Total: LNG Shippers Need Improved Fuel Efficiency

Thursday February 28, 2013

An official with French energy company Total says charterers like his company that ship liquefied natural gas (LNG) are hurt by contracts that don't give owners an incentive to make ships more fuel efficient, Lloyd's List reports.

"The current system looks unbalanced," said Total head of LNG shipping Jacques Besse, speaking at the Informa LNG shipping conference in London.

Contracts in other shipping sectors give owners the responsibility for fuel costs, which gives them incentive to improve a ship’s fuel efficiency.

One ship owner, who spoke to Lloyd's List anonymously, said owners should be encouraged to implement fuel-saving methods, but the expense of doing so is a concern.

"We want to see more fuel efficiency but we don't want to be whacked [financially]," he said.

Three major dry-bulk charterers, Cargill Inc., Huntsman Corp., and UNIPEC UK, said in October that they will charter only the most fuel-efficient vessels in an effort to push ship owners to provide ships that use less fuel.