TOTE: Lack of Bunkering Infrastructure, Loss of Cargo Space Not Factors When Choosing LNG

by Ship & Bunker News Team
Tuesday September 30, 2014

Totem Ocean Trailer Express (TOTE) CEO Anthony Chiarello says a lack of Liquefied Natural Gas (LNG) bunkering infrastructure and a loss of cargo space were not factors in his company's decision to commission LNG powered newbuild vessels, Marine Link reports.

"The capacity loss, approximately 55 [twenty-foot equivalent units] TEUs, is less than 2 percent…a very small amount," said Chiarello, referring to the cargo space available on the newbuild vessels as compared to the space that would have been available if using a traditional fuel oil engine.

"Losing 50 TEUs wasn't really a factor in the decision…absolutely not," he added noting that the two new ships will double the capacity of the vessels they replace in any case.

Chiarello stressed that TOTE's decision to build new LNG-powered ships was environmentally, rather than economically, driven and the logistical and price stability hurdles also seem not to have been prohibitive.

"I don't follow it," said Chiarello of the LNG price in the market.

Commentators have pointed to a current lack of LNG bunkering infrastructure as a drawback for those considering LNG powered vessels, but Chiarello played this down.

"As long as you know where you're going, the logistics work," he said.

"As soon as we announced that we were going to go with LNG in the new builds and also the conversion of the Orca ships, there were no less than half a dozen parties, literally, every week contacting us about being LNG suppliers, being partners with LNG suppliers," he added.

Petronas recently announced it may pull out of a slated $10 billion LNG investment in Canada.