LNG shipping giants continue to ramp up vessel orders despite stranded asset risks, potential decades of carbon lock-in, and a mounting emissions toll 

May 13, 2025 (SEOUL) - A new report by Solutions for Our Climate (SFOC) reveals that the global fleet of liquefied natural gas (LNG) carriers is responsible for enabling approximately 12.7 billion metric tonnes of carbon dioxide equivalent (CO₂e) emissions every year, rivaling China’s total annual emissions of 15.9 billion tonnes. The sector’s massive climate footprint is incompatible with the 1.5°C pathway, yet industry players continue to expand their fleets, hurtling towards an overcapacity crisis that threatens both global climate targets and financial stability. 

Figure 1: GHG Emissions Comparison: China 2023 vs LNG Carriers vs US 2023 

(Source: China and US country emission data from Emissions Database for Global Atmospheric Research) 

Emissions cover-ups and methane leaks debunk “clean bridge fuel” claims 

The estimated footprint attributed to LNG carriers covers both direct emissions from vessel operations and the far larger enabled emissions across the LNG lifecycle, including stages from extraction, liquefaction and maritime transportation to regasification and final combustion. 

While shipping companies typically disclose operational emissions, they fail to report the much larger lifecycle emissions of the LNG they transport. This creates a significant accountability gap in global greenhouse gas (GHG) inventories.  

Methane leakage accounts for a significant share of total LNG emissions yet remains a major blind spot in industry reporting. Methane, a GHG 80 times more potent than CO₂, can leak throughout the LNG lifecycle, from extraction and liquefaction to potential slips during maritime transport. The emissions from these leaks are widely underreported and undermine the industry’s longstanding claim that LNG is a cleaner “bridge fuel.” When overall emissions are fully accounted for, LNG, in fact, emits more than coal. 

The LNG carrier boom: driven by few, backed by billions  

Despite growing climate concerns and slowing demand projections, the LNG shipping industry is rapidly expanding. The global fleet has tripled to 1,032 vessels since 2014, with an additional 324 under construction and expected to operate for at least 30 years. This surge in orders raises concerns about potential stranded assets and an oversaturated freight market. 

Figure 2: LNG Carrier Fleet Growth from 2014 to 2025 

(Source: Clarkson Data) 

Greece now leads in global LNG ship ownership with 195 carriers, enabling roughly 2.4 billion tonnes of CO₂ emissions annually through the LNG they transport. Japan and China follow with 175 and 112 carriers, respectively. 

Qatar’s Nakilat remains the world’s largest LNG shipowner with 79 vessels, followed closely by Japan’s Mitsui O.S.K. Lines and NYK Lines, Greece’s Angelicoussis Group, and Norway’s Knutsen OAS Shipping. South Korean shipyards (Hanwha Ocean, Hyundai Heavy Industries, and Samsung Heavy Industries) are at the forefront of this building spree, responsible for the construction of nearly 80% of new LNG carriers. 

Big banks and public institutions fueling LNG shipping expansion 

Over the past five years, US$335 billion has been funneled into LNG maritime financing through 175 transactions. Almost 40% of this amount has been funded by just 10 banks, including Mitsubishi UFJ, Mizuho, and JPMorgan Chase. 

Table 1: Top 10 Banks’ Maritime LNG Related Financing (2019-2024) 

Source: Stand.earth (2024). Banking on a climate shipwreck

Strikingly, general-purpose corporate loans (US$65.6B) have surpassed project-specific financing, suggesting that LNG expansion is being propped up through unrestricted capital flows rather than strategic energy investments.  

The South Korean government has emerged as a major public financier, with public support peaking at US$12 billion in 2022. Over the past decade, South Korea has provided US$44.1 billion in public support across 652 financing instances, raising questions about the credibility of its pledge to phase out fossil fuel subsidies and achieve carbon neutrality. 

Rachel Eunbi Shin, SFOC Gas Team Consultant, said:  

“There’s a clear contradiction – major banks spending billions to finance LNG carriers while simultaneously pledging to reach net zero by 2050. Many of these same institutions have policies not funding upstream and downstream LNG facilities but still fund the ships that transport this fossil fuel. With freight rates at historic lows due to oversupply, building more LNG carriers isn’t just climate-destructive – it’s economically senseless.  

The IMO just approved its Net-Zero Framework at MEPC 83 in April, mandating GHG reductions and fuel levies starting in 2028. The solution to reduce shipping emissions couldn’t be clearer: stop building ships we don’t need.” 

ENDS.  

Solutions for Our Climate (SFOC) is an independent nonprofit organization that works to accelerate global greenhouse gas emissions reduction and energy transition. SFOC leverages research, litigation, community organizing, and strategic communications to deliver practical climate solutions and build movements for change.     

For media inquiries, please reach out to Antonette Tagnipez, Communications Officer, antonette.tagnipez@forourclimate.org.