ExxonMobil recently announced its official entry into the marine LNG bunkering market, as part of its overall strategy to invest up to $30 billion in low-emission projects by 2031. The company stated that against a backdrop of policy support and rising demand for LNG in shipping, a market entry opportunity has emerged, leading to the decision to start its deployment by chartering two bunkering vessels.
“Compared to traditional marine fuels, both LNG and marine bio-LNG contribute to reducing greenhouse gas emissions on a lifecycle basis,” said Amy Wood, ExxonMobil’s Global Head of Low Emission Fuels. The company emphasized that with its forty years of accumulated experience across the entire LNG value chain and its industry credibility as a shipping fuel supplier, it possesses the capability to offer these fuel options to the market.
It is understood that ExxonMobil has currently confirmed the charter of two vessels as the initial supply backbone and is advancing several “complementary supply solutions” before the newbuilds are delivered to ensure supply continuity and meet customer needs during the transition period. This strategy allows the company to enter the market early while providing timely support to customers already prepared to adopt LNG as a marine fuel.
Specifically, ExxonMobil’s first vessel is chartered from Avenir LNG and is scheduled for delivery in the first quarter of 2027. The second vessel is chartered from the Greek shipowner Evalend Shipping and is expected for delivery in the fourth quarter of 2027. ExxonMobil stated that as customer demand grows, it will gradually expand its LNG bunkering fleet to provide greater supply capacity.
Looking at the partner Avenir LNG, the company currently owns and operates 5 LNG bunkering and supply vessels and placed an order for two 20,000 cubic meter class vessels in April 2024. These two newbuilds will be constructed by China’s Nantong CIMC Sinopacific Offshore & Engineering Co., Ltd., with expected deliveries in the fourth quarter of 2026 and the first quarter of 2027, respectively. Notably, Avenir LNG pioneered the 20,000 cubic meter class LNG bunkering vessel several years ago and had previously sold the first two vessels to a Chinese operator. The company pointed out that the long-term charter model not only effectively reduces the risk of newbuilding projects but also ensures stable cash flow.
Regarding the operational arrangements for the newbuilds, Avenir LNG’s first new vessel will be operated by Singapore’s Vitol International Shipping company under a 7-year charter, with the total charter period extendable to 10 years; the second new vessel, upon delivery in 2027, will be taken over and operated under a long-term charter by ExxonMobil’s shipping subsidiary, SeaRiver Maritime.
Furthermore, when placing the newbuilding order, Avenir LNG disclosed that these vessels will feature a new Type C tank design and achieve a lower boil-off rate. In addition to being equipped with the latest engine technology, the hull lines have been optimized, and a subcooler is installed to reduce carbon emissions and control cargo loss to levels lower than those of similar vessels of the same tonnage. This design allows this type of vessel to flexibly connect with various receiving ships and terminals, enabling the loading and unloading of both LNG and marine bio-LNG, giving it strong versatility.
The industry widely believes that the entry of energy giants into the bunkering segment further confirms the potential long-term role of LNG (and future bio-LNG) in the shipping industry’s fuel transition. Looking back at industry development, ship-to-ship LNG bunkering emerged about 15 years ago and has gradually become standardized. According to DNV statistics, there are currently about 62 LNG bunkering vessels in service and approximately 185 ports with LNG bunkering capabilities.
Currently, there are about 788 LNG-fueled vessels in service globally. DNV estimates this number will nearly double in the next 8 years, with about 688 LNG dual-fuel vessels on order, led by container ships, followed by car carriers. However, the adoption of LNG has expanded to almost all commercial ship types.
