Page 9 - NorthAmOil Week 20 2021

NorthAmOil COMMENTARY NorthAmOil

Titan LNG is moving
forward with plans
to add a new LNG
bunkering barge to its
fleet.

limited role for LNG as a marine fuel. It con- investments not be made in the LNG sector is
cluded that not only are the GHG mitigation unwise, and will prolong the use of higher-emis-
benefits of LNG uncertain, but there are also sions fuels and slow down shipping’s decarboni-
considerable risks if countries and businesses sation,” the group added.
invest in LNG infrastructure to meet the IMO’s Individual companies added their voices to
climate targets. It said these risks included the debate. Shell’s global head of shipping and
unnecessary capital expenditures, stranded maritime, Grahaeme Henderson, told the Sin-
assets and technology lock-in. gapore Maritime Technology Conference that
As a result, the organisation recommended LNG is the lowest-emission fuel available at
that countries avoid new public policy that scale in the shipping industry currently. He went
supports LNG as a bunker fuel and reconsider on to say Shell believed that LNG must be part
existing policy support. Instead, it urged them of the solution when it comes to decarbonising
to keep regulating methane emissions to put shipping.
shipping on a GHG emissions trajectory aligned Titan’s den Nijs and Schaap, meanwhile, high-
with the Paris Agreement. lighted the challenges and considerable costs
related to adopting ammonia and hydrogen as
Industry pushes back bunker fuels.
Those involved in the LNG bunkering industry “There are a whole range of safety, environ- For now, the
were quick to push back against the World Bank’s mental and technical issues to be addressed
conclusions. before these, or any other, alternative fuels and development
SEA-LNG criticised the World Bank’s technologies are ready for use in the marine of new LNG
reports for attempting to “prescribe solutions environment, let alone that marine fuels will
and predict the timing” of future technology have to compete with other sectors like aviation bunkering
development, saying that this approach would and road transport,” they stated.
ultimately undermine decarbonisation efforts. Like SEA-LNG, they called on the industry to infrastructure
“SEA-LNG believes strongly that the transition pursue immediate reductions in carbon emis-
to future fuels must not follow this prescrip- sions rather than waiting for new technologies shows no sign of
tive approach. It is far too early to decide what to become viable. And Titan’s subsequent push slowing.
the real potential of various alternatives fuels to add a new bunkering barge to its fleet illus-
will be for a highly complex, hard-to-abate, trates that they intend to lead by example on
global industry,” the industry group said in a this.
statement. For now, the development of new LNG bun-
“By focusing on theoretical, unproven solu- kering infrastructure shows no sign of slow-
tions, the World Bank stifles innovation in ing. However, the debate continues to heat up,
technologies that can also provide answers in and the possibility of some countries taking
the decades ahead,” SEA-LNG continued. It the World Bank’s recommendations on board
went on to urge institutions and policy-makers makes it more difficult for more LNG bunkering
to set standards and targets that drive immedi- expansions to proceed in the future, cannot be
ate GHG emissions reductions. “To suggest that ruled out.™

Week 20 20•May•2021 www. NEWSBASE .com P9