LNG

European classification society DNV said there were eight more liquefied natural gas-powered vessels ordered in March 2023 as LNG bunkering fuel prices were much lower than at the turn of the year at just over $820 per tonne.

European maritime classification society DNV said that there was still momentum in orders for LNG-fuelled vessels from ship owners in the month of August even as LNG bunker prices hit record levels in ports such as Rotterdam in the Netherlands.

The DNV report said there were currently 827 confirmed LNG-powered ships and 229 additional LNG-ready ships, while LNG bunkering infrastructure was continuing to be developed worldwide.

DNV said that car carriers broke through the 100 confirmed ships line to 104 and containerships moved above the 200 ships mark to 209.

That’s as LNG priced in fuel oil terms at Rotterdam hit record levels of around $4,545 per tonne on September 2 versus about $3,255 per tonne on August 1.

Among other emissions-reducing fuels, Ultra Low Sulfur Fuel Oil (ULSFO) at the Dutch port declined slightly during the period and was priced on September 2 at around $990 per tonne compared with $1,010 per tonne in mid-August.

According to the latest figures from DNV’s Alternative Fuels Insight (AFI) platform, 13 LNG vessels were added in August.

However, the increase on the database will only be 11 additional orders, as the electrification of the Norwegian ferry sector continues, evidenced by two more ferries being retrofitted for pure battery operations and thus moving to another category.

The total order figure for the year to date has therefore reached 173, with the last month seeing a mix of smaller and larger vessels ordered.

Perfect snapshot

“This month's update is a perfect snapshot of the current alternative fuels trend, and clear evidence of the diversified fuel mix predicted.,” explained Martin Wold, Principal Consultant in DNV’s Maritime Advisory business.

“Electrification will continue to happen, where technically feasible, meaning for small ships and on short crossings,” said Wold.

“LNG remains the preferred low carbon solution, despite current gas pricing which we must assume will prevail for some time,” he added.

“We are also witnessing the start of the diversification into methanol fuel on trades where there is sufficient confidence that supply can be made available on a reasonable time scale. For regional and international trading ships LNG and methanol is likely to be the short- to mid-term preference going forward,” stated Wold.

According to DNV, there are now 209 LNG-powered containerships in operation or on order, followed by 87 crude oil tankers, 74 oil-chemical tankers and 62 bulk carriers.

Among other classes of LNG-fuelled ships in operation or on order, there were 104 pure car carriers, 50 car or passenger ferries, 39 cruise liners, 38 tugs, 37 offshore supply vessels, 33 roll-on and roll-off ships and a smaller number of general cargo ships and fishing vessels.

This data does not include smaller inland vessels and barges that are part of the Amsterdam, Rotterdam, Antwerp (ARA) refining hub in northwest Europe.

“LNG bunkering infrastructure is being developed to supply the growing fleet,” said DNV.