Shipping Companies ‘Want To Switch To LNG’
LNG is the preferred fuel for global shipping companies, however there are a number of factors that are holding back its adoption, a new report has found.
The research carried out among 80 senior energy industry leaders from Asia Pacific at the recent Deloitte Energy Trading Summit in Singapore found that using LNG is the preferred option among managers.
However, they stated that the lack of refuelling and bunkering infrastructure is the biggest barrier to LNG’s adoption as a maritime fuel. The second biggest barrier is the retrofitting and/or redesigning of their existing fleet to make ships compatible with this new fuel.
New regulations on shipping emissions being introduced by the International Maritime Organization (IMO) will require firms to take action, and it seems the LNG sector could benefit if the infrastructure can be established.
Deloitte global LNG leader and Australia oil and gas lead Bernadette Cullinane commented: “Our survey results are a clear recognition the stricter standards will open the door for cleaner marine fuels like LNG and low sulphur marine gas oil to displace heavy fuels.”
She added that “almost every maritime authority in the world that offers bunkering is now taking a serious look at LNG”.
There has already been an increase in the volume of LNG produced and traded annually, Reuters recently reported, highlighting a ten per cent year-on-year increase in LNG trade in 2017.
If you’re working on any LNG storage facilities to help more shipping firms access the fuel to comply with the IMO legislation, make sure you’re using the best quality overfill prevention systems for your facility.