Thu 18 Jun 2015 10:18

Cruise ship deal reignites LNG bunkering debate in Gibraltar


GSD party's position on LNG bunkering is 'highly detrimental to Gibraltar's economic interests', says local government.



The announcement earlier this week by Carnival Corporation, the world's largest cruise ship operator, confirming that it has concluded a deal to build four liquefied natural gas(LNG)-powered cruise ships, has reignited the ongoing debate between the Gibraltar government (an alliance between the Gibraltar Socialist Labour Party (GSLP) and the Liberal Party of Gibraltar) and the Gibraltar Social Democrats (GSD) regarding proposals to develop an LNG bunkering infrastructure.

Commenting on the Carnival announcement, Chief Minister Fabian Picardo of the GSLP, said: "This demonstrates that the use of LNG is becoming mainstream around the world and in particular in the shipping industry.

"It also demonstrates how safe a fuel LNG is. An American corporation like Carnival Cruises would not put 6,500 passengers in a situation of unacceptable risk or danger. As a government we have already got in touch with Carnival to ensure that we see these new ships, which will be the largest cruise ships in the world, call at Gibraltar, refuelling and bringing us huge numbers of tourists."

The Gibraltar government has flagged up the Carnival announcement as evidence of a shift in the maritime industry towards the use of LNG as a fuel.

Picardo's government is looking at the possibility of establishing LNG bunkering operations alongside infrastructure for a new power station powered by gas and diesel. However, the project has drawn criticism from the opposition, which has expressed concerns about the safety of establishing LNG operations so close to built-up areas.

The GSD last week revealed a report by Lloyd's Register which concluded that LNG operations in the North Mole and Detached Mole could pose "potentially intolerable risks". The government stated that the report was based on incomplete data about its proposals.

This week, Picardo brought up the issue of the GSD's opposition to LNG bunkering, saying: "Given that the opposition have already said that they will not allow LNG bunkering or the operation of an LNG facility storage and regasification facility, which is exactly what these vessels have on board, the public can clearly see that the position of Mr Feetham [leader of the GSD opposition] is highly detrimental to Gibraltar's economic interests, from tourism to bunkering and the cost of electricity generation.

"Would he now propose to ban these Carnival ships coming to Gibraltar? Would he ban Gibraltarians from cruising on them?

"The nonsensical nature of the GSD's arguments is slowly being exposed. The danger to our economy of their opportunistic position is becoming palpable.

"The safe future of marine propulsion, power generation and bunkering is clearly in the use of LNG. That is where we will position Gibraltar for maximum economic advantage."

Chart showing percentage of off-spec and on-spec samples by fuel type, according to VPS. Is your vessel fully protected from the dangers of poor-quality fuel? | Steve Bee, VPS  

Commercial Director highlights issues linked to purchasing fuel and testing quality against old marine fuel standards.

Ships at the Tecon container terminal at the Port of Suape, Brazil. GDE Marine targets Suape LSMGO by year-end  

Expansion plan revealed following '100% incident-free' first month of VLSFO deliveries.

Hercules Tanker Management and Hyundai Mipo Dockyard sign bunker vessel agreement Peninsula CEO seals deal to build LNG bunker vessel  

Agreement signed through shipping company Hercules Tanker Management.

Illustration of Kotug tugboat and the logos of Auramarine and Sanmar Shipyards. Auramarine supply system chosen for landmark methanol-fuelled tugs  

Vessels to enter into service in mid-2025.

A Maersk vessel, pictured from above. Rise in bunker costs hurts Maersk profit  

Shipper blames reroutings via Cape of Good Hope and fuel price increase.

Claus Bulch Klausen, CEO of Dan-Bunkering. Dan-Bunkering posts profit rise in 2023-24  

EBT climbs to $46.8m, whilst revenue dips from previous year's all-time high.

Chart showing percentage of fuel samples by ISO 8217 version, according to VPS. ISO 8217:2024 'a major step forward' | Steve Bee, VPS  

Revision of international marine fuel standard has addressed a number of the requirements associated with newer fuels, says Group Commercial Director.

Carsten Ladekjær, CEO of Glander International Bunkering. EBT down 45.8% for Glander International Bunkering  

CFO lauds 'resilience' as firm highlights decarbonization achievements over past year.

Anders Grønborg, CEO of KPI OceanConnect. KPI OceanConnect posts 59% drop in pre-tax profit  

Diminished earnings and revenue as sales volume rises by 1m tonnes.

Verde Marine Homepage Delta Energy's ARA team shifts to newly launched Verde Marine  

Physical supplier offering delivery of marine gasoil in the ARA region.


↑  Back to Top