LNG builds on orderbook momentum
In the strongest month for methanol newbuilds in 2024, LNG extended its lead as the alternative fuel of choice in shipping.
Of the 97 newbuild orders placed in October 2024, 66 were for vessels capable of running on LNG, 29 were for methanol-capable vessels and two were for LPG-capable vessels, according to figures from DNV’s Alternative Fuel Insights platform.
The figure marks the strongest month for methanol fuelled vessel orders in 2024, noted DNV, bringing the total to 162 ships in the year to date, up 9% on-year. Some 20 of the new methanol orders were for bulk carriers.
Much higher growth was seen for orders of LNG-powered ships, up to 229 in the year to date, a year-on-year growth of 106%. The LNG figures do not include LNG carriers. Of the 66 vessels on the LNG tally, 58 were for container ships, said DNV.
The alternative fuel fleet, including ships on the water and on order, is dominated by LNG and by container ships. Over 1200 ships in operation and on order are able to run on LNG, compared to under 400 for methanol. More than 650 container ships on order and on the water are capable of using alternative fuels, compared to under 300 gas tankers (led by LPG), and under 250 car carriers.
The 464 orders for alternative fuelled vessels in the first 10 months of 2024 was up 46% on-year, said DNV.
Jason Stefanatos, Global Decarbonisation Director at DNV Maritime, said: “October marked the strongest month ever of new ordering for the alternative fuelled fleet, maintaining the strong momentum that has been notable in the second half of 2024.
“The growth has clearly been led by LNG. Since July, 177 new orders for LNG fuelled vessels have been placed, compared to 52 in the first six months of the year, primarily driven by an industry-wide uptick in activity from the container segment.
“Methanol is also demonstrating some resilience. With 162 orders for methanol fuelled vessels placed in the first 10 months of the year, the total figure for 2023 has already been surpassed .”
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