Hapag-Lloyd orders six dual LNG-powered container vessels

German container line Hapag-Lloyd has ordered six ultra large 23,500+ 20 foot-equivalent unit container vessels that can run on LNG as well as conventional fuel, ahead of emissions targets that may favor LNG in the medium-term but not the long-term.

South Korean shipyard Daewoo shipbuilding & Marine Engineering will build the vessels, which will be used on Europe to Far East routes, Hapag-Lloyd said Dec. 23.

LNG bunkering demand was estimated to grow to 9 million mt by 2025 and just under 30 million mt by 2030, with the LNG bunkering fleet growing to more than 8,000 by 2030 from an existing fleet of 556, Alan Heng, managing director for Asia at Pavilion Energy, said earlier this year.

Hapag-Lloyd has already showed some support for the fuel. The company is one of first two named foundation clients that will back the utilization of Singapore's first purpose-built LNG bunker tanker.

The International Maritime Organization is targeting a 40% reduction in CO2 emissions averaged out per ship by 2030 compared with 2008 levels and a cut in all greenhouse gas emissions by 2050. Various market watchers expect LNG to be useful in meeting the CO2 target in 2040 but not the GHG target in 2050.

With shipowners having to invest in new vessels now that will be in use when the availability and cost of compliant fuels is unclear, as well as the regulatory environment, shipowners should keep their fuel options open for newbuilds, market experts have said.

S&P Global Platts assessed LNG Bunkers at Rotterdam at $338.67/mt on Dec. 22, compared with $376/mt delivered for 0.5% sulfur fuel oil, the prevalent bunker fuel.