1. Background: LNG Propulsion – 2012 and Beyond
Penetration of Gas Fuelled Ships and use of LNG as a fuel in the maritime sector
Scope by Vessel Fleet
LNG propulsion on ships is an emerging technology which is currently making inroads in select segments of the
shipping fleet. In order to build a cogent understanding of the developments, the study analyses the growth of the
technology across segments in the shipping fleet for both the new build and retrofit.
Further, the forecast looks at the market comprehensively to include ships which are both dual fuel engine and gas
based propulsion engine.
Geographic Focus
The study covers developments in LNG propulsion globally. The report identifies current and future development in
environment regulations regionally;and covers the consequences of these developments individually in each region.
The overall forecast builds on the “bottom-up” aggregation of these regional developments– resulting in high
accuracy and confidence in the forecasts.
Process of Forecast (Overview)
The forecast is based on a mix of desktop analysis using MEC Intelligence’s proprietary forecasts in fleet
development and a large number of interviews with players in the maritime industry such as shipping
companies, fuel companies, and component manufacturers.
MEC Intelligence analysed the economics for ship owners considering several options for compliance with
the SOx, NOx emission regulations for various types of ships on multiple routes. From this analysis, vessel
types were shortlisted - whose owners will have a high leverage for using LNG propulsion as compared to
the alternativesfor compliance with the environment regulations.
For the shortlisted vessel categories, MEC Intelligence identified the traffic and new addition of such vessels
till 2020 on various routes and used the total figure in alignment with preference for the technology based on
interviews with industry professionals to compute the market figure.
A large number of interviews were also conducted for building the economic models as well, and, the figures
are backed by an exhaustive study of the market.
Basic Assumptions
The headline forecasts of the report are based on the ratification of the proposed emission levels in ECA
and other related environment regulations by IMO as scheduled.
Considering the uncertainty in the ratification of the IMO regulations, projections are also provided for
scenario where the ratifications are not done as per the schedule.
It is assumed that the development of unconventional resources of natural gas will continue as planned.
About MEC Intelligence(www.mecintelligence.com)
MEC Intelligence is a leading market insight firm focused on growth in the maritime, energy, and cleantech sectors.
The company brings together its unique data assets, deep experience in supporting strategic and market business
development, and broad industry knowledgeto develop objective perspective on industry developments;and identify
growth opportunities for the entire maritime, energy, and cleantech ecosystem.For any queries please contact:
reports@mecintelligence.com; web: http://www.mecintelligence.com/index.php?page=research-reports
Tags: LNG as fuel, Gas fuelled ships, LNG marine, LNG in ships, propulsion, LNG bunker, Ship Emissions