A new survey by Lloyd’s Register of 22 major ports around the world finds that LNG will account for nearly one quarter of ship bunker fuel demand by 2025.

Growing demand among shipowners is the major driver behind LNG bunkering expansion, the survey showed.\

The reason: They’re examining various alternatives to meet upcoming low-sulfur bunker-fuel legislation—which could take effect globally in 2020—while also considering LNG as an option to meet “emissions control area” (ECA) regulations in various parts of the world, Lloyd’s noted.

As a result, “availability of LNG infrastructure has risen from being considered a low priority to the second-most important driver” for LNG bunkering investment, according to Lloyd’s.

Aside from shipowner ECA compliance concerns, the relative price of LNG—vs. heavy fuel oil, marine gasoil or marine diesel oil—has become the third-biggest factor affecting port bunkering investment decisions, according to the survey.

“Most LNG-fueled projects seen so far are very short-haul, point-to-point trades where the operator can secure and control gas supply regardless of the global bunkering markets’ inability to supply LNG,” added Lloyd’s Register senior market analyst Latifat Ajala.

To expand LNG bunkering beyond short-haul trades, that “can only really takeoff if supply is more like orthodox bunkering arrangements,” Ajala said.

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