The industry association SEA-LNG has published its annual “View from the Bridge” report, which highlights 2024 as another year of growth in newbuilds.
Global market acceptance and growth of LNG reached record levels in 2024. This is the conclusion of the annual report of the cross-sector industry coalition SEA-LNG, which analyses the data of its members. The number of LNG-powered ships increased by over 33% to 638 compared to the previous year, and members expect over 1,200 ships to be in operation by the end of 2028. In 2024, LNG-powered ships accounted for 70% of the alternatively powered tonnage ordered (excluding LNG tankers). To put this into perspective: in 2023, this figure was 43%. Methanol, on the other hand, only accounts for 14%.
LNG available in almost 200 ports worldwide
This record expansion is due to the increasing availability of LNG bunker fuel outside of traditional bunkering facilities. Currently, LNG bunkers are accessible in around 198 ports worldwide and there are plans for bunkering facilities in a further 78 ports. There are currently over 60 LNG bunker vessels in operation, representing a 22% increase by 2023.
According to the report, the LNG sector has made significant progress in the past year, with liquefied biomethane now contributing to decarbonisation and regular supplies of renewable e-methane expected in 2026.
SEA-LNG members are ready to offer biomethane bunkering in around 70 ports worldwide, with several bunkering operations already taking place. A highlight was the successful biomethane bunkering pilot project as part of the methane track within the Green & Digital Shipping Corridor Rotterdam-Singapore (GDSC). This was the first practical implementation of an international Green Corridor since its announcement as part of the Clydebank Declaration at COP 26 in Glasgow.
“Our latest view from the bridge reinforces the importance of LNG as a practical and realistic way to decarbonise shipping,” says Peter Keller, Chairman of SEA-LNG. “We continue to believe that the shipping industry is heading for a successful multi-fuel future in which LNG will always play a crucial role.”
LNG in a leading role
Achieving net-zero fuel for the entire global shipping fleet by 2050 will require a diverse fuel mix, with the LNG sector continuing to play a leading role: “This is not a question of ‘my fuel versus your fuel’, but which fuel will best enable the industry to achieve its stated goals,” says Keller. “The LNG pathway offers the route to net zero.”
In addition, significant progress was made in reducing methane slip in 2024. “Progress in this area, combined with biomethane and e-methane, offers a clear, effective and achievable long-term pathway to net zero emissions. Shipowners and operators can be confident that the ships they order today will be future-proof for their entire lifetime,” emphasises Keller.
FuelEU Maritime creates a favourable environment
As we move towards 2025, the regulation on the use of renewable and low-carbon fuels in maritime transport (FuelEU Maritime) will play a key role in the decarbonisation of the shipping industry. According to an analysis by SEA-LNG, the regulation creates a favourable environment for LNG. With the potential to reduce greenhouse gas emissions by up to 23%, LNG-powered ships will be compliant by 2039. By using liquefied biomethane and e-methane, compliance can also be extended to 2050 and beyond.