Asia/Pacific News
LNG is the "Fuel of the Future" for Asia
Asian shipping companies see the market moving toward liquefied natural gas (LNG) bunkers but say adoption of the fuel requires government support for a supply infrastructure, according to a Platts report on the Sea Asia CEO Roundtable Friday.
"The fuel of the future is gas," said Precious Shipping Ltd managing director Khalid Hashim.
Hashim said shipowners will only adopt LNG fuel if they can depend on a supply chain for the product at more points across the globe.
He noted that Norway is the only country with a strong LNG supply chain in place, thanks to government investment, and Singapore is moving forward with its own infrastructure, but many nations have not made the same moves.
Singapore plans to have LNG bunkers available by 2015.
SS Teo, managing director of Pacific International Lines Pte Ltd, said that while the technology for ship engines to use LNG as a fuel was already in place, the placement of LNG gas tanks on vessels remained an issue because of the space they require.
Teo said LNG bunkers are likely to be adopted first by harbor craft and short sea voyage vessels, while long-haul ships will be able to use it only if they can refuel at points along their routes.
While distillates have been seen as an alternative to standard bunker fuel, Teo said not all refineries have upgraded their systems to produce them, and the cost of doing so would probably be passed on to consumers in any case.
LNG expert Mike Corkhill recently wrote that LNG bunkering is poised for a breakthrough thanks to swelling orders for vessels that can use the fuel and the support of various governments.
