World News
Wärtsilä: There's a Big Change Going on from Heavy Fuel to Gas
Wärtsilä Corp says it is eyeing growth in its gas engine business to capitalise on what it sees as a major shift in the shipping industry, Bloomberg reports.
"There's a big change going on, from traditional heavy fuel to gas," said the company's CEO, Bjørn Rosengren.
Rosengren said his company was looking to acquire other businesses operating in the gas engine sector in the belief that the market shows strong potential.
"We would like to see the acquisitions supporting the overall strategy that we have," he said.
"Anything in relation to gas and that market is interesting for us."
The use of natural gas is becoming a more interesting option for shippers, particularly those operating within Emissions Control Areas (ECAs) who are being forced to look at various methods of complaince.
One of those compliance methods, the use of scrubbers, allows continued use of traditional heavy fuel oil bunkers, but uptake of the technology as a compliance strategy has been lower than expected, said Rosengren.
"The market has more or less decided that it's dual-fuel," he added.
"We are early out, we have the right technology, but of course the competition is also developing products."
Wärtsilä this week announced an order for 54 dual-fuel engines from South Korea's Daewoo Shipbuilding and Marine Engineering Co. Limited.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 647.00 | 6.00 | 762.00 | 5.50 |
| Rotterdam | 599.00 | 1.00 | 751.00 | 0.50 |
| Houston | 618.00 | 11.50 | 802.50 | 6.50 |
| Fujairah | 642.00 | 5.50 | 883.50 | 5.50 |
| Global 20 Ports Average | 661.50 | 3.50 | 859.00 | 5.00 |
| Global 4 Ports Average | 629.50 | 1.00 | 799.50 | 1.50 |
| Global Average Bunker Price | 719.00 | 3.50 | 915.00 | 7.50 |
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