LNG still top choice among alternative fuels for new ship orders

LNG was the preferred choice for alternatively fuelled vessel orders for a second consecutive year in 2022, despite surging gas prices, according to DNV data.

PHOTO: Hafnia LNG vessel. Hafnia

The 222 new LNG-fuelled ship orders were recorded by DNV in 2022, making up 81% of all alternatively fuelled ships ordered in the year. The tally was also close to the record 240 LNG-fuelled ships ordered in 2021.

The vast majority of these were container ships and car carriers, which racked up 74% of the total LNG-fuelled ships. US shipping company Matson and Japan's K Line are among the firms that have placed orders for LNG-fuelled container ships this year. Norway's UECC and Japan's NYK Line have invested in LNG-fuelled car carriers.

CHART: Confirmed orders of LNG-fuelled ships from 2013-2023. DNV via LinkedIn

Methanol-powered ships were in record demand last year, with 35 new orders, and accounted for 13% of the total, capable of running on alternative marine fuels.

Meanwhile, hydrogen saw significant growth with 8% of the total.

By Debarati Bhattacharjee

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