Most dual-fuel LNG vessels run on conventional fuels - DNV

Only about 30-40% of ships capable of running on LNG actually burn it, opting rather for conventional fuels or biofuel blends, classification society DNV estimates.

PHOTO: Large LNG tanks at an LNG terminal. Getty Images

From 246 in 2021, the LNG-fuelled fleet increased by a whooping 44% in 2022, classification society DNV data shows. However, LNG bunkering was still not appealing to many of the vessels entering this fleet, primarily because of wide price differences between LNG and conventional fuels, DNV’s principal consultant Martin Christian Wold says.

Estimating an exact number of these ships running on LNG is difficult due to limited data, Wold says. But he thinks that LNG meets 30-40% of these vessels’ fuel requirements.

"It is our best guesstimate, for something which is not possible to calculate accurately as it is a moving target," Wold says.

LNG shipping demand has been capped partly as some of these vessels run on a minimum amount of LNG and more conventional fuel. Wold asserts that once the price gap between LNG and conventional fuels is reduced then we can expect these vessels to primarily run on LNG. 

Some ports in the US have been pricing LNG bunker at relatively lower levels, which has attracted demand lately, Wold says. He adds that these ports may continue to offer competitive prices as long there are no logistical obstacles, such as "extreme trucking/asking distance".

By Nithin Chandran

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