LNG gaining share in the alternative fuels sector

Liquefied natural gas (LNG) has recorded the largest share of new orders for alternative fuel ships in 2025, having become the first choice for shipowners.

A total of 275 new contracts were signed, of which 188 were for dual-fuel LNG ships, which, according to SEA-LNG, confirms the potential of this fuel as an alternative.

The high availability of LNG, the lower cost of compliance with regulations and its commercial maturity make it the first choice of shipowners for alternative fuels, supported by analysts. However, in 2025 the overall exposure of the shipping industry to orders for alternative fuel ships decreased.

DNV reports that 275 ships with alternative fuels, including LNG, methanol, ammonia, LPG and hydrogen, were ordered last year, compared to 551 in the record year 2024. Figures that represent a decrease of around 31% in DWT terms.

Report

According to SEA-LNG, by 2029 around 2,500 ocean-going vessels will sail internationally with alternative fuels out of a total of over 80,000 ships, of which 1,450 will use LNG or biomethane as fuel, while a further 1,050 will be LNG tankers.

Data from the SEA-LNG “View from the Bridge” report showed that LNG-powered ships ordered in 2025 represented 79% of total alternative fuel tonnage, up from 67% in 2024.

The global LNG fleet – in operation and on order – now reaches 10% of the global fleet in dwt.

In 2016, excluding LNG carriers, there were just 81 dual-fuel ships in operation, capable of using LNG (or methane, since 98% of liquefied natural gas for marine fuel is made up of methane molecules) as a source of energy.

These few ships have increased 10-fold, to the point where there are now almost 850 dual-fuel ships in operation and another 642 on order.

In 2025, regulatory and market uncertainties, combined with a lack of shipyard capacity, have slowed the adoption of alternative marine fuels, however investment in LNG dual-fuel ships and the path towards methane decarbonization remain strong.

However, in this context, the relative position of LNG strengthened, as the 188 ships ordered represented 79% of alternative fuel tonnage, up from 67% in 2024.

The growth in the order book in 2025 was dominated by the container sector, which accounted for 88% of orders for LNG dual-fuel ships or 93% of DWT.

61% of container orders were for oversized container ships with a capacity of 14,500 -24,000 TEUs.

2025 saw the first orders for LNG dual-fuel ships from a number of major fleet owners and operators, including Capital Clean Energy, COSCO, Evergreen, HMM and ONE.

By 2029, 2,500 ocean-going ships, 1,450 of which will use LNG or biomethane as fuel, and an additional approximately 1,050 LNG tankers, will be sailing the world’s oceans.

This number will continue to grow as ships are retired and replaced by newer, more efficient ones.

As a result, the path to methane decarbonization has become the way of the future.

Rapid infrastructure development

In parallel, LNG bunkering is offered at 222 ports internationally, while bunkering vessels have increased from one in 2016 to more than 62 in 2025, with another 38 on order. There are plans to build LNG bunkering facilities for an additional 622.