Sailing Towards a Cleaner Future: SLNG’s Take on LNG Bunkering

Bunkering, or the refuelling of ships, might not turn heads for most people, but it has come into focus in the maritime industry as it seeks to decarbonise. With global shipping racing towards net-zero emissions by 2050, liquefied natural gas (LNG) is emerging as a top contender for the most viable alternative to traditional marine fuel.

LNG bunkering demand is experiencing significant growth, with leading ports such as Singapore and Rotterdam seeing substantial increases in LNG bunker sales over the past year. In 2024, the Port of Singapore, as a single port, was the top LNG bunkering port globally, with more than 450,000 tonnes supplied – nearly four times the volume in 2023. Jan Woon, Senior Manager, and Derrick Chin, Manager, who lead business development efforts for LNG bunkering from SLNG’s LNG Market and Business Solutions team, offer some insights into the world of LNG bunkering.

LNG bunkering has gained some momentum in recent years. What are some of the key factors driving its growth, and what trends are shaping the market?

Jan: LNG is increasingly recognised as an affordable, reliable and safe fuel option to support decarbonisation of the maritime sector. With a strong pipeline of new liquefaction capacity coming onstream, global LNG supply is expected to outpace demand in the near term. This could lead to a period of softer prices, further enhancing LNG’s cost competitiveness.

Complementing this trend is the rapid expansion of LNG bunkering infrastructure across the world to meet growing demand. At present, approximately 198 ports worldwide are equipped with LNG bunkering facilities, with bunkering facilities planned for a further 78 ports. Additionally, as of 2024, more than 60 LNG bunker vessels are in service worldwide, with at least a dozen operating in Asian waters. This infrastructure build-out is improving fuel availability and convenience, solidifying LNG's viability.

Derrick: Stricter environmental regulations are also accelerating LNG adoption. Compared to traditional marine fuels, LNG cuts greenhouse gases (GHGs) by 20–30%, virtually eliminates sulphur oxides and particulate matter, and reduces nitrogen oxides by up to 80%. These environmental benefits make LNG a cleaner and more viable choice for shipowners looking to meet tougher emissions standards.

In response, major shipping lines are already ramping up investments in dual-fuel LNG vessels. The global fleet of such ships is expected to double, from around 600 today to approximately 1,400 dual-fuel vessels by end-2030, signalling a growing confidence in LNG’s role in the industry’s cleaner energy mix.

How do you see LNG evolving as a marine fuel, vis-à-vis other alternatives like ammonia or bio-methane, in the longer term?

Jan: Ammonia is a promising zero-carbon marine fuel but requires more time for development of ammonia-compatible engines, safety protocols, and supply sources for low-carbon variants like blue and green ammonia. Port infrastructure must adapt to handle its unique safety risks, and ships’ crews will require specialised training – standards for which are only just now beginning to take shape.

Meanwhile, LNG already offers an immediate and scalable solution both now and in the long term. Its potential is further enhanced when combined with bio-LNG and synthetic LNG or e-LNG, a synthetic form made using renewable electricity and captured carbon.

In particular, bio-LNG, which is essentially liquefied bio-methane, extends the role that LNG can play in a low-carbon future. It leverages the same infrastructure and can significantly cut carbon emissions. Ships, storage tanks, and bunkering equipment do not need further modifications to use bio-LNG. It can also be blended with conventional LNG to create a fuel that can reduce carbon emissions by up to 80% compared to conventional marine fuels.

What are some of the biggest challenges the industry currently faces in adopting LNG as a long-term option for bunkering?

Jan: Management and minimisation of methane emissions from well-to-wake (from production to its use on a ship) is key to the adoption of LNG and any liquefied methane marine fuels to achieve net-zero GHG emissions.

Another challenge lies in meeting the growing demand for bio-LNG and e-LNG, where availability for shipping will likely be constrained due to competing demand from other industries. Continued efforts to scale production of bio-LNG and synthetic fuels are essential.

Derrick: Regulatory change will also impact the business case for LNG vs low-carbon alternatives. Uncertain regulations can put current investments at risk of becoming stranded or obsolete. This could happen if regulations change and LNG falls out of favour; or if alternative fuels accelerate quicker than expected. Navigating this evolving landscape will require flexibility, forward-looking policies, and industry collaboration to avoid unintended setbacks to decarbonisation efforts.

What might be the enablers needed, perhaps in terms of infrastructure, policy, or collaboration, to overcome these challenges?

Derrick: Regulatory alignment is critical, and alignment across jurisdictions as well as collaboration between countries and regions will help reduce uncertainty. The International Maritime Organisation’s (IMO’s) Net-zero Framework is already steering this global effort. Clear and consistent long-term policy signals will help to sustain this momentum and drive investment.

Equally important is the need to harmonise safety, operational and carbon certification regulations. To make bunkering scalable and seamless, international codes and best practices should be adopted uniformly, so that ships can refuel smoothly across ports.

Jan: Innovation will play a role as well. Continuous investments into research & development to find solutions to monitor and eliminate methane slip (unburned methane released during LNG use), as well as to scale up production of bio-LNG and synthetic LNG to reduce supply cost, for example, will help address some of the challenges.

But perhaps most crucially, collaboration and knowledge sharing across the maritime ecosystem will be essential. Shipping lines, fuel providers, port authorities, and engine manufacturers need to continue working in unison. Collaborative pilot programmes such as the Rotterdam-Singapore Green Shipping Corridor, supported by multiple partners, not only demonstrate viability but also build the trust and confidence needed to scale solutions industry-wide.

What is SLNG doing to support the adoption of LNG as a viable long-term fuel for bunkering?

Derrick: We’ve seen a marked increase in LNG bunkering activity in recent years. 2024 stood out as a milestone year for SLNG, with more than 100 LNG bunker reload operations completed in the year. This growing demand reflects LNG’s role as one of the most viable near-term solutions to help the maritime sector meet tightening decarbonisation regulations.

Jan: With this momentum, we're now turning our focus to future needs. SLNG is currently evaluating the potential development of additional jetty infrastructure to accommodate rising demand for LNG bunkering in the Port of Singapore. At the same time, we're exploring how our terminal can support a wider range of fuels, such as bio-LNG and ammonia for bunkering. As the industry moves towards multi-fuel strategies, flexibility and adaptability will be vital, and we're planning accordingly. It's a fast-moving space, and it’s exciting to see Singapore taking the lead to push developments in this space.