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.


Ammonia Energy Association (AEA) logo. AEA qualifies global roster of auditors for ammonia certification system  

Bureau Veritas, DNV, TÜV SÜD and three others cleared to verify low-emission ammonia credentials.

New York city skyline. IBIA early-bird registration deadline approaches for New York convention  

Discounted rates available for members and non-members up until the end of August.

MARAD and Core Power MOC signing. MARAD and Core Power sign cooperation framework to advance nuclear-powered merchant ships  

Agreement targets first construction from 2028 as China accelerates its own nuclear shipping ambitions.

DNV and GEA logos. GEA and DNV launch three-year ethanol data intelligence partnership  

Collaboration will integrate structured global ethanol production data into DNV’s Alternative Fuels Insight platform.

VPS logo. Perfect storm at sea: High bunker prices meet declining fuel quality | Steve Bee, VPS  

VPS highlights sharp drop in fuel quality during 2026 amid higher prices.

Koper waterfront. SUPERALFUEL to hold first alternative marine fuels training course in Koper  

The Adriatic-Ionian initiative targets hydrogen, ammonia and methanol adoption in ports and shipping.

Steel-cutting ceremony of vessels with builder's hull nos. S1159 and S1160. CIMC SOE cuts steel on third and fourth 20,000-cbm LNG bunker vessels for GSX Energy  

Chinese shipbuilder advances series build as two hulls enter construction simultaneously.

Pennsylvania skyline. Sunoco seeks bunker trader in US to drive marine fuels growth  

New hire will be tasked with expanding Sunoco's bunker business in front-line commercial trading role.

Brooklyn Bridge and New York City skyline. Minerva Bunkering recruiting Americas sales manager as it targets regional growth  

New York-based manager is sought to build customer base across North and South America.

Marine battery container. AYK Energy to unveil swappable containerised marine battery system at SMM Hamburg  

The system claims to remove key cost and engineering barriers to marine electrification.