News
10/07/25
Q&A: Titan on the future of LNG and bio-LNG bunkering
Q&A: Titan on the future of LNG and bio-LNG bunkering
London, 10 July (Argus) — 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. By Martin Senior and Natalia Coelho Send comments and
request more information at [email protected] Copyright © 2025. Argus
Media group . All rights reserved.
