World News
LNG Uptake to Remain Slow in Decade Following 2020 Sulfur Cap Implementation: Cockett
While Cockett Group (Cockett) views liquefied natural gas (LNG) as a "sustainable solution" for meeting both present and future legislation on vessel emissions, the fuel's uptake is expected to remain slow into the first decade following the upcoming implementation of a 0.50 percent global cap on sulfur on marine fuel in 2020, CEO Cem Saral has told Ship & Bunker.
"Considering the extremely high infrastructure costs, the limited capacity of most current vessels and newbuilds to consume LNG as bunkers, and the lead time required for the LNG supply chain to catch up with the scale and scope of the bunker industry, we project that LNG's penetration into the marine fuel pool will remain fairly muted during the first decade of the IMO 2020 transition," said Saral.
"The Group remains in direct engagement with various initiatives on LNG bunkering practices and will continue to update its working partners during this transition period with practical commercial and technical advice."
As bunker players consider likely market changes coming in 2020, Saral has further told Ship & Bunker that the group sees the nearing global 0.50 percent cap on sulfur in marine fuel as a "great opportunity" to benefit from a growing market share.
As Ship & Bunker reported last month, a new report suggested that the upcoming 0.50 percent global sulfur cap set for 2020 is doing little to help the uptake of LNG bunkers, other alternative marine fuels, or scrubbers.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 647.50 | 1.00 | 770.00 | 3.50 |
| Rotterdam | 601.50 | 2.50 | 754.00 | 2.00 |
| Houston | 619.00 | 11.50 | 795.50 | 3.00 |
| Fujairah | 651.50 | 1.00 | 895.00 | 2.00 |
| Global 20 Ports Average | 664.00 | 1.50 | 856.50 | 2.00 |
| Global 4 Ports Average | 630.00 | 3.00 | 803.50 | 2.50 |
| Global Average Bunker Price | 718.00 | 0.50 | 914.50 | 0.50 |
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