World News
Gasfuelled Ships Conference Points to Increased Momentum for LNG Uptake
The Motorship says that its recent Gasfuelled Ships conference hosted discussion that suggests the "tide is turning" for liquefied natural gas (LNG) as it gains "momentum" in being adopted for use as a marine fuel.
Although low oil prices are noted to have damped the more enthusiastic uptake projections for the fuel, the Motorship says that discussion at the event supported the suggestion that tightening regulations, specifically the coming 0.50 percent cap of sulfur content in bunkers, will provide incentive for ship owners to more closely consider the use of LNG.
During a "heated" debate at the conference, a panel considering fuel choices available to ship owners ahead of new environmental regulations is said to have concluded that owners will choose the compliance option that offers the best combination of price, availability, and safety.
The panel discussion is also said to have concluded that enforcement of environmental regulations must be both consistent and global to ensure an even fairness across the industry.
Torsten Schramm President of DNV GL – Maritime, speaking at the conference, suggested that LNG's movement into new sectors is a significant sign of progress, highlighting the cruise industry's orders for 11 LNG-fuelled vessels over the past 18 months as an example.
Michael Ippich, managing director of Hartmann Reederei (Hartmann), also speaking at the conference said small to medium-sized ship owners will likely need support in the form of government incentives in order to cover costs associated with environmental compliance in the context of a challanging market.
European development of bunker infrastructure, as well as Chinese companies' growing experience in the construction of LNG-fuelled ships, are said to have been highlighted at the conference as indicators of the gas sector's growing maturity.
Yesterday, Ship & Bunker reported that Michael Schaap, commercial director marine at Titan LNG has said that shipowners who wait to act on preparing to use LNG bunkers risk being put at a competitive disadvantage in the future.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 624.50 | 1.00 | 732.00 | 8.50 |
| Rotterdam | 571.00 | 3.00 | 758.00 | 16.50 |
| Houston | 591.50 | 4.00 | 760.00 | 5.50 |
| Fujairah | 629.00 | 0.50 | 877.50 | 3.00 |
| Global 20 Ports Average | 637.00 | 0.00 | 819.00 | 3.00 |
| Global 4 Ports Average | 604.00 | 0.00 | 782.00 | 5.50 |
| Global Average Bunker Price | 688.00 | 2.50 | 879.00 | 1.00 |
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