MarketResearch.biz announces publication of its most recently generated research report titled, “Global LNG as a Bunker Fuel Market by Navigation Area (Inland Waterways and Ocean and Sea), By Application (LNG Ships and Others), and Region – Global Forecast to 2026.”, which offers a holistic view of the LNG as a bunker fuel market through systematic segmentation that covers every aspect of the target market. The first five-year cumulative revenue (2017–2021) is projected to be US$ 3,402.2 Mn, which is expected to increase significantly over the latter part of the five-year forecast period. According to report, the LNG as a bunker fuel market is projected to reach a value of over US$ 1,263.2 Mn in 2026 at a CAGR of 8.9% over the forecast period. The global LNG as a bunker fuel market was valued around US$ 550 million in 2017, and is expected to register a CAGR of over 8.5%.
Liquefied Natural Gas (LNG) is a clear, colourless, non-toxic and non-corrosive liquid, which is converted to liquid by cooling of natural gas at a cryogenic temperature of -162°C. It largely made from methane, with a low concentration of other hydrocarbons and on liquefaction, occupies only 1/600 space as compared to methane in gaseous form. LNG is not only cleaner-burning, but may have economic advantages since LNG prices are lower than global bunker fuel prices. As a result, there have been recent developments to promote adoption of LNG as a bunker fuel.
Global LNG as a Bunker Fuel Market: Market Dynamics
According to the latest mandate by International Maritime Organization, the proposed sulphur content limit will be reduced to 0.5% from the current 3.5%, on a global basis effective from 2020. It is proven that use of LNG as ship fuel will reduce sulphur oxide (SOx ) emissions by 90% – 95%. Lower carbon content of LNG compared to conventional ship fuels enables a 20–25% reduction of carbon dioxide (CO2) emissions, which makes it a potential substitute for marine fuels.
In addition, LNG is expected to be less costly than marine gas oil (MGO), which will be required to be used within the ECAs if no other technical measures are implemented to reduce the SOx emissions. Current low LNG prices in Europe and the US suggest that a price – based on energy content – comparable to heavy fuel oil (HFO) seems possible, even when taking into account the small scale distribution of LNG as a bunker fuel.
However, cost and time associated with to retrofitting or building new LNG engine ship are relatively high. By comparison, SOx scrubbers require a smaller initial investment and take less time to install. Also once installed, LNG-burning system is complex, requiring additional measures to ensure safe operation, maintenance and refueling. Lack of a consistent regulatory framework for safety and security protocols poses an additional problem. SOx scrubbers need relatively little repair and maintenance. LNG also requires more space for storage tanks and as much as 3% of a container ship’s twenty-foot equivalent unit (TEU) slots, thereby directly impacting profitability.
Nonetheless, development of low cost dual-fuel engines by noted players including Wartsila, MAN, Caterpillar, and HiMSEN is in process, which is expected to provide optimal opportunities to LNG manufacturers and suppliers to propel growth of LNG as a bunker fuel in the global market.
Global LNG as a Bunker Fuel Market: Market Forecast
The comprehensive research report comprises a complete forecast of the global LNG as a bunker fuel market based on factors affecting the market and their impact in the foreseeable future. According to the forecast projections, revenue from the global LNG as a bunker fuel market is expected to expand at a healthy CAGR of 8.9% during the forecast period.
Global LNG as a Bunker Fuel Market: Segmental Snapshot
The market report has been segmented on the basis of navigation area, application, and country/region. The navigation area segment includes inland waterways and ocean and sea. The application segment includes LNG ships and others. The regions/ countries covered in the analysis are the US, Europe, China, India, Japan, and Southeast Asia.
By navigation area: The ocean and sea segment accounted for highest revenue share contribution as compared to other type segment, and is expected to register a CAGR of over 9.1% between 2017 and 2026.
By application: The LNG ships segment is projected to account for highest revenue share as compared to that of other application segment, and register a CAGR of 9.1% over the forecast period, owing to increasing trade activities across countries which will give rise to trade carried out through ships
By region: The market in Europe accounted for highest revenue share in the global LNG as a bunker fuel market in 2016, and is expected to register a CAGR of over 9.4 % between 2017 and 2026, increasing capital investments for LNG bunkering, coupled with increasing seaborne trade from this region
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Global LNG as a Bunker Fuel Market: Competitive Analysis
The research report on the global LNG as a bunker fuel market includes profiles of some of major companies such as Royal Dutch Shell Plc, Gasum Oy, Statoil ASA, Barents Natural Gas AS, The Linde Group, ENGIE SA, Korea Gas Corporation, Kunlun Energy Company Ltd., Eni s.p.A, CNOOC Limited, and Energize.
The Global LNG as a Bunker Fuel Market: Global Industry, Size, Share, Growth, Trends, and Forecast, 2017–2026 report has been prepared based on an in-depth market analysis with inputs from industry experts. This report covers the present scenario and the growth prospects of the Global LNG as a Bunker Fuel Market for 2017–2026.