- NLNG calls for cohesive, industry-specific policies and incentives to support decarbonization across the LNG vessel lifecycle.
- Financing gaps, especially in emerging markets, must be bridged through partnerships and climate-aligned credit frameworks.
- Advanced technologies—AI-driven optimization, modular carbon capture, dual-fuel systems—are essential for cost-effective emissions reduction.
At the 29th World Gas Conference (WGC2025) in Beijing, NLNG’s Deputy Managing Director, Olakunle Osobu (represented by Tolu Longe) stressed the need for policies that reflect the unique challenges of LNG maritime transport. He argued that, unlike the global oversight the IMO provides for general shipping, LNG shipping faces a patchwork of national rules. “A unified regulatory approach would accelerate decarbonization, particularly for emerging solutions such as onboard carbon capture, which remain commercially unviable without supportive frameworks,” Osobu noted.
Addressing Financing Barriers
Osobu highlighted the financial sector’s slow realignment with climate objectives, pointing out that traditional credit metrics often overshadow decarbonization goals. This challenge is acute in regions like Africa, where access to low-cost green financing is limited. He advocated partnerships with institutions such as Afrexim Bank and the IFC to mobilize capital, but emphasized that wider industry engagement is needed to scale funding for clean shipping technologies.
Leveraging Technology for Operational Efficiency
To reduce the high costs of retrofits and newbuilds, Osobu called for investment in digital and fuel-efficient technologies. He cited AI and data analytics as tools to optimize engine performance, routing, and vessel speed in real time—enabling just-in-time arrivals and minimizing port idle time. “Smart systems can also bolster safety through advanced navigation, reducing collision risks as ships grow larger,” he added.
Preparing for a Net-Zero Future
With the IMO mandating a 2% reduction in GHG emissions intensity by 2028, Osobu warned that relying solely on dry-dock retrofits would be prohibitively expensive. He urged scalable, in-operation solutions—such as modular carbon capture and dual-fuel or alternative-fuel propulsion systems—to meet regulatory targets without crippling costs for shipowners, who currently receive no freight-rate premium for greener vessels.
WGC2025: A Platform for Sustainable Energy Dialogue
Under the theme “Energising a Sustainable Future,” WGC2025 convened global stakeholders representing over 90% of the LNG industry. The conference provided a forum to share best practices, foster collaboration, and chart pathways to decarbonized fuel supply chains.
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Source: Realnews Magazine
