"Virtual" LNG Pipeline Could Help LNG "Move Forward" as Marine Fuel: AG&P

AG&P says a so-called "virtual" LNG pipeline could help LNG "move forward" as marine fuel.

Derek Thomas, head of advanced research at Atlantic, Gulf & Pacific Company (AG&P), says the company's new 4,000 cubic metre (cbm) liquefied natural gas (LNG) carrier, the design of which has just been completed, is part of a possible "virtual" LNG pipeline that will help LNG move forward as a marine fuel, Passenger Ship Technology reports.

"There is a demand for LNG but the infrastructure is not in place to develop a pipeline [physically]," said Thomas.

As a result, the company says it is mulling a plan that would see the development of a range of small LNG carriers to deliver the fuel to smaller locations - its so-called "virtual" pipeline.

Thomas says the pipeline would "revolutionise" LNG delivery to South East Asian islands, and could be used in both India and China.

"This will absolutely help take up of LNG among cruise ships, Carnival has an agreement with Shell, but there are lots of small players out there who have a need," said Thomas of the company's virtual pipeline.

"One of the repeated issues among shipowners is: where will we get the LNG? LNG as marine fuel is moving forward, but these pieces will help it move faster."

AG&P said to be considering the development of a small-scale liquefaction facility in North America, possibly targeting port locations in the Pacific Northwest, including Oakland and Vancouver.

In August, AG&P announced it had made a "major investment" in Korean-based engineering and design firm GAS Entec Co., Ltd. (GAS Entec) that will see the two companies work together to provide a variety of onshore and floating LNG products, including LNG bunkering, storage, regasification, LNG-fuelled power solutions, mooring structures, and storage applications.