- Shell delivered a record 1.1 million tons of marine LNG in 2024, driven by rising demand.
- Global LNG consumption is set to grow 60% by 2040, with LNG-powered vessels expected to double by 2029.
- LNG adoption helps reduce emissions, but concerns remain over methane leakage.
- Shell aims for near-zero methane emissions by 2030, investing in reduction technologies.
Shell Plc, the world’s largest LNG player, delivered 1.1 million tons of marine LNG in 2024, marking a record for the company. With global LNG consumption expected to rise by 60% by 2040, Shell sees increasing adoption of LNG-powered vessels, projecting their numbers to double to over 2,000 by 2029.
“LNG helps ship owners reduce greenhouse gas emissions and comply with environmental regulations in a more cost-effective way today,” said Tom Summers, Shell’s Senior Vice President for LNG Marketing and Trading. The industry’s shift towards LNG as a lower-carbon fuel alternative continues to gain traction, particularly as environmental regulations tighten, especially in the European Union.
Challenges and Criticism Over Methane Emissions
Despite its lower carbon emissions compared to oil-based marine fuels, LNG remains a fossil fuel and has been criticized for methane leakage, which contributes to global warming. Andrew Forrest, executive chairman of Fortescue Ltd., has been vocal against LNG, arguing that methane leaks remain a significant issue.
“You think you don’t leak methane, but when your fuel is 96% methane, you’re gonna leak it,” Forrest remarked, citing concerns over rising atmospheric methane levels.
According to the International Maritime Organization (IMO), LNG accounted for only 6% of global marine fuel consumption in 2023, with oil still dominating the market. However, among alternative fuel vessel orders, LNG is currently outpacing other options like methanol, reinforcing its growing role in maritime decarbonization.
Shell’s Commitment to Methane Reduction
Recognizing methane’s impact as the second-largest contributor to global warming after CO₂, Shell has committed to keeping methane intensity below 0.2% in 2024 and achieving near-zero methane emissions by 2030. The company continues to invest in technologies and operational strategies to minimize methane leakage while expanding its LNG supply for the maritime industry.
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Source: Supply Chain Brain
