World News
Questions Raised Over When LNG Will be Used to Power U.S. Tugs
While ship owners in the U.S. make plans to use liquefied natural gas (LNG) to power vessels operating in most industry sectors, from offshore supply vessels, to ferries, and even containerships, industry players have said there is uncertainty over when the fuel will be used to power tugs in the country, Professional Mariner reports.
A number of companies do have LNG-powered tugs at the design stage, so some feel it's a question of "when," rather than "if" it will ever happen.
"I wouldn't be surprised if you see a bigger move in the near future," said Johan Sperling, vice president of Crowley's Jensen Maritime unit.
"Whether that is a year or a couple of years, we don't know."
The main reason for the lack of progress to date was said the be the "chicken and egg" problem that the fuel faces: companies are reluctant to build the LNG-bunkering infrastructure without a market for fuel, but owners are reluctant to commit to a fuel that might not be readily available.
"As of right now, there are not that many places where you can economically get LNG fuel to bunker your tugboats," Sperling said.
The time to pay back the additional cost of an LNG powered tug is also a factor, with LNG-fueled tugs reported to cost between 15 and 40 percent more to build.
"Even with substantially cheaper fuel, the payback period for the extra capital cost for equipment may not always make it worthwhile purely from a cost saving perspective," says Vince den Hertog, vice president of marine engineering for Robert Allan Ltd.
Other issues include the fact that, pound for pound, LNG has less energy than diesel meaning more storage would be required for the fuel, and some have cited performance concerns for LNG engines when operating at lower engine speeds.
Earlier this year Rolls-Royce Plc said it will supply power and propulsion equipment for LNG-powered tugs operating in the Middle East market.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 570.00 | 1.00 | 683.00 | 2.50 |
| Rotterdam | 515.50 | 1.00 | 685.00 | 7.50 |
| Houston | 555.00 | 1.00 | 678.00 | 1.00 |
| Fujairah | 563.00 | 2.00 | 754.50 | 0.50 |
| Global 20 Ports Average | 587.50 | 1.50 | 765.00 | 0.50 |
| Global 4 Ports Average | 551.00 | 1.00 | 700.00 | 1.00 |
| Global Average Bunker Price | 634.50 | 1.00 | 812.50 | 1.00 |
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