To ensure we live up to our vision and mission, we must continue to deliver the energy the world needs today while working on solutions for the future. We do this through a dual focus on reducing the environmental impact of our current business and investing in renewable infrastructure that support a circular and sustainable economy.
The Group strives to minimise our environmental footprint and has continued to increase its focus on sustainability initiatives and investments. These initiatives have been successful in decreasing average emissions and improving carbon intensity across the Group’s owned fleet.
Overall, we remain well positioned to support the IMO’s ambition of reducing the carbon intensity of international shipping by at least 40% by 2030 and achieving net-zero GHG emissions by or around 2050, compared with 2008 levels.
Six Key Levers Driving Sustainability
Retrofitting Existing Assets
In 2024, BW LNG assessed retrofit options to reduce its operational carbon footprint and selected subcooler technology as a practical, near-term efficiency upgrade. In 2025, BW LNG completed installations on three vessels: BW Pavilion Vanda, BW Pavilion Leeara, and BW Pavilion Aranda.
The subcoolers withdraw LNG from the cargo tanks, further cool it, and return it to the cargo system. By lowering cargo temperature, the retrofit is expected to reduce boil-off gas (BOG) generation, thereby reducing the volume of gas that must be managed onboard or used as fuel. Lower BOG generation can translate into lower emissions by reducing the amount of gas combusted for operational purposes (thereby lowering associated CO₂ emissions). The extent of any resulting emissions reduction depends on operating conditions, voyage and trading patterns, and charterer requirements.
Adding efficient tonnage to the fleet
In addition to retrofitting existing vessels, BW LNG continues to invest in newbuild LNG carriers designed to enhance energy efficiency and reduce greenhouse gas emissions.
In 2025, BW LNG ordered two LNG carriers equipped with WinGD X-DF 2.2 engine technology featuring Intelligent Control by Exhaust Recycling and Variable Compression Ratio functionality to optimise efficiency across a range of operating conditions. The vessels will also be fitted with standalone reliquefaction systems to reliquefy boil-off gas (BOG) and return it to the cargo tanks.
These technologies are expected to reduce fuel consumption and methane-related emissions while enabling greater operational flexibility, including slowerspeed operation and reduced reliance on burning BOG for tank-pressure management.
In early 2026, BW LNG took delivery of two new LNG carriers, BW Borealis and BW Nivalis, equipped with advanced propulsion, power-generation and reliquefaction technologies. Based on design and performance estimates, these features have the potential to materially reduce methane slip and lower fuel-related CO₂ emissions compared with earlier vessel designs, while improving cargo and boil-off gas management.
Developing the fleet for new projects
BW LNG continues to develop floating storage and regasification unit (FSRU) and floating storage unit (FSU) concepts, with an emphasis on redeploying existing vessels where technically and commercially suitable. As propulsion and fuel-efficiency standards for LNG carriers continue to advance, some older vessels – despite having many years of potential operating life remaining – can become less competitive. BW LNG therefore considers redeployment into terminal and storage business a sustainable way to extend asset life and use existing steel and equipment efficiently, supported by targeted upgrades where required for the new service. This approach can also reduce BW LNG’s overall environmental footprint by maximising the use of existing assets and potentially avoiding, delaying, or reducing the need for new-build tonnage and the associated upstream material and construction impacts.
In 2025, BW LNG secured an FSU contract to enhance Jordan’s energy security. An LNG carrier will undergo conversion to an FSU, with delivery scheduled by end 2026.
Waste management
BW is committed to responsible waste disposal onboard, following IMO MARPOL Annex V and all flag state rules. Each vessel has a Garbage Management Plan that fits its design and operations, explaining how we handle, separate, store, and dispose of waste. We keep careful Garbage Record Books on every vessel, as required by regulations.
BW is ISO 14001-certified, supporting a structured approach to environmental management and continuous improvement. This includes the regular review of waste management practices to reduce environmental impacts and enhance environmental performance.
Recycling of ships
At the end of a vessel’s commercially viable life, we ensure it is recycled responsibly in a manner that minimises impact to the environment and to human health. BW takes this responsibility seriously and closely manages and monitors the entire process.
We select only ship recycling facilities that are ISO 30000 certified, approved by a class society, and in full compliance with the Hong Kong Convention and EU Ship Recycling Regulation. When possible, we pre-inspect the facility and ensure a BW representative on-site with stop-work authorisation throughout the demolition process. To support the recycling facility, BW prepares an Inventory of Hazardous Materials document and jointly formulates a plan for safe and environmentally sound decommissioning of the vessel.
Data and reporting
Voyage optimisation
BW LNG aims to optimise vessel efficiency by ensuring our ships travel on the most efficient routes at the most efficient speeds. Through harnessing technology and meteorological data to conduct weather routing and regular voyage prognoses, BW ensures the scheduling of our fleet is effective and accurate. BW also endeavours to arrive in ports on time to avoid rushing to arrive, nearshore idling, and resultant emissions.
In 2025, BW LNG started working with a vendor on a new machine learning-based software, focusing on voyage and boil-off gas optimisation. The aim is to improve understanding of boil-off gas generation and management, support optimisation of cargo and fuel handling, and enable reductions in energy losses and methane emissions, contributing to BW’s long-term efficiency and sustainability objectives.
Generative AI
BW LNG has deployed internal tools leveraging Generative Artificial Intelligence and Large Language Models, and maintains focus on exploring the frontline of this technology and Agentic AI as it now develops at an accelerated pace. Through an internal chatbot application, LuminAI, both ship and shore users can securely query internal operational documents and data, and receive real-time AI-driven assistance.
Data quality
In 2025, BW LNG rolled out a new voyage reporting and performance management tool across the fleet. The platform integrates real-time, high-frequency data into vessel reports and has reduced manual input requirements onboard. Approximately 60% of report fields are now automatically populated, supporting more efficient reporting and improved data validation. This has reduced time spent identifying and correcting data issues and has strengthened the dataset used for performance analysis.
The platform also enables analysis of energy-use and emissions data to help identify and prioritise operational improvement opportunities. Strengthening data quality and transparency is an important enabler for BW LNG’s broader efficiency and decarbonisation work.
High-speed connectivity
BW continues to strengthen onboard digital capabilities by providing crew broadband and operational connectivity through low earth orbit (LEO) satellite services across our vessels. This high-speed, low-latency connection complements existing onboard connectivity solutions such as VSAT and provides office-like broadband for accessing business-critical applications directly in the cloud. By future-proofing our vessels with scalable broadband, we enable faster innovation through more effective piloting and quicker roll-out of new digital solutions, including real-time ship-to-shore collaboration (e.g. video conferencing). Enhanced connectivity also supports seafarer welfare by helping crew stay connected with their families and loved ones while at sea.
