LNG Chain

Explainer

LNG as marine fuel: bunkering and the supply chain

LNG bunkering is the supply of liquefied natural gas as fuel to ships rather than as cargo, delivered by bunker vessel, road tanker or shore pipeline, and governed by its own codes and standards.

An LNG carrier has burned its own cargo since the beginning, out of necessity. Ships that are not LNG carriers burning LNG on purpose is a much newer thing, and it has grown a supply chain of its own that looks almost nothing like the LNG trade.

Why shipowners chose it

Regulation, principally. Sulphur limits on marine fuel, tightened globally and tightened further inside emission control areas, left owners choosing between expensive low-sulphur distillate, exhaust scrubbers, or a different fuel.

LNG answers the local pollution question comprehensively. Burning it produces essentially no sulphur oxides, almost no particulates, and substantially less nitrogen oxide than a conventional marine engine. For a vessel spending much of its life in controlled waters, that is a straightforward case.

The greenhouse case is a different argument, addressed below, and it is genuinely unresolved.

Three ways to deliver it

Ship to ship, from a dedicated bunker vessel typically holding a few thousand cubic metres. This is how large vessels are fuelled, and it is a ship-to-ship transfer with the same fenders, linked shutdown systems and weather limits as any other, just smaller. It can happen while the receiving ship works cargo, which is what makes it commercially viable.

Truck to ship, from road tankers on the quay. Simple, needs no marine asset, and limited by how many tanker loads anyone wants to sequence — practical for small vessels and low volumes.

Shore to ship, by pipeline from a terminal to a berth. Efficient where it exists, and it exists in few places, because it requires a terminal to have built for a business that may not arrive.

Why it is a different business

LNG trade moves enormous parcels infrequently between a small number of counterparties on long contracts. Bunkering moves small parcels frequently to whoever is in port, on terms closer to a fuel sale than a commodity contract.

That changes the asset base entirely. Bunker vessels are small-scale ships, often using Type C pressure tanks rather than membranes, because at that size a pressure vessel is affordable and it tolerates the boil-off of an intermittent duty without needing a handling system.

It also changes the risk. A bunker supplier holds inventory against demand it cannot forecast precisely, in a fuel that will not sit still, for customers who may switch back to oil if the price spread closes.

The chicken and egg

Bunkering infrastructure and gas-fuelled ships are each pointless without the other, and neither is cheap.

Owners will not order gas-fuelled tonnage without confidence they can refuel where they trade. Ports will not build supply for ships that do not yet call. The deadlock broke where a large operator committed to a fleet and a supply chain simultaneously, or where a port with LNG import capacity already had liquid available and could add small-scale distribution to an existing terminal.

That last route explains the geographic pattern: bunkering capability has largely appeared at places that already had a reason to hold LNG.

Methane slip decides the emissions argument

This is the part that matters and the part most often glossed over.

Burning methane produces less carbon dioxide per unit of energy than burning fuel oil, so combustion arithmetic favours LNG. But methane released unburned is a far more potent greenhouse gas than the carbon dioxide it would have become, and gas engines release some.

How much depends on the engine, and the difference between engine types is large rather than marginal. Lean premixed Otto-cycle engines — the dual-fuel medium-speed machines common in the bunkering market — slip the most, because a premixed charge sits in crevices where the flame cannot reach it. High-pressure diffusion-cycle engines slip far less, because the gas arrives after compression and burns where it is injected.

So “does LNG reduce emissions” has no single answer. It depends on the machinery, on the leakage upstream of the ship, and on whether you weight methane over twenty years or a hundred. Anyone quoting a confident figure should be asked which engine and which time horizon they assumed.

What the tracker holds

Bunkering infrastructure is not in the Global Gas Infrastructure Tracker as a category, and it is not on this site. Import terminals that also serve small-scale distribution appear as import terminals.

The carrier directory would be where bunker vessels appeared, and it is empty until GEM’s LNG Carrier Tracker is loaded — which, as the carriers page explains, requires someone to download it by hand.

Common questions

Each answer stands on its own.

How is LNG delivered to a ship as fuel?
Three ways. Ship to ship from a dedicated bunker vessel, which is the method for large vessels; truck to ship from road tankers for smaller volumes; and shore to ship by pipeline where a terminal has been built for it.
Why do ships use LNG as fuel at all?
Because it eliminates sulphur oxide emissions and most particulates, and cuts nitrogen oxides substantially, which matters in emission control areas. Whether it reduces greenhouse gas emissions depends entirely on how much methane escapes unburned.
What is the IGF Code?
The international code governing ships using gases or other low-flashpoint fuels, covering fuel tanks, piping, machinery spaces and bunkering arrangements. It is to gas-fuelled ships what the IGC Code is to gas carriers.
Is LNG bunkering the same business as LNG trade?
No. The volumes are far smaller, the customers are shipowners rather than utilities, deliveries are frequent and small, and the infrastructure is bunker vessels and trucks rather than terminals and carriers.
Does LNG as marine fuel reduce emissions?
It clearly reduces sulphur, particulates and nitrogen oxides. The greenhouse case is contested, because unburned methane escaping through the engine can offset a large part of the carbon dioxide saving, and how much depends on the engine type.

Last reviewed 2026-09-07.