Thu 15 Dec 2011, 16:04 GMT

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.


Hapag-Lloyd and DSV logo side by side. Hapag-Lloyd and DSV sign 18,000-tonne CO2e reduction agreement for sustainable marine fuels  

Two-year framework allows inclusion of alternative fuels beyond biofuels in shipping decarbonisation partnership.

Bangkok city skyline. Uni-Fuels opens Thailand office as part of Southeast Asia expansion  

Marine fuel supplier establishes Bangkok entity, appoints managing director with 15 years’ industry experience.

Washington State Hybrid-Electric 160-Auto Ferry vessel render. Corvus Energy to supply battery systems for Washington State Ferries hybrid vessels  

ABB selects Corvus for two new 160-vehicle ferries as part of $3.98bn electrification plan.

Vinssen and Mana Engineering sign MoU. Vinssen, Mana Engineering partner on hydrogen fuel cell retrofit for 800-teu feeder vessel  

South Korean and Dutch firms to pursue Lloyd’s Register approval for hybrid retrofit concept.

Hercules Elisabeth vessel. Hercules Tanker Management takes delivery of second Ultra-Spec vessel in China  

Hercules Elisabeth is the second of 10 hybrid-ready tankers designed for alternative fuels.

Wolf 1 vessel. Petrol Ofisi launches fuel supply tanker Wolf 1  

Turkish bunker supplier adds 1,750-dwt vessel with alternative fuel infrastructure to fleet.

BIMCO meeting. BIMCO to convene for adoption of biofuel clause and ETS provisions at February meeting  

Documentary Committee to consider new contractual frameworks for alternative fuels and emission trading scheme compliance.

Sea Change II vessel render. Incat Crowther and Switch Maritime develop 150-passenger hydrogen ferry for New York  

Design work begins on 28-metre vessel with 720 kg hydrogen capacity and 25-knot speed.

Aerial view of a container vessel. HIF Global signs heads of agreement with German eFuel One for 100,000 tonnes of e-methanol annually  

Deal covers supply from HIF’s Uruguay project, with e-methanol meeting EU RED III standards.

Welcoming of Kota Odyssey at Jordan’s Aqaba Container Terminal. PIL’s LNG-powered vessel makes maiden call at Jordan’s Aqaba port  

Kota Odyssey is Pacific International Lines’ first LNG-fuelled ship to call at the Red Sea port.