Page 8 - MEOG Week 13 2021

MEOG COMMENTARY MEOG

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

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

P8 www. NEWSBASE .com Week 13 31•March•2021