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LR: LNG Bunkering All About Collaboration
A Senior Market Analyst at Lloyd’s Register has said that while price is a key to liquid natural gas (LNG) being adopted as a bunker fuel, there needs to be collaboration between stakeholders if it is to be realised.
"Yes, price is a key. But it’s going to be all about collaboration. There has to be a group of stakeholders who want it to happen," said Latifat Ajala, the Analyst who built the dynamic demand model behind LR's recently published study, "LNG-fuelled deep sea shipping."
The "modest" take-up so far, she said, has been driven by a combination of political will, commercial ambition, environmental objectives, and regulations.
However, as there was no global market for LNG bunkers then local or regional initiatives, and investment, as well as environmental and fiscal policy will all have a part to play.
"Ship-owners who are serious about using LNG as bunker fuel may need to cut their own supply deals and lock in prices for years ahead. It’s going to be really interesting to see what happens," commented Ajala.
LR's study concluded that in the long term, LNG-fuelled engines are a viable option for deep sea trades, and that LNG bunkering is likely to be adopted for short sea shipping in Emissions Control Areas (ECAs) over the next 13 years.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 493.50 | 0.00 | 609.00 | 3.00 |
| Rotterdam | 432.00 | 18.00 | 582.50 | 17.00 |
| Houston | 450.00 | 8.00 | 607.00 | 11.00 |
| Fujairah | 476.50 | 6.50 | 699.00 | 4.00 |
| Global 20 Ports Average | 516.00 | 5.00 | 700.00 | 5.50 |
| Global 4 Ports Average | 463.00 | 8.00 | 624.50 | 7.00 |
| Global Average Bunker Price | 562.00 | 2.00 | 738.00 | 3.50 |
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