Titan is a leading supplier of LNG and bio-LNG as a bunker fuel, mostly supplying volumes in northwest Europe. Argus spoke to Titan's commercial director, Michael Schaap, about the future of LNG and bio-LNG bunkering.
How has the demand for LNG as a marine fuel evolved over the past year, and what factors are driving this growth besides FuelEU Maritime?
Demand for LNG as a marine fuel has grown significantly over the past year, driven not only by regulatory developments like FuelEU Maritime but also by the growth of the LNG dual-fuel fleet.
According to DNV's Alternative Fuels Insights platform, 642 LNG-powered vessels are currently in operation, excluding LNG carriers. Of these, 169 were delivered in 2024, setting a record.
The growth in demand is expected to continue — 264 new orders for LNG-fuelled vessels were placed in 2024, also a record and more than double the number of orders placed in 2023. Essentially, the total addressable market for LNG pathway fuels in 2028 will be enormous.
The LNG pathway uses LNG (and its established infrastructure), bio-LNG and e-methane (derived from renewable hydrogen). All of these fuels can be blended at any ratio and ‘dropped into' infrastructure and vessels with little to no modification required. It is increasingly recognised as a practical route to take the shipping industry to net zero greenhouse gas emissions.
What are the current challenges in scaling LNG bunkering infrastructure to meet the needs of the growing fleet of LNG dual-fuel vessels?
A key challenge is ensuring timely investment in bunkering infrastructure to keep pace with the growing number of LNG-fuelled vessels.
Take LNG bunkering vessels, for example. According to the DNV, about 64 LNG bunkering vessels are in operation worldwide today, with a further 16 on order. While this far exceeds other alternative fuels, continued investment and expansion will be important. To maintain safe, timely and efficient LNG deliveries that meet demand, it is also important to maintain a suitable number of LNG loading slots.
The increased demand for LNG and bio-LNG could alter the dynamics between buyers and sellers in the market. The spot market may become more challenging and expensive for shipowners and operators going forwards. As a result, those that can plan should book capacity well in advance and sign long-term offtake agreements. A good balance of pre-booked business also allows suppliers to reinvest in infrastructure such as bunkering vessels, shifting the market back towards the buyers.
Where is Titan looking to expand — beyond northwest Europe?
Titan supplies and bunkers LNG and increasingly bio-LNG around the world, partnering with local companies to support if needed.
Titan's base, the Zara (Zeebrugge, Amsterdam, Rotterdam, Antwerp) region, is a key hub for LNG, bio-LNG and in the future, e-methane bunkering, and this is not expected to change.
Having said this, the Mediterranean is recognised as a key strategic market for expansion. The Mediterranean became an Emission Control Area (ECA) on 1 May, so we expect this to escalate the need for LNG and bio-LNG in the region. Compared with heavy fuel oil, LNG pathway fuels can reduce nitrogen oxide emissions by up to 80pc and almost eliminate sulphur oxide and particulate matter emissions, offering ECA compliance.
How is Titan positioning itself to meet the expected boom in bio-LNG demand growth over the coming years and decades?
Titan is leading the way in supplying bio-LNG. We have been bunkering nearly all of [Norwegian shipping line] UECC's LNG-powered car carriers with bio-LNG since mid-2024, offering over-compliance with FuelEU Maritime, which presents financial rewards through pooling or banking. The partnership has now been extended through 2025.
In 2024, we completed the world's largest ship-to-ship bio-LNG bunkering. We bunkered 2,200t of mass balanced bio-LNG to a Hapag-Lloyd containership in Rotterdam. The bio-LNG was ISSC-certified and recognised under the EU's Renewable Energy Directive known as Red II, marking a major milestone in the clean marine fuels transition.
Going forwards, we hope to continue pioneering bio-LNG bunkering across more ports, and we feel it is important for us to further scale our bio-LNG offering as customers increasingly look to focus on regulatory compliance. We will also continue to closely monitor demand and supply signals for other clean marine fuels and will implement them into our portfolio as necessary.
What do you see as the main challenges to bio-LNG growth, both in Europe and globally?
High production costs remain a challenge for bio-LNG, but processes such as mass balancing are helping to lower supply-side costs.
Mass balancing is a system in which biomethane is injected into the gas network and transported to liquefaction plants and LNG terminals using the existing infrastructure. It is expected to feature on many alternative fuel pathways and is a practical way of delivering clean molecules. The best analogy is when domestic energy companies provide consumers with renewable energy in a very similar way.
Co-ordinated and consistent public-sector support for biomethane production will also support continued growth in the sector. The EU REPowerEU plan has ambitious biomethane usage targets of 35bn m³ by 2030. In 2023, the EU produced 22bn m³ of biogas, with biomethane being a key component. There is still plenty of work to do.
Public-sector support is not only in the interest of end-users, but also of governments. This is because bio-LNG provides energy security, reducing dependency on any other nation's gas supplies. Bio-LNG can be produced locally, anywhere where waste feedstocks are available. At a time of geopolitical instability, the independence and resilience that lots of smaller suppliers can offer is a powerful incentive to invest.
Gas prices have been very volatile since the start of this decade. Do you see this as a limiting factor to LNG and bio-LNG bunkering growth?
While price fluctuations are a consideration, they do not fundamentally limit growth. LNG and bio-LNG remain cost-competitive compared with other alternative fuels. As LNG and bio-LNG are produced differently, factors that affect the price of one will not necessarily affect the other.
To mitigate against market volatility, building in optionality is key. Shipowners and operators have this through their dual-fuel engines, switching to fuel oil if needed. Our bunkering assets are similarly flexible. Using our specialist skill set, we are also open to delivering any fuel that can substantially decarbonise shipping, which will further diversify our operations and build resilience.
