---

Statement by The Baltic and International Maritime Council - BIMCO

What’s the latest on LNG as a fuel?

There is growing enthusiasm for the use of liquefied natural gas for marine fuel, largely on account of its availability (with many new LNG sources expected to come on stream shortly) and its environmental advantages when compared to heavy fuel oil. Projections of the cost of both types of fuel show that LNG could well become cheaper than conventional fuel within a few years, while the disadvantages of the latter, when sulphur oxide and nitrogen oxide are taken into account, clearly increase.

LNG is clearly a practical proposition, as LNG carriers have been using boiled-off gas in their steam turbine plants for years and there are dual fuelled diesels available today. A number of short sea ferries, their routes located near LNG sources, and some offshore craft are proving that it is perfectly feasible, where owners are driven by the environmental requirements of their operating routes.

Additionally, a number of large 'concept' ships, such as DNV’s 'Triality' have been proposed to employ LNG as their main fuel source on deep sea routes. A large Baltic ferry will soon enter service entirely fuelled in such a fashion, its owners regarding LNG as a suitable alternative to expensive distillate fuel or scrubbing technology to clean up its exhaust emissions in its operations in this enclosed sea, where emission regulations are being tightened.

There are, however, a number of questions that owners need to answer before they take the decision to fuel their ships in such a fashion. The green credentials of LNG marine fuel may seem impressive but may not be the whole story, when the true carbon cost of extracting the LNG, liquefying, storing, transporting and making available the gas are all taken into account.

Its availability will be a serious problem for some time, although it might be expected that distribution networks, tankage, and even floating bunker craft capable of supplying it will be provided to answer any demand.

Disadvantages might include the need to incorporate large pressurised and refrigerated tanks for the fuel within the design of ships, something that is clearly more difficult than the accommodation of conventional fuel, which can be carried all around the ship without interfering with cargo spaces. It is fuel that has to be carried at exceedingly low temperatures, so safety remains an important issue in any ship design that will use this fuel.

But these are all questions which ship owners and their designers are considering as they weigh up their options for new tonnage in the complicated regulatory world of today. There have been strong hints that within the next few years we will see orders for large LNG-fuelled ships appearing.