LNG as a Transitional Marine Fuel: Benefits and Drawbacks

Explore how LNG as a marine fuel bridges the maritime industry’s decarbonization journey. Learn its benefits, challenges, real-world uses, and future trends.

As the maritime industry charts a course toward decarbonization, liquefied natural gas (LNG) has emerged as a compelling transitional fuel. With growing pressure from global regulations and environmental concerns, shipping’s reliance on traditional fuels is being challenged. LNG offers measurable improvements, such as reduced sulfur and nitrogen oxide emissions, and compliance with evolving regulatory frameworks. However, concerns—particularly around methane emissions—have sparked debate. This guide unpacks LNG’s role in modern shipping: why it matters, how it’s evolving, its challenges, real-world applications, and what lies ahead.

Why This Topic Matters in Maritime Operations

LNG’s adoption is accelerating. SEA‑LNG’s 2024 annual “View from the Bridge” report notes a 33% growth in LNG‑fuelled vessels—totaling 638 globally—with over 1,200 vessels projected by 2028 . Dual‑fuel LNG ships accounted for 70% of alternative‑fuel tonnage ordered (excluding LNG carriers), up from 43% in 2023.

From a regulatory standpoint, LNG helps shipowners meet stringent standards such as FuelEU Maritime and EU emissions regimes, delivering well‑to‑wake greenhouse gas reductions of up to 23% compared to traditional fuels .

These developments highlight LNG’s critical role in meeting both environmental targets and operational viability.

Key Developments, Innovations, or Technologies

LNG Bunkering Infrastructure Expansion

• As of early 2025, 198 ports worldwide offer LNG bunkering, with plans for 78 additional ports.

• Reports show up to 60 LNG bunkering vessels currently operating—a 22% increase over the prior year .

• In the EU, 59 ports with 71 LNG facilities existed in 2020. The TEN‑T network mandates core ports to have LNG refueling by 2025 .

• In the U.S., the Galveston LNG Bunker Port (GLBP) in Texas City, scheduled by mid‑2027, will become the Gulf Coast’s first dedicated LNG bunkering station, producing up to 720,000 gallons per day .

Propulsion Systems & Engine Technology

Modern dual‑fuel engines and LNG propulsion systems enable flexibility—ships can run on LNG, low‑sulfur fuel oil, or future carbon‑neutral variants like bio‑ or e‑methane.
Large shipping firms—including Maersk, CMA CGM, and COSCO—are ordering dual‑fuel vessels to hedge against fuel uncertainty.

Green Fuel Variants: Bio- and E-Methane

SEA‑LNG reports that liquefied biomethane is already available at 70 ports globally, with e‑methane expected commercially by 2026 in Europe . The Rotterdam‑Singapore Green and Digital Shipping Corridor pilot has already demonstrated biomethane bunkering.

Challenges and Practical Solutions

Methane Slip & Climate Impact

Methane slip—unburned methane released during combustion—is perhaps LNG’s most critical environmental drawback. Methane has a 20‑year global warming potential 86× that of CO₂ .Some life‑cycle analyses even suggest that, if methane leakage is unmitigated, LNG may perform worse than conventional fuels .

However, SEA‑LNG emphasizes that with technological improvements and controls, LNG pathways can achieve GHG reductions up to 23% well‑to‑wake .

Safety, Handling, and Design Considerations

LNG requires specialized handling:

• Stored at −162 °C, LNG poses risks of frostbite and material brittleness .

• It must be managed under regulations such as the IGF Code to ensure safe operations .

Infrastructure Gaps & Port Competitiveness

Although expanding, LNG bunkering infrastructure remains absent in many regions. Some academic findings suggest LNG infrastructure’s presence does not necessarily boost port competitiveness. Thus, port authorities must carefully assess investment returns and strategic importance.

Higher Initial Costs

LNG-capable ships carry a price premium—20‑25% more expensive than conventional builds, adding $15–25 million per vessel in design costs . This adds upfront financial pressure, though owners view this as long‑term regulatory compliance investment.

Case Studies / Real-World Applications

Commercial Container Lines & Dual-Fuel Orders

Global names such as Maersk, CMA CGM, and COSCO are placing significant dual‑fuel vessel orders, reflecting confidence in LNG’s role as a cleaner transitional fuel .

Pioneering Ferries

The MS Stavangerfjord, operated by Fjord Line, was launched in 2013 as the world’s first cruise ferry fully powered by LNG. Its early authorization for onboard LNG bunkering in Norway exemplified moving safety protocols as wasteful setbacks .

Case Alert: Glen Sannox Ferry

The newly built Glen Sannox, capable of using LNG, has drawn scrutiny: estimated to emit 10,391 t CO₂ annually, exceeding its diesel predecessor’s 7,732 t CO₂—due to increased size and inefficiencies . This reminds us that fuel type alone doesn’t guarantee lower emissions without holistic design consideration.

Fuel Corridor Innovation

The Rotterdam–Singapore Green and Digital Shipping Corridor featured one of the first practical biomethane bunkering trials, setting a global landmark for green shipping initiatives .

Future Outlook & Trends

• Growing Dual‑Fuel Fleet: SEA‑LNG projects over 1,200 LNG-powered ships by 2028 .

• Regulatory Incentives: FuelEU Maritime and prospective carbon pricing systems create favorable conditions for LNG adoption until bio- and e‑methane are mainstream .

• Green LNG Variants Maturing: Liquefied biomethane (70 global ports) and e‑methane (Europe 2026 launch) are shaping a sustainable fuel ecosystem.

• New Bunker Infrastructure: GLBP’s development, along with expanding EU and global coverage, signals robust support infrastructure development .

• Technological Improvements: Continued reductions in methane slip, improved engine efficiency, and safety call for reinforcement.

FAQ Section

1. What makes LNG a “transitional” marine fuel?
LNG offers immediate reductions in key pollutants and greenhouse gases while enabling a shift toward zero‑carbon fuels like bio‑ or synthetic LNG.

2. How much can LNG reduce GHG emissions?
Studies suggest up to 23% well‑to‑wake GHG reductions, though long‑term gains depend on controlling methane slip and using cleaner feedstocks .

3. Is LNG handling dangerous due to extreme cold?
Yes. LNG’s cryogenic nature requires strict safety measures to prevent structural damage and frost risks. Regulations like the IGF Code ensure proper handling .

4. Are LNG-powered ships significantly more expensive?
Yes. Dual‑fuel designs cost 20‑25% more, adding $15–25 million per vessel on average, though seen as a regulatory-compliance investment .

5. Can LNG be replaced with greener fuels later?
Yes. LNG-capable vessels are often designed to switch to bio‑ or synthetic LNG, offering future fuel flexibility.

6. Does LNG improve port competitiveness?
Not necessarily. Some studies find LNG bunkering alone doesn’t significantly influence port choice or competitive advantage.

7. Is LNG truly cleaner than heavy fuel oil?
While LNG drastically reduces NOₓ and SOₓ, its climate benefits depend on managing methane emissions. Without methane slip mitigation, benefits may be reduced or negated .

Conclusion

LNG stands at the forefront of maritime decarbonization—not as the final destination, but as a pivotal bridge toward sustainable fuels. With significant infrastructure expansion, regulatory backing, and cost‑effective compliance potential, LNG presents a practical and realistic pathway today. Yet its success hinges on controlling methane emissions, ensuring vessel design efficiency, and pairing LNG with future low‑carbon variants.

Call to Action: Shipowners, port operators, and stakeholders should continue investing in LNG infrastructure and vessel readiness—while preparing for a seamless transition to bio- and synthetic fuels. With strategic foresight, LNG can pave the sea toward a greener horizon.

References

(All links are to authoritative, reputable sources)

• SEA‑LNG. View from the Bridge 2025 report, record growth, 638 vessels, 1,200 by 2028, 198 ports, 61 vessels, bio‑ and e‑methane info. 

• SEA‑LNG fact sheet: 23% well‑to‑wake GHG reduction; infrastructure data.

• Reuters: Dual‑fuel vessel orders by Maersk, CMA CGM, COSCO.

• Reuters/Chron: US GLBP LNG bunkering project details.

• EU EMSA: LNG installations and OPS in EU ports; TEN‑T mandates.

• Wikipedia: LNG bunkering vessel “Gas Agility” and “Gas Vitality.”

• DNV: LNG marine fuel uptake.

• Wikipedia: Marine LNG engine, environmental and safety issues, IGF Code.

• Wikipedia: LNG properties, handling hazards. 

• Scientific study: LNG bunkering impact on port competitiveness.

• FreightWaves/Clarksons: LNG‑ready ships, cost premium, GHG benefits. 

• International Council on Clean Transportation: Lifecycle GHG benefits and methane slip concerns.

• Guardian: Emissions concerns about cruise ships & LNG leakage.

• Wikipedia: MS Stavangerfjord—the first LNG‑powered cruise ferry.

• Reuters (Times): Glen Sannox ferry emissions case.

• ScienceDirect study on acidification/eutrophication reduction by LNG.