The Rise of LNG as a Marine Fuel: A Look at the Growing Market

Owing to the regulatory push towards greener practices in the maritime industry, the rise in the adoption of LNG as a marine fuel has led to a robust orderbook of LNG-capable vessels and driven demand for LNG bunker vessels and port infrastructure, with an additional 57 ports expected to be upgraded with LNG bunkering facilities by the end of 2026.

Increasing Adoption of LNG-Capable Vessels

According to Intermodal Shipbrokers, LNG-capable vessels are steadily gaining an expanding share of the global fleet, counting 1,329 vessels able to use LNG as fuel as of March 2025, with a total carrying capacity of 110 m gt, representing 6.56% of the global fleet. To compare, only 558 such vessels existed in 2021.

A similar trend is observed in the newbuild orders currently comprising 1,037 vessels, reading 37.79% of the global orderbook.

Growth of the LNG Bunkering Market

Backed by these growth dynamics, the LNG bunkering market also saw increased demand and reached 32 LNG bunkering vessels engaged in ship-to-ship fueling as of 2025. The fleet’s combined capacity equals 263,201 cubic meters (cbm) – more than double since 2022 – with projections indicating a further tonnage increase of 6% in 2025 and a robust 18% in 2026, Intermodal reports.

The average age of the bunkering vessels is six years, with most units built in Chinese and South Korean yards while ownership is concentrated in East Asia and Europe (Japan, S. Korea, Spain).

Expansion of LNG Port Infrastructure

In parallel with the growth of the LNG bunkering fleet, the LNG port infrastructure has also expanded. The number of ports equipped with LNG bunkering facilities has increased to 201 globally, 60 more than in 2021. Furthermore, an additional 57 ports are expected to be upgraded with LNG bunkering facilities by the end of 2026.

In this context, it is expected that the LNG bunkering market is poised for substantial expansion in the coming years, Intermodal concludes.

Future Outlook

While geological and economic developments dictate the LNG bunkering sector as well as the broader market, shipowners are still compelled to invest in LNG-capable vessels in a push to secure cleaner and commercially viable fuel solutions.

The maritime industry also witnessed the resurgence of engine retrofits to LNG marine fuel in 2024 as shipowners’ short-term solution for immediate carbon reductions amid strengthening regulatory requirements, Lloyd’s Register (LR) found in its latest Engine Retrofit Report.