As the IMO 2020 regulations are approaching, ships running on Liquefied natural gas (LNG) ships are expected to the highlight of a bunker fuel market.
According to a market research report, LNG fueled ships emit zero sulphur oxide emissions along with a decline in carbon dioxide gas released by 25%, these are primary factors promoting the use of LNG as a fuel in marine transport.
Benefits of LNG
LNG offers numerous benefits when used as a marine fuel as they reduce sulphur oxide (SOx) emissions by 90% – 95%. The fuel comprises of low carbon content when compared to conventional ship fuels. It enables a 20-25% reduction of carbon dioxide (CO2) emissions. Environmental benefits related to the consumption of LNG as marine fuel is expected to drive the market growth over the forecast period.
LNG gaining prominence in the European market
Based on the region the market is segmented into US, Europe, China, India, Japan, and Southeast Asia. The market in Europe is estimated to be the fastest growing region. Increasing demand for LNG ships in the region is expected to fuel the market growth.
A decrease in the use of petroleum fuels and increased use of LNG by shipping companies in Europe could reduce dependence on oil imports from politically unstable regions are some additional factors expected to propel market growth. Moreover, LNG helps to reduce air pollution from the maritime transport sector which is another factor expected to boost the market growth in Europe over the forecast period.
Europe had total reserves of 56.5 TCM of natural gas in 2016, and estimated production and consumption of natural gas in the region had reached 991.4 BCM and 1,014.4 BCM respectively, which accounted for a majority share of over 26% of volume consumed globally the same year.
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