Liquefied natural gas (LNG) is natural gas that has been cooled to liquid form for ease and safety of non-pressurized storage or transport. LNG is odorless, colorless, non-toxic and non-corrosive. It takes up about 1/600th the volume of natural gas in the gaseous state. In industry, LNG is used for various purposes including cooking, transportation, and heating. It is delivered to consumers through tank trucks and special delivery vessels called LNG carriers.

The global LNG Bunkering Market is estimated to be valued at US$ 1084.62 Mn in 2023 and is expected to exhibit a CAGR of 8.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

One of the key drivers for the growth of the Global LNG Bunkering Market Size is the stringent emission regulations imposed by International Maritime Organization (IMO) to reduce air pollution from ships. IMO aims to reduce greenhouse gas emissions from ships by 40% by 2030 and 70% by 2050, compared to 2008 levels. LNG, when used as a marine fuel, can significantly reduce emissions of sulfur oxides, nitrogen oxides and particulate matter. Growing focus toward limiting emission from shipping industry is expected to boost adoption of liquefied natural gas as bunker fuel over the forecast period.

In addition, LNG bunkering infrastructure development projects worldwide will continue to expand application in marine sector. Many countries and ports are proactively engaging in developing LNG bunkering infrastructure to support greener shipping through LNG. For instance, in 2018, India announced plans to set up its first LNG bunkering facility at Gothora port in Gujarat by 2020. Such strategic initiatives to develop LNG supply networks will promote uptake of LNG as bunker fuel.

SWOT Analysis

trength: LNG is cheaper and more environment-friendly than conventional marine fuels. The demand for LNG as a marine fuel is increasing due to stringent environmental regulations. LNG bunkering infrastructure is also witnessing growth across major ports.
Weakness: LNG requires cryogenic storage and handling equipment which increases capital expenditures. Limited number of LNG-fueled vessels and lack of bunkering facilities in many ports are also challenges.
Opportunity: Rising adoption of dual-fuel engines and LNG-powered vessels are expected to drive the demand. Government support through subsidies and investments in bunkering infrastructure development provides growth opportunities.
Threats: Technology advancements and adoption of alternative green fuels such as ammonia poses threat to LNG demand outlook. Delays in IMO regulations related to emission cuts can negatively impact the market growth.

Key Takeaways

The global LNG bunkering market is expected to witness high growth over the forecast period. Regulatory mandates targeting sulfur oxide and greenhouse gas emissions from ships are major drivers for the increased adoption of LNG as a marine fuel.

The Asia Pacific region currently dominates the market due to large fleet size and proactive government initiatives in countries like China, Japan and South Korea for developing LNG bunkering infrastructure. Key ports in these countries have several operational LNG bunkering facilities catering to the demand. North America and Europe are also significant markets however growth is expected to be higher in the Asia Pacific region.

Key players operating in the LNG bunkering market are Medtronic, Becton Dickinson and Company (BD), Boston Scientific Corporation, Cook Medical, B. Braun Melsungen AG, Koninklijke Philips N.V., Opto Circuits (India) Limited, Terumo Corporation, Surmodics, Inc., and Biotronik.

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