The Significance of LNG as a Game-Changer

2050

As a game-changer, the significance of LNG cannot be ignored

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Angus Campbell, Managing Director of Bernhard Schulte Shipmanagement UK, (BSM), while delivering a speech at Gastech in Singapore today, observed that the move to LNG as a fuel is a game changer which cannot be ignored.

He told, “Independent industry predictions indicate that the use of LNG as a bunker fuel offers opportunities for early movers to secure a market leading position ashore and afloat and global LNG fuelling will become a mainstream option.  It has happened before: Wind gave way to coal and coal in its turn gave way to oil.  The move from oil to natural gas is simply the next progression in the evolution of maritime transportation.”

Mr Campbell registered that this step change will also have a major impact on the re-fuelling of vessels. More facilities such as a sophisticated supply chain, dealing with simultaneous operations and other factors not traditionally associated with bunkering in the LNG sector would be required after adopting this change.

He said,  ‘These are some of the factors that have driven BSM, working in partnership with BMT Triton and Babcock LGE, to develop its own unique Gas Fuel Supply Vessel design which will support LNG fuelled ships, and the delivery of gas to small onshore facilities and large off-pipe consumers”.

Shipping has been identified by international governments as a large and growing source of the greenhouse gas emissions that are causing climate change despite its relative higher efficiency as compared with other methods of transportation.

Angus Campbell pointed out that the increasing number of programmes and regulations concerning the impact of shipping on the environment are growing and the choice for ship-owners is no longer whether to come into line, but what option to choose in order to do so.

He observed that there is no real choice: it is a fact that distillate fuels and the use of scrubbers with conventional fuel simply do not have the advantages of LNG.  Distillate fuels are expensive.  Their prices might increase due to demand as emission regulations are enforced in multiple areas.  Another alternative, the use of scrubbers, may seem a simple but the cost benefit calculation is rather complex.  Besides, there are no guarantees that this will be accepted as a long term method of emission reduction.

He concluded that LNG would be with us for a very long time.  With over 200 years supply in the ground it is sustainable, meets current and planned emission limits.  As it is a clean fuel, offers maintenance cost improvements.

Source: Bernard Schulte Shipmanagement UK