Brief: LNG Bunker Sales +311% Y/Y

The Port of Singapore's LNG bunker sales through October gained over 311% Y/Y to 388K metric tons as shipping firms place more bets on LNG-powered dual-fuel vessels.

December 05, 2024 • Est. Reading Time: 4 minutes

Mobius Intel Brief:

The Port of Singapore’s total LNG bunker sales through the first ten months of 2024 grew 311% Y/Y to 388K metric tons — propelling it to the top rank for alternative-fuel bunkering over the Port of Rotterdam.

The Port of Rotterdam’s latest data shows LNG bunker sales through the first three quarters of 2024 grew 44% Y/Y to 312K metric tons vs. 216K met. tons over the same period in 2023.

Key Intel:

Natural gas consumption in the logistics sector (trucking/shipping) remains an underappreciated source of incremental demand growth.

LNG is the fastest-growing bunker fuel at the ports of Singapore and Rotterdam — the world’s two largest bunkering ports.

  • Record LNG bunker sales are a reflection of shipping firms’ interest in dual-fuel vessels that can leverage existing infrastructure and enable regional fuel arbitrage as global liquefaction capacity expands.

While LNG-fueled vessels represent an insignificant 0.62% of merchant vessels currently in operation, DNV data through November 2024 shows LNG captured over 10% of all new vessel orders for delivery through 2027.

  • Containers, car carriers, and crude tankers are the top sources of new LNG-fueled vessel demand.

  • Led by LNG, the total alternative-fueled merchant armada will nearly double to 1,765 vessels by year-end 2027.

  • LNG-fueled vessel growth will likely accelerate alongside new International Maritime Organization emissions regulations going into effect in 2H25.

Limited data and an evolving regulatory landscape complicate reliable forecasts of LNG demand growth from dual-fueled shipping. However, according to DNV order books and bunker sales growth rates in Singapore and Rotterdam, natural gas consumption for LNG-fueled vessels is on track to increase by roughly 3-4 Bcf/d (~26 MTPA) by the end of the decade.

This commentary contains our views and opinions and is based on information from sources we believe are reliable. This commentary is for informational purposes, should not be considered investment advice, and is not intended as an offer or solicitation with respect to the purchase and sale of commodity interests or to serve as the basis for one to decide to execute derivatives or other transactions. This commentary is exclusively intended for Mobius clients and is not considered promotional material.