Americas News
Analyst: LNG to Fuel a "Sizeable Portion" of Vessels
Liquefied natural gas (LNG) bunkers "will soon fuel a sizeable portion of the maritime fleet," U.S. law firm Blank Rome LLP predicts.
The firm notes the "incredible abundance" of natural gas, new air emissions standards, and increasing investment in LNG-fuelled systems by players including U.S. and international shipyards.
"Together, these evolving changes are giving LNG an inroad in the highly competitive bunker fuel industry," the firm writes.
"Meanwhile, regulatory programs are in the works to address new risks attendant to LNG-fueling operations."
U.S. natural gas production is predicted to jump from 23 trillion cubic feet in 2012 to about 32 trillion cubic feet in 2040, leading to a likely price incentive for use of the fuel compared with bunkers derived from crude oil.
While some companies, such as TOTE, are developing vessels fuelled by LNG, Blank Rome writes that U.S. industry and government standards for use of the fuel, and infrastructure for its distribution, are developing slowly.
"No concerted government or industry efforts are in place to construct LNG fueling stations, though a fragmented bulk-LNG infrastructure may serve as a network foundation and a number of LNG-fueling terminals are under construction," the firm writes.
"Currently, there are no officially promulgated Coast Guard regulations or policy letters addressing LNG-fuel-transfer operations."
Peter Keller, executive vice president of Tote Inc. said earlier this year that the company is able to use LNG on two trades partly because they are self-contained routes that don't require multiple LNG refuelling sites.
