According to a recent report Liquefied Natural Gas (LNG) application is set to grow and become an important part of the global transport market, taking LNG bunker demand up to 77 million tones in 2035.
LNG offers a strong economic incentive because of its current cost advantage compared to diesel but also because of the new Emission Control Area (ECA) regulations. These state that, from January 1st next year, fuel that is used within the ECA should not have a sulphur content exceeding 0.10 percent by weight.
This leaves companies having to turn to low-sulphur content marine gas oil or invest in LNG-capable engines. However, there are a few challenges in developing LNG as a transport fuel, which will have to be tackled alongside the development of the fueling infrastructure.
China seems to be furthest along in fully implementing LNG in the transport market due to its use in LNG for trucking already. China is predicted to be the biggest driver of adopting LNG, with Chinese companies commissioning 30 new dual-fuel vessels and building LNG refueling stations on the Yangtze River. Thereafter the USA, Europe and the rest of Asia are expected to follow.