Page 12 - GLNG Week 50 2020

GLNG COMMENTARY GLNG

facilities have been installed, as have fuel tanks. Demand for LNG as a bunkering fuel is also
The next stage is going to be launching Gazprom growing in Russia. State-owned shipowner
Neft’s LNG bunker at sea.” Sovcomflot now has six LNG-fuelled oil tank-
ers in operation, in addition to its 15-strong
Growth prospects fleet of LNG tankers that also use the gas in
While Gazprom Neft generates most its rev- their engines. Other Russian cargo handlers are
enues from its oil business, the company has similarly considering switching to the fuel. The
said it wants to build up its gas operations as government has also launched a programme to
well. In addition to LNG bunkering, it is also increase the number of Russian ports that offer
looking to develop projects to commercialise bunkering services. The long-term
gas at its Arctic oilfields, and like its parent The long-term prospects for LNG as a bun-
company Gazprom, it is also marketing LNG kering fuel depend greatly on how the shipping prospects for LNG
and compressed natural gas (CNG) as vehicle industry chooses to address its emissions. as a bunkering
fuels in Russia. LNG easily clears today’s IMO emissions
Gazprom Neft has said before it envisages standards. It releases 99% less SOX emissions fuel depend
eventually having a fleet of LNG bunkering compared with high-sulphur fuel oil (HSFO),
vessels, primarily working in northern Europe. and 80% less NOX, 25% less CO2 and 99% fewer greatly on how
Signalling its growing interest in the sector, the fine particles. It is also considerably cheaper
company became the first Russian oil firm to than other emerging new fuels and has been the shipping
join the international Society for Gas Marine proved to be commercially viable, available and industry chooses
Fuel (SGMF) in July. scalable, its advocates argue.
Dovetailing with Gazprom Neft’s plans, Gaz- However, there are concerns that LNG could to address its
prom intends to build several small-scale LNG fall foul of stricter rules on shipping emissions
production plants across Russia that would that might be brought into force in the future. emissions.
provide a source of bunkering fuel. The most One particular risk comes from the EU plan-
advanced of these projects is the 1.5mn tpy Por- ning to impose its CO2 emissions trading sys-
tovaya plant on the Baltic Sea, due to start up in tem to shipping, which would raise the cost of
2021. It has also proposed building facilities on LNG-fuelled transport. This could spur more
the Black Sea and in the Far East, which would shipowners to invest in vessels that use cleaner
enable Gazprom Neft to branch out into other fuels such as hydrogen, ammonia and metha-
bunkering markets. nol instead.™

P12 www. NEWSBASE .com Week 50 18•December•2020