Oil & Gas

Denmark's Maersk is set to expand its fleet of LNG vessels, a notable shift from its long-standing use of methanol as a fuel. This transition aligns with global efforts to reduce industrial emissions, with LNG being seen as a transitional fuel towards cleaner energy sources. Maersk's new LNG-powered tankers and containers will be constructed at Chinese shipyards through intermediaries before being leased to the company on a fixed-term basis.

The company plans to charter 37 LNG container ships from intermediary firms after their construction at the New Times and Yangzi Jiang shipyards in China. These vessels will be capable of carrying up to 16,800 TEUs each, with a total investment reaching up to $1 billion. Although Maersk has not confirmed the exact details, it is anticipated that these ships will be leased to the company for its operations.

This significant move reflects a broader industry trend, with Maersk, as the world's second-largest container shipping company, joining the top three global players in supporting carbon reduction efforts. The company's shift to LNG is a major departure from its previous reliance on methanol and signifies a crucial milestone in reducing emissions in the shipping sector.

In addition to its LNG expansion, Maersk has also launched C2X, a new venture focused on producing green methanol in Egypt and Spain, aiming for a production capacity of over 3 million tons by the end of the 2030s. Furthermore, in November 2022, Maersk signed an agreement with Jordan to produce marine fuel from green methanol, highlighting its commitment to sustainable and renewable energy sources.