Global technology research firm Technavio forecasts LNG bunkering market size to grow by $755.39 million from 2021 to 2026 due to an increase in LNG supply.
LNG bunkering consists of supplying LNG fuel to a ship for its own consumption. The need to reduce emissions caused by shipping is driving the demand for environmentally sustainable marine fuel such as LNG. Technavio says this has encouraged ports to develop LNG bunkering facilities.
According to Technavio, the global LNG bunkering market is expected to grow by USD 755.39 million between 2021 and 2026. Further, the growth momentum of the market will accelerate at a CAGR of 19.47% during the period of forecast.
The increase in LNG supply is driving the growth of the market.
According to the IEA, an increase in natural gas production in the United States will account for 40% of global natural gas production growth by 2022. By 2022, the United States is expected to produce 890 billion m cubes, or 22 percent. cent of the world’s natural gas production.
Additionally, the Middle East is expected to add 70 billion cubic meters to global natural gas production, as production is expected to reach 650 billion cubic meters by 2022.
Russia is the second largest producer of natural gas after the United States. It has underutilized natural gas production capacity on the Yamal Peninsula. Hence, the increase in natural gas production has led to an increase in LNG production which is expected to drive the market growth over the forecast period.
The tanker segment will contribute the highest growth in market share over the forecast period. This growth is due to the development of fuel-efficient technologies for tankers and strict regulations.
The report is titled ‘LNG Bunker Market Analysis Report by End User (Oil Tanker, Ferry & Ro-Ro, Container and Others) and Geographic Forecast (EMEA, APAC and Americas), 2022-2026’.