Asia/Pacific News
Approval of LNG Bunkering at Port of Fremantle an "Australian First"
EVOL LNG Thursday announced that the Fremantle Port Authority (Fremantle Ports) has given approval for the company to conduct liquefied natural gas (LNG) bunkering at the port - a development that EVOL LNG says is an "Australian first."
The company says it will have the capacity to supply ships with up to 45 tonnes of LNG per hour, and provide the fuel at a competitive price against low sulfur marine diesel.
"The availability of LNG as a bunker fuel, which will be delivered from EVOL LNG's Kwinana LNG plant, will pave the way for LNG-fuelled ships to visit the port, and provide the option for local ferries and workboats to switch to the lower-cost, lower-emission fuel," stated the company.
Looking to the future, EVOL LNG says it will work to obtain licenses for LNG bunkering operations from other major Australian and regional ports if the company deems that the required interest is present, noting that truck-to-ship LNG bunkering can be conducted without the need for new and fixed infrastructure.
"Our decision to provide LNG bunkering to the shipping industry is based on a long-term strategy," said Nick Rea, EVOL LNG's Business Manager, adding: "over the past decade, we”ve seen the number of LNG-fuelled ships in operation worldwide increase steadily fro ma handful to more than 70, with an additional 80 to be build in coming years."
Rea says that interest in LNG bunkers has so far largely been driven by the introduction of emissions regulations for shipping, such as those that exist in the European and North American Emission Control Areas (ECAs), as well as the expectation of better returns through the use of LNG than that of low sulfur fuels or exhaust scrubber systems.
"As emission reduction efforts continue to increase in importance, including in Australia, we expect the adoption of LNG as a low emission marine fuel to increase," said Rea.
"Apart from the environmental benefits, we expect to see a widening gap in the fuel price spread, as well as the cost of LNG-fuelled ships reducing as the technology matures. The business case for ship owners to invest in LNG-fuelled ships is becoming more and more compelling."
As Ship & Bunker reported in May, an expert panel at the LNG as Marine Fuel seminar, which included Rea, suggested that Australia is well positioned to adopt vessels that use bunkers in certain sectors, but current low oil prices mean there is little motivation for vessels in the country to adopt the alternative fuel.
