World News
LR: LNG Bunkers for Deep-Sea Trade Could Be Close
Orders for liquefied natural gas (LNG)-fuelled deep-sea vessels could begin soon, but the economic calculus will be different than for ships operating largely in emissions control areas (ECAs), Nick Brown, marine communications manager at Lloyd's Register (LR), wrote in a recent blog post.
Brown noted that orders for LNG-powered ships are on the rise, with orders including the ferry Viking Grace and the world's first LNG-fuelled tanker, Argonon.
"The reality is that no company has yet fully committed to LNG as fuel for a deep sea ship – some of the orders so far are deep sea capable, but the commercial premise behind the orders is based on ECA trading," he wrote
"But we don't think a deep sea order is far away."
Brown wrote that such a ship wouldn't necessarily operate on gas immediately and could have the same dual- or multi-fuel capacity of many of the current LNG-fuelled ships.
He wrote the LNG is "obviously an excellent option" for some niche trades, especially in North America, where gas can be found at low prices.
Adoption of the fuel for deep sea shipping will be greatly dependent on regulatory and market developments, Brown wrote, and different circumstances may call for the use of fuel oil, diesel, gas, or other fuels like biofuels or hydrogen.
Brown cited the recent LR report Global Marine Fuel Trends 2030, which suggests LNG could grow to an 11 percent share of the deep sea market in 2030.
"That is a massive growth from zero deep sea today," he wrote.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 548.00 | 0.50 | 677.50 | 2.00 |
| Rotterdam | 513.00 | 0.50 | 649.00 | 3.00 |
| Houston | 544.50 | 2.50 | 675.00 | 4.00 |
| Fujairah | 541.50 | 2.50 | 744.00 | 3.50 |
| Global 20 Ports Average | 572.00 | 2.50 | 758.00 | 2.50 |
| Global 4 Ports Average | 536.50 | 1.50 | 686.50 | 3.00 |
| Global Average Bunker Price | 624.00 | 2.50 | 801.00 | 3.50 |
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