World News
Bomin Linde LNG: Global Sulfur Cap Will Increase Attractiveness, Demand for LNG Bunkers
Bomin Linde LNG GmbH & Co. KG (Bomin Linde LNG) says the upcoming 0.50 percent global sulfur cap for marine fuel will increase the commercial attractiveness and demand for liquid natural gas (LNG) as a marine fuel, Seatrade Maritime reports.
"With the strong possibility that the sulfur content cap regulation will be implemented by 2020 on a global level, the need for environmentally-friendly fuel will rise substantially," said Jan Christensen, regional manager for The Bomin Group.
Bomin Linde LNG says it has seen signs indicating an increasing market acceptance of LNG as an alternative to 380 cSt bunker fuel, and indicates that this will only be boosted by the International Maritime Organization's (IMO's) intention to cap global fuel sulfur content at 0.50 percent by 2020 or 2025, pending the outcome of a fuel availability review.
"Consequently the demand for LNG as a marine fuel is expected to increase accordingly," said Christensen.
"In addition to this LNG future prices are declining. Hence the commercial attractiveness of LNG will substantially increase in the future."
In preparation for the new market context, Bomin Linde LNG says it has submitted a request for approval for a small-scale LNG bunker terminal in Germany's Hamburg and has launched a tender for a bunker supply vessel.
Additionlly, Bomin Linde LNG signed a memorandum of understanding in February with Klaipėdos Nafta to develop the LNG market and associated infrastructure in the European ECA zone.
"Bomin Linde LNG will use the Klaipeda FSRU and book regulated LNG reloading capacities," said Christensen.
"In conjunction with Klaipedos Nafta we have also agreed to jointly explore the possibilities to develop a LNG bunkering vessel to provide LNG bunkering services in the region by 2017."
In March, Boston Consulting Group (BCG) speculated that LNG will likely become the marine fuel of the future, commanding up to 27 percent of the bunker market by 2025.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 553.50 | 0.00 | 673.00 | 0.00 |
| Rotterdam | 514.50 | 0.00 | 651.00 | 0.00 |
| Houston | 545.00 | 0.00 | 671.00 | 0.00 |
| Fujairah | 543.00 | 0.00 | 747.00 | 0.00 |
| Global 20 Ports Average | 574.00 | 0.00 | 748.00 | 0.00 |
| Global 4 Ports Average | 539.00 | 0.00 | 685.50 | 0.00 |
| Global Average Bunker Price | 627.00 | 0.50 | 799.50 | 1.00 |
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