Page 6 - NorthAmOil Week 13 2021

NorthAmOil COMMENTARY NorthAmOil

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

P6 www. NEWSBASE .com Week 13 01•April•2021