The Liquefied Natural Gas (LNG) market is globalising as buyers, seller numbers and types expand. Ahead of the Global LNG Bunkering Summit 2020, Oil and Gas IQ surveyed leading industry professionals on the current state of the LNG market, major growth drivers and key industry trends. The results have been complied into the following report with additional commentary from Harly Penner, Director, Fleet Engineering & Vessel Development, Seaspan Ferries, to highlight the new regional opportunities and solutions to industry challenges detailing how they are changing, why, and how participants should react.

Commentary from Harly Penner

Respondents opinions seem to be softening, due in part to the differing pricing models and contract terms that the LNG bunker business is developing. Oil price volatility against natural gas volatility can be another way to ask this question. I feel that ship owners who are concerned with oil price volatility and oil being cheaper than LNG should have shorter uptake agreements with LNG as well as using dual fuel engines. This will only be an option when the LNG bunker vessel spot market develops as opposed to long term uptake agreements. 

As for many decisions in shipping, compliance and profitability will always lead the charge. As the results convey, respondents too look to profitability as the single most important aspect when deciding to adopt LNG as fuel. Adding cost for no reason doesn’t make sense for ship owners. If you can find a cheaper and complaint fuel, then update will increase.