Singapore LNG Bunkering "Might Be a Game Changer," Says VDR

by Ship & Bunker News Team
Tuesday May 24, 2016

Martin Kröger, managing director of German shipowners' association, Verband Deutscher Reeder (VDR) believes that the advent of liquefied natural gas (LNG) bunkering in Singapore, which will be available next year, may be "a game changer for the international trade".

"It hasn't reached maturity in the market yet but I am sure we will see a lot of movement in the future," Kröger said in an interview with Motorship, who notes that currently Germany has only one LNG barge that provides power to cruise ships, as well as an LNG-powered ferry.

Kröger says that there are also no current LNG projects that have not received some form of government funding to support them, adding that many of those funding opportunities come from European programmes.

"Pilot project funding is fine but the problem lies not with those projects but with equipping the existing fleet for LNG," explains Kröger.

For widespread adoption of LNG as fuel to be achieved, says Kröger, Europe's state aid strategy must be widened to ensure engagement in order to minimise shipowners' financial risks.

Further, he notes that "there is a high financial risk as a ship owner if you opt for LNG today – especially in retrofitting because you are essentially investing the same amount as the vessel's value in the current market. So it's something that needs to be carefully analysed."

In December, Alfred Hartmann, president of VDR said that LNG powered vessels in Europe have only been possible because of state financial support.

Ship & Bunker News Team
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