Riding the LNG Wave

Calcasieu pass — File image courtesy Venture Global LNG

(Article originally published in Jan/Feb 2026 edition.)

The age of global LNG is upon us.

In the latter half of 2025, the global supply increased nearly seven percent. This came largely from North America, which frankly has LNG down to a science. It's abundant here. We know how to extract it in an environmentally conscious manner, and we have the infrastructure to process, store and move it.

New U.S. LNG projects reaching final investment decisions in 2025 included Louisiana LNG, Corpus Christi Trains 8 & 9, CP2 phase 1, Rio Grande LNG Train 4 and Port Arthur Phase 2. This new wave further solidifies the U.S.'s position as the world's largest LNG supplier with global market share expected to increase from about 25 percent last year to 33 percent by the end of the decade.

The rise in supply is expected to drive increased global demand in 2026, primarily from Asia, but also from other global markets as they invest in infrastructure to effectively import this clean, abundant energy source.

And as LNG produces 30 percent less CO? than heavy fuel oil and nearly zero sulfur oxides, it's the cleanest of fossil fuels and an ideal choice for meeting emissions targets over the next decade.

Although achieving that goal is not without its challenges.

Class guidance

In ABS's 2025 Sustainability Outlook, "Vision Meets Reality," the authors rightly note that "from a total cost of ownership perspective, clean fuels currently present a weak economic case due to their high costs and limited availability." And while clean fuels such as ammonia may play a role in the energy transition, they're unlikely to achieve significant decarbonization by 2040.

Conversely, LNG offers lower base costs and an established supply chain, contributing to its being specified in over 70 percent of alternative-fuel newbuild orders.

The cruise, ro/ro, car-carrying and container industries have widely adopted alternative fuels over conventional ones. As ABS has become the largest classification society by gross tonnage in service as of 2025 while maintaining a strong presence in the tanker, gas carrier and containership sectors, it stands perfectly positioned to guide shipowners in their transition journey.

Lloyds Register (LR) is another source of expert advice to vessel operators in their energy transition journey.

The energy transition challenge is really a risk management problem. What fuel to choose? What equipment to purchase? Which ones will be readily available long term with the global infrastructure to support them?

LR's approach is not prescriptive – it remains firmly fuel agnostic. The company has invested significantly in the study of all alternative fuels including its involvement in the Methane Abatement in Maritime Innovation Initiative. This collaboration, led by Safetytech Accelerator, unites industry leaders, tech innovators and maritime stakeholders working together toward the goal of significantly reducing methane emissions from LNG use as a marine fuel.

"Methane slip," as it's known, is the release of unburned methane into the atmosphere from engines using natural gas or liquefied natural gas (LNG) as fuel. It occurs when combustion isn't 100 percent efficient. Because methane is a potent greenhouse gas (over 25 times stronger than CO? over 100 years), minimizing slip is crucial for climate change mitigation.

A significant milestone for LR is the recent renewal surveys and drydocks for P&O Cruises' Iona and Carnival Cruise Line's Mardi Gras – the first major LNG drydocks for large passenger vessels in Europe. The work represented the execution of a highly sophisticated technical program, the culmination of more than a year of detailed collaboration, planning and risk management.

Drydocking a LNG-fueled cruise ship is a fundamentally different exercise from a conventional refit. With vessels spending only a brief period out of service, LNG system maintenance windows are correspondingly narrow.

"Starting 18 months in advance," explains Andrew Bennett, Machinery Survey Policy Manager in LR's Technical Directorate, "we worked closely with the client to understand their specific operation, maintenance and drydocking challenges and helped them develop detailed schedules with optimized surveys agreed in advance and aligned to meet their requirements."

Bunkering Expertise

Running on LNG requires a bunkering infrastructure to support the operation.

Headquartered in Jacksonville, Florida, TOTE Services is playing a critical role in bringing LNG fuel to the maritime sector through their design and construction of the bunker barges Clean Jacksonville and Clean Everglades, operated by Seaside LNG.

The Clean Jacksonville was the first membrane LNG barge in the world. Membrane technology provides a better space-to-weight ratio and replaces the older, pressure vessel technology used previously for storage and transport. TOTE has completed over 400 bunkering operations with the Clean Jacksonville since it was first launched.

Another newbuild support vessel entering the market in 2025 was the Soaring Eagle, an inland tug operated by Colonial Towing, a subsidiary of the Colonial Group. It will operate as part of an articulated tug-and-barge unit transporting up to 32,000 barrels of fuel products between Charleston, South Carolina and Jacksonville, Florida. Soaring Eagle is the fourth vessel to join the current active fleet of Colonial Towing.

Also in Florida, Glander International Bunkering is making moves with a recent change of leadership. Michael Cammarata replaced long-time Managing Director Larry Messina, who retired after 34 years of service. Cammarata has spent his entire career in bunkering, having joined the company back in 1988.

As such, he brings decades of experience and deep market insight into his role. He also brings strong relationships across the industry. His appointment ensures continuity for the Florida office. It also supports future growth and long-term success.

Global FIDs

We've looked at the U.S.-based projects. But what about the rest of the world?

Chevron's Gorgon LNG project received a $2 billion final investment decision at the end of 2025 to develop Stage 3 off Australia's northwest coast. The development will be used as backfill for the existing LNG export operation and will link the offshore Geryon and Eurytion natural gas fields to Gorgon's existing infrastructure on Barrow Island.

In Gorgon Stage 3, six wells will be drilled across two fields, part of a series of planned subsea tiebacks.

Shell's plans for drilling at the Crux field, also offshore northern Australia, were accepted around the same time. Crux's gas will be sent as backfill to the Prelude floating LNG vessel, the world's largest.

In southern Australia, U.S. oil company ConocoPhillips has just finished its first exploration well in the region and will now move to a nearby location for a second well.

Chevron also made a final investment decision early in January to expand Israel's Leviathan natural gas field, a move that will significantly boost gas production in the eastern Mediterranean. The decision comes weeks after Israel finalized what Prime Minister Benjamin Netanyahu described as the largest energy deal in the country's history – a long-term gas export agreement with Egypt valued at about 112 billion shekels, roughly $35 billion.

The Leviathan expansion provides the upstream capacity needed to support those larger export commitments over time. Chevron operates Leviathan alongside Israeli partners. When the expanded project comes online later this decade, it will further help entrench Israel's role as a regional gas supplier.

A strong outlook

With new projects sanctioned, infrastructure expanding, and class, operators and bunkering providers aligned around practical risk management, the LNG market enters 2026 with strong momentum.

Growth will be in delivered capacity, proven technology and real-world operating experience. As demand accelerates and standards continue to evolve, LNG is positioned to remain the cornerstone of global marine and energy growth through the next decade.

The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.