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Whilst LNG has proven to be a viable option as a bunkering fuel for ships, there are still challenges to the pace of its development and demand for LNG as a fuel. One of the obstacles to the accelerated uptake is the uncertainty regarding its availability.

A new study on the LNG market in the EU is being carried out as part of an effort to drive the development of an EU-wide network of LNG refuelling points.

The market study is being carried out by DNV GL on behalf of the CORE LNGas hive project, which is coordinated by Enagas and co-funded by the European Commission (EC). The research aims to develop a safe and efficient, integrated logistics and supply chain for LNG in the transport industry (small-scale and bunkering), particularly for maritime transport off the Iberian Peninsula. With a total estimated budget of around EUR 33 million (EUR 16.5 million of which is to come from the EC), the project is scheduled for completion in December 2020.

The results of the project are expected to provide recommendations for the Spanish and Portuguese National Policy Frameworks for alternative fuels supply infrastructure, and form the basis of a roll-out plan for future commercial deployment along the Mediterranean and Atlantic corridors in the Iberian Peninsula.

Fernando Impuesto, CORE LNGas hive project coordinator from Enagas, said: "The consortium partners selected DNV GL to execute the demand studies of the project based on the fact that DNV GL has been at the forefront of the development of LNG as a marine cargo for more than 50 years, and for LNG as a marine fuel over 20 years. With that experience and support, they are an important contributor to our success in this project."

The CORE LNGas hive project follows another project recently delivered by DNV GL for the EU providing recommendations on how to address barriers to wider adoption of LNG as fuel.

Liv Hovem, DNV GL Regional Manager for Continental Europa and North and East Africa, added: "DNV GL has significant experience with adoption of LNG as a marine fuel. This is both through development of gas fuel class rules and assisting and advising private and public clients, port authorities, and global government bodies, with consultancy on safety, technical, and commercial market assessments.

"DNV GL has already developed new analytical techniques for assessment, services, standards and recommended practices for the LNG sector and has supported the safe development and operation of 35 percent of the world's LNG plants. Our experience shows that more shipowners would consider LNG as fuel if reliable information on LNG availability was easily accessible."

In order to continue meeting and supporting the market in its growing demand for cleaner fuels and versatile LNG applications, DNV GL has updated the Recommended Practice (RP) for development and operation of LNG bunkering facilities (DNVGL-RP-G105). The RP provides the first industry guidance on how to perform quality measurements and quantity metering of LNG fuel supply. This enables the industry to understand the business impact of proper fiscal measurement.

The update is a key driver for the monetization of small-scale LNG distribution and infrastructure to support the development of a more transparent and compatible market and to safeguard sustainable growth.

Download the Recommended Practice (RP) for development and operation of LNG bunkering facilities (DNVGL-RP-G105) here.