In 2024, Shell, a global energy leader, achieved a significant milestone in the maritime fuel sector by delivering a record-breaking 1.1 million tonnes of marine LNG (Liquefied Natural Gas) to vessels across the globe. This remarkable growth—more than double the amount delivered in 2023—reinforces Shell’s dominant position in the global LNG bunkering market, which continues to gain momentum as shipping decarbonization accelerates.
Shell’s Global LNG Bunkering Network
Shell’s extensive LNG bunkering network spans 26 key locations across 12 countries, including the US, the Caribbean, Europe, and Singapore. A total of 12 LNG bunkering vessels played a key role in the successful delivery of LNG bunker fuel. With a robust infrastructure that includes extensive shipping and storage assets, alongside access to LNG regasification plants, Shell has effectively met the growing demand for LNG as a marine fuel, supporting cleaner and more sustainable maritime operations. In 2024 alone, Shell executed approximately 1,000 bunkering operations, supplying LNG to more vessels than ever before.
Shell also started delivering mass balanced bio-LNG to customers in 2024.
The global shift toward cleaner maritime fuels is evident as more shipowners and operators embrace LNG for its immediate environmental benefits and long-term regulatory compliance. Shell’s continued investments in infrastructure are crucial in meeting this demand and solidifying LNG’s place as a core marine fuel option.
SEA-LNG Report 2024: Record Growth and Expanding Infrastructure Fuel LNG’s Maritime Dominance
The SEA-LNG Report 2024 underscores the growing significance of LNG in the shipping industry, providing a clear outlook for its future in the maritime fuel market. According to the report, the number of LNG-fuelled vessels in operation surged by 33% in 2024, bringing the global total to 638 LNG-powered ships. This growth is expected to continue, with projections indicating that over 1,200 LNG-fuelled vessels will be operational by 2028, cementing LNG’s role as a dominant marine fuel.
In 2024, LNG dual-fuelled vessels accounted for an impressive 70% of alternative-fuelled tonnage ordered, excluding LNG carriers, reflecting a marked increase from 43% in 2023. This surge highlights the growing confidence in LNG’s ability to deliver substantial emissions reductions while ensuring compliance with increasingly stringent environmental regulations.
Global LNG Bunkering Infrastructure Expands Rapidly
The report also highlights significant growth in LNG bunkering infrastructure, further strengthening the fuel’s availability and reliability for global shipping. LNG bunkering services are now operational in 198 ports worldwide, with an additional 78 ports planning to introduce LNG bunkering facilities in the near future. This expansion is key to ensuring broader access to LNG beyond traditional bunkering hubs and facilitating the fuel’s adoption by more vessels operating in diverse global routes.
Further enhancing the availability of LNG at sea, the number of LNG bunkering vessels increased by 22% in 2024, bringing the total to over 60 vessels in operation. This expanded fleet is critical in supporting LNG deliveries to vessels across a growing network of bunkering ports, ensuring seamless fuel access as the maritime industry continues to transition toward LNG.
Shell LNG Outlook 2025: Global Market Dynamics and Regional Shifts
The global LNG market saw modest growth in 2024, with global LNG trade reaching 407 million tonnes, a slight increase of 3 million tonnes compared to 2023. However, this growth marks the lowest annual supply addition in the last decade, pointing to market constraints and regional shifts in demand. While Asia experienced a surge in demand, driven by China’s significant LNG imports and India’s record levels, Europe saw a notable decline in LNG imports. European LNG imports dropped by 19% (23 million tonnes) due to the strong performance of renewable energy and weakened industrial gas demand.
In response to this changing demand landscape, the U.S. solidified its position as the world’s largest LNG exporter, although this growth is accompanied by potential challenges such as regulatory changes, cost concerns, and geopolitical risks.
LNG’s Role in the Energy Transition and Marine Decarbonization
LNG continues to play a pivotal role in the maritime industry’s efforts to decarbonize. As the sector transitions to lower-carbon fuels, LNG provides an immediate solution to reduce emissions in hard-to-electrify sectors like shipping. Notably, the LNG industry has made strides in curbing methane emissions, with members of the Oil and Gas Climate Initiative (OGCI) having reduced upstream methane intensity by over 50% since 2017, with a goal of achieving near-zero methane emissions by 2030.
Moreover, the growing role of liquefied biomethane and liquefied synthetic gas (LSG) is expected to contribute to further decarbonization efforts. Both fuels can be seamlessly integrated into existing LNG infrastructure without significant additional investments, helping the industry transition to even cleaner alternatives.
Market Volatility, Supply Growth, and Infrastructure Expansion
Despite temporary stabilization in LNG prices, the market remains volatile due to unpredictable weather patterns, supply disruptions, and geopolitical tensions. As the global LNG market continues to expand, over 170 million tonnes of new LNG capacity is expected by 2030, though major additions will not materialize until late 2025. This period of constrained supply underscores the importance of further investments in infrastructure and regulatory support to ensure LNG remains a reliable marine fuel option.
The rapid expansion of LNG bunkering infrastructure, as highlighted in the SEA-LNG Report 2024, is crucial to meeting the growing demand for LNG in the maritime sector. With 198 ports currently offering LNG bunkering services and another 78 ports set to join the network, the global bunkering landscape is evolving quickly to ensure LNG’s availability for an expanding fleet of LNG-fuelled vessels.
About Shell
Shell is a global energy leader, committed to advancing cleaner energy solutions and driving the transition to a low-carbon future. As a major player in LNG production, trading, and bunkering, Shell continues to play a critical role in the decarbonization of the shipping industry. With a presence in over 70 countries, Shell is at the forefront of delivering innovative energy solutions, from bio-LNG to liquefied synthetic gas, to help reduce emissions across industries and transportation.
As demand for LNG as a marine fuel continues to grow, Shell remains dedicated to providing reliable, sustainable, and cost-effective solutions that support the global maritime industry’s transition to a more sustainable energy future.
Source Shell Marine