Page 8 - NorthAmOil Week 13 2021

NorthAmOil COMMENTARY NorthAmOil

February for the joint marketing and supply of half of the world’s LNG-refuelled ships operate
LNG bunker in both Malaysia and Japan. The in Norway.
two companies said the collaboration, under On a European level, key milestones include
which Petronas Marine will provide services in the EU’s 2005 sulphur directive, as well as the
both countries, would lead to the development creation of emissions control areas (ECAs) in the
of industrial platforms and end-to-end supply Baltic and North seas that same year. Authorities
chains for the use of LNG as a marine fuel. are currently discussing the establishment of a
Petronas also signed an agreement with lead- Mediterranean ECA as well, which would have
ing Japanese LNG trader JERA in February to significant impact on LNG bunkering there.
establish a global bunkering supply network, Today there are some 125 LNG-fuelled
with the two firms committing to leveraging ships working in European waters, represent-
each other’s LNG bunkering experience. ing around three quarters of the global total,
JERA launched its own LNG bunkering according to DNV GL. There are also some 28
business in October 2020, when its joint ven- LNG bunkering vessels that serve them.
ture with three other Japanese companies, Cen- A notable event in Europe was Total’s bunker-
tral LNG, supplied LNG bunker to the Nippon ing of the world’s largest containership, the CMA
Yusen Kabushiki Kaisha (NYK) operated Sakura CGM-operated Jacques Saade, with bio-LNG
Leader vehicle carrier. NYK, along with Kawa- last November. Saade and other containerships
saki Kisen Kaisha (K Line) and Toyota Tsusho, is will be refuelled with LNG while transporting
a Central LNG partner. goods between markets in Asia and Europe.
Asia’s other major LNG importers, China and The French major undertook the operation
South Korea, have also begun working on their at the port of Rotterdam using its first LNG bun-
own bunkering capabilities. kering barge, the Gas Agility. Total has a second
China’s southeastern city of Shenzhen last barge on order that will start bunkering in the
year teamed up with state-run PetroChina, south of France in 2022.
Shenzhen Gas and Yantian Port to develop the The country that registered the biggest
country’s first offshore LNG bunkering terminal. growth in LNG bunkering last year was Spain,
The South Korean government, meanwhile, which saw 741 operations take place versus only
has thrown its weight behind the construction of 199 in 2019. There are now nine Spanish ports
a ship-to-ship LNG bunkering vessel as well as a that provide LNG refuelling services. Driving
smaller bunkering vessel for coastal use. this growth has been increased LNG uptake in
the cruise sector and a rise in LNG-fuelled trade
Europe between Asia and Europe.
LNG has been used to fuel LNG carriers
(LNGCs) for decades, but until recently, its use Former Soviet States
in bunkering other types of ships was confined Russia has been slow to adopt LNG as a mari-
to Norway. LNG bunkering began spreading time fuel despite its substantial and low-cost
beyond Norwegian shores in the early 2010s, gas resources. However, the government has
and is now available at many ports in North launched a programme to increase the number
Europe and has made significant inroads in the of Russian ports that offer the fuel and expand
Mediterranean. LNG use in both sea and river transport.
Local policy has played a vital role in spurring On an international level, state shipping giant
the development of LNG bunkering in Europe. Sovcomflot now has six LNG-fuelled oil tankers
Norway introduced a tax on nitrogen oxide in operation, in addition to its 15-strong fleet of
emissions in 2007, with the proceeds going into LNG tankers that use gas in their engines. Other
a special fund which was then used to expand Russian cargo handlers are considering switch-
LNG bunkering infrastructure. Today around ing to the fuel as well.

The Dmitry Medvedev,
recently launched,
is Russia's first LNG
bunkering barge.

P8 www. NEWSBASE .com Week 13 01•April•2021