LNG to account for 10% of bunker market by 2030

The Edinburgh-based company also projected that consumption of gas in the global transport industry will quadruple to 160bn cu m a year, accounting for 3.4% of total world demand by 2030.

“Gas has traditionally played a niche role in global transport but it is now garnering greater attention due to two principal drivers,” said Noel Tomnay, head of global gas research for Wood Mackenzie.

“First, oil and gas price differentials are now making investment in gas refueling infrastructure worthwhile and second, increased environmental restrictions on emissions are encouraging wider global uptake,” Tomnay was quoted in The Telegraph.

Marine gas oil (MGO) used in shipping and diesel used by large lorries and buses will be most widely replaced by LNG.

In China, for instance, increasing urbanisation will play a critical role in the use of LNG in transportation, according to Wood Mackenzie.

“Demand in China is at present being propelled by a combination of winning factors. These include the most favourable economics, due to the low cost of vehicles; strong vehicle market growth, encouraging fleet investments in gas; and financial support from regional governments, keen to reduce emissions in cities where particulate pollution and smog is a growing problem,” Tomnay said.