Asia/Pacific News
Singapore: LNG Bunkers Can Be Widely Adopted by Shipping Industry, Says MPA's Andrew Tan
Maritime and Port Authority of Singapore (MPA) CEO Andrew Tan Friday said that the reduced emissions when burning liquefied natural gas (LNG) bunkers, and the good track record of LNG being transported as cargo and used as fuel in LNG carriers, "gives confidence to the industry that LNG can be widely adopted as a marine fuel going forward."
The comments came during an address by Tan at the "Port of Yokohama LNG Bunkering Mini Seminar" in Singapore, an event intended to allow the two ports a chance to exchange insights on their efforts for LNG bunkering development.
Tan says tightening environmental regulations will drive demand for compliance solutions, "of which LNG has been identified as a marine fuel of choice," as it nearly eliminates sulfur emissions, significantly reduces NOx and CO2 emissions, and has solid track record as transported cargo on LNG carriers.
However, Tan acknowledged some realities that pose a challenges to the widespread use of LNG bunkers, stating: "it is clear that the implementation of LNG as a marine fuel is not easy and will take some time. The dramatic collapse in oil prices in the past year has narrowed price differentials, relative to other low sulphur solutions."
"The shipping community has also demonstrated less enthusiasm in putting forth investments into building of LNG-fuelled vessels with the current weak economic conditions. Nonetheless, we will need to work together to tackle the chicken and egg dilemma that stands in the way of the development of LNG as a marine fuel."
Tan stressed that Singapore is committed to developing the LNG bunkering market, highlighting the port's LNG bunkering pilot programme, set to launch in 2017.
"It is my firm belief that key strategic partnerships must be forged and fostered. This will allow for coordinated efforts to communicate and demonstrate confidence to the industry to further adopt LNG as a marine fuel," said Tan.
"I look forward to continuing a strong working relationship with MLIT to drive the global LNG bunkering agenda," he concluded.
In June, Ship & Bunker reported that NYK Line was partnering with Tokyo Gas Co., Ltd. (Tokyo Gas) and Japan's transport and economy ministries on a study to examine the viability of a LNG bunkering station at the Port of Yokohama.
