Congratulations LNG ship fuel industry! We have now passed the milestone of 100 confirmed LNG projects worldwide. Though still outnumbered by the number of conferences arranged to date on LNG as ship fuel, I think that this milestone is worth celebrating. We have witnessed a remarkable change of opinion in the industry during the last 2-3 years. DNV GL has actively advocated LNG as fuel since the start, and we are very happy to see that the industry has gone from polite interest to seriously considering LNG as a fuelling option for many newbuild projects.
While 90% of all LNG fuelled ships worldwide are still only sailing in Norwegian waters, the confirmed orderbook tells a different story. There is an equal share of ships intended for operation in Norway, Northern Europe and North America. We also see that LNG has started to make its way into the deep sea market.
Looking ahead I think the industry will be surprised by the ship types ordered with LNG fuel this year. DNV GL is fortunate to be involved in most LNG as fuel projects worldwide, and based on the insight we have I believe we will see orders for LNG fuelled ships in segments which have been considered to be many years into the future. Orders for LNG Ready ships, a concept of preparing for later efficient retrofit to LNG fuel which DNV GL launched last year, are also picking up (best exemplified by the UASC order for LNG Ready 14,000 and 18,000 TEU vessels).
There is no longer any doubt that LNG will become one of the major fuels for shipping. While some make a big number of stating the obvious – that fuel oil will still be the major fuel for quite some time – I prefer to focus on the opportunities that lie ahead for those who take the time to evaluate the business case for their newbuilds. LNG fuel is evaluated for newbuilds every day, and an increasing share of ship owners is coming to the conclusion that LNG is the most cost efficient solution for their case. We’re happy to see that we’re on track for our Shipping 2020 prediction of 1000 ships in 2020, and look forward to seeing if the predicted increase in uptake will materialize.
Source: DNV GL