LNG Container Ships Gain Traction Over Methanol

In Korea, Business Korea reports the shipbuilding industry is experiencing a significant shift, with a rising preference for liquified natural gas (LNG) dual-fuel container ships over methanol-powered vessels. According to Clarkson Research, the first half of this year saw orders for 40 LNG dual-fuel container ships, double the 20 methanol dual-fuel ships ordered. This is a reversal from last year, where methanol ships led with 65 orders compared to 35 for LNG.

Industry analysts attribute this trend to the lower cost and greater availability of LNG, along with established refueling infrastructure at major ports, making it more suitable for regular shipping routes. Methanol, while environmentally friendly, remains more expensive and less accessible.

Maersk, previously a strong advocate for methanol-powered ships, has pivoted to LNG. The company recently issued a request for proposal to order 12 LNG container ships of 16,000 TEU, following the postponement of its methanol ship orders from China State Shipbuilding Corporation.

South Korean shipbuilders, including HD Hyundai Heavy Industries and Samsung Heavy Industries, are now considering participating in these lucrative LNG container ship bids, potentially securing work for the next four years. This shift is seen as a positive development, especially as Chinese shipbuilders dominate the methanol ship market.

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