LNG is reemerging as a preferred, cost-effective alternative fuel to support the shipping industry's decarbonisation efforts. Its adoption is further supported by expanding infrastructure, including the growing number of LNG bunkering vessels worldwide - a sector where each new insight contributes to shaping the industry's future and where BSM has been actively engaged for nearly a decade.
Published on 12 Nov 2024
Today, LNG-fuelled vessels make up more than 2% of the global shipping fleet, the industry coalition SEA-LNG announced in October 2024. Including vessels on order, this figure rises to 4% by vessel count and 6% by deadweight tonnage spanning over dry and wet cargo as well as passenger vessels. In addition, we can see that early adopters of other alternative fuels have moved back to the reliable and available alternative LNG with recent orders.
According to SEA-LNG, in 2010, there were just 21 LNG-powered ships in operation. Now, that number has surged to 590, with 564 more on order. By 2028, the total number of LNG-fuelled vessels in operation is projected to reach 1,154. The LNG bunkering infrastructure has also expanded significantly, with 185 ports currently offering LNG bunkers, and an additional 50 ports are expected to be added in 2025.
With the rise in the use of LNG as a shipping fuel, there is strong interest across the maritime industry to continue investing in this area. As a result, in addition to LNG bunkering infrastructure at ports, the LNG bunkering vessel fleet - providing ship-to-ship bunkering - grew, too, from a single vessel in 2010 to close to 60 in operation today , and almost 20 more on order.
The LNG bunkering sector is challenging and fast-paced but still very much a niche. The challenges for the ship management side include crew sourcing and continuous training - in particular for ship-to-ship (STS) manoeuvres, developing safe procedures, the capability to make compatibility studies and handling the often-limited LNG bunkering experience on the fuel receiver side. With the fleet expected to grow rapidly, the industry must quickly adapt and continue to learn in terms of bunkering vessel operations and design. The most effective approach to achieving this is by developing holistic knowledge of the LNG industry primarily through on-the-job learning. Every lesson learned in this emerging field becomes a valuable blueprint for the future.
Since 2015, BSM has been continuously adapting and learning, starting with the development of first in-house designs and procedures. In 2018, we assumed full management of the world’s largest LNG bunker supply vessel at the time, “M.V. Kairos”. Capable of performing both STS bunkering and transshipment operations, the “Kairos” is still today used for the LNG fuelling of ferries, container vessels, cruise ships and other shore-based gas consumers in the Baltic region. In just over 5 years the “Kairos” has made over 200 STS operations and about 120 discharge operations in 2024 to date. This high pace in particular reveals one of the key challenges for both crew and equipment: delivering parcels ranging from 100 cbm to thousands of cbm to a diverse set of receivers, most of whom are not familiar with handling LNG on a daily basis.
“In LNG bunkering operations, it really takes two to tango ,” says Nick Topham, Managing Director of BSM Germany. “The ‘Kairos’ has taught us a lot over the past years. Our crew pool continues to grow, along with the experience of our teams both onboard and onshore. And one of their key responsibilities is to take the crews of the receiving vessels by the hand and provide guidance during the transfer process.”
By 2030, the industry is expected to require roughly double the current number of LNG bunkering vessels, with a corresponding rise in demand for specialised crew, capable of dealing with many different ship types.
“Identifying, training and providing this crew is a challenge we at BSM are today very confident in tackling,“ underlines Nick Topham.
“Also, looking at ship design, the Kairos is highly complex and over time, we’ve been able to further optimise it by making key adjustments to the tank size and isolation, regasification system, engine management, propulsion layout and deck arrangement,” Topham explains. “Most importantly, we’re pleased to have included an aft manifold during the construction of the “Kairos”. It proved to be the right decision.”
BSM is in constant exchange with charterers and Schulte Group partners. “We regularly share our knowledge with Schulte Marine Concept (SMC) to enhance vessel design for more efficient future operations. SMC has provided supervision work to more than 30 LNG carriers and 9 LNG bunkering vessels. The new LNG bunkering vessel design, launched by the Schulte Group’s Maritime Energy Centre together with Hamburg-based Technolog, is also a direct result of our close collaboration,” Topham continues.
BSM’s LNG bunkering crew was initially recruited from LNG and LPG carriers. Their training focuses on comprehensive transition courses that transform these seafarers into LNG bunkering vessel specialists who can manoeuvre these ships and manage the intense workload.
By the end of 2024, BSM will have extended its managed fleet of LNG bunkering vessels to five, with operations in Europe and the Americas.
LNG bunkering is all about that critical last-mile delivery between land-based and floating storage to the vessel. In some areas LNG bunker vessels might even prove to be the right size for LNG distribution along a coastline. “In the early days the safe area around bunker operations were still hundreds of meters. Fortunately, as we have become more familiar with the operations, and based on numerous risk assessments, we have managed to reduce these areas dramatically,” Topham explains.
“These are promising developments for this fast-growing sector. However, safety is the cornerstone of the shipping industry, and this remains especially true for LNG bunkering, where the reality is that you don't get a chance to make mistakes,” emphasises Nick Topham. “None of the players should ever forget that.”
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