Americas News
Plenty of Gas for LNG Bunkers in U.S.: FMC Commissioner
The U.S. is producing enough natural gas to give the maritime industry confidence about the use of liquefied natural gas (LNG) as a fuel, Federal Maritime Commissioner (FMC) William P. Doyle told Marine Log's All About Marine Conference and Expo.
Shale basins in the country have enough natural gas to last for 100 years, according to government estimates.
"Thus, it appears there is plenty of space for the maritime industry to utilize liquefied natural gas as a marine fuel," Doyle said.
He noted that the sulfur limits coming into place in the North American Emission Control Area (ECA) next year will make LNG the most economical compliant fuel, with a price below that of marine gas oil (MGO).
"Based on current forecasts, natural gas delivered for production of LNG in the U.S. is now more than 50 percent less expensive on an energy-equivalent basis than marine residual fuel and marine distillate fuel," he said.
"It is projected that this relative price advantage will continue."
Already, U.S. maritime players including Harvey Gulf International Marine (Harvey Gulf) and Totem Ocean Trailer Express (TOTE) are moving forward with LNG-fuelled vessels and associated refuelling infrastructure.
LNG import facilities are now adding liquefaction capacity so they can export the fuel, which makes it relatively easy to add bunkering operations as well, something LNG America is pursuing with its plans for LNG bunker barges to be delivered next year.
U.S. authorities are also supporting the development of LNG bunkering, for example by working with TOTE to support its conversion of vessels to the fuel.
"There appears to be many opportunities available for those looking to operate LNG fueled vessels and/or enter into the LNG bunkering and fueling sectors," Doyle said.
"I look forward to the continued expansion of LNG into our economy."
Mark Bell, general manager of the Society for Gas as a Marine Fuel (SGMF), said earlier this week that LNG bunkers are an opportunity for the maritime industry, but players should move quickly to compete with other industries seeking to cash in on the fuel.
