Existing LNG infrastructure and vessels can help support the transition to low-greenhouse gas (GHG) methane fuels, according to a new white paper published by classification society DNV.

The paper, titled 'Methane in Shipping: LNG-fuelled ships and the switch to low-GHG methane,' looks at how biomethane and e-methane, which are chemically identical to LNG but produced with a much lower climate footprint, can make use of today’s LNG-capable fleet and bunkering network.

According to DNV, around 800 LNG-capable vessels are already in service, with a further 600 on order. The paper says low-GHG methane is fully compatible with LNG engines and tanks, meaning it can be used as a drop-in fuel without requiring technical modifications.

Cristina Saenz de Santa Maria, Interim CEO Maritime at DNV, commented: “LNG to low-GHG methane is one viable pathway among several, and its role will vary by segment and trading pattern. As fuel standards and certification systems continue to develop across markets, owners can benefit from evaluating how different options align with their routes, exposure to regulation, and long-term fleet plans. Building flexibility into fuel strategies, supported by strong energy-efficiency measures, remains essential for managing both operational performance and regulatory costs in the years ahead.”

The white paper also identifies barriers to broader uptake. One of them is the lack of globally harmonised rules for chain-of-custody models such as mass balancing and book-and-claim, which DNV said creates regulatory uncertainty for shipowners and may affect access to low-GHG methane.

Cost is another challenge. DNV notes that liquefied low-GHG methane remains significantly more expensive than fossil LNG in major bunkering hubs such as Rotterdam, although the gap can shift quickly depending on market conditions and geopolitical developments.

Øyvind Sekkesæter, Senior Consultant at DNV and lead author of the white paper, remarked: “Although low-GHG methane remains more expensive than fossil fuels, GHG-related regulatory costs can significantly reduce the effective price gap. In specific cases, such as EU–EU voyages from Rotterdam, liquefied biomethane has been reported as cost-competitive with fossil fuel oil once EU ETS and FuelEU Maritime mechanisms are accounted for, but this is not representative of the global picture where the overall cost remains high.”

The paper says regulations such as the EU ETS, FuelEU Maritime and the International Maritime Organization’s (IMO) Net-Zero Framework could gradually increase demand for low-GHG methane by creating stronger incentives for shipping to adopt lower-emission fuels.

DNV estimates that compliance with FuelEU Maritime alone could generate demand for around 2 million to 11 million tonnes of low-GHG methane by 2040. Meeting the IMO Net-Zero Framework base target would require much larger volumes, with potential demand rising to 40 million to 95 million tonnes by 2040, depending on fleet composition and emissions factors.

The white paper adds that whether shipping can secure sufficient future supply at scale will depend on how much the sector is willing to pay in comparison with competing industries.