LNG emerges as the leading maritime fuel amid tightening emissions rules in Europe

Liquefied natural gas has emerged as the dominant option among alternative marine fuels as shipowners race to meet tightening greenhouse gas obligations in European waters and beyond. Market data and industry reports point to rapid growth in LNG bunkering infrastructure, vessel orders and sales volumes, reinforcing its role as a practical near‑term pathway to emissions reductions while longer‑term fuels remain constrained.

According to Argus Media, the EU’s FuelEU Maritime, Renewable Energy Directive III and the expanded EU emissions trading system have prompted ship operators to target fuel solutions that can be deployed quickly and at scale. From 2025, vessels calling at, departing from or operating within EU territorial waters face an initial 2% GHG reduction requirement, with more demanding thresholds scheduled in subsequent years. Industry participants told Argus that LNG’s extensive port coverage and established logistics make it the most achievable compliance route in the short to medium term.

Infrastructure data from industry group SEA‑LNG shows LNG bunkering availability at more than 220 ports worldwide, underpinning commercial confidence. Classification society DNV reported that LNG‑fuelled ships represented a large majority of alternative‑fuel newbuild orders in 2025, accounting for roughly seven out of ten vessels on the alternative‑fuel orderbook and about 31% of total gross tonnage, reflecting builders’ and owners’ preference for a fuel with deliverable supply chains.

Commercial activity across southern Europe offers concrete evidence of the shift. Spain’s gas transport association Gasnam reported that LNG bunkering sales rose to over 8.1 TWh in 2025, more than double year‑on‑year and roughly four times 2023 levels, driven by new LNG‑capable tonnage and growing terminal loadings. The Port of Barcelona recorded a sharp rise in LNG activity in 2024 and into 2025, with Ship & Bunker noting a 60% jump in 2024 to 229,750 cubic metres and port figures showing continued growth into 2025 that positioned Barcelona as Spain’s leading LNG bunkering hub. Antwerp also reported a doubling of LNG bunkering sales in the third quarter of 2025, underlining a broader north‑west European uptake.

New market entrants and expanded services are widening supply options. According to a media release from energy company Axpo, the firm completed ship‑to‑ship LNG bunkering in Málaga in 2025, the first such operation in that port, and plans further activity at Spanish terminals including Algeciras, Valencia and Barcelona. The company framed its entry as a response to rising demand for a lower‑carbon marine option.

Commercial drivers are intertwined with regulatory economics. Argus reported that in September 2025, surplus FuelEU Maritime credits generated by LNG‑fuelled ships traded at a premium to delivered bio‑LNG assessments in Europe, enabling compliant owners to monetise excess compliance by selling credits to under‑compliant peers. That dynamic highlights how short‑term regulatory incentives can influence fuel choices and asset economics.

Nevertheless, industry analysis underlines limits to conventional LNG’s compliance envelope as rules tighten. Argus and other observers note that while LNG can help vessels meet the IMO’s proposed baseline fuel‑intensity reductions into the early 2030s, it is unlikely to satisfy the more stringent “direct compliance” targets the IMO would impose without low‑carbon feedstocks. By contrast, bio‑LNG offers far greater lifecycle GHG savings and, where available, would enable owners to meet both FuelEU Maritime and IMO crediting requirements and generate surplus compliance value.

The longer‑term picture for truly zero‑carbon marine fuels remains uncertain. Ship & Bunker and other market watchers reported that orders for methanol‑ and ammonia‑fuelled newbuilds stalled in 2025 even as LNG share among alternative‑fuel orders climbed, indicating commercial and supply‑chain barriers to the wider adoption of hydrogen‑derived or synthetic fuels. Ports are beginning to plan for fuel diversity, Port of Barcelona officials are preparing tenders for both LNG and methanol bunkering services, but the rollout of methanol, ammonia and green hydrogen infrastructure is likely to lag LNG for the foreseeable future.

For industrial decarbonisation professionals advising shipowners and ports, the message is clear: LNG currently offers the most scalable route to near‑term regulatory compliance and operational continuity, but its climate benefit hinges on the availability of low‑carbon LNG feedstocks such as bio‑LNG and on evolving regulatory baselines. Companies that balance immediate access to LNG infrastructure with strategies to transition vessels and fuel supply chains towards bio‑ and synthetic options will be better placed to manage compliance costs and avoid asset stranding as standards tighten through the 2030s.