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CCS: Any Impact Low Bunker Prices Will Have on LNG Bunker Investment Will Be "Short Term"
Any impact that the recent fall in crude oil prices, and corresponding drop in bunker prices, will have on investment in Liquified Natural Gas (LNG) bunker technology will be "short term", Zhu Kai, Vice President and Chief Engineer, China Classification Society (CCS) said in a recent interview with The Society for Gas as a Marine Fuel.
"The current fall of crude oil price could impact the client's willingness to invest on gas fuelled ships in the short term, but in view of the link between pricing system for LNG and crude oil (such as in China, Europe, etc.), and increasingly stringent requirements for prevention for air pollution from ships, such as Emissions Control Areas (ECA), we believe that this will result in a lot more demand for gas fuelled ships in the long run," said Kai.
The classification society also noted it has classed about 200 gas fuelled ships that have either been delivered, are under plan approval, or are under construction.
At the end of 2014 Hana Daetoo Securities' analyst Park Moo-hyun said the falling price of oil is unlikely to deter sales of eco-ships.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 625.00 | 9.00 | 732.00 | 15.00 |
| Rotterdam | 577.50 | 3.50 | 739.50 | 1.00 |
| Houston | 595.00 | 0.50 | 767.00 | 4.50 |
| Fujairah | 628.50 | 4.00 | 878.50 | 11.00 |
| Global 20 Ports Average | 645.50 | 0.50 | 827.00 | 5.00 |
| Global 4 Ports Average | 606.50 | 0.50 | 779.50 | 0.50 |
| Global Average Bunker Price | 703.50 | 4.00 | 886.00 | 6.00 |
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