Report: Demand for LNG growing in maritime segment

The number of marine vessels powered by liquefied natural gas (LNG)-powered saw unprecedented growth in 2024, according to a report by assurance and risk-management group DNV.

DNV’s Alternative Fuels Insights (AFI) platform found that the maritime industry’s exceptional newbuilding year 2024 drove a significant rise in orders for alternative-fueled vessels. A total of 515 such ships were ordered, representing a 38% year-on-year increase compared to 2023, underscoring the industry’s growing commitment to decarbonization.

The number of LNG-fueled ships in operation doubled between 2021 and 2024, with a record number of deliveries (169) in 2024. By the end of 2024, 641 LNG-powered ships were in operation. According to DNV, this number is expected to double by the end of the decade.

LNG powers unprecedented year for orders of alternative-fueled vessels, according to a new report. (Image: DNV)

LNG was not the only fuel on shipowners’ minds as 2024 saw them betting on multiple alternative fuels. 166 methanol orders were added (32% of the AFI orderbook), reflecting shipping’s growing interest in a diverse fuel pool as it strives to reduce greenhouse gas emissions. Most of these methanol orders (85) were in the container segment.