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Joint Industry Project (JIP) looking into the feasibility of LNG bunkering in Australia has concluded that there are attractive payback periods from the additional investments required for LNG-fuelled shipping and no significant legal restrictions hindering the development of LNG bunkering in the country.
The DNV-managed JIP has focused specifically on LNG-fuelled tugs and offshore support vessels (OSVs). According to DNV, the partners of the JIP - Australian Maritime Safety Authority (AMSA), BOC Limited (Linde Group), Farstad Shipping Pty. Ltd., Ports Australia, Rolls-Royce Marine AS, SVITZER Australia, Swire Pacific Offshore Operations (Pte) Ltd., Teekay Shipping (Australia) Pty. Ltd., Woodside Energy Ltd. and DNV - are optimistic about the future of LNG as a maritime fuel in Australia after having looked into the possibility of establishing LNG bunkering in ten of the country's ports.
DNV says that with the proper combination of bunkering solutions in place - such as tank trucks, permanent tanks and barges in the different ports - efficient LNG bunkering can be established.
The study recommends more technical guidelines and a clearer regulatory framework to be established, along with financial incentives to kick-start the development.
Commenting on the issue of demand during the initial years of LNG bunkering, DNV said: "When establishing LNG bunkering, the critical business phase is the first 2-4 years of operation when the LNG suppliers rely on a few brave ship owners willing to be industry forerunners. After some years of successful operation a second wave of ships is expected to enter the market, which will reduce suppliers’ uncertainty and reinforce the business case."
The JIP has focused specifically on the initial phase, and created roadmaps for necessary action for the most rapid establishment of LNG bunkering in a shortlist of ports. DNV said that an 'accelerated approach' could open up LNG bunkering in Australia by 2016.
DNV Maritime Country Manager,
Tim Holt, remarked: "We have been impressed with the interest and commitment shown by the Australian shipping industry in investigating LNG as a cleaner and locally available marine fuel.” JIP Project Manager Henning Mohn adds, “Increasing LNG production along with new international regulations boost the interest in LNG fuelled shipping; this may actually to some extent switch ships from fuelling with imported fuel to using domestically produced LNG."
