According to SEA-LNG’s 2026 Mid-Year Market Review, liquefied natural gas (LNG) remains the dominant choice for alternatively fueled vessels, with dual-fuel orders representing 90% of all alternative contracts. Investments in LNG bunkering are also growing, supporting a surge in LNG demand amid the industry’s push toward reduced greenhouse gas emissions.
In 2025, the shipping industry is facing the challenge of reducing greenhouse gas emissions to comply with regulations set by the International Maritime Organization. The Carbon Intensity Indicator rating is becoming stricter, with the EU ETS likely to see price increases. Ship owners are turning to LNG, biomethane, and e-methane as cost-effective and environmentally friendly alternatives.
In response to the International Maritime Organization’s emission reduction targets, there has been a surge in investment in LNG-fueled vessels. Liquefied natural gas, along with its bio and synthetic forms, is becoming a popular choice for decarbonizing the shipping industry due to its emission reduction capabilities and compatibility with existing infrastructure.
SEA-LNG is leading efforts to eliminate methane slip in the maritime sector, with predictions of eradication within the next decade. Progress has been made in reducing methane emissions from LNG-fueled vessels, but environmental groups are calling for a transition to true zero-emission solutions to meet climate targets by 2050.
