No Major Obstacles for LNG Bunker Adoption, Says DNV GL

by Ship & Bunker News Team
Wednesday July 6, 2016

DNV GL Wednesday announced that it has submitted a report to the European Union (EU) that offers guidance on how to address barriers challenging the widespread adoption of liquefied natural gas (LNG) as marine fuel, and notes there are no longer any "major showstoppers" remaining.

The report is intended to support the completion of an EU-wide framework for marine LNG distribution, bunkering, and use, and the analysis builds on a study commissioned by the European Maritime Safety Agency (EMSA).

Gaps in the legislative and regulatory framework, and the lack of harmonised standards were identified as the two key barriers to widespread LNG adoption.

"DNV GL's assessment of the existing rules, standards and guidelines shows that from a legal point of view, there are no remaining major showstoppers for the use of LNG as fuel - both for seagoing vessels and inland waterway vessels – nor for the deployment of LNG bunker facilities," explained Martin Layfield, global segment leader of the Gas Value Chain, DNV GL – Oil & Gas.

"In November members states will have to submit their national policy frameworks using the report's recommendations. DNV GL has advised the EU to implement a low/moderate harmonisation scenario as the most workable policy option which will enable members states to transpose the Directive on alternative fuels with a 'light touch.' This will reduce effort in implementation, delays and administrative burden while still enabling standardisation."

DNV GL notes that the report provides an overview of currently applicable standards, maritime LNG supply chain rules and regulations, a gap analysis on the current regulatory framework, as well as recommendations addressing the gaps identified, and an impact assessment of the prioritised recommendations and actions.

"The next three decades will see substantial increase in energy demand. At the same time, a big part of the world expects the energy to be greener, more reliable and more affordable. This is what we refer to as the energy 'trilemma'," said Liv Hovem, regional manager, Continental Europe, North and East Africa for DNV GL – Oil & Gas.

"Natural gas has a key role to play in the future energy mix and Europe will continue to be a significant import hub for LNG."

In November, DNV GL said it had issued the first guidance on recommended practice for the measuring and metering of LNG bunker supply.