LNG-fuelled fleet could nearly double over next five years, Shell says

British Oil and gas company Shell said LNG is helping decarbonise shipping by replacing conventional fuel oil and enabling shipowners to comply with stringent environmental regulations.

IMAGE: Shell's LNG carrier, the Zoe Knutsen. Shell's LinkedIn.

LNG's lower emissions have driven a surge in demand for LNG-powered ships, according to Shell.

More than 850 LNG-fuelled vessels are already in operation globally, and the fleet could nearly double over the next five years if current orderbook deliveries proceed as planned.

LNG bunker demand is set to grow sharply from around 3-4 million mt in 2025 to roughly 26 million mt by 2035, the company's LNG Portfolio – Strategic Spotlight 2026 investor presentation predicts.

Growth is projected to continue through the 2040s, reaching about 38 million mt by 2040, and peaking at around 44-45 million mt by 2045.

Shell noted that the transport sector is the world's second-largest source of carbon emissions, with international shipping accounting for about 10% of the sector's total emissions and that natural gas, including LNG, is helping reduce emissions from the sector.

More than 90% of LNG-fuelled vessels on order are expected to have methane slip emissions below 0.8%, the company claimed, referring to the release of unburned methane from LNG-fuelled engines.

Earlier this month, Jiangnan Shipyard won an order to build four LNG dual-fuel carriers for Shell

By Gautamee Hazarika

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