Lloyd’s Register’s latest “Fuel for Thought” report reinforces liquefied natural gas (LNG) as the most established and readily available alternative marine fuel amid tightening emissions regulations and decarbonisation efforts in the shipping sector.
Key Findings from the Report: “Fuel for Thought: LNG”
LNG’s Market Dominance and Growth
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As of December 2024, there are 1,381 dual-fuel LNG vessels in service and an additional 849 on order, marking a 61% growth in fleet capacity.
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14% of all newbuild vessels will be equipped with LNG dual-fuel engines.
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Clarkson Research projects LNG-powered vessels will constitute 24% of the merchant fleet (excluding gas carriers) by 2050.
Economic Viability and Regulatory Compliance
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LNG is currently the most cost-effective marine fuel under IMO mid-term measures, offering significant compliance savings versus very low sulphur fuel oil (VLSFO).
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The report emphasizes LNG’s compatibility with regulatory mechanisms, including pooling and emissions trading.
Addressing Environmental Concerns
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A key challenge remains methane slip—the emission of unburned methane—which must be addressed to sustain LNG’s long-term environmental credibility.
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Solutions include:
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Use of bio-LNG and synthetic e-LNG.
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Onboard carbon capture and methane abatement technologies.
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Cleaner production and supply chain improvements.
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Innovation and Practical Implementation
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Technological advances such as high-manganese steel for LNG tanks have reduced costs while maintaining performance.
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Advantage Tankers LLC has successfully adopted this technology in its VLCC fleet.
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AET, another major operator, includes LNG in its tiered decarbonisation strategy, combining it with energy-efficient systems and future fuels like ammonia and methanol.
Industry Voices on LNG’s Role
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Panos Mitrou (Lloyd’s Register): “LNG is one of the few low-carbon fuels available immediately and at scale… there are already clear pathways to enhance its long-term sustainability.”
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Peter Keller (SEA-LNG): “This report is a vital resource for understanding the benefits and challenges of LNG as a marine fuel.”
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Nick Potter (AET): “LNG provides immediate emissions reductions and is a stepping stone towards a multi-fuel future.”
LNG as a Transition Fuel
Lloyd’s Register concludes that LNG will remain a central pillar of the maritime energy transition—cost-effective, regulatory-compliant, and technologically feasible—even as next-generation fuels emerge. However, the sector must urgently address methane slip and expand investment in low-emission LNG alternatives to secure LNG’s role beyond 2040.
This marks the sixth edition in LR’s Fuel for Thought series, which continues to serve as a key industry reference on alternative fuels including methanol, ammonia, and hydrogen.
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Source: LR
