LNG-powered vessel orders decline in 2023: DNV

A total of 130 LNG-powered vessels were ordered in 2023, down 41.4% compared with the 222 orders in 2022, according to data from DNV Alternative Fuels Insight (AFI), published on January 9.

Despite the drop in numbers, the year marked a milestone as the total number of LNG-powered vessels surpassed 1,000, underlining LNG's enduring significance in the maritime energy transition. 

The breakdown of LNG-powered vessel orders in 2023 reveals that the containers segment was the most active, with 48 orders, followed by car carriers with 40 orders, and tankers with 30 orders. 

In the broader context of alternative fuels, the AFI platform found that a total of 298 ships with alternative fuel propulsion were ordered in 2023, representing an 8% increase compared with the previous year.

Notably, methanol saw a sharp increase in orders, totaling 138 versus 35 in the previous year and putting it on par with LNG. Ammonia also had a breakout year with 11 orders for vessels powered by this fuel, indicating a growing interest in ammonia as a cleaner alternative. However, hydrogen, with only five orders, experienced a decline compared to the previous year's 18 orders.

Martin Wold, principal consultant in DNV’s Maritime Advisory business, said, "Investments in alternative-fuelled vessels have been heavily driven by the container and car carrier newbuild boom over the last three years. It remains to be seen if this trend continues into 2024."