Americas News
Tote: LNG Bunkers Less About Cost, More About the Environment
Using liquefied natural gas (LNG) bunkers on ships travelling two U.S. routes is less about the economic benefits of the fuel than the environmental ones, Peter Keller, executive vice president of Tote Inc. told Tim Haïdar of Oil & Gas IQ in a podcast ahead of the upcoming LNG Bunkering North America event.
"Yes there are some economic advantages to the price of LNG at the moment," he said.
"However, long-term, we all understand the volatility of fuel costs, so this is not really about fuel costing. "
Keller said the company's use of LNG reflects its desire to support the communities where it does business and comply with rules for the North American Emissions Control Area (ECA).
Tote is building LNG-powered vessels for trade between Florida and Puerto Rico and converting existing ships that travel from Washington State to Alaska to use the fuel.
Keller said the fact that both trades are self-contained, with ships travelling back and forth each week, made the use of the fuel simpler since bunkering can be done at just one port for each route.
Tote has already announced plans to work with LNG suppliers in Florida, and Keller said it is close to finalising a similar deal in Washington.
For the North American shipping industry as a whole, Keller said he expects supply of LNG bunkers to be the biggest obstacle to adopting the fuel, but he said a number of liquefaction facilities are moving forward, and the apparent availability of a long-term supply of natural gas from shale makes LNG-fuelled vessels seem like a relatively safe bet.
"I think you will see a major switch in those trade lanes that are predominantly inside of ECAs to this and other potential alternative fuels," he said.
LNG Bunkering North America takes place 2nd – 4th June, 2014, in Vancouver, Canada.
