World News
LNG Bunker Fuel Insufficient on Its Own to Curb Shipping's CO2 Output: Analyst
Shipping's goal to cut its carbon dioxide (CO2) emissions in half by 2050 would not be reached even if the industry switched over completely to liquified natural gas (LNG).
Having run the numbers, analyst JBC found that a switch to LNG-fuelled shipping "will not by itself be enough".
Even if the entire global shipping fleet were to switch to LNG -- which has a CO2 emission factor about 27% lower than the conventional bunker fuel -- the industry would still be short of its CO2 reduction targets by 350 million metric tonnes, Reuters reports.
The industry will have to find additional ways to cut CO2 emissions, including efficiency gains, carbon capture and storage, hybrids and batteries, the analyst said.
However, LNG will likely as not play an important role in reducing emissions as the first round of regulations come into force.
LNG as marine fuel has been touted as an alternative to oil-derived bunker fuel although the sector's progress to date has been lacklustre.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 645.00 | 2.00 | 767.50 | 11.50 |
| Rotterdam | 600.00 | 8.00 | 751.50 | 13.00 |
| Houston | 627.50 | 9.00 | 796.00 | 11.50 |
| Fujairah | 649.50 | 0.00 | 889.00 | 0.50 |
| Global 20 Ports Average | 665.00 | 0.50 | 864.00 | 6.50 |
| Global 4 Ports Average | 630.50 | 5.00 | 801.00 | 9.00 |
| Global Average Bunker Price | 722.50 | 2.50 | 922.50 | 3.00 |
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