World News
11% of All New Build Contracts in 2017 Were LNG-Powered Ships: Titan LNG
Amsterdam-based supplier Titan LNG says in 2017 the adoption of liquefied natural gas (LNG) as Marine Fuel significantly accelerated and around 11% of all new build contracts were LNG-powered ships.
The company says it expects the trend to gas-powered shipping to continue into 2018.
"[I]n the past year the stage has been set for a push in the adoption of LNG as a marine fuel beyond the tipping point," the company wrote.
"The order book for LNG-powered ships grew substantially, the LNG bunkering infrastructure is maturing and the pricing of LNG has become structurally competitive versus MGO."
Ship & Bunker data indicates that in Vancouver, Canada, on a calorific basis for the raw commodity, LNG is less than half the price of MGO.
MGO is currently priced at $717.50/mt, while the price for an amount of LNG that delivers the energy equivalent of one metric tonne of MGO (LNG-MGOe) is $312.00.
Having so far failed to live up to the initial hype, Titan LNG are not the only ones who believe the pivotal moment has finally come for LNG bunkers.
In a recent blog post, Mark Bell, General Manager, Society for Gas as a Marine Fuel (SGMF) said he believes 2018 will be the "tipping year" for gas-fuelled shipping.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 649.50 | 2.00 | 778.50 | 8.50 |
| Rotterdam | 602.00 | 0.50 | 748.00 | 6.00 |
| Houston | 624.00 | 5.00 | 792.00 | 3.50 |
| Fujairah | 649.50 | 2.00 | 898.00 | 3.00 |
| Global 20 Ports Average | 662.00 | 2.00 | 855.00 | 1.50 |
| Global 4 Ports Average | 631.00 | 1.00 | 804.00 | 0.50 |
| Global Average Bunker Price | 717.50 | 0.50 | 913.50 | 1.00 |
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