Carnival Undeterred by Lack of LNG Bunkering Infrastructure, Says Multi Billion Dollar Backing for LNG Bunkers is the "Right Move"

Carnival announced on Monday its iconic smokestack would for the first time be featuring on an LNG powered vessel.

Carnival Corporation & plc (Carnival) says it was not deterred by the current lack of Liquified Natural Gas (LNG) bunkering infrastructure when it made its decision to use LNG bunkers to power four newbuild mega-cruise ships that will have the largest guest capacity in the world, the cruise giant has told Ship & Bunker.

"I think the early adopters can drive forward that infrastructure, which is why Carnival has made this announcement at this early stage in the process," Carnival's Roger Frizzell told Ship & Bunker.

As recently as last month the industry was said to still be struggling with LNG's "chicken and egg" problem, with ships holding off on decisions to back LNG bunkers without the established infrastructure being in place, and vice versa.

In May Ship & Bunker also published data from consulting and advisory firm TRI-ZEN showing that of the world's 8,000 seaports, 46 are LNG bunkering hopefuls, and just 15 are currently open for general LNG bunkering.

However Frizzell noted that there was strong backing for LNG bunkers, particularly from the Europe Union, and that more widespread infrastructure was starting to be realised.

"I think there's momentum and we will be able to implement our strategy," he said.

Frizzell says it is too early to say whether the company will be relying on spot product availability or put long term supply contracts in place, but with two new ships for Carnival's AIDA brand to be delivered in 2019 and 2020, and the two others scheduled for delivery in the 2019-2022 period, he says the company has plenty of time to fully develop its LNG bunkering strategy and that further announcements will be made in due course.

The cruise company announced its multi-billion dollar backing for LNG bunkers earlier this week, saying its four new vessels will be 100 percent powered by LNG while at sea and in port.

With a total capacity of 6,600 guests, the 180,000 gross tonne vessels will be unique in their own right, but Carnival notes that its use of LNG is a first in the cruise industry. 

"I think it's a bold move, and I think its the right move," said Frizzell.

In Monday's announcement, Carnival said LNG was "the world's cleanest burning fossil fuel" that "will eliminate emissions of soot particles and sulfur oxides."