Russia Promises New Funding in Support of Transition to LNG Bunkers

by Ship & Bunker News Team
Friday September 22, 2017

Russia has announced new funding to encourage the use of liquefied natural gas (LNG) bunkers by seagoing and inland vessels, TradeWinds reports.

The plan, which is part of a larger strategy to support the transition to LNG and cut transport costs by 15 percent, is valued at RUB 94.69 billion ($1.63 billion) from 2018 to 2022.

Administered by Russia's Marine and River Transport Agency, the programme is aiming to see LNG bunkers adopted by 25 percent of the Russian-flagged seagoing and river fleet.

With this target, the use of LNG as marine fuel in the country is expected to grow from 20.6 million cubic metres (cbm) in 2018 to 166.9 million cbm by 2022.

The programme will encourage the adoption of LNG bunkers by providing subsidies to shipowners to make the switch, including reimbursement for investments in LNG-fuelled vessels and retrofits, as well as VAT and customs duty exemptions LNG-related marine equipment, and financial support for the development of LNG storage and bunkering infrastructure.

The government expects that the initiative, which will initially focus on the Baltic basin, will see the development of three LNG bunkering and storage facilities at seaports and up to three facilities on inland waterways by 2022.

Bunkering bases are also said to be planned for the Black Sea at Sabetta and Vladivostok in the Far East.

Last year, Ship & Bunker reported that Vyacheslav Khakhalkin, Deputy Director General of Gazprom Gazomotornoye Toplivo (Gazprom), had said that Russia’s LNG bunker fuel sales could be expected to reach 1.35 million tonnes by 2030.