BOOST FOR LNG

DNV says liquefied biomethane bunker prices are currently several times higher than fossil LNG in major hubs such as Rotterdam. However, the effective gap can narrow once EU ETS and FuelEU Maritime costs are included. In some EU trades, liquefied biomethane has been reported as cost competitive with fossil fuel oil after those mechanisms are accounted for, although DNV stresses that this is not yet representative of the global picture. 

However, environmental groups continue to challenge LNG’s transition-fuel credentials. Transport & Environment (T&E) has argued that EU port infrastructure policy risks locking in fossil gas infrastructure rather than driving full decarbonisation, while campaign groups including the Clean Arctic Alliance say methane slip and life-cycle emissions mean LNG cannot simply be treated as climate progress. That criticism applies not only to fossil LNG, but also to future methane pathways where, T&E argues, engine slip, upstream leakage and certification remain unresolved.

That challenge is likely to intensify as the LNG-fuelled fleet grows. For LNG advocates, the answer lies in three linked developments, reducing methane slip from engines, improving the greenhouse gas performance of the fuel supply chain, and scaling certified bio-LNG and e-methane.

Recent industry announcements suggest that some of that transition is beginning to take shape. Japanese shipping company Kawasaki Kisen Kaisha, better known as “K” Line, has signed an agreement to support long-term procurement of carbon-neutral bio-LNG, or liquefied biomethane, and has started to use the fuel in LNG-fuelled car carriers. The company says the move is expected to reduce greenhouse gas emissions by about 60,800 tonnes a year.

“K” Line says the bio-LNG is produced from organic waste streams such as livestock waste and food residues. It is ISCC-EU certified, providing assurance that the fuel complies with sustainability and greenhouse gas reduction requirements under the European Union’s Renewable Energy Directive framework. The key operational point is that bio-LNG can be used in existing LNG-fuelled ships without major modification.

Infrastructure is also developing. Technology group Wärtsilä said in February that its Gas Solutions business will supply cargo handling and fuel gas supply systems for two new LNG bunkering vessels being built at Zhejiang XinLe Shipbuilding in China. The vessels, each of 20,000 m³ capacity, will be owned by a Hong Kong based shipowner and are expected to be delivered in the second half of 2027.

Wärtsilä’s scope includes LNG cargo handling systems, fuel gas supply systems, engineering and integrated control and monitoring for the complete cargo handling operation. Barry Yang, General Manager, Sales, China, Wärtsilä Gas Solutions, said LNG bunkering vessels are essential as LNG becomes more widely used as an interim marine fuel.

In Japan, Osaka Gas has also added to the infrastructure picture. The company has started ship-to-ship LNG bunkering, giving it capability across the three main supply methods, ship-to-ship, truck-to-ship and port-to-ship. Osaka Gas said its first ship-to-ship operation was carried out using the LNG bunkering vessel Seto Azure to supply a dual-fuel Capesize bulk carrier at JFE Steel Corporation’s West Japan Works in Fukuyama, Hiroshima.

SEA-LNG has also highlighted moves towards e-methane supply. In April, Titan Clean Fuels and TURN2X agreed an e-methane offtake arrangement intended to supply the maritime sector from 2028. Titan operates seven bunker vessels and says it can deliver in about 52 ports, underlining how existing LNG logistics could be used to bring renewable methane into the marine fuel market.

LNG remains both important and contested. It has scale, safety experience, a growing bunker network and a plausible route to lower-GHG methane. But its environmental case depends on measurable progress, not aspiration. Methane slip, upstream leakage, certification and regulatory recognition will determine whether LNG is seen as a major bridge to decarbonisation.