China is recognized as a major player in the LNG bunkering vessel (LNGBV) market and has easily secured all new orders for these vessels. According to published information, by the end of last month, seven new LNGBV orders had been registered globally, all belonging to Chinese shipbuilders. In contrast, South Korea accounted for 7 out of 24 LNGBV orders last year.
History and Status of the LNGBV Market
LNG bunkering vessels act as floating gas stations that supply LNG fuel to LNG carriers and dual-fuel container ships. Since 2014, when Clarksons Research began examining the LNGBV market, the annual global orders for these vessels have remained below four, indicating the small size of this market. In 2017, HJ Shipbuilding & Construction built and introduced the LNGBV to the market for the first time.
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Increasing Demand and Future Predictions
As the market for LNG-fueled vessels expands, China's advantages in this area have become clearer. From 2024, LNGBV orders are expected to increase significantly, with global orders predicted to reach 16 in 2024 and 24 in 2025. China's share of this market will reach 56% in 2024 and 66% in 2025.
Demand for LNG bunkering vessels is expected to rise as a result of the expansion of the LNG-fueled vessel market. According to predictions from the Norwegian Classification Society (DNV), the LNGBV fleet will more than double by 2030, with the current number of bunkering vessels, around 70, increasing to between 165 and 208. Currently, the backlog of orders is around 30 vessels.
Some experts believe that it will be difficult for South Korean shipbuilders to regain leadership in the LNGBV market in the short term. China is in a better position in terms of price competition as well as technology. Yang Jong-seo, a senior researcher at the Korea Export-Import Bank, has stated that there is a common belief in the transportation industry that LNG will remain the dominant marine fuel until 2040, and the bunkering market is also growing.
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