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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) 

 

Usage of liquefied natural gas (LNG) as a ship fuel reduces sulfur oxide (SOx) emissions by 90% to 95% compared to conventional petroleum fuels. Due to strict sulfur emission mandates in place executed via Annexure VI of the International Maritime Organization (IMO), an increasing number of shipping companies and vessel operators are switching to LNG as a bunker fuel. 

The report studies the global LNG bunkering market on the basis of end users and geography. The high-level analysis offers in-depth insights into the LNG bunker supply business globally. This report covers key market dynamics that affect the demand for LNG bunker fuel, which are illustrated through numerous graphs and tables.

The market study presents market size forecast in terms of revenue and volume for the period from 2014 to 2025. Employing analytical tools such as Porter’s Five Forces, the report provides a comprehensive analysis of the global LNG bunkering market. The report comprehensively discusses the competitive front and features profiles of major companies operating in the LNG bunkering market.

Overview of LNG Bunker Fuel Market 

For shipping companies and vessel operators, the utilization of LNG is an attractive bunkering alternative for waterways determined as emission control areas (ECAs). In North America and Europe, the lower cost of LNG bunker fuel in comparison to other ECA-compliant fuels is the major reason propelling the LNG bunkering market. 

The use of LNG as a bunker fuel curbs sulfur emission substantially, which addresses one of the major shortcomings of conventional bunker fuels. LNG bunker fuel largely complies with the new sulfur regulations to in effect in Northern Europe and North America. Additional regulations pertaining to sulfur emission limits are expected to be enforced by 2020. Thus, the maritime industry counts on LNG as a ship fuel for the present and the future, which holds promise for the global LNG bunkering market.

Despite increasing opportunities for eco-friendly fuels such as LNG, lack of specialty ports and terminals for fuel handling is slowing the utilization of this fuel. Currently, LNG is used as a bunker fuel for only 45 vessels that trade majorly in the inland waterways of Northern Europe.  

However, due to the anticipated sulfur emission regulations further restricting the use of petroleum fuels, the development of LNG bunkering ports has gained momentum in other European regions and North America. 

In North America, increasing shale gas exploration activities have led to plunging natural gas prices, which is expected to boost sales of LNG bunker fuel in the region.  In Asia Pacific, countries such as China and South Korea have invested substantially in LNG bunkering terminals. In this region, regulations pertaining to LNG as a bunker fuel will not come into effect before 2020. Hence, Asia Pacific is expected to majorly contribute to the growth of the global LNG bunkering market from 2020 onwards. 

Due to these reasons, by capacity, the global LNG bunkering market will exhibit a robust 63.6% CAGR from 2014 to 2025. 

Major Companies in Global LNG Bunkering Market

Bomin Linde LNG GmbH & Co. KG, Korea Gas Corporation, Skangass AS, GDF SUEZ S.A., Gasnor AS, and Harvey Gulf International Marine LLC are the major companies that operate in the global LNG bunkering market.  

Global LNG Bunkering Market by End User 

  • Container Vessels
  • Tankers Vessels
  • Bulk & General Cargo Vessels
  • Ferries & OSV

Global LNG Bunkering Market by Regional 

  • North America
  • Europe
  • Asia Pacific
  • Rest of the World (RoW)  

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 

  • 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
  • A clear understanding of the competitive landscape and key product segments


 
 
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