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Debate over LNG bunkering heats up

The debate over the future of LNG as a marine fuel has intensified after
the World Bank dismissed its potential to help decarbonise shipping

COMMENTARY THE debate over the potential for LNG to play decarbonisation goals, and turning to emerging
a role in the decarbonisation of shipping has green fuels at the expense of LNG is an expensive
intensified following the publication of a series proposition.
WHAT: of World Bank reports last month.
The debate over using In the reports, the World Bank identified Post-IMO 2020 world
LNG as a bunkering fuel “green fuels” such as hydrogen and ammonia The development of LNG as a marine fuel has
has intensified following as being the most promising zero-carbon bun- been underway for some time. Indeed, accord-
the publication of World ker fuels available currently. However, it said ing to Titan CEO Niels den Nijs and marine
Bank reports on the LNG was likely to play a “limited” role in the commercial director Michael Schaap, in a state-
decarbonisation of decarbonisation of shipping, and indeed recom- ment published in response to the World Bank’s
shipping. mended avoiding the super-chilled fuel in order findings, it has taken around a decade for LNG
to put shipping on a trajectory that aligns with bunkering to mature.
WHY: the Paris Agreement on greenhouse gas (GHG) However, the use of LNG as a marine fuel has
The World Bank has emissions. been gaining traction only recently, particularly
recommended avoiding The findings have been met with criticism since the International Maritime Organization
LNG as the shipping from SEA-LNG, an industry group, with com- (IMO) introduced its 2020 rules, limiting sul-
industry makes efforts to panies including super-major Royal Dutch Shell phur content in bunker fuels to 0.5% from 3.5%
decarbonise. and bunkering player Titan LNG also defend- previously.
ing LNG bunkering and its environmental The introduction of IMO 2020 coincided
WHAT NEXT: credentials. with a boom in global LNG production as new
Industry players are Indeed, Titan subsequently launched a liquefaction terminals and supporting infra-
criticising the reports’ development tender for a planned new LNG structure opened up across various countries.
conclusions, and the bunkering barge, illustrating that at least in the Suppliers of the fuel were keen to tout its envi-
marine LNG fleet is set to shorter term, the marine LNG fleet is set to keep ronmental benefits, asserting that it is the clean-
expand regardless. growing. est-burning fuel that is widely available to the
In the longer term, there are uncertainties, shipping industry.
however, as some countries may yet choose to There are challenges related to the use of
follow the World Bank’s recommendations and LNG for bunkering too, though. These include
avoid policy that favours LNG bunkering. That the fact that while the infrastructure for liquefac-
said, costs concerns will need to be balanced with tion and regasification has grown rapidly, LNG

The LNG-powered Siem Aristotle vessel receiving STS fuel delivery in Malaysia in November 2020.
Image: Titan LNG

P6 www. NEWSBASE .com Week 20 20•May•2021