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Published Date: 2015-01-19Number of Pages: 93

LNG Bunkering Market (By Vessel Segment - Tankers, Container Ships, Bulk & General Cargo Vessels, and Ferries & Offshore Support Vessels): Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2014 - 2025

With an imminent enforcement of strict sulfur emission regulations globally, shipping companies and vessel operators are already exploring new avenues to comply with environmental emission norms to be imposed in the future. The sulfur limit in fuel in the Emission Control Areas (ECAs) would be reduced from 2015. Additional regulations on global sulfur emission limits are further anticipated to be enforced in 2020. Increasing number of vessel owners are planning to switch to Liquefied Natural Gas (LNG) as a bunker fuel due to rising sulfur emission legislations implemented through the International Maritime Organization (IMO) Annexure VI. LNG bunker fuel is a potential solution to comply with the new sulfur regulations that are to be imposed in North America and Northern Europe in 2015. Currently, there are only 45 vessels globally utilizing LNG as a bunker fuel and a majority of these vessels trade in the inland waterways of Northern Europe. The port authorities in Northern Europe have invested substantial amounts to promote LNG bunker fuel. Norway has invested significantly for the development of LNG bunkering terminals around its major commodity trading centers. Several small-scale LNG production units in Norway facilitate the distribution of LNG fuel to bunkering stations.  

 

Currently, Europe is the most prominent market for the LNG bunkering industry. The inland ferries and offshore support vessels deployed in Northern Europe are the initial adopters of LNG bunker fuel in the region. Several pre-investment feasibility studies have been conducted at major ports to expand the LNG bunkering network in Europe. North America is also constructing LNG bunkering terminals to comply with the sulfur emission standards, which are to be imposed in 2015. The availability of natural gas at economical prices compared to heavy fuel oil is a major factor attracting gas shipping companies to invest in LNG fueled vessels. The shale gas boom in North America is a crucial aspect that would encourage gas distribution companies to invest in LNG bunker services. In Asia Pacific, South Korea and China have started taking initiatives to promote the use of LNG in marine vessels. 

 

Currently, ferries and offshore support vessels account for a major share of the overall LNG bunker consumption. The existing LNG bunkering facilities at European ports have been specifically designed to cater to the fuel needs of ferries and offshore support vessels. Passenger ships and ferries of Europe majorly operate in inland waterways and coastal areas and thus shipping companies in this vessel category have started adopting LNG marine fuel to comply with the sulfur regulations. The ferries and offshore support vessels would continue to remain the dominant consumers of LNG bunker till 2020. In Asia Pacific, the deepsea ships, especially tankers and container ships, are anticipated to adopt LNG primarily after the enforcement of strict sulfur regulations. In North America, tankers and container ships are also likely to be the major consumers of LNG bunker fuel at the end of the forecast period. In the Rest of the World (RoW) region, tanker vessels would be the dominant end-user category for LNG bunker fuel in the future years.  

 

Companies such as Bomin Linde LNG GmbH & Co. KG and Gasnor AS offer LNG bunkering services at selected ports of the world. However, adoption of LNG as a bunker fuel is still restricted to passenger ships and offshore support vessels. It is noticed that the mainstream shipping industry is not yet ready to adopt LNG as a bunker fuel. A strong policy based support framework and enforcement of strict emission compliance regulations will play an instrumental role in the development of the LNG bunkering industry. Another major impediment to adoption of LNG marine fuel is the highly underdeveloped infrastructure for LNG bunkering in major ports across the world. Once rapid development of LNG refueling infrastructure in the world’s major ports are observed, a rapid adoption of this fuel by the mainstream marine sector will also be observed

 

 

 

Chapter 1 Preface

1.1 Report Description

1.2 Research Scope

1.3 Market Segmentation

1.4 Research Methodology

 

Chapter 2 Executive Summary

2.1 Global LNG Bunkering Market

 

Chapter 3 LNG Bunkering Market – Industry Analysis

3.1 Introduction

3.2 Value Chain Analysis: LNG Bunkering Market

3.3 Market Drivers

      3.3.1 Compliance with IMO (International Maritime Organization) Regulations to use Clean Fuels in Emission Control Areas (ECAs) 

              3.3.1.1 Global Fuel Sulfur Limits Within and Outside ECAs

      3.3.2 LNG is an Economical Fuel Option Compared to Distillate Fuels in Europe and North America

      3.3.3 Increasing LNG Bunkering Requirements from Coastal & Inland Ferries, and Offshore Support Vessels

             3.3.3.1 Global Offshore Oil and Gas Production Estimates and Forecast, by Region, 2013 – 2020 (Million Barrels/ Day) 

3.4 Market Restraints

      3.4.1 Lack of LNG Fueling Infrastructure in Major Bunkering Destinations and High Investment Cost for New Built LNG Fueled Ships Slowing Adoption Rates

      3.4.2 Alternative Approaches Adopted by Shipping to Meet IMO Regulations Might Restrain the LNG Bunker Fuel Market

              3.4.2.1 Strategies That Can be Adopted by Shipping Agencies in ECAs

3.5 Market Opportunities

      3.5.1 Expansion of ECAs Expected to Enhance Demand for LNG Bunkering

              3.5.1.1 Existing and Future Emission Control Areas

3.6 Porter’s Five Forces Analysis: LNG Bunkering Market

      3.6.1 Bargaining Power of Suppliers

      3.6.2 Bargaining Power of Buyers

      3.6.3 Threat From New Entrants

      3.6.4 Degree of Competition

      3.6.5 Threat From substitutes

3.7 LNG Bunkering Infrastructure

      3.7.1 Current Development Status of LNG Bunkering Infrastructure Globally, by Ports, 2013

 

Chapter 4 LNG Bunkering Market: End-Use Analysis

4.1 Global LNG Bunkering Market: End-Use Overview

      4.1.1 Global LNG Bunkering Market, Volume Share by End Use, 2020 and 2025

4.2 Tanker Fleet

      4.2.1 Global LNG Bunker Consumption by Tanker Fleet, 2013 – 2025 (Kilo Tons) 

      4.2.2 Global LNG Bunker Consumption by Tanker Fleet, 2013 – 2025 (USD Million) 

4.3 Container Fleet

      4.3.1 Global LNG Bunker Consumption by Container Fleet, 2013 – 2025 (Kilo Tons) 

      4.3.2 Global LNG Bunker Consumption by Container Fleet, 2013 – 2025 (USD Million) 

4.4 Bulk and General Cargo Fleet

      4.4.1 Global LNG Bunker Consumption by Bulk and General Cargo Fleet, 2013 – 2025 (Kilo Tons) 

      4.4.2 Global LNG Bunker Consumption by Bulk and General Cargo Fleet, 2013 – 2025 (USD Million) 

4.5 Ferries and OSV

      4.5.1 Global LNG Bunker Consumption by Ferries & OSV, 2013 – 2025 (Kilo Tons) 

      4.5.2 Global LNG Bunker Consumption by Ferries & OSV, 2013 – 2025 (USD Million) 

 

Chapter 5 LNG Bunkering Market: Regional Analysis

5.1 Global LNG Bunkering Market: Regional Overview

      5.1.1 Global LNG Bunker Fuel Consumption Market, Volume Share By Region, 2020 and 2025

5.2 North America

      5.2.1 North America LNG Bunker Consumption Estimates and Forecast, 2013 – 2025 (Kilo Tons) 

      5.2.2 North America LNG Bunker Fuel Consumption Estimates and Forecast, 2013 – 2025 (USD Million) 

      5.2.3 North America LNG Bunker Fuel Consumption Estimate and Forecast, by End Use Segment, 2013 – 2025 (KiloTons) (USD Million) 

5.3 Europe

      5.3.1 Europe LNG Bunker Fuel Consumption Estimates and Forecast, 2013 – 2025 (Kilo Tons) 

      5.3.2 Europe LNG Bunker Fuel Consumption Estimates and Forecast, 2013 – 2025 (USD Million) 

      5.3.3 Europe LNG Bunker Fuel Consumption Estimate and Forecast, by End Use Segment, 2013 – 2025 (Kilo Tons) (USD Million) 

5.4 Asia Pacific

      5.4.1 Asia Pacific LNG Bunker Fuel Consumption Estimates and Forecast, 2013 – 2025 (KiloTons) 

      5.4.2 Asia Pacific LNG Bunker Fuel Consumption Estimates and Forecast, 2013 – 2025 (USD Million) 

      5.4.3 Asia Pacific LNG Bunker Fuel Consumption Estimate and Forecast, by End Use Segment, 2013 – 2020 (Kilo Tons) (USD Million) 

5.5 RoW

      5.5.1 RoW LNG Bunker Fuel Consumption Estimates and Forecast, 2013 – 2025 (Kilo Tons) 

      5.5.2 RoW LNG Bunker Fuel Consumption Estimates and Forecast, 2013 – 2025 (USD Million) 

      5.5.3 RoW LNG Bunker Fuel Consumption Estimate and Forecast, by End Use, 2013 – 2020 (Kilo Tons) (USD Million) 

 

Chapter 6 Company Profiles

6.1 Gazpromneft Marine Bunker LLC

      6.1.1 Company Overview

      6.1.2 Financial Overview

      6.1.3 Business Strategy

      6.1.4 Recent Developments

6.2 Royal Dutch Shell plc

      6.2.1 Company Overview

      6.2.2 Financial Overview

      6.2.3 Business Strategy

      6.2.4 Recent Developments

6.3 GDF SUEZ S.A

      6.3.1 Company Overview

      6.3.2 Financial Overview

      6.3.3 Business Strategy

      6.3.4 Recent Developments

6.4 Bomin Linde LNG GmbH & Co. KG

      6.4.1 Company overview

      6.4.2 Financial Overview

      6.4.3 Business Strategy

      6.4.4 Recent Developments

6.5 Skangass AS

      6.5.1 Company Overview

      6.5.2 Financial Overview

      6.5.3 Business Strategy

      6.5.4 Recent Developments

6.6 Gasnor AS

      6.6.1 Company Overview

      6.6.2 Financial Overview

      6.6.3 Business Strategy

      6.6.4 Recent Developments

6.7 Korea Gas Corporation

      6.7.1 Company Overview

      6.7.2 Financial Overview

      6.7.3 Business Strategy

      6.7.4 Recent Developments

6.8 Harvey Gulf International Marine LLC

      6.8.1 Company overview

      6.8.2 Financial Overview

      6.8.3 Business Strategy

      6.8.4 Recent Developments

List of Figures 

 

FIG. 1 LNG Bunkering: Market Segmentation 

FIG. 2 LNG Bunkering: Research Methodology 

FIG. 3 Global LNG Bunkering Market Volume, 2013 – 2025 (KiloTons) 

FIG. 4 Global LNG Bunkering Market Revenue, 2013 – 2025 (USD Million) 

FIG. 5 Value Chain Analysis of LNG Bunkering Market 

FIG. 6 Fuel Sulfur Limits: Globally & Within ECAs (Actual & Estimated) 

FIG. 7 Global Offshore Oil and Gas Production Estimates and Forecast, by Region, 2013 – 2020 (Million Barrels/ Day) 

FIG. 8 Strategies That Can be Adopted in ECAs to meet IMO regulations 

FIG. 9 Existing and Future Emission Control Areas 

FIG. 10 Porter’s Five Forces Analysis: LNG Bunkering Market 

FIG. 11 Global LNG Bunkering Market, Volume Share by End Use, 2020 and 2025 

FIG. 12 Global LNG Bunker Consumption by Tanker Fleet, 2013 – 2025 (Kilo Tons) 

FIG. 13 Global LNG Bunker Consumption by Tanker Fleet, 2013 – 2025 (USD Million) 

FIG. 14 Global LNG Bunker Consumption by Container Fleet, 2013 – 2025 (Kilo Tons) 

FIG. 15 Global LNG Bunker Consumption by Container Fleet, 2016 – 2025 (USD Million) 

FIG. 16 Global LNG Bunker Consumption by Bulk and General Cargo Fleet, 2013 – 2025 (Kilo Tons) 

FIG. 17 Global LNG Bunker Consumption by Bulk and General Cargo Fleet, 2013 – 2025 (USD Million) 

FIG. 18 Global LNG Bunker Consumption by Ferries & OSV, 2013 – 2025 (Kilo Tons) 

FIG. 19 Global LNG Bunker Consumption by Ferries & OSV, 2013 – 2025 (USD Million) 

FIG. 20 Global LNG Bunker Fuel Consumption Market, Volume Share by Region, 2020 and 2025 

FIG. 21 North America LNG Bunker Consumption Estimates and Forecast, 2013 – 2025 (Kilo Tons) 

FIG. 22 North America Bunker Fuel Consumption Estimates and Forecast, 2013 – 2025 (USD Million) 

FIG. 23 Europe LNG Bunker Fuel Consumption Estimates and Forecast, 2013 – 2025 (Kilo Tons) 

FIG. 24 Europe LNG Bunker Fuel Consumption Estimates and Forecast, 2013 – 2025 (USD Million) 

FIG. 25 Asia Pacific LNG Bunker Fuel Consumption Estimates and Forecast, 2013 – 2025 (KiloTons) 

FIG. 26 Asia Pacific LNG Bunker Fuel Consumption Estimates and Forecast, 2013 – 2025 (USD Million) 

FIG. 27 RoW LNG Bunker Fuel Consumption Estimates and Forecast, 2013 – 2025 (Kilo Tons) 

FIG. 28 RoW LNG Bunker Fuel Consumption Estimates and Forecast, 2013 – 2025 (USD Million) 

List of Tables

 

TABLE 1 Global LNG Bunkering Market: Snapshot 

TABLE 2 Drivers of LNG Bunkering Market: Impact Analysis 

TABLE 3 Sulfur and Nitrogen Oxide Reduction Limits Achieved Using Various Bunker Fuel Grades 

TABLE 4 Restraints of LNG Bunkering Market: Impact Analysis 

TABLE 5 Opportunities of LNG Bunkering Market: Impact Analysis 

TABLE 6 Development of LNG Bunkering Infrastructure 

TABLE 7 North America LNG Bunker Fuel Market Volume Estimate and Forecast, by End Use Segment, 2013 – 2019 (Kilo Tons) 

TABLE 8 North America LNG Bunker Fuel Market Volume Estimate and Forecast, by End Use Segment, 2020 – 2025 (Kilo Tons) 

TABLE 9 North America LNG Bunker Fuel Market Revenue Estimate and Forecast, by End Use Segment, 2013 – 2019 (USD Million) 

TABLE 10 North America LNG Bunker Fuel Market Revenue Estimate and Forecast, by End Use Segment, 2020 – 2020 (USD Million) 

TABLE 11 Europe LNG Bunker Fuel Market Volume Estimate and Forecast, by End Use Segment, 2013 – 2019 (KiloTons) 

TABLE 12 Europe LNG Bunker Fuel Market Volume Estimate and Forecast, by End Use Segment, 2020 – 2025 (KiloTons) 

TABLE 13 Europe LNG Bunker Fuel Market Revenue Estimate and Forecast, by End Use Segment, 2013 – 2019 (USD Million) 

TABLE 14 Europe LNG Bunker Fuel Market Revenue Estimate and Forecast, by End Use Segment, 2020 – 2025 (USD Million) 

TABLE 15 Asia Pacific LNG Bunker Fuel Market Volume Estimate and Forecast, by End Use Segment, 2013 – 2019 (Kilo Tons) 

TABLE 16 Asia Pacific LNG Bunker Fuel Market Volume Estimate and Forecast, by End Use Segment, 2020 – 2025 (Kilo Tons) 

TABLE 17 Asia Pacific LNG Bunker Fuel Market Revenue Estimate and Forecast, by End Use Segment, 2013 – 2019 (USD Million) 

TABLE 18 Asia Pacific LNG Bunker Fuel Market Revenue Estimate and Forecast, by End Use Segment, 2020 – 2025 (USD Million) 

TABLE 19 RoW LNG Bunker Fuel Market Volume Estimate and Forecast, by End Use Segment, 2013 – 2019 (Kilo Tons) 

TABLE 20 RoW LNG Bunker Fuel Market Volume Estimate and Forecast, by End Use Segment, 2020 – 2025 (Kilo Tons) 

TABLE 21 RoW LNG Bunker Fuel Market Revenue Estimate and Forecast, by End Use segment, 2013 – 2019 (USD Million) 

TABLE 22 RoW LNG Bunker Fuel Market Revenue Estimate and Forecast, by End Use segment, 2020 – 2025 (USD Million) 

Bunkering fuel is the fuel oil used by shipping companies for ship operations. The bunkering fuels that have been commonly used comprise heavy fuel grades such as IFO 380 and IFO 180. However, this trend is changing. With increasing sulfur emission legislations implemented by the International Maritime Organization (IMO), an increasing number of vessel owners are considering using liquefied natural gas (LNG) as a bunker fuel. Ship operators, especially in Europe and North America, are switching from heavy fuel oil to LNG fuel. Offshore support vessels, ferries, and passenger vessels are increasingly preferring the use of LNG as a bunker fuel on account of strict sulfur emission standards enforced in ECAs. 

The research provides an in-depth analysis of players in the LNG bunker industry engaged at various levels in the value chain. It covers end user and geographical segments of the LNG marine fuel market. It also provides a detailed analysis, historical data, and a forecast for the featured segments. This study is designed to estimate, analyze, and forecast the LNG bunkering market. The market has been estimated on the basis of both revenue and volume. Increasing seaborne trade is the major factor supporting the growth of the LNG bunker fuel industry. Shipping companies are switching to cleaner fuel grades at numerous regions, leading to a change in bunker fuel consumption patterns. As a result, the preference toward LNG bunker. 

LNG Bunkering Market: Trends and Opportunities 

In regions such as Europe and North America, use of LNG is more economical than marine gas and thus, the demand for LNG is significantly rising. Several new LNG terminals and plants are being constructed, resulting in a positive outlook for the LNG bunkering market. Some specific areas such as the North Sea and the Gulf of Mexico have an established offshore oil and gas industry. Thus, the bunkering demand of offshore vessels operating in these areas is significantly high. 

The global LNG bunkering market faces a few challenges such as the large bunker storage requirements in LNG fueled vessels resulting in a loss of cargo space. Fuel supplying companies have to spend a significant amount of capital on training crew members as LNG bunkering is still in the initial stages of development. In addition to this, LNG ships are only economical if ships spent maximum amount of time in ECAs. However, with increasing concerns regarding sulfur emissions and a possible declaration of new ECAs, the demand for LNG bunkering will increase in the future. 

LNG Bunkering Market: Region-wise Outlook 

The global LNG bunkering market has been broadly segmented on the basis of geography into four regions: North America, Europe, Asia Pacific, and Rest of the World (RoW). RoW encompasses South and Central America, the Middle East, and Africa. Currently, LNG bunkering infrastructure is available at only selected ports across the world. Countries in North Europe are the pioneers of LNG bunkering operations. 

Key Players Mentioned in the Report 

The report discusses key players in the market and the strategies adopted by them. The business and financial overview of players and their recent developments are also given. Korea Gas Corporation, Bomin Linde LNG GmbH & Co. KG, Skangass AS, Gasnor AS, Harvey Gulf International Marine LLC, and GDF SUEZ S.A., are vendors in the market that have been included in the report. 

Market Segmentation of the Global LNG Bunkering Market is as follows: 

The regional analysis covers:

  • North America (U.S. and Canada)
  • Latin America (Mexico, Brazil, Peru, Chile, and others)
  • Western Europe (Germany, U.K., France, Spain, Italy, Nordic countries, Belgium, Netherlands, Luxembourg)
  • Eastern Europe (Poland, Russia)
  • Asia Pacific (China, India, Japan, ASEAN, Australia and New Zealand)
  • Rest of the World 

This report gives you access to decisive data such as: 

  • Market growth drivers
  • Factors limiting market growth
  • Current market trends
  • Market structure
  • Market projections for the coming years 

Key highlights of this report: 

  • Overview of key market forces propelling and restraining market growth
  • Up-to-date analyses of market trends and technological improvements
  • Pin-point analyses of market competition dynamics to offer you a competitive edge
  • An analysis of strategies of major competitors
  • An array of graphics and SWOT analysis of major industry segments
  • Detailed analyses of industry trends
  • A well-defined technological growth map with an impact-analysis
  • Offers a clear understanding of the competitive landscape and key product segments


 
 
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