SEA\LNG: Collaboration "Crucial" to Adoption of LNG as Marine Fuel

Collaboration is crucial for creating an effective LNG value chain by 2020, says SEA\LNG.

SEA\LNG today said a collaborative approach to understanding the opportunities and addressing associated commercial barriers to liquefied natural gas (LNG) is "crucial" to encouraging the adoption of the fuel as an alternative to traditional bunker fuels.

"SEA\LNG believes that collaboration, demonstration and communication are essential to continue to develop an effective and efficient global LNG value chain by 2020," said the coalition.

With tougher global regulations on sulfur in shipping emissions set to come into force in 2020, the coalition says ship owners, fuel suppliers, and other associated supply chain stakeholders must make major investments in order to comply with these new regulations.

SEA\LNG suggests that, through addressing the fuel itself, LNG provides a viable long-term solution, but challenges to such adoption must first be better understood and addresses "if LNG is to reach its full potential."

Such barriers are noted to include LNG infrastructure and market maturity, the lack of understanding of LNG's benefits among end users, investors, governments and civil society, and capital expenditure premiums for vessels and bunkering infrastructure, as well as fragmented and evolving regulations.

"The reality in the world today is that environmental stewardship is now an essential element of the maritime Industry. How we collectively deal with this reality will set the stage for the Industry for decades to come," said Peter Keller, SEA\LNG Chairman and Executive Vice President of TOTE.

"A collaborative approach is the only way to overcome current challenges. Creating the infrastructure to enable quick, safe and cost effective LNG bunkering in key global ports; making LNG-fueled vessels cost efficient; and, establishing consistency of international and national regulations are all essential if LNG is going to fulfil its potential as a solution for the shipping industry."

SEA\LNG notes that it has released a document titled "Accelerating the Adoption of LNG as a Marine Fuel," which details why LNG is a viable long term solution, provides details on how key barriers to adoption can be addressed, and explains how SEA\LNG plans to work towards an effective global LNG value chain.

Following October's decision at the International Maritime Organization's (IMO's) 70th Session of the Marine Environment Protection Committee (MEPC 70) for a 0.50 percent global sulfur cap on marine fuel to be implemented from 2020, SEA\LNG said it expects to see increased investments in the value chain related to LNG as marine fuel.