LNG Shipping Boom Faces Methane Problem as Bunkering Expands

· Shipping · Singapore · United Arab Emirates

Shipping's LNG boom is facing a methane problem, according to industry analysis, as the fuel long sold to shipowners as a sensible bridge fuel comes under scrutiny for its climate impact. The concern comes as LNG infrastructure expands: Singapore LNG has started construction of a third jetty at its Jurong Island terminal, which could raise its LNG bunkering capacity to 3 million metric tons per year, with completion scheduled for the second half of 2028. Meanwhile, ADNOC has signed a multi-year agreement with Gulf Group to ship 2 million tonnes of LNG starting in 2027. Together, these developments reflect both the growing infrastructure and supply commitments behind LNG as a marine fuel and the environmental questions that remain unresolved.

Why it matters：LNG is the most widely adopted alternative marine fuel, so unresolved methane emissions questions could affect its viability as a compliance pathway under tightening decarbonization rules, while new bunkering and supply deals show the industry is still betting heavily on it.

Key points

  • Singapore LNG has begun building a third jetty, targeting 3 million mt/year of bunkering capacity by H2 2028.
  • ADNOC will ship 2 million tonnes of LNG to Gulf Group starting in 2027.
  • Methane emissions from LNG remain an unresolved climate concern for the fuel's role in shipping.

Sources (original reporting)

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