LNG

Saudi Armaco, the world’s largest oil producer, is reportedly preparing to divest up to five plants that currently power its refineries. The sale could generate around $4 billion and is part of the Government’s strategy to streamline Aramco’s operations, cut costs and diversify assets.

ST LNG, led by the U.S. entrepreneur Sharad Tak and Alap Shah, New Fortress Energy’s former head of FLNG, has announced plans to develop a floating LNG export facility with a capacity of up to 8.4 mtpa offshore Matagorda, Texas. The modular project is designed to process and export LNG directly from offshore platforms starting from 2026.

Bangladesh’s state-run gas company RPGCL has issued a tender to buy two further spot LNG cargoes by mid-August. Bid submission deadline is on July 7.

Pakistan LNG Ltd (PLL) is looking to resell excess cargoes and considers storing tankers offshore. Excess term LNG deliveries could incur state energy companies nearly $400 million in losses, especially since the rapid solar PV build-out cuts short the need of burning gas for generating electricity.

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.

Woodfibre LNG, a joint venture of Pacific Energy and Enbridge, is going full steam on Canada’s first net-zero liquefaction terminal. First pipe rack modules arrived at the site near Squamish, BC.

Mitsubishi affiliate Diamond Gas has shipped the first LNG cargo from the massive LNG Canada terminal as of June 30th, local time. Japan is the “primary destination” for Mitsubishi’s offtake quota of 15%, or about 2.1 mtpa of the total LNG produced at the 14 mtpa liquefaction terminal in Kitimat, B.C.

Iraq is nearing completion on its first ever LNG purchase agreement, as the country struggles to meet growing electricity demand amid recurring power outages. Excelerate Energy is one of the leading bidders in a competitive tender and currently in advanced talks with Iraq’s state-run South Gas Company.

PetroVietnam Power has synchronized its 1,500 MW Nhon Trach 4 power plant – the country’s first plant running on imported LNG, sourced through the nearby Thi Vai LNG regas terminal. Nhon Trach 4 delivered 50 MW in its initial grid connection, with full commercial operations due by November.

Thailand’s Energy Regulatory Commission (ERC) is stepping up efforts to mitigate risks posed by disrupted LNG trade flows through the Strait of Hormuz. Nearly two-thirds of Thailand’s electricity comes from gas-fired power stations which largely depend on imported LNG, making them vulnerable to supply shortages and geopolitical risk.