"Interest in LNG as a Marine Fuel Is Growing" Following IMO Sulfur Cap Decision, Says Supplier

Monday February 20, 2017

Australia-based EVOL LNG today became the latest voice to declare growing interest in liquefied natural gas (LNG) bunkers on the back of tightening environment regulations.

"Interest in LNG as a marine fuel is growing, especially since the IMO announced that it would introduce a global marine fuel sulphur limit of 0.5 per cent from 2020," said EVOL LNG Business Manager Nick Rea, referring to last October's decision by the International Maritime Organization (IMO).

"LNG is a cleaner fuel than marine diesel, emitting 25 per cent less carbon dioxide, less nitrogen oxides and almost zero sulphur oxides and particulates, which largely addresses emission concerns for the shipping industry."

The comments follow what EVOL LNG hailed as an LNG bunkering first for Western Australia's north-west.

As part of an agreement with Woodside, on January 23, 2017 the company said it completed the first commercial LNG bunkering in the region, supplying LNG bunkers to the platform supply vessel, Siem Thiima.

"Our decision to enter the LNG bunkering market is part of a long-term strategy that recognises environmental and economic sustainability of LNG as a transport fuel," said Rea, adding that the LNG marine fuel market "is still in development."

"With growing demand for lower emission fuels over the past decade, we've seen the number of LNG-fuelled ships in operation worldwide increase steadily from a handful to more than 75, with an additional 80 expected to be built in the next three years.

"It's certainly an offering we'd like to expand, particularly as truck-to-ship LNG bunkering can be achieved relatively inexpensively with existing logistics assets."