DNV: LNG Bunker Uptake to Be All-or-Nothing

by Ship & Bunker News Team
Tuesday April 9, 2013

The shipping industry's uptake of liquefied natural gas (LNG) bunkering is likely to be an all-or-nothing proposition, which means that if conditions remain favorable the market may switch completely to the fuel within a few decades, according to Lars Petter Blikom, segment director for natural gas at Det Norske Veritas (DNV).

Writing at DNV's LNG-focused blog, Blikom says that once LNG fuel technology is established, ships will compete on costs, with owners buying whichever solution seems most economical.

"If natural gas and LNG is consistently priced lower than oil over the next three decades, we will see oil more or less replaced by LNG in the marine fuel sector," he writes.

"If LNG becomes, and stays, more expensive than oil then LNG will only be implemented in small niche markets and single trades around the world.

"I know which one I believe in; in 2040 a ship burning oil will be a rare sight on the seas, but quite popular in museums."

A recent Lloyd's Register analysis found that LNG bunkers could reach 24 million tonnes, 3.2 percent of global heavy fuel oil (HFO) bunker consumption, by 2025, and another study found that LNG provides clear long-term cost advantages for U.S. coastal vessels.

Ship & Bunker News Team
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