The viability of gas-fuelled container, tanker, bulk and car carrier shipping will be assessed in a study commissioned by LNG stakeholder consortium SEA\LNG.
The study, to be released this month, will claim that LNG offers the best returns of any propulsion option for an Asia-US west coast liner that spends less than 10% of its time in emission control areas. The report will also assess the economics for a very large crude carrier, car carrier, and dry bulk vessel.
“In 2019 we expect to see an increasing percentage of newbuildings within the global fleet move over to LNG to gain commercial trading advantages,” said SEA\LNG chairman Peter Keller.
Mr Keller noted that the case for LNG, traditionally seen as demanding high capital expenditure, had shifted because of the investment required for conventional engines to meet IMO’s 2020 sulphur rule. Such engines must comply by either by installing scrubbers or burning low-sulphur fuel, which is currently more expensive than high-sulphur heavy fuel oil.
Shipyard prices for newbuild LNG engines are being discounted to encourage orders, Mr Keller sai. Meanwhile
. engine designers are also working hard to reduce the capital cost of their gas-fuelled models.
Another, peer-reviewed study being conducted jointly for the Society for Gas as a Marine Fuel and SEA\LNG will calculate well-to-wake greenhouse gas emissions. The report is expected to “reinforce the environmental credentials of current LNG marine engines”. It will be published in the first quarter of 2019.
Further studies include an investigation of the main non-fossil marine fuel alternatives available, which will be published by SEA\LNG by June.
The impact of environmental regulation on US shipping will be among topics covered at the Americas Cap Sulphur 2020 Conference, organised by Riviera Maritime Media and to be held in Houston on 5-6 March. Book your place now.