Product Code: 46680
The market for LNG Bunkering is expected to grow at a CAGR of approximately 53.08% during the forecast period of 2019 - 2024. The strict norms to restrict the sulfur content produced by conventional fuels is driving the LNG bunkering infrastructure demand, 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 may hamper the economic viability of the same.
- 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 the majority of the demand coming from the US and Canada.
Key Market Trends
Tanker Fleet Dominated the Market
- 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.
- 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 differs on the basis of tanker capacity.
- As of 1 July 2017, 633 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 in the coming years for tankers. 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 US 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.
The global LNG bunkering market is consolidated. The major companies include Royal Dutch Shell PL, Bomin Linde LNG GmbH & Co. KG, ENN Energy, Korea Gas Corporation, and Harvey Gulf International Marine LLC.
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Table of Contents
- 1.1 Scope of the Study
- 1.2 Market Definition
- 1.3 Study Assumptions
- 1.4 Study Deliverables
- 1.5 Research Phases
2 EXECUTIVE SUMMARY
3 RESEARCH METHODOLOGY
4 MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Market Size and Demand Forecast in USD million, till 2024
- 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
- 188.8.131.52 United States
- 184.108.40.206 Canada
- 220.127.116.11 Rest of North America
- 5.2.2 Europe
- 18.104.22.168 Norway
- 22.214.171.124 Spain
- 126.96.36.199 The Netherlands
- 188.8.131.52 United Kingdom
- 184.108.40.206 Rest of Europe
- 5.2.3 Asia-Pacific
- 220.127.116.11 China
- 18.104.22.168 Singapore
- 22.214.171.124 India
- 126.96.36.199 Rest of Asia-Pacific
- 5.2.4 Middle East & Africa
- 188.8.131.52 UAE
- 184.108.40.206 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 SA
- 6.4.8 Gazpromneft Marine Bunker LLC
- 6.4.9 Total SA
- 6.4.10 Gas Natural Fenosa
7 MARKET OPPORTUNITIES AND FUTURE TRENDS