LNG bunker markets are expanding at record speed, with new facilities being built at crucial ship refuelling points in places like Spain, Singapore, North America and China.

The LNG dual-fuelled fleet is expected to reach about 475 ships by 2023, including large oil carriers.

LNG bunkering is the supply of liquid natural gas for vessels as shipping fuel. Bunkering usually takes place either from ports, where it can be unloaded from trucks or other facilities, or in the form of ship-to-ship transfers. For this, specialised LNG bunkering vessels provide large oil, chemical and other tankers with LNG at sea or near ports or coastal areas.

Here you can explore our LNG bunkering fleet and regions database.

A selection of news, analysis and podcasts on the topic, as well selections from the ICIS bunkering LNG supply-demand outlook, are also included on the page.

Pictured: Shell’s Cardissa bunkering the world’s first LNG powered cruise ship

LNG Bunkering Vessels Database

LATEST HEADLINES

Wartsila receives two LNG system orders

24/06/2021 LONDON (ICIS)-Finnish technology company Wartsila  received two more orders for its complete LNG cargo handling and fuel system in May, to be used for two LNG bunkering vessels.

The contract has been awarded by Hyundai Mipo Dockyard, which is building the two 18,000cbm LNG bunkering vessels for which the Wartsila systems will be required. The equipment, to be delivered in the first half of 2022, includes a boil-off system with integrated fuel supply.

South Korea-based owners Pan Ocean and Korea Line LNG ordered the ships.

Endesa, Enagas plan new LNG storage site

17/06/2021 LONDON (ICIS)–Spain’s Endesa and Enagas are planning new LNG and gas infrastructure in the exclave of Melilla in north Africa, with a 5,000cbm LNG storage site connected to the grid.

The gas is expected to help provide energy for marine and port activities, above all bunkering.

Enagas also wants to build a biomethane plant in the city, making gas from urban waste, according to plans presented to local authorities.

NYK orders 12 LNG-powered carriers

17/06/2021 SINGAPORE (ICIS)–Japanese shipowner NYK is ordering 12 LNG-fuelled car and truck carrier vessels at Japan’s Shin Kurushima Dockyard and Nihon Shipyard.

The newbuildings will be delivered from 2025 to 2028. These vessels will replace the owner’s current fleet.

The aim is to use LNG as a fuel to reduce carbon emissions.

NYK’s use of LNG as bunker fuel began with Sakura Leader, which was delivered in October 2020 and was the first LNG-fuelled car and truck carrier to be built in Japan.

NYK said it aims to further advance to zero-emission vessels by using hydrogen and ammonia, from around 2030.

NYK is positioning LNG fuel as a bridge solution until future zero emission ships can be realised.

Europe’s first bio-methane ferry starts up

10/06/2021 LONDON (ICIS)–Energy services company Axpo Iberia and Spanish ferry operator Balearia have announced the first European high-speed ferry test crossing using bio-methane.

The ferry Eleanor Roosevelt completed the route between Barcelona and Menorca using renewable bio-methane certified by Axpo Iberia.

The voyage avoided the emission of more than 50 tonnes of CO2, according to the companies

Bio-methane is created from waste and in 2015 Axpo Iberia was the first energy company in Spain to market the fuel.

Last year, it signed the first long-term bio-methane sales contract on the Iberian Peninsula, replacing more than 25GWh of natural gas annually.

Axpo Iberia is also an established supplier of LNG for bunker fuel.

Balearia has invested around €380m ($463m) in nine new ferries that run on natural gas.

Spanish deal for new LNG bunker vessel

10/06/2021 LONDON (ICIS)–Spain’s Enagas and marine fuel marketer Peninsula have reached an agreement for the construction and joint ownership of a 12,500cbm LNG bunker supply vessel.

The vessel will operate in the Strait of Gibraltar and will have Algeciras as its home port.

The vessel will be chartered by Peninsula through an initial seven-year contract, and will use Enagas’ regasification plants, mainly Huelva, as LNG loading points.

The ship is expected to be delivered in the third quarter of 2023 by South Korean shipyard Hyundai Mipo Dockyard.

The initiative is part of the European Union’s Transport Aid Programme Connecting Europe Facility, which co-finances up to €11m ($13.39m).

German LNG-powered ship sails into port

10/06/2021 LONDON (ICIS)–German containership owner Hapag Lloyd said its LNG-fuelled Brussels Express has sailed into its home port of Hamburg for the first time.

It was the first large container ship in the world to have been converted to gas propulsion.

In September 2020, when it was still named the Sajir, the ship went into the Huarun Dadong Dockyard in Shanghai.

A 1,300-tonne LNG tank was placed into the ship as it was converted.

Its first complete LNG bunkering will take place in Singapore on the next round voyage.

In the future, the ship, which is currently operating between Asia and North Europe, will bunker twice per round voyage, in Singapore and in Rotterdam.

Exemption brings first German LNG terminal closer to FID

9/06/2021 LONDON (ICIS)–The European Commission has approved the German authority’s exemption decision for the construction of a new 8bcm/year German LNG terminal in Brunsbuttel, bringing the project a step closer to a final investment decision (FID).

Gasunie, Vopak and Oiltanking are joint shareholders in the project.

The terminal at Brunsbuttel is also intended to be deeply integrated into small-scale and bunkering bio-LNG markets.

Majors such as Italy’s Eni are setting up LNG truck loading networks in Germany, with growth expected from transport and industry users.

India in Scotland small-scale plan

3/06/2021 LONDON (ICIS)–Indian manufacturer of cryogenic technology equipment, INOXCVA, said it has commissioned a small-scale LNG terminal in Kyleakin, Scotland, for MOWI Scotland.

MOWI is one of world’s leading seafood companies and also the largest Atlantic salmon farmer in the world.

INOXCVA said it has manufactured and supplied the small-scale LNG terminal on a turnkey supply basis which includes two 1,000cbm storage tanks and a ship bunkering station. The infrastructure is suitable for natural gas consumption by the fish feed factory in the area, the company said.

Details of when the terminal will be operational are yet to emerge.

Bio-LNG at Norway’s Skogn plant will double in 2022

28/05/2021 LONDON (ICIS)–A deal involving mixed-refrigerant technology from Finnish company Wartsila means biogas liquefaction at Skogn – the world’s biggest bio-LNG plant – will be doubled to 50 tonnes/day in 2022.

Wartsila has built bio-LNG liquefaction facilities in Sweden as well as delivering earlier biogas liquefaction facilities at the Skogn plant in Norway.

The equipment for its latest installation is due in May 2022.

The company expects to launch 30 more bio-LNG liquefaction plants over the next five years, each with an output of anything between 6-150 tonnes/day, said Maria Ortiz, the company’s biogas solutions sales manager in an email.

“Wartsila’s latest mixed refrigerant technology …is extremely reliable, and offers the lowest operating costs for liquefying biogas,” said Ortiz.

Bio-LNG is a small but growing sector, with rising demand in Europe’s truck and marine fuel markets.

Biomethane production was estimated to be about 3 billion cubic metres (bcm) in Europe in 2019, and could reach 95 bcm by 2050, according to a white paper from the European biogas association.

FuelLNG pushes ahead with Singapore LNG bunkering plans

10/05/2021 SINGAPORE (ICIS)–Singapore-based LNG bunkering venture FuelLNG has completed its first ship-to-ship bunkering operation involving an LNG-propelled crude tanker

Total in first ship-to-boxship LNG bunkering

06/05/2021 LONDON (ICIS)–France’s Total has completed the first ship-to-containership LNG bunkering operation in France.

The operation was performed by the world’s largest LNG bunker vessel, Total’s Gas Agility at the Port of Dunkerque, refuelling the world’s largest containership powered by LNG, the CMA CGM Jacques Saade. Some 16,400cbm of LNG was pumped into the containership.

The operation also marked Dunkerque LNG terminal’s first loading of a small-scale LNG vessel and the Terminal des Flandres’ first LNG bunkering operation with simultaneous cargo operations.

GLM COMMENT: Picking apart the World Bank’s view on LNG in shipping

22/04/2021 LONDON (ICIS)–The World Bank report published on 15 April on decarbonising shipping has ratcheted up the debate over which fuel shipowners should be adopting to power their vessels.

The report goes so far as to argue that LNG is likely to play a limited role in the decarbonisation of shipping, and instead will continue in its niche as fuel for specific vessel types such as ferries.

The World Bank recommends that countries should avoid new policies that support LNG.

Seaspan LNG bunker vessel wins approval

22/04/2021 LONDON (ICIS)–Canadian shipping company Seaspan has secured an approval in principle with classification society Bureau Veritas for the design of a 7,600cbm LNG bunker vessel.

GLM FOCUS: The sharp coming rise in LNG bunkering

16/04/2021 LONDON (ICIS)–Emissions from LNG-fuelled ships are up to 23% lower than from vessels using conventional marine fuels, and a boost in deep-sea vessel orders will soon bring more LNG-propelled vessels up to that standard, according to a new study.

New engine technologies will also see emission standards improve dramatically in the coming decade, according to the Sphera study’s project leader Oliver Schuller.

The life-cycle analysis looked at carbon, methane and sulphur emissions, and is a reminder of how pressure to reduce emissions is key to building and maintaining a larger LNG-propelled fleet. But it is also its biggest challenge.

MOL, Kyushu Electric sign LNG bunker deal

31/03/2021 LONDON (ICIS)–Mitsui O.S.K. Lines (MOL) and Kyushu Electric Power have signed an agreement for the supply of LNG to two LNG-fuelled ferries, the Sunflower Kurenai and the Sunflower Murasaki.

The supply of LNG is slated to begin around the end of 2022 upon the delivery of the ferries, which are now under construction.

Around 50 tonnes of LNG fuel per day will be supplied via truck-to-ship to the ferries berthed in Beppu Port in Japan’s Oita prefecture.

MOL and Kyushu Electric Power said they will take a proactive stance in promoting LNG bunker fuel amid moves around the world towards low-carbon societies.

Japan ports waive fees for LNG-fuelled ships

31/03/2021 SINGPORE (ICIS)–Japan’s ports of Tokyo, Yokohama and Kawasaki have decided to waive an entry fee for vessels fuelled by LNG or hydrogen. LNG bunkering ships will also no longer have to pay the fees.

The exemption runs for five years from 1 April. The entry fee now stands at yen 2.7 ($0.025) per tonne for ocean-going vessels and yen 1.35 per tonne for coastal vessels.

Japan has invested heavily in LNG-fuelling infrastructure. Three weeks ago, 15 Japanese companies formed a carbon-neutral LNG buyers group, part of the growth in activity to develop an understanding of how to manage emissions across the LNG value chain.

Total is awarded Singapore’s third LNG bunker license

18/03/2021 LONDON (ICIS)–Singapore’s port authority awarded a five-year bunker supply license to Total Marine Fuels starting from 2022. Total wants to control about 10% of the global LNG bunkering market, with Shell aiming for 20%.

China receives first LNG bunker ship

18/03/2021 SINGAPORE (ICIS)–Chinese independent energy company ENN will soon receive the country’s first LNG bunker vessel, the 8,500cbm Xin Ao Pu Tuo Hao in Dalian, a company source confirmed to ICIS on 18 March.

ICIS VIEW: LNG bunkering is finally becoming mainstream

18/03/2021 LONDON (ICIS)–Large-scale LNG bunkering has long been a concept full of promise, but one that threatened never to materialise.

Germany in first STS LNG bunker operation

10/03/2021 LONDON (ICIS)–Hamburg-based Nauticor has conducted the first ship-to-ship (STS) LNG bunkering operation in a German port.

Dredger Scheldt River received 300cbm of LNG from the world’s largest bunker supply vessel Kairos at Elbehafen Brunsbuttel, part of the Brunsbuttel Ports.

India’s SMP signs agreement to develop new LNG import terminal

02/03/2021 SINGAPORE (ICIS)–Indian port operator Syama Prasad Mookerjee Port (SMP) has signed a memorandum of understanding with Indian infrastructure developer Hirnandani to develop a 5mtpa LNG import terminal near Kolkata.

The project aims to begin imports in July 2024 and bunkering facilities are being considered.

Petronas and JERA in bunkering space

11/02/2021 LONDON (ICIS)–In the LNG space, Petronas and JERA have agreed to support each other’s customers in Japan, Malaysia, and possibly internationally.

Cryopeak and Sumimoto sign LNG bunker deal

11/02/2021 LONDON  (ICIS)–Canadian company Cryopeak LNG Solutions and Japan’s Sumitomo have signed an MoU to develop an LNG bunker fuels supply chain in North America’s Pacific northwest, including Vancouver, Fraser River Port, Roberts Bank and Prince Rupert, Canada.

Cryopeak said it is developing a proprietary design for a 4,000cbm LNG bunkering barge to be used in an articulated tug and barge configuration, with plans to be in operation in 2023.

HOEGH progresses with India’s first FSRU

04/02/2021 LONDON (ICIS)–Ship owner Hoegh LNG has completed documentation for its 10-year charter with H-Energy of the floating storage regasification unit (FSRU) Hoegh Giant in India.

The vessel include LNG truck-loading facilities, plus LNG reloading for bunker services.

MARKET COMMENT: Asian LNG prices up slightly despite market uncertainty

SINGAPORE (ICIS)–A rise in front month spot Asian LNG prices over March price levels, while April levels remained unchanged, means shipowners are becoming increasingly concerned about using LNG for fuelling during repositioning and ballast leg of the journey, Singapore-based ship-brokers said.

“When LNG was cheap, very few traders were concerned about bunker prices. However, the situation has changed dramatically over the last few weeks,” a Singapore-based shipbroker said. “It is becoming more interesting to revert to bunker fuel as opposed to LNG for re-positioning the vessels.

Uncertainty over carbon regulation could stifle newbuild investment

08/12/2020 LONDON (ICIS)–Carbon efficiency regulation and its future associated costs could push steam ships out of the LNG shipping market faster than some shipowners previously expected, Maran Gas commercial director Mark Terzopoulos said at World LNG Virtual Summit on 4 December.

Uncertainty over future carbon regulation could also be limiting investments in newbuilds, both across LNG vessel types and for vessels that could use LNG as fuel, said panellists.

“There are challenges in this business for those who want to get return on investments,” said Mitsui OSK Lines (MOL) LNG division director Gunaseharan Ganapathy.

“There is a question over whether current designs will be fit for purpose,” he said, referring to current LNG fuelled ships and bunker vessels. “We have reached an optimised level of design … unless there is a leap from change in technology, with a totally new design,” he said, there is worry in the market.

Australia’s BHP awards LNG bunker contract to Shell

01/12/2021 SINGAPORE (ICIS)–Australian mining conglomerate BHP has signed a deal with Anglo-Dutch major Shell for supply of LNG as ship fuel, the company said.

BHP plans to introduce world’s first Newcastlemax LNG-fuelled dry bulk carriers. A total of five LNG-fuelled dry bulk carriers will carry iron ore extracted by BHP to China from 2022. The vessels have been chartered for a period of five years from shipping company Eastern Pacific Shipping. The use of LNG-fuelled vessels as opposed to traditional bunker fuel will aim at lower emissions associated with transportation.

PODCASTS

BUNKER FLEET ANALYSIS

Number of operational vessels

(updated May 2021)

Number of planned vessels

(updated May 2021)

The world’s LNG bunkering market began in Europe, and while bunkering demand will accelerate most in Asia over the next 15 years, Europe is still a focus of strong growth until at least 2025.

At least 16 vessels could come into operations in Europe in the next three years. While about half of these have already been ordered, the rest are still waiting on final investment decisions or tenders, or have as yet to be announced.

Companies taking part in the planning of new vessels in Europe include:

Total, DEPA, Reganosa, GALP, Elenger, Gaz System and Polskie LNG, Titan LNG, Naturgy, Knutsen, Edison and Shturman Koshelev, Scale Gas, Gazprom, Shell, Mitsui, MOL and Gazocean.

While bunkering facilities are expanding in Europe, LNG bunkering in Asia is also taking off.

Bunkering is available in Malaysia, Singapore, Japan, Korea and China.  More vessels are planned for  those centres, while Woodside is considering investing in bunkering LNG in Australia.

Companies like Sumimoto, Petronas and others are signing agreements to mutually support clients.

Both Europe and Asia are developing stronger inter-regional competition, and short term contract and spot purchases are gradually becoming more frequent.

As LNG bunkering for deep-sea vessels becomes more popular, competition between regions and their gas prices is becoming of concern, even where bunkering hubs are well established.

“We’ve been facing such competition, as it’s still a buyer’s market for long term deals,” said a spokesman for Sumimoto, describing the variety of price formulas they see in the market (see below).

“However, the number of [LBVs] is still limited and the spot market’s liquidity is not so high. This is why we believe collaboration between suppliers could contribute to stable LNG supply for LNG fuelled vessels going forward.”

Below are the main planned-for (red) and existing (blue) bunkering regions.

With larger international oil companies piling into areas of bunkering importance like Rotterdam, Gibraltar and Singapore, and interest developing in a Middle East LNG bunkering offering, companies in regions with less through-traffic or infrastructure are considering bunkering LNG.

Fewer final investment decisions have been made for vessels in these regions, like Australia and South Africa.

A Woodside spokeswoman confirmed the Australian company, where LNG supply is itself plentiful, has “mature plans ready to be able to… provide ship-to-ship LNG bunkers in the Pilbara region, ..sourcing from Woodside’s facilities

“A decision to make a firm commitment to a bunker vessel and commence operations will depend upon market demand for the service.”

SUPPLY DEMAND

LNG bunkering demand will form part of an increasingly diverse shipping fuel market

PRICING

LNG bunker prices began with long term brent linked offtake contracts, mostly focused in the Baltic.

Gradually, as LNG bunkering capabilities were expanded across Europe and the LNG-propelled shipping fleet started to increase, contracts linked in whole or part to TTF contract prices became more frequent.

Spot markets have also developed, with short-term contracts linked to the TTF or other gas hub prices, or offered on an outright basis. But these prices have also shown some correlation with gas hub values.

With LNG bunkering activity in Asia and the Americas also rising, contract and spot sales are also being linked to East Asia and Henry Hub gas prices.

“Various price formulas are being offered, such as JKM, Brent, Low Sulfur Fuel Oil, Henry Hub, NBP and TTF[-linked contracts],” said a spokesman for Sumimoto in May 2021.

CHALLENGES

As Europe moves towards legislating its Green Deal, controls on shipping emissions are likely to increase. In a recent paper on the “Blue Economy”,  the European Commission encouraged plans for electric and fuel cell uptake in shipping, but did not mention LNG. The US is also tightening its deadline for zero emissions in shipping.

Methane is a powerful greenhouse gas, and coming under close scrutiny. Industry participants are under pressure to decrease methane slip from vessels. New technologies that reduce this significantly could prolong LNG bunkering markets’ lifespan and encourage further growth.

Bio-LNG is another option being explored by companies in Europe, Asia and the US.