomethane bunkering pilot as part of the Methane Track within the Rotterdam-Singapore Green and Digital Shipping Corridor (GDSC). This marked the first practical delivery of an international Green Corridor since the Clydebank Declaration at COP 26 in Glasgow.
FuelEU Maritime will reportedly be a key regulation in advancing shipping industry decarbonisation.
According to analysis from SEA-LNG, FuelEU Maritime creates a favourable environment for the LNG pathway. With the ability to achieve GHG emissions reductions of up to 23 per cent, LNG-fuelled vessels are compliant until 2039. The use of liquefied biomethane and e-methane can extend compliance through 2050 and beyond.
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Peter Keller, chairman of SEA-LNG, said: “Our latest View from the Bridge reaffirms the importance of the LNG pathway as a practical and realistic route to shipping’s decarbonisation now.
“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 fuel 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.”
SEA-LNG’s latest report also highlights that 2024 has seen considerable progress in addressing methane slips.
“Advances in eliminating methane slip, in combination with biomethane and e-methane, provide a clear, effective, and viable long-term pathway towards net zero emissions,” Keller continued.
“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.”
This week, Portsmouth International Port announced the first bunkering transfer of LNG at the port.