LNG Bunkering Capex $843mln in 2019

Global liquefied natural gas (LNG), bunkering market will see a capital expenditure (Capex) of $843mn in 2019, said a research report.

Due to the stabilisation of prices, along with the steady supply of natural gas and environmental regulators forcing companies to adopt lower emission fuel sources, LNG has risen drastically in demand, said a new energy report from Visiongain.

With increased demand, new infrastructure will follow in order for supply to meet the needs of these vessels. This is where LNG bunkering comes into play as ships require refuelling mid-voyage.

In recent years, a large number of LNG bunkering facilities have been planned and constructed, it said. Bunkering is the process of transferring the LNG, usually to a ship for use as fuel.

As prices rise and with increasing pressure on companies to reduce their carbon footprint, the investment into LNG bunkering will only increase as we seek to meet the demands for refuelling ships, either in docks or at sea.

LNG is becoming a far more popular fuel than traditional heavy ship fuel, due to its lower emissions and relative abundancy.