Americas News
Canada: BC Backs Expansion of West Coast LNG Bunkering
Canada's province of British Columbia (BC) is joining the Vancouver Fraser Port Authority and nat gas supplier FortisBC as the trio look to establish the first ship-to-ship LNG bunkering service on the West Coast of North America.
"We are confident in B.C.'s ability to join the global network of ports that deliver clean-burning LNG direct to the ships of the future," said Premier John Horgan.
The move would build on FortisBC's existing ex-truck LNG bunker supply operation in Vancouver, which is one of the few ports in the world where there is regular spot availability of the alternative fuel. Ship & Bunker has been providing LNG spot prices at the port since 2015.
The region also already has domestic demand for LNG bunkers courtesy of five BC Ferries vessels and two Seaspan cargo vessels.
However, there is the promise of much greater demand thanks to LNG-powered deep sea vessels now entering service within the global fleet.
"It is expected that LNG-powered ships — specifically container, car carrier and cruise vessels — could begin calling in Vancouver as early as 2020, and global demand is expected to exceed nine million tonnes (23 million cubic metres) of LNG annually by 2025. B.C. should be ready to get some of that business," said Bruce Ralston, Minister of Jobs, Trade and Technology.
The port could also prove to be an attractive place for those vessels to lift their LNG. Thanks to ample natural gas resources within the province, LNG bunkers are favourably priced in Vancouver at around $80/mt less than IFO380 and $545/mt less than MGO on an energy equivalent basis.
"Establishing British Columbia as an LNG bunkering hub for regional and international vessels is a rare opportunity for the Province to take meaningful climate action, while also seizing an economic opportunity provided by British Columbia's world-class natural gas resources," said Roger Dall'Antonia, president and CEO, FortisBC.
