The use of LNG as a maritime fuel is growing. (Image source: Adobe Stock)

LNG remains the dominant alternative marine fuel readily available to the shipping industry, according to Lloyd’s Register’s (LR) latest Fuel for Thought report

The report highlights LNG’s growing adoption and its cost-effectiveness under tightening emissions regulations, and the growth in orders for LNG-capable vessels, with an expanding global fleet and rapidly growing bunkering infrastructure. Currently, 14% of all vessels on order will have LNG dual-fuel engines installed.

The report forecasts that LNG will remain the most cost-effective fuel choice for foreseeable transition pathways up to 2049. LR’s modelling suggests that LNG-fuelled vessels could generate substantial compliance savings compared to ships running on very low sulphur fuel oil (VLSFO), with additional benefits from regulatory mechanisms such as pooling.

However, the report cautions that LNG’s long-term sustainability depends on tackling methane slip — unburned methane emissions that reduce its overall GHG advantage— and that its ability to meet stricter targets in the 2040s will depend on advances in cleaner LNG production, particularly through biomethane and synthetic e-LNG, as well as the development of onboard carbon capture technologies.

Panos Mitrou, LR’s global gas segment director, said, “As regulations emerge that place a real financial impact on greenhouse gas emissions, ship operators are realising that LNG is one of few low-carbon fuels to be available immediately, widely, with established safety protocols and at relatively predictable cost.

“There are several opportunities to improve the long-term sustainability of LNG. These are already being addressed, and the measures that are being worked on – from cleaner production and supply processes to bio-LNG and OCCS, through the uptake of onboard methane abatement technologies, as well as regulatory acceptance of these improvements – are likely to increase uptake of LNG even further.”

The report also highlights specific examples of innovation, such as the use of high-manganese steel for LNG tanks, which has significantly reduced costs while maintaining cryogenic handling properties. This technology has been successfully implemented in vessels like the Advantage Tankers LLC’s VLCCs, demonstrating the increasing uptake of LNG across diverse vessel segments.

Nick Potter, president & CEO of AET, said, “LNG is a key component of AET’s Decarbonisation Strategy, providing immediate emissions reductions while we also invest in net-zero carbon solutions. Through our tiered decarbonisation strategy, we are integrating energy efficiency technologies, innovative propulsion systems, and future fuel capabilities, including ammonia, to help meet our 2030 GHG emissions intensity target.

“While LNG is a viable option today, its long-term role will depend on developments in bio-LNG, synthetic LNG, and the commercial and regulatory landscape for fuels such as methanol, ammonia, and hydrogen. We see LNG as part of a multi-fuel future, complementing alternative energy sources as we move towards our 2050 net-zero goal as part of the MISC Group.”

The contract encompasses the engineering, procurement, fabrication, installation, and commissioning of two offshore compression complexes. (Image source: Adobe Stock)

India’s Larsen & Toubro (L&T) has been awarded an ultra mega offshore contract from QatarEnergy LNG for the North Field Production Sustainability Offshore Compression Project (NFPS COMP 4), the largest single contract ever received by the company

The scope of work encompasses the engineering, procurement, fabrication, installation, and commissioning of two offshore compression complexes, each comprising of large offshore platforms with compression and power generation facilities, living quarters, flare platforms, interconnected bridges, and other associated structures to be located at approximately 80 km off the northeast coast of Qatar.

S N Subrahmanyan, chairman & managing director - L&T, commented, “Securing QatarEnergy LNG's Ultra Mega Offshore Contract—the largest single order in our history, is a landmark achievement. This prestigious project strengthens our global energy portfolio while supporting Qatar's energy security objectives. We look forward to setting new benchmarks in project execution that will reinforce Qatar's position as a global LNG leader.

Subramanian Sarma, deputy managing director & president - L&T, added, “This collaboration not only strengthens our partnership but also reaffirms L&T's commitment to supporting Qatar's strategic energy objectives through innovative and reliable solutions.”

QatarEnergy LNG operates 14 LNG trains with a total annual production capacity of 77mn metric tonnes.

QatarEnergy continues to implement projects to expand LNG production from the North Field, the largest non-associated natural gas field in the world. The North Field East (NFE) project will raise Qatar’s LNG production capacity from its current 77mn metric tons per year (MTPA) to 110 MTPA. NFE represents the first phase of expansion; the second phase, the North Field South (NFS) project, will further increase Qatar’s LNG production capacity to 126 MTPA. A third phase, the North Field West (NFW) project, will boost Qatar’s LNG production to 142 MTPA by the end of 2030.

Additionally, the Golden Pass LNG project in Texas will add an additional 18 MTPA through three production trains, with production expected to begin in 2025.

Qatar's North Field has recoverable reserves of more than 900 trillion standard cubic feet (TSCF), or approximately 10% of the world's known reserves. This makes Qatar the world's largest holder of proven gas reserves after Russia and Iran.

The majority of Iran's oil exports go to China, in the face of US sanctions. (Image source: Rystad Energy)

The U.S. has issued new sanctions intended to hit Iran's oil exports, including what the State Department said were the first U.S. measures targeting a Chinese "teapot refinery" (small independent refiner) processing Iranian crude

This latest round of sanctions, signalling a growing determination to pressurise Iran into a new nuclear deal, could have consequences far beyond Iran itself, says Rystad, with the potential to reshape geopolitics, disrupt the global economy and send shockwaves through energy markets.

Escalating pressure could drive oil prices higher, conflicting with US President Donald Trump's goal of lowering energy costs to fight inflation. Rystad Energy’s data on oil trade flows shows that almost all Iranian crude exports make their way to China, so achieving effective maximum pressure would require cooperation from the Chinese government.

“Targeting a Chinese buyer may also signal pressure on China, the largest importer of Iranian oil, to reduce or cease its purchases. This is the fourth round of sanctions, and the pressure is intensifying with each one. Just days before, the US had revoked a sanction waiver that allowed Iraq to purchase electricity from Iran, further tightening the economic squeeze on Tehran,” said Jorge León, head of Geopolitical Analysis at Rystad Energy.

Rystad Energy analysis suggests that, if Iran remains unresponsive, the US could introduce further sanctions. In addition, the recent drop in oil prices, partly due to the decision by OPEC+ to increase production, might create a favourable environment for the US to impose stricter sanctions on Iran.

“With oil prices hovering around US$70 per barrel, the current market conditions could give the US a strategic edge. OPEC+ may be ramping up production in anticipation of potential US sanctions, helping to offset a loss of up to 1.5mn barrels per day of Iranian exports without destabilising global oil prices,” added León.

The readiness levels defined in DNV-RP-B205 allow companies to scale up digital inventories quickly and cost-effectively. (Image source: DNV)

DNV has announced a new recommended practice, designed to cut costs and improve efficiency in parts management in the energy sector

In the fast-moving landscape of industrial operations, maintaining secure access to necessary parts is a significant challenge. Traditional inventory systems often result in overstocking or stockouts, leading to inefficiencies and increased costs. Digital inventories — virtual repositories that enable on-demand production using AM and other near-net-shape (NNS) technologies, offer a transformative solution. By prioritising the development of critical digital parts, companies can efficiently allocate resources and respond swiftly to market demands.

The DNV-RP-B205: Digital inventories and on-demand manufacturing framework helps the sector assess the maturity of a digital part, from initial design or data capture to qualification and production. The process includes 3D scanning, capturing design data, generating engineering documentation, and preparing order-ready parts through on-demand manufacturing.

Additive manufacturing (AM) is a key part of this strategy, as it produces components close to their final specifications.

Key advantages include:

• Reduced storage costs: Digital inventories minimise the need for physical storage space.
• On-demand production: Parts can be manufactured as needed, reducing lead times and the risk of obsolescence.
• Customisation: AM and NNS technologies enable the production of parts tailored to specific requirements, enhancing performance and reliability.
• Supply chain resilience: Multiple sourcing options and production routes enhance supply chain security, mitigating potential disruptions.

Prajeev Rasiah executive vice president & regional director, Energy Systems, Northern Europe at DNV said, “The integration of digital inventories with on-demand production using additive manufacturing and near-net-shape technologies is a game-changer for the energy industry. This innovative approach offers a sustainable and agile solution to spare parts management, enabling companies to reduce costs, improve efficiency, and enhance asset reliability. With DNV’s recommended practice, DNV-RP-B205, the path to digital part readiness is clearer, paving the way for broader adoption.”