The Week in Alt Fuels: LNG bunker capacity to trail demand
One LNG supplier launched a new bunker vessel this week, while another ordered two more. Yet, data still indicates an impending deficit in LNG bunker capacity towards at least 2028.
PHOTO: ADNOC L&S dual-fuel LNG carrier concept. ADNOC L&S
Global LNG demand projections vary widely among suppliers, with Shell forecasting 10 million mt/year in 2028 and Avenir LNG a much higher 16 million mt/year. However, these figures are based on individual company estimates, and actual demand could well be lower depending on market conditions in 2028. In one of its scenarios, independent researcher International Council on Clean Transportation estimates LNG demand to reach 14 million mt/year - but not for another two years, in 2030.
In support of demand growth projections, we have seen more LNG-capable vessels being ordered recently. ADNOC Logistics and Services (ADNOC L&S) has ordered eight LNG carriers that will be powered by LNG and expand its fleet of these from 14 to 22 ships.
And in response to an anticipated rise in demand, global bunker supplier Vitol has ordered two LNG bunkering vessels with capacities of 12,500-cbm and 20,000-cbm. Scheduled for delivery in the fourth quarter of 2026 and the third quarter of 2027 respectively, Vitol has also chartered one more LNG bunkering vessel from Avenir LNG.
Canada-based LNG bunker firm Seaspan Energy launched its third 7,600 cbm-capacity LNG bunker vessel this week, with delivery expected next year by China’s CIMC Sinopacific Offshore & Engineering (CIMC SOE). The first two vessels in the series, Seaspan Garibaldi and Seaspan Lions, are slated for delivery later this year.
However, the latest data from DNV’s Alternative Fuel Insight (AFI) platform underscores an impending shortfall in LNG bunkering vessels. DNV data reveals that 499 LNG-capable ships are currently in operation and an additional 559 are on order for delivery towards 2028. With only 56 LNG bunker vessels currently operational and 16 more on order for the same period, including Vitol’s recent order, a significant capacity gap remains apparent. Avenir LNG projected a need for at least 31 additional LNG bunker vessels to be operational by the end of next year to address this capacity shortage and meet the anticipated rise in demand.
Shifting focus to other alternative fuels, Singapore-based Consort Bunkers has ordered four 7,999 dwt IMO Type 2 chemical tankers from China’s COSCO Shipping Heavy Industry. This chemical tanker classification means that the tankers will be equipped for biofuel and methanol bunkering, while adhering to International Maritime Organisation (IMO) standards for transporting moderately hazardous chemicals.
Commodity trader Trafigura and shipowner Purus completed their first ammonia ship-to-ship (STS) cargo operation near Ceuta in the Gibraltar Strait last week. Around 6,000 mt of ammonia cargo intended for the fertiliser industry was successfully transferred to the gas carrier Green Power. The transfer demonstrates that ammonia bunkering will be possible in the future, Andrea Olivi, Trafigura’s head of wet freight said.
Finnish engine maker Wärtsilä will provide ammonia fuel supply and cargo handling systems for two more of Exmar's upcoming ammonia-capable gas carriers. Wärtsilä’s system is designed for ships transporting liquefied gas cargo, and can supply liquid ammonia as a bunker fuel for a 2-stroke engine. Wärtsilä notes that ammonia can be reloaded onto these vessels from their cargo tanks, which eliminates the need for dedicated bunkering lines.
By Konica Bhatt
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