World News
No Current Demand for Dedicated LNG Bunkering Vessels
Demand for liquified natural gas (LNG) bunkering is currently too low to justify dedicated bunkering vessels, according to Mats Fagerberg, Managing Partner - LNG at Affinity LNG LLP.
"Today's LNG bunkering demand is insufficient to justify the need to build 100% dedicated bunker vessels," said Fagerberg, who was speaking at a forum for LNG as a Marine Fuel at last week's London International Shipping Week.
Ship & Bunker reported last year that Shell had placed an order for an LNG bunkering vessel from South Korea’s STX Offshore & Shipbuilding (STX), and Fagerberg noted that those who had ordered dedicated LNG bunkering vessel tended to be energy majors capable of building the entire supply chain.
Elsewhere in the industry, 7,000 to 8,000 cbm vessels were of interest as they could serve as LNG carriers and double as bunkering vessels when the need arrises.
Financially, Fagerberg said rock bottom prices for traditional oil bunkers - which in recent weeks have slid to their lowest in over 10 years - meant there was currently little to be gained by adopting LNG, and that "retrofits are going to be very challenging."
Last week Ship & Bunker reported that the Society for Gas as a Marine Fuel (SGMF) said that despite the current price slide, LNG is still viable as a longer-term solution.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 565.50 | 4.50 | 678.50 | 4.50 |
| Rotterdam | 512.00 | 3.50 | 676.00 | 9.00 |
| Houston | 552.00 | 3.00 | 682.00 | 4.00 |
| Fujairah | 555.50 | 7.50 | 753.00 | 1.50 |
| Global 20 Ports Average | 583.50 | 4.00 | 762.50 | 2.50 |
| Global 4 Ports Average | 546.50 | 4.50 | 697.50 | 2.50 |
| Global Average Bunker Price | 632.50 | 2.00 | 811.00 | 1.50 |
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