Market Trends of Middle-East and Africa LNG Bunkering Industry
This section covers the major market trends shaping the MEA LNG Bunkering Market according to our research experts:
Tanker Fleet Segment to Dominate the Market
- The tanker fleets include small tanker, intermediate tanker, medium-range 1 (MR1), medium-range 2 (MR2), Large Range 1 (LR1), Large Range 2 (LR2), Very Large Crude Carrier (VLCC) and Ultra Large Crude Carrier (ULCC), which differ on the basis of tanker capacity.
- Presently, tankers use standard fuel oils and diesel for fleets, which according to the regulations of IMO 2020, from 1st January 2020, have to be shifted to low sulfur content fuel or LNG.
- As of May 2020, 27 of LNG fueled tanker fleets were in operation globally. However, there are other tankers that majorly use low sulfur oil and marine gas oil as fuel.
- However, with the regulations related to sulfur content in the fuel, LNG is projected to become a reliant fuel for tankers in the coming years. As compared to other vessels, the number of LNG fuelled tanker fleets is more in the region.
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The United Arab Emirates to Dominate the Market
- The Middle-East, with its enormous oil and gas reserves, has always been a center of trading activities. The United Arab Emirates is a major oil producer and exporter. In 2018, the state-owned oil company ADNOC announced that the country plans to increase its oil production capacity to 5 million bpd by 2030 after new oil and gas findings.
- The United Arab Emirates has been one of the emerging countries in the implementation of LNG bunkering activities in the Middle-East and African region.
- Furthermore, the implementation of LNG bunkering activities also provides an opportunity for the regional LNG bunkering operator companies to serve the inbound European ships, which have strict environmental regulation norms to follow.
- Port of Fujairah, the second-largest bunkering port globally, is the only multi-purpose port on the eastern seaboard of the United Arab Emirates.
- As part of the port's bunkering expansion strategy, Fujairah is planning to introduce a ship-to-ship LNG transfer facility. The port is also working toward the improvement of rules and regulations to promote investments and more bunkering activities.
- Moreover, this has significantly increased the demand for LNG bunkering facilities in region during the forecast period.
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