The global market for LNG bunkering is expected to grow at a CAGR of approximately 15% during 2020-2025.
The strict norms to restrict the sulfur content produced by conventional fuels are driving the demand for LNG bunkering infrastructure, as the ships across various regions are slowly starting to adopt LNG as a fuel for propulsion. Moreover, reducing the sulfur content from conventional fuel requires high cost, which is likely to hamper the economic viability of the same.
The global LNG bunkering market is consolidated. The major companies include Royal Dutch Shell, Nauticor GmbH & Co. KG, ENN Energy, Korea Gas Corporation, and Harvey Gulf International Marine LLC.
As of 2018, tanker fleet has registered the largest market. The total market for 2018 was around USD ~700 million.
The order and delivery of LNG-powered vessels are increasing, and the reduced natural gas prices in 2014 had marked the beginning of expanding opportunities for such vessels in the coming years.
North America to dominate the market across the globe in the future, with majority of the demand coming from the United States and Canada.
Tanker Fleet Dominated the Market
The tanker fleets include small tanker, intermediate tanker, medium range 1 (MR1), medium range 2 (MR2), Large Range 1 (LR1), Large Range 2 (LR2), Very Large Crude Carrier (VLCC) and Ultra Large Crude Carrier (ULCC), which differ on the basis of tanker capacity.
Tanker fleets are used to store or transport gases or liquids in bulk amount. These are used to store and carry oil, gas, chemicals, and other products, like vegetable oil, fresh water, wine, molasses, etc.
As of 2018, 548.8 million deadweight tons (dwt) of tanker fleets were in operation. These tankers majorly use low sulfur oil and marine gas oil for which it holds a wing or double bottom tank outside the engine room.
However, with the regulations related to sulfur content in the fuel, LNG is projected to become a reliant fuel for tankers in the coming years. As compared to other vessels, the number of LNG fuelled tanker fleets is more.
North America to Dominate the Market
Among the key factors driving the LNG bunkering market is the increase in LNG demand to reduce the carbon footprint in the shipping industry. Furthermore, LNG is a better alternative fuel, and the government has been taking initiatives for LNG adaptation.
In 2016, International Maritime Organization (IMO) decreased the permissible sulfur content in marine fuels to a 0.5% from a previous 3.5% to curb greenhouse gas emission; the date of implementation was announced to be 2020. Owing to the above factor, the United States LNG bunkering market is expected to witness growth in the years to come, as LNG is likely to be an economic alternative for a marine fuel after IMO's regulation.
The Canadian government has made commitments for a significant reduction in greenhouse gases emissions, and the country has an abundant supply of natural gas. Moreover, natural gas on combustion produces less amount of greenhouse gases, making LNG a better alternative marine fuel for Canadian shipping industry.
Although as the initial installation cost of LNG-based vessels is high, the operation cost is lower when compared to running old ships with installed scrubbers. After 2020, the region is expected to witness an increase in demand for LNG bunkering services.
Key Topics Covered
1 INTRODUCTION 1.1 Scope of the Study 1.2 Market Definition 1.3 Study Assumptions
2 EXECUTIVE SUMMARY
3 RESEARCH METHODOLOGY
4 MARKET OVERVIEW 4.1 Introduction 4.2 Market Size and Demand Forecast in USD million, till 2025 4.3 Recent Trends and Developments 4.4 Government Policies and Regulations 4.5 Market Dynamics 4.5.1 Drivers 4.5.2 Restraints 4.6 Supply Chain Analysis 4.7 Porter's Five Forces Analysis 4.7.1 Bargaining Power of Suppliers 4.7.2 Bargaining Power of Consumers 4.7.3 Threat of New Entrants 4.7.4 Threat of Substitutes Products and Services 4.7.5 Intensity of Competitive Rivalry
5 MARKET SEGMENTATION 5.1 End-user 5.1.1 Tanker Fleet 5.1.2 Container Fleet 5.1.3 Bulk & General Cargo Fleet 5.1.4 Ferries & OSV 5.1.5 Others 5.2 Geography 5.2.1 North America 126.96.36.199 United States 188.8.131.52 Canada 184.108.40.206 Rest of North America 5.2.2 Europe 220.127.116.11 Norway 18.104.22.168 Spain 22.214.171.124 The Netherlands 126.96.36.199 United Kingdom 188.8.131.52 Rest of Europe 5.2.3 Asia-Pacific 184.108.40.206 China 220.127.116.11 Singapore 18.104.22.168 India 22.214.171.124 Rest of Asia-Pacific 5.2.4 Middle East & Africa 126.96.36.199 United Arab Emirates 188.8.131.52 Rest of Middle East & Africa 5.2.5 South America
6 COMPETITIVE LANDSCAPE 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements 6.2 Market Share Analysis 6.3 Strategies Adopted by Leading Players 6.4 Company Profiles 6.4.1 Royal Dutch Shell PLC 6.4.2 Skangas AS 6.4.3 ENN Energy Holdings Ltd. 6.4.4 Korea Gas Corporation 6.4.5 Harvey Gulf International Marine LLC 6.4.6 Bomin Linde LNG GmbH & Co. KG 6.4.7 Engie S.A. 6.4.8 Gazpromneft Marine Bunker LLC 6.4.9 Total S.A. 6.4.10 Gas Natural Fenosa