Engie Exec: 0.5% Global Sulfur Cap to Drive Annual LNG Bunker Sales to 30 Million Tonnes

by Ship & Bunker News Team
Wednesday October 26, 2016

Denis Bonhomme, senior vice president of business development in Asia for Engie, says a 0.5 percent global cap on sulfur on marine fuel could push demand for liquefied natural gas (LNG) bunkers to 30 million tonnes per year by 2025 to 2030, Reuters reports.

In order to comply with tightening regulations on shipping emissions, Bonhomme suggests ship owners should invest in LNG propulsion when their fleet undergoes renewal.

"If you have to invest into new ships, why go in-between when you know in (a few) years you will anyway have to switch to LNG," said

"A lot of the shipping lines do not have a very young fleet so they have to renew it anyway, so that is a good opportunity."

Bonhomme says the use of LNG as marine fuel would be also more effective in reducing LNG oversupply than small-scale LNG power projects due to the high fixed costs the facilities.

As Ship & Bunker has reported, the International Maritime Organization (IMO) this week, at the 70th session of the Marine Environmental Protection Committee (MEPC 70), is expected to make a decision on whether a global 0.50 percent sulfur cap for marine fuel will come into force in 2020 or 2025.

Ship & Bunker News Team
To contact the editor responsible for this story email us at editor@shipandbunker.com