LNG orders significantly overshadow methanol in 2024

Concerns over the future availability of green methanol are clearly reflected in carriers’ newbuilding orders this year. After dominating the newbuilding market last year, the proportion of methanol-fuel contracts has fallen sharply in the first ten months of 2024.

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Methanol-powered ships so far represent just 21% of new capacity ordered in 2024, a significant drop on the 51% seen in 2023. Underlining the decline, methanol capacity contracted this year has fallen below demand for conventional tonnage again.

Instead, LNG propulsion has re-asserted itself as carriers’ principal short-tomedium term choice on the path to decarbonisation.

In what is expected to be a record-breaking year for containership contracting, as of 14 October Alphaliner reported a total of 264 orders (all propulsion types) equivalent to 3.11 Mteu. Some 77.5% of capacity ordered represents ‘green’ tonnage.

Fears of insufficient methanol supply have multiplied this year as the fuel’s processing costs have proved higher than expected and planned production has failed to take off.

Source: Alphaliner

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