The Netherlands LNG bunkering market is expected to grow at a CAGR of more than 5.25% over the period of 2020 - 2025. Stringent environmental regulations to curb emissions coupled with the abundant availability of natural gas is expected to stimulate industry growth. Increasing focus to maintain fossil fuel sustainability along with rising concerns to minimize environmental impact are some of the driving factors for the LNG bunkering market. Moreover, reducing the sulfur content from conventional fuel is capital intensive and is likely to hinder the growth of the market studied.
- Ferries & OSV segment is expected to dominate the Netherlands LNG bunkering market during the forecast period.
- The orders and deliveries of LNG-powered vessels are increasing, and the reduced natural gas prices in 2020 had marked the beginning of expanding opportunities for such vessels in the coming years.
- LNG infrastructure improvement is expected to drive the market during the forecast period.
Key Market Trends
Ferries & OSV to Dominate the Market
- Ferries are vessels used to carry cargo and crew across the water, offshore support vessels (OSV) are required during oil exploration and construction work in an offshore location.
- It is expected that the LNG demand for marine vessels in the Netherlands is expected to come from ferries and other coastal traffic, following which other marine vessels are expected to contribute toward LNG demand in the coming years.
- By 2025, the LNG based ferries and OSVs are projected to increase, considering a large number of LNG fueled ferries and OSVs on order. This is likely to increase the demand for LNG bunkering services in the forecast period.
- Hence, the increasing number of LNG fueled ferries and OSVs is expected to drive the demand for LNG fueled ferries and OSVs, over the forecast period.
LNG Infrastructure Improvement to Drive the Market
- The Netherlands has been a pioneer country in the European region for the implementation of clean fuel initiatives including LNG bunkering facilities.
- Numerous incentives have been introduced, such as infrastructure improvement and the offering of a 6% discount on seaport dues for LNG tankers of at least 20,000 ton DWT with a green award certificate.
- The Rotterdam port has grown to become the leader in Europe for the introduction of LNG as a fuel. The port takes a leading role in adopting the regulations and creating the necessary infrastructure and in doing so also, serves as an example for other ports.
- In June 2019, Europe’s first inland-waterway liquefied natural gas (LNG) bunker vessel on long-term charter to Shell performed first bunkering operations, with the Containerships Polar and Containerships Nord vessels, in Rotterdam.
- Hence, such developments are expected to fuel the demand for LNG bunkering services in the Netherlands during the forecast period.
The Netherlands LNG bunkering market is consolidated. Some of the key players in this market include Titan Energy LLC, Houpu Clean Energy Co., Ltd, Royal Dutch Shell Plc, Total SA, and Sovcomflot OAO.
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