Page 4 - AsianOil Week 13 2021

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LNG emerges as

global shipping fuel

Many shipowners view LNG as the best option available for complying with

shipping emissions legislation coming into force in the years to come

COMMENTARY LNG bunkering is on the rise globally, as more Shipowners are also considering zero-carbon
and more shipowners make the switch from fuels like hydrogen and ammonia, but unlike
dirtier heavy fuel oil, which has dominated the LNG they have yet to be prove commercially
WHAT: shipping fuel mix since the 1960s. While the viable. LNG may well give way to those options
LNG bunkering has main hotspots for LNG bunkering are found in over the coming decades, but for the time being
spread across the world, Europe and the Asia-Pacific region, countries it is by far the most popular, accounting for over
as shipowners switch elsewhere are also starting to adopt the fuel. a quarter of all ship orders at present.
from oil-based fuels to Increasingly strict rules on emissions from In this special feature by NewsBase, we take a
reduce their emissions. shipping, imposed by the International Mari- look at recent developments in LNG bunkering
time Organisation (IMO) and on regional and in select regions across the world.
WHY: national levels, are driving this trend. Most nota-
LNG produces 20-25% bly, the IMO imposed a 0.5% cap on sulphur Africa
less carbon dioxide, content in marine fuel last year. Shipowners Africa is a newcomer on the LNG bunkering
95% less nitrogen oxides had several choices for complying with this rule. scene. To date, only one African company –
and up to 99% less Some switched to cleaner oil-based alternatives DNG Energy of South Africa – has been able to
particulate matter, as well to heavy fuel oil, while others equipped their establish a facility capable of making LNG avail-
as virtually no sulphur. vessels with air pollution control devices that able to marine operators for use as fuel.
remove sulphur from their emissions. DNG secured an operating licence for its
WHAT NEXT: Others resorted to switching to LNG, view- facility in Coega, located in South Africa’s
LNG could give away ing it as the best option available for complying Eastern Cape region, last year. It hopes that the
to zero-carbon fuels with future emissions legislation and not just the facility will be able to supply up to 3mn tonnes
eventually, but those rules already in place. Compared with conven- per year (tpy) of LNG by 2024, but it has yet to
options have yet to prove tional oil-based fuels, LNG produces 20-25% less become a major destination for vessels in need
commercially viable. carbon dioxide, 95% less nitrogen oxides and up of fuel for long-haul journeys. This is likely to
to 99% less particulate matter, as well as virtually change as marine LNG demand rises, especially
no sulphur. since Coega’s location is convenient for ships

P4 www. NEWSBASE .com Week 13 01•April•2021