Asia/Pacific News
Australia Well Positioned to Use LNG Bunkers, but There's Little Motivation to Do So
An expert panel at the LNG as Marine Fuel seminar has concluded that Australia is well positioned to adopt vessels that use liquefied natural gas (LNG) bunkers in certain sectors, but current low oil prices mean there is little motivation for vessels in the country to adopt the alternative fuel, Maritime Propulsion reports.
Australia's abundant LNG reserves and expertise nevertheless gives the country a "natural advantage," agreed the panel, who spoke at the recent LNG18 conference.
Alex Schultz-Altmann from the Australian Maritime Safety Authority (AMSA) said its regulations were already prepared for LNG fueled vessels.
Further, Australia has a well established domestic LNG industry that can service the LNG bunkering needs of most major ports around the country, added Nick Rea of EVOL LNG, noting that truck-to-ship or shore-to-ship infrastructure can be made available both quickly and cost effectively to make it easier for ship owners to consider LNG-propulsion.
The panel agreed that if Australia is to be ready when market conditions change to favour LNG adoption, a cohesive approach to preparations must be utilised.
Commenting on the current situation, Banu Kannu, Marketing General Manager at Wärtsilä Corporation (Wärtsilä) for the Middle East, Asia, and Australia region, said: "it feels like there are pockets of success in Australia, in terms of the use of LNG as marine fuel, but there is little communication across the various stakeholders."
"We need an LNG as Marine Fuel cluster that shares experiences and produces a consistent approach so everyone benefits."
In April, Ship & Bunker reported that, despite International Energy Agency (IEA) predictions that Australia will become one of the world's top exporters of LNG by 2020, Kannu said the chances that the country will utilise the energy source as bunker fuel is "still a way off."
