A DNV’s new white paper explores how biomethane and e-methane, collectively called low-GHG methane, can provide a viable compliance pathway to help LNG-powered ships remain compliant with tightening greenhouse gas regulations, benefiting from engine and fuel system compatibility.
Excluding LNG carriers, more than 800 ships can operate on LNG using mature, proven technology and well-established infrastructure, with more than 600 more ships on order.
Under FuelEU’s maritime regulation, LNG-capable ships could remain compatible with fossil LNG until around 2035, depending on the engine configuration. Ships equipped with high-compression two-stroke dual-fuel engines can remain compliant longer than those using four-stroke low-compression dual-fuel engines, which are more common on cruise ships and RoPax vessels.
Expanding LNG compliance with low GHG options
DNV’s technical report on methane in shipping indicates that a possible compliance path is the use of low-GHG fuels compatible with LNG. LNG ships are compatible with alternatives such as liquefied biomethane and e-methane. As GHG intensity requirements tighten, these ships are well positioned to transition toward lower GHG fuels without major modifications to these alternatives.
Biomethane and e-methane can achieve very low, or even negative, life cycle emissions, depending on how they are produced. “LNG-powered ships can gradually decarbonise by blending or switching to these fuels,” explains Øyvind Sjeckester, Senior Advisor at DNV and lead author of the study.
Demand for low-GHG methane will grow as regulations tighten
According to the demand forecasts outlined in the paper, demand for low-GHG methane resulting from compliance under FuelEU Maritime alone could reach 2-4 million tonnes by 2040, rising to as much as 40-95 million tonnes under the proposed core target of the IMO Net Zero framework.
On the supply side, current production of low-GHG methane is limited, but still higher than many other low-GHG fuel alternatives. Global biomethane production reached about 7 million tons in 2024, and is expected to rise to about 15 million tons by 2030. E-methane is still nascent, with operational capacity today of just 0.01 million tons, but announced projects could raise this capacity to 0.9 million tons by 2030.
While there is great potential to expand the global supply of low-GHG methane beyond today’s production levels, shipping will compete with other sectors for this supply. Most of the available supplies are already absorbed by power generation and road transport, which means that access to shipping will depend largely on their willingness to pay compared to other users.
Securing low greenhouse gas methane in a competitive market
Regulation will be crucial in shaping this competition. The paper notes that mechanisms such as the European Union Emissions Trading System (EU ETS) and FuelEU Maritime are already stimulating lower methane uptake in shipping. Similar global measures could, over time, enhance the shipping sector’s willingness to pay to secure supply, while demand from less policy-dependent sectors may remain more price sensitive.
“Securing access to low-GHG methane may require long-term offtake agreements, partnerships with fuel producers, or participation in emerging fuel value chains. Fuel procurement therefore becomes a strategic and operational consideration for shipowners,” explains Sickester.
LNG bunkering infrastructure is viable
Technically, current LNG infrastructure is largely compatible with liquefied biomethane and e-methane and can, in principle, supply these fuels without physical modifications.
The most persistent constraint lies in economics and market access rather than in infrastructure alone. As of late 2025, the price of liquefied biomethane in Rotterdam was around US$1,860 per ton, nearly three times the price of fossil liquefied natural gas. However, when regulatory incentives are taken into account, most notably reduced exposure under the EU Emissions Trading Agreement and revenue pooling under the EU Marine Fuels Framework, biomethane could indeed be cost competitive on selected EU-to-EU voyages.
Unlocking methane supplies through flexible mechanisms
Beyond production volumes, freight availability is shaped by how low methane is calculated and allocated across sectors.
“This puts chain-of-custody models at the center of the discussion,” says Sickister. “Flexible methods, such as mass balancing, capture and claim systems, allow low-GHG methane to be injected into existing gas networks and assigned to end users without the need for physical delivery to a specific site.” Such models can significantly reduce distribution costs and logistical complexity.
In Europe, block balancing is allowed under regulations such as FuelEU Maritime and EU ETS, giving shipping access to low greenhouse gas methane through existing infrastructure. However, the lack of similar flexibility globally, coupled with the need for liquefaction and ad hoc distribution in the absence of flexible chain of custody models, could put shipping at a disadvantage compared to already existing gas-dependent sectors. “Without the adoption of flexible chain-of-custody models in international regulation, shipping may face higher costs and thus restrict access to limited supplies of low-GHG methane,” Sykester points out.
Methane slippage can be managed through various measures
While initial discussions focus on fuel availability and cost, methane slippage remains a major onboard challenge associated with the use of LNG.
Slip levels vary depending on the type of engine, which affects the good emissions profile of the vessel. In response, engine designers have succeeded in significantly reducing methane emissions in recent years by improving the combustion process and upgrading equipment, especially for low-compression engines.
Importantly, using realistic measurement data, rather than conservative default assumptions, can improve the estimated methane slippage, especially for modern dual-fuel LNG engines. This has direct implications for regulatory compliance, because lower methane slippage translates into better greenhouse gas intensity scores.
Operational practices also play a crucial role; Measures such as optimal engine tuning and load management can reduce methane slippage. Post-processing techniques, including oxidation catalysts, may also provide another layer of mitigation.
Measures to keep ships capable of using LNG relevant in a net-zero transition
Ships capable of transporting LNG could, in theory and in practice, serve as a bridge to net zero shipping, provided a supporting ecosystem develops, including large-scale production of low-GHG methane, flexible chain-of-custody frameworks, and sufficient willingness to pay to secure supplies in competition with other sectors.
In the near term, LNG-powered ship owners can focus on improving energy efficiency, improving engine performance, and reducing methane slippage to reduce fuel consumption and compliance costs. It is also important to closely monitor regulatory developments, particularly upcoming decisions on well-to-reservoir emissions and chain of custody models.
“Ultimately, LNG’s role in shipping will be defined not only by its status as a fossil fuel, but by its ability to enable the transition to low-GHG fuels such as liquefied biomethane and e-methane,” concludes Sickester. “As methane in shipping demonstrates, the opportunity is real: there is already a path for today’s fleet capable of using LNG to evolve into a low-emission fleet if the right conditions are created.” To support shipowners in managing the risks and uncertainties of fuel choice, the paper presents a two-step framework that includes Economically and technically.
Source: DNV, https://www.dnv.com/expert-story/maritime-impact/low-ghg-methanes-role-in-keeping-lng-capable-ships-compliant/?utm _id=701bH00000GvevbQAB&utm_campaign=MA_26Q2_GLOB_MI_ART_Ind_636_EXT_Biomethane_A&utm_medium=email&utm_source=Eloqua
