LNG Uptake in China Unlikely in Coming Years, says Supplier

Thursday November 15, 2012

China Marine Bunker Supply Company (Chimbusco) has said the vast majority of Chinese shipowners are unlikely to switch to using LNG as a bunker fuel and will instead stick to using bunker oil, according to comments reported by SinoShip News.

The supplier also said it expects bunker fuel demand in the country will maintain an annual growth rate of 10 percent over the next three years.

Switching to LNG is seen by some in the industry as a viable way to address tightening Emissions Control Area (ECA) regulations, with engine manufacturrer Wärtsilä saying earlier this week it is the alternative fuel that offers the greatest potential for cost-effective compliance.

While there are currently no ECAs in Aisa, last month Hong Kong's environment undersecretary Christine Loh said the government's determination to set up an ECA for Hong Kong and the Pearl River Delta (PRD) area should not be underestimated.

A one year study by Lloyd's Register concluded that the global acceptance of LNG as a bunker fuel will come down to price, but Singapore, Rotterdam, and Gothenburg have nevertheless all pledged to have LNG bunkering in place for 2015.