The LNG Bunkering Market is estimated to be valued at US$ 1084.62 Mn in 2023 and is expected to exhibit a CAGR of 11.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
LNG bunkering refers to the provision of LNG as a fuel to ships for the operation of engines and power generation systems. LNG provides numerous advantages as a bunker fuel compared to traditional bunker fuels such as heavy fuel oil. It results in reduced emissions and improved air quality.With stringent regulations regarding emission reduction, there is growing demand for cleaner marine fuels such as LNG globally.
Market key trends:
One of the key trends driving growth of the LNG bunkering market is the stringent environmental regulations imposed by International Maritime Organization (IMO) to reduce greenhouse gas emissions from ships. According to MARPOL Annex VI regulations, the global cap on the sulfur content of fuel oil used on board ships was lowered to 0.50% m/m (mass by mass) on January 1, 2020 from 3.50%.This has created significant demand for cleaner alternative marine fuels like LNG among ship owners and operators. Furthermore, various ports and governments across North America, Europe and Asia Pacific are taking initiatives to build necessary LNG bunkering infrastructure near ports which is encouraging ship operators to switch to LNG. Growing construction of specialized LNG bunker vessels and gas carriers with added bunkering capabilities is also facilitating the development of global LNG bunkering stations network, thereby supporting market growth over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the LNG bunkering market requires substantial initial investments in specialized infrastructure like LNG bunker vessels and bunkering facilities. Bargaining power of buyers: The bargaining power of buyers is low as LNG bunkering facilities are limited in numbers globally and dependent on few major suppliers. Bargaining power of suppliers: Suppliers like gas producers and traders have significant bargaining power over buyers due to their control over specialized infrastructure and limited LNG bunkering facilities globally. Threat of new substitutes: The threat of substitutes like methanol and ammonia is relatively low currently as LNG is the most viable cleaner fuel alternative compared to conventional bunker fuels. Competitive rivalry: Intense competition among existing players to expand geographically and develop new infrastructure.
SWOT Analysis
Strengths: LNG is a cleaner fuel compared to conventional fuels. Stringent emission norms are driving adoption of LNG bunkering.
Weaknesses: Higher initial infrastructure investment and limited bunkering facilities are constraints. Dependency on few major suppliers increases price volatility.
Opportunities: Growing global fleet of LNG fueled vessels offer significant potential. Government incentives and regulations promoting use of cleaner fuels.
Threats: Emergence of alternative cleaner fuels. Fluctuations in natural gas prices impact bunkering costs. Geopolitical issues influence supply security.
Key Takeaways
The global LNG Bunkering Market Share is expected to witness high growth, exhibiting CAGR of 11% over the forecast period, due to stringent environmental regulations and IMO norms to reduce emissions from vessels. The European region currently dominates the global LNG bunkering market owing to supportive regulatory framework and presence of leading ports with LNG bunkering facilities. The Asia Pacific region is expected to grow at the fastest pace during the forecast period with China, Japan and South Korea emerging as major markets in the region.
Key players operating in the LNG bunkering market are Royal Dutch Shell Plc., Skangas, ENN Energy, Korea Gas Corporation, Prima LNG, Harvey Gulf International Marine LLC, Bomin Linde LNG GmbH & Co KG, Fjord Line, Crowley Maritime Corporation, and Polskie LNG. Shell is the leading player with globally expanding infrastructure and service offerings. Other players are focusing on strategic partnerships and infrastructure development projects near major ports.
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https://www.newsstatix.com/lng-bunkering-market-trends-size-and-share-analysis/
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