EMEA News
DNV GL Study Shows "Huge Potential" for Iberian Peninsula's LNG Bunker Market
DNV GL today said a recent market study on the future liquefied natural gas (LNG) market in the Iberian Peninsula has shown a "huge potential" for LNG as a marine fuel in the region, utilising current spare capacity of the existing LNG import terminals.
The consolidated quantitative results suggest that as much as 2 million cubic metres (cbm) per year of LNG is to be bunkered by ships by 2030 and approximately 8 million cbm per year by 2050, with Algeciras, Las Palmas, and Barcelona noted as that most important ports in the region for this.
The study further suggests that existing LNG terminals will be required to develop break bulk capacity to enable loading of LNG to small carriers and LNG bunker vessels.
"In most ports, development of local intermediate storage capacity needs to be synchronized with increasing LNG demand by larger vessels. Besides bunker stations and local storage facilities, small carriers for delivering batches of LNG to ports over sea will play an important role for the times ahead," explains DNV GL.
DNV GL says that, in order to realise the predicted LNG supply chain in 2030, about €1 billion ($1.14 billion) of capital expenditures (CAPEX) investment will be required - with a total cost of €3.7 billion ($4.21 billion) in 2050.
As Ship & Bunker has reported, the study was carried on behalf of the CORE LNGas hive project as part of an effort to encourage the development of a network of LNG refuelling points within the region.
"The consortium partners selected DNV GL to execute the demand studies of the project based on the fact that DNV GL has been at the forefront of the development of LNG as a ship fuel," said Fernando Impuesto, CORE LNGas hive project coordinator from Enagas.
"DNV GL's network and market knowledge have added to a successful outcome. Through this market study we now have a strong decision basis to prepare the supply side on the Iberian Peninsula in meeting future demand for LNG bunkering at competitive conditions."
As previously reported by Ship & Bunker, the results are said to be specifically intended to inform Spanish and Portuguese National Policy Frameworks on alternative fuel supply infrastructure, as well as help in the preparation of a roll-out plan for commercial deployment along the Iberian Peninsula's Mediterranean and Atlantic corridors.
