World News
Report: LNG Now a Serious Fuel Choice
The use of liquefied natural gas (LNG) as a marine fuel hit a "watershed" with the introduction of the North American Emissions Control Area (ECA) in 2012 spurring new investment in ships powered by the fuel, consulting group Tri-Zen says in a new report.
"LNG as a marine fuel can no longer be described as a Nordic curiosity," the firm writes.
"It is now firmly in the frame as a serious fuel of choice in trucks, mining and off-road, railroads and marine."
While LNG has traditionally been produced in large quantities for industrial and power generation, its use as marine fuel demands smaller-scale production facilities.
"LNG, produced in small plants, can today be produced in dedicated quantities, in integrated units the size of shipping containers," the firm writes.
"They will undoubtedly continue to shrink their way into a wider range of prospective markets."
Tri-Zen predicts that the global market for LNG bunkers will be 15 to 20 million tonnes per year with in 10 years.
It also says new developments including a 2-stroke gas-fired engine from Wärtsilä and new LNG-powered ferry designs are improving the prospects for increased use of the fuel.
A recent report for the LNG Bunkering 2014 Summit predicted a 6 percent annual rise in the use of the fuel through 2025, while a separate Wood Mackenzie study found that LNG will represent 10 percent of the overall bunker market by 2030.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 649.50 | 2.00 | 778.50 | 8.50 |
| Rotterdam | 602.00 | 0.50 | 748.00 | 6.00 |
| Houston | 624.00 | 5.00 | 792.00 | 3.50 |
| Fujairah | 649.50 | 2.00 | 898.00 | 3.00 |
| Global 20 Ports Average | 662.00 | 2.00 | 855.00 | 1.50 |
| Global 4 Ports Average | 631.00 | 1.00 | 804.00 | 0.50 |
| Global Average Bunker Price | 717.50 | 0.50 | 913.50 | 1.00 |
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