Asia/Pacific News
New LNG Bunkering Station on Yangtze
China Gas Holdings Ltd. plans to open the first gas-fuelling station for cargo ships on the Yangtze river next month, but it will take time for the nation's shipping industry to meet government targets for emissions reductions, the Wall Street Journal reports.
The bunkering station is a pilot project in Chongqing, which will serve the first few ships to convert to the fuel, but it could take years for most vessels travelling on the river to switch from diesel or bunker fuel.
LNG is more expensive than diesel in Asia, in contrast to other parts of the world.
"Current economic conditions within [China's] inland waterway transport have however been challenging, and are forcing some key industry participants to face continuous loss," said Mikael Simelius, vice president of marketing at Wärtsilä Corp (Wärtsilä).
"As a result, it might take some time for the industry to match the government's targets."
Wärtsilä and Rolls-Royce PLC will provide the engine for Asia's first gas-powered tugboat, which is set for delivery to China National Offshore Oil Corp. (CNOOC) by the end of the year for use on the Yangtze.
China's transport ministry has called for 2,000 vessels, or 2 percent of its inland fleet, to run on natural gas by 2015, and it wants the number to rise to 10,000 by 2020.
A LNG fuelling station for a tugboat operating on the Yangtze opened earlier this year.
