LNG

Crude oil and LNG shippers are waiting for more details after U.S. President Donald Trump said Washington would impose a 20% charge on all cargoes transiting the Strait of Hormuz, a move the U.N.’s International Maritime Organization said it strongly opposes as unlawful.

Orders for LNG-fuelled vessels reached 14.2 million gross tonnes in H1 2025 alone, more than 70% of the total alternative-fuelled tonnage ordered during the period, data from DNV’s Alternative Fuels Insight (AFI) platform shows. 

This surge reflects industry’s confidence in LNG as a scalable transitional fuel. DNV analysts see a “concerted push by shipowners to future-proof assets” amid tightening emissions regulations.

Container segment in the lead

A total of 87 LNG-fuelled vessels were ordered between January and June 2025. The container shipping sector is in the lead by a wide margin, with 81 of the 87 LNG-fuelled vessels, amounting to 13.6 million gross tons, destined for global liner operators. Leading container carriers are locking in LNG dual-fuel capabilities to meet forthcoming IMO and EU decarbonisation targets, including FuelEU Maritime and the IMO’s Carbon Intensity Indicator (CII) framework.

“LNG is clearly not a fringe option anymore—it’s a mainstream fuel choice, especially in container shipping,” commented Knut Ørbeck-Nilssen, CEO Maritime at DNV. “The rise in LNG orders signals that shipowners are prioritizing compliance, optionality, and access to fuel infrastructure. Even as the broader newbuild market cools, investments in LNG-fuelled vessels remain resilient.”

Uptick in LNG bunkering

LNG bunkering capacity also expanded notably: 13 LNG bunkering vessels were ordered in the first half of this year, equivalent to more than 20% of the current global fleet of 62 operational LNG bunkering ships. February alone saw eight LNG bunkering vessel orders, the strongest month on record for this segment. According to DNV, this underscores how port infrastructure and supply chain readiness are evolving in tandem with vessel demand.

Though zero-emission fuels like ammonia and hydrogen are still in early development, LNG offers immediate CO₂, NOₓ, SOₓ, and particulate matter reductions compared to conventional marine fuels. When combusted in advanced engines and supported by bio-LNG or synthetic LNG blends, emissions can be y reduced significantly. That way, shipowner can comply with upcoming lifecycle assessment (LCA) rules currently being finalized by the International Maritime Organization (IMO).

Regulatory inflection point

As the maritime sector approaches a critical regulatory inflection point in 2026–2030, the strong pipeline of LNG-fuelled newbuilds ordered in 2025 signals not just a trend, but a decisive strategic shift.

“What we’re seeing is a pragmatic approach to decarbonisation. LNG offers a combination of technical maturity, global availability, and regulatory headroom. For many shipowners, it’s the safest bet in the current landscape—especially as fuel intensity metrics and lifecycle-based emissions standards take shape,” Jason Stefanatos, Global Decarbonisation Director at DNV noted.

LNG bunkering hubs spring up and expand across Europe, Asia, and the Americas. The adoption of the cleaner-burning fuel is hence being matched by real-world infrastructure deployment – reinforcing LNG’s role as the industry’s bridge to low- and zero-carbon shipping.

Dec 12 (LNGJ) - The United Nations International Maritime Organisation’s Secretary-General Kitack Lim from South Korea has issued an urgent warning about threats to commercial shipping in the Red Sea used by vessels entering or exiting the Suez Canal. “The recent reports of threats made to commercial shipping in the Red Sea are extremely alarming and unacceptable,” Lim said.

   “Ships, cargoes and seafarers must be protected at all times. I invite Member States to work together to ensure unhindered and safe global navigation,” he added. About 60 vessels including LNG carriers normally transit the Suez Canal each day, though numbers have dropped recently due to war risks. “Commercial shipping should never be a collateral victim of geopolitical conflicts. Any attack on commercial shipping is contrary to international maritime law, including laws which protect the freedom of navigation,” Lim stated.

Dec 1 (LNGJ) - The London-based United Nations agency, the International Maritime Organization whose sulphur and emissions curbs on marine fuel have led to the growth of the LNG-powered shipping fleet, will hold its 32nd IMO Assembly from December 6th to the 15th as a virtual session.

   The Assembly is open to all 175 IMO Member States and three Associate Members. It will also be attended by observers from intergovernmental and non-governmental organizations. The meeting will consider resolutions covering issues such as the prevention and suppression of piracy and armed robbery against ships and illicit activity in the Gulf of Guinea as well as the challenges faced by seafarers from the Covid-19 pandemic.

French energy major Total said it signed a pioneering agreement to charter its first two Very Large Crude Carrier-type oil tankers equipped with liquefied natural gas propulsion.

Pavilion Energy of Singapore and the fuels subsidiary of French major Total have signed a 10-year, fully-termed agreement to jointly develop an LNG bunkering supply chain in the Port of Singapore.

The latest US Government short-term energy outlook addressed issued such as high US natural gas inventories and out put as well as low prices and the impact on refined fuel from the forthcoming International Maritime Organization sulfur cap to reduce pollution in ports.

The latest Japanese ferry newbuilds on order with shipyards in Japan have opted not to have liquefied natural gas as part of the propulsion systems and will instead use exhaust-cleaners known as scrubbers to meet the sulfur cap on emissions from 2020 backed by the International Maritime Organization.

The International Maritime Organization (IMO) meeting at its headquarters in London has condemned six attacks on ships in the Strait of Hormuz and the Sea of Oman, two main transit routes for LNG carriers and oil tankers, with IMO Secretary-General Kitack Lim calling the threats to shipping “intolerable”.

The statement came at the end of an IMO Council meeting from July 15-19 at which the Arab Gulf incidents were debated.

After debate, the IMO Council decided to condemn the attacks and expressed its concern over the grave danger to life and the serious risks to navigational safety.

“Threats to ships and their crews, peaceably going about their business in any part of the world, are intolerable,” said the Secretary-General.

US sanctions on Iran because of its nuclear policies have raised tensions in the region and around the narrow Strait of Hormuz, through which LNG exports from Qatar and the UAE must pass.

The IMO Council emphasised the need for flag States and shipowners and operators to review the maritime security plans for their ships and implement necessary measures to address the heighted security risks.

“I strongly urge all Member States to redouble their efforts and to work together to find a long lasting solution to ensure the safety and security of international shipping around the globe and the protection of the marine environment,” said Lim.

“We owe it to our industry, which is indispensable to the world, and to our seafarers,” he added.

The attacks include one of 12 May 2019 on the Saudi Arabian-flagged vessels “Amjad” and “Al Marzoqah” and the Norwegian-flagged vessel “Andrea Victory”.

The UAE-flagged vessel “A. Michel” was then attacked off the coast near the UAE port of Fujairah and suffered sabotage damage and on 13 June, the Marshall Islands-flag “Front Altair” and Panama-flag “Kokuka Courageous” were attacked, suffering hull damage and fire, while located in the Sea of Oman near the Strait of Hormuz.

The Council is the executive body of the IMO, a United Nations agency, and consists of 40 member states elected by the IMO Assembly.

BHP, the Australian commodities and energy company whose assets include a stake in the North West shelf liquefied natural gas export plant in Western Australia, has issued the world’s first bulk carrier tender for LNG-fueled transport for up to 27 million tonnes of its iron ore.

“Through this tender, we are seeking potential partners who share our ambition of lowering emissions to the maritime supply chain,” said BHP.

The company said the tender was open to a select group of industry leaders, from ship owners, banks and LNG fuel network providers.

The apparent aim of the tender is to find a partner for an LNG-powered newbuild iron-ore carrier, or a shipping company willing to order one with a pre-booked charter from BHP.

BHP said that introducing LNG-fueled ships into its iron ore maritime supply chain would eliminate nitrogen oxide and sulphur oxide emissions and significantly reduce carbon-dioxide emissions along the busiest bulk transport route globally from Western Australia to North Asia.

As well as LNG-fueled transport for up to 10 percent of its iron ore, the tender seeks other innovative solutions that can lower greenhouse gas emissions and increase productivity from BHP’s freight requirements.

“We are fully supportive of the International Maritime Organisation’s (IMO) decision to impose lower limits on sulphur levels in marine fuels,” said Rashpal Bhatti, Vice President, Maritime and Supply Chain.

“While LNG may not be the sustainable homogenous fuel of choice for a zero carbon future, we are not prepared to wait for a 100 percent compliant solution if we know that, together with our partners, we can make significant progress now,” added Bhati.

“This new tender adds to the work BHP is doing with customers, suppliers and parties along our value chain to influence emissions reductions from the transport and use of our products,” stated the BHP executive.

“We recognize we have a stewardship role, working with our customers, suppliers and others to influence emissions reductions across the full life cycle of our products,” he explained.

BHP, whose main offices are in Melbourne, London and Singapore said that as well as making investments in emerging technologies, it sets GHG emissions reduction targets for its operations and works across sectors to strengthen its global policy.