LR: Potential of LPG depends on scaling up renewable fuel production

June 22 ------ Success requires multiple pathways, including operational efficiencies, advances in ship design and the adoption of cleaner marine fuels like LPG, according to the latest report from Lloyd’s Register.

As explained in the “Fuel for Thought: LPG report”, LPG, as a fossil-derived fuel, offers significant air pollution benefits compared to conventional fuel oil, ensuring compliance with IMO sulphur oxide regulations. It also provides a reduction in greenhouse gas emissions, which could be further enhanced through the integration of onboard carbon capture technologies to help meet IMO ambitions over the next decade.

Its long-term decarbonization potential will largely depend on the scaling up of renewable fuel production, which is expected to accelerate as traditional LPG users seek to reduce their environmental footprint. At the same time, growing demand and seaborne trade are anticipated in the coming years, driving expansion of the global LPG carrier fleet and creating further opportunities for the fuel’s uptake within that sector.

Beyond shipping LPG carriers, there is also potential for wider application across other vessel types. With well-established systems for transportation, storage, and use, and a mature global supply infrastructure, LPG is already well positioned operationally.

While long-term fuel price projections remain uncertain, particularly with emerging renewable alternatives, LPG may still offer competitive operating and capital costs relative to other options, according to the report. "Although LPG is now the fuel of choice for large gas carriers, this segment accounts however for only 8% of shipping emissions, leaving a massive 92% from other types of vessels. The conversion of these ships presents a great opportunity to reduce global emissions even further. LPG is an ideal fuel for all types of vessels, from the largest VLGCs, to container ships, from commercial fishing boats to recreational vessels," said Nikos Xydas, Technical Director, World Liquid Gas Association (WLGA).

Ship operator demand and interest

The LPG market continues to experience a rise in demand and consequently in world seaborne trade. In 2025, the global LPG trade expanded by 5% year on year, reaching a record volume of 145 million tons. A further 7% rise is expected in 2026 compared with 2025. The available data indicate a steady increase in global LPG trade volumes, from 122 million tons in 2022 to just under 200 million tons by 2034, with growth moderating gradually after 2030.

LPG carrier fleet

Regarding the worldwide LPG ship profile, as of December 2025, there were 1,758 LPG carriers, and 238 of them, based on the installed main engine model, could be potentially converted to LPG fueled thus exploiting ships’ cargo and existing infrastructure and minimizing their operating costs. Further breaking down the December 2025 based data in the above charts, the following critical points arise and are provided below. To be noted however that the in-service dual-fuel LPGC fleet had further increased from 151 to 189 vessels by end 2026.

However, increased uptake of LPG in the commercial maritime sector is not without challenges. The range of available engine technologies, though well-established, will need to be expanded to enable full use of the fuel.

Currently, for example, four-stroke engines for land-based power plants are available and can be made classified for marine purposes, for both the main and the auxiliary engines, pending market demand. The regulatory framework for LPG use, particularly for bunkering, remains patchy, with the first interim guidelines for ship construction and design only just started at IMO level.

Ultimately, the deciding factor in whether LPG will be a significant fuel candidate either as a zero or near-zero emission fuel, or as a transitional fuel, will be the pace and scale of decarbonization of the fuel production, and how quickly other supportive energy-saving technologies – such as carbon capture – can mature.

Source: safety4sea.com