World News
LNG Bunkers Still Attractive Long Term Despite Oil Price Slide
Although cheaper oil has allowed traditional bunkers to eroded some of the cost benefits of using liquefied natural gas (LNG) as a marine fuel, the Society for Gas as a Marine Fuel (SGMF) says LNG is still viable as a longer-term solution, World Maritime News reports.
According SGMF General Manager Mark Bell, LNG as a fuel has had a good track record so far, with manufacturers reportedly suggesting that using LNG bunkers results in longer intervals between engine overhauls.
"For the ship owner, it is price, price, price," he said during London International Shipping Week.
"But what about afterwards – for example, the long-term maintenance, etc."
He admits that LNG is still a young industry, with many hurdles in the form of regulations, public perception and technology.
But he argues that presently, the potential of LNG has not been realised, while benefits will not be apparent until there is wider adoption in the industry.
"At the end of the day, it is a gut feeling, I am going to go for it," Bell said.
"And those who have put their hands in their pockets find themselves in a position to outgun the opposition."
Bell was also said to have touted the safety record of LNG, but emphasising that the need to be stringent with safety standards is high as the media would be quick to respond to any incidents.
Earlier this year, it was reported that LNG could still command up to 27 percent of the bunker market by 2025.
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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