Thu 15 Dec 2011 16:04

Regulations driving interest in LNG


Survey finds that new emissions standards and low natural gas prices are driving operators to make the switch to LNG.



A survey of the marine industry by Zeus Development Corporation finds that 48 non-LNG-carrier ships will soon be fuelled with LNG.

"Low natural gas prices make the switch to LNG-fuel tempting for some marine operators," commented Tom Campbell, analyst at Zeus. "However, it is the enforcement of IMO emissions standards that is driving the trend."

In 2015 and 2016, the International Maritime Organization's Tier III standards ratchet down sulphur and nitrogen oxide emissions in Emission Control Areas (ECAs) around North America and Europe. The alternatives to LNG include scrubbers and after-exhaust treatment systems.

"Fleets tend to use after-exhaust treatment systems for existing ships, but newbuild ships that can be designed for LNG's characteristics tend to use LNG," Campbell said.

In the past two years, 11 new LNG-fueled ships have been built, Campbell notes. They vary from patrol vessels to fueling barges to tugboats and ferries. Within these categories, LNG usage varies from high-speed ferries to large cruiser ferries.

Zeus points out that LNG fuel is also beginning to take root in new geographic regions like South America and the Gulf of Mexico. Units are also being considered in Quebec, Washington State and New York.

Alongside the trend are proposals for fueling facilities. New bunkering facilities are being discussed in Trinidad and Tobago, Dubai and Singapore.

The marine industry will join on-land transportation companies in Houston on January 25th and 26th to discuss fueling with LNG. Among the speakers at the World LNG Fuels Conference will be Shane Guidry, chairman & CEO of Harvey Gulf, which has ordered two LNG-fueled offshore service vessels and Captain James DeSimone, chief operations officer for the Staten Island Ferry.

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