World News
Industry Waiting for Clearer Signals on LNG Bunkers
The adoption of liquefied natural gas (LNG) as a global bunkering solution is waiting on a number of "green lights" that have not come yet, Martin Shaw of consultancy Marine Operations and Assurance Management Solutions (MOAS) told an audience at the Motorship Gas Fuelled Ships conference earlier this week, industry news site The Motorship reports.
Shaw said the adoption of LNG bunkers has not lived up to a prediction made last year that there should be 5,000 ships using the fuel by now.
While the benefits of using LNG in Emissions Control Areas (ECAs) represent a green light, he said, other factors are still not offering a clear signal for ship owners to move forward: global greenhouse gas rules are still waiting for a decision by the International Maritime Organisation (IMO), and regulations on nitrogen oxides have not been defined.
In addition, Shaw said, the global supply chain, technology, and regulation are also still in formation, making it appear risky for ship owners to move forward.
Det Norsek Veritas (DNV) said recently that LNG power is "leaving the market niche" and becoming more widespread, but a Boston Consulting Group (BCG) report in April said the fuel is only likely to be used within ECAs, limiting its relevance to the industry.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 502.00 | 4.50 | 617.00 | 5.50 |
| Rotterdam | 457.50 | 2.50 | 623.50 | 6.50 |
| Houston | 469.00 | 3.50 | 623.00 | 2.00 |
| Fujairah | 494.50 | 6.50 | 715.50 | 5.50 |
| Global 20 Ports Average | 526.00 | 3.00 | 712.50 | 11.50 |
| Global 4 Ports Average | 481.00 | 4.00 | 645.00 | 4.50 |
| Global Average Bunker Price | 569.00 | 2.00 | 750.00 | 5.50 |
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