Canada LNG Bunkering Market Size (2024 - 2029)

The Canada LNG bunkering market is poised for growth, driven by the increasing adoption of LNG-powered ships and the economic advantages of using LNG as a marine fuel. The market's expansion is further supported by stringent emissions standards and restrictions on sulfur oxide emissions in North America. Despite the challenges posed by the high costs of reducing sulfur content in conventional fuels, which could impede economic feasibility, the market has rebounded to pre-pandemic levels. The decline in natural gas prices and the rising number of LNG-powered ship orders and deliveries present promising opportunities for the market's future.

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Market Size of Canada LNG Bunkering Industry

Canada LNG Bunkering Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 5.25 %
Market Concentration High

Major Players

Canada LNG Bunkering Market Major Players

*Disclaimer: Major Players sorted in no particular order

Canada LNG Bunkering Market Analysis

Over the next five years, the Canada LNG bunkering market is expected to register a CAGR of more than 5.25 percent.

Due to regional lockdowns, the COVID-19 outbreak had a negative impact on the market. Currently, the market has reached pre-pandemic levels.

  • The Canadian LNG bunkering market is being driven by things like the arrival of LNG-powered ships in eastern and western Canada, the economic benefits of LNG as a marine fuel, and strict emissions standards in North America.Also, the restrictions on sulfur oxide (SOx) emissions are expected to drive the market during the forecast period.
  • Moreover, reducing the sulfur content of conventional fuel requires a high cost, which is likely to hamper the economic viability of the same, hindering the market's growth.

The number of orders and deliveries of LNG-powered ships is going up, and the drop in natural gas prices is the start of more opportunities for these ships in the years to come.

Canada LNG Bunkering Industry Segmentation

LNG is natural gas that has been cooled to a liquid state at about -260° F for shipping and storage. The volume of natural gas in its liquid state is about 600 times smaller than its volume in its gaseous state. This process makes it possible to transport natural gas to places where pipelines do not reach. Canada's LNG bunkering market is segmented by end-user into tanker fleets, container fleets, bulk and general cargo fleets, ferries and OSVs, and others. The market sizing and forecasts have been done based on revenue (USD million).

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Canada LNG Bunkering Market Size Summary

The Canadian LNG bunkering market is poised for growth, driven by the increasing adoption of LNG-powered vessels and stringent emissions regulations in North America. The market has rebounded to pre-pandemic levels after the setbacks caused by COVID-19. The economic advantages of LNG as a marine fuel, coupled with the need to comply with sulfur oxide emission restrictions, are significant factors propelling the market forward. The shift from conventional fuels, which are costly due to high sulfur content, to LNG is expected to enhance the economic viability of marine operations. The rise in orders and deliveries of LNG-powered ships, along with favorable natural gas pricing, is anticipated to create further opportunities in the sector.

Government regulations aimed at reducing emissions have been instrumental in promoting the use of LNG in various marine vessels, including ferries and offshore support vessels. These vessels are expected to lead the transition to LNG, with significant projects already underway, such as BC Ferries' replacement of diesel-powered vessels with LNG-powered ones. The Port of Vancouver's increased cargo handling, driven by a rise in imports from Canada to the United States, underscores the growing demand for LNG bunkering facilities. The Canadian government's commitment to reducing greenhouse gas emissions, alongside an abundant natural gas supply, positions the country as a key player in the LNG bunkering market. The market is consolidated, with major players like Shell PLC and TotalEnergies SE actively participating in its development.

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Canada LNG Bunkering Market Size - Table of Contents

  1. 1. MARKET OVERVIEW

    1. 1.1 Introduction

    2. 1.2 Market Size and Demand Forecast in USD million, till 2028

    3. 1.3 Recent Trends and Developments

    4. 1.4 Government Policies and Regulations

    5. 1.5 Market Dynamics

      1. 1.5.1 Drivers

      2. 1.5.2 Restraints

    6. 1.6 Supply Chain Analysis

    7. 1.7 PESTLE Analysis

  2. 2. MARKET SEGMENTATION BY END-USER

    1. 2.1 Tanker Fleet

    2. 2.2 Container Fleet

    3. 2.3 Bulk & General Cargo Fleet

    4. 2.4 Ferries & OSV

    5. 2.5 Other End-Users

Canada LNG Bunkering Market Size FAQs

The Canada LNG Bunkering Market is projected to register a CAGR of greater than 5.25% during the forecast period (2024-2029)

Harvey Gulf International Marine LLC, Nauticor GmbH & Co. KG, Gasum AS, TotalEnergies SE and Shell PLC are the major companies operating in the Canada LNG Bunkering Market.

Canada LNG Bunkering Market Report Snapshots

Canada LNG Bunkering Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)