LNG Bunkering Found Feasible in Australian Ports

Press Release
Thursday, February 28, 2013

A DNV-led Joint Industry Project (JIP) concludes attractive payback periods on the required investment are likely.

Attractive payback periods from the additional investments required for LNG fuelled shipping, along with no significant legal restrictions hindering development of LNG bunkering in Australia. This is the conclusion of a Joint Industry Project (JIP) focusing on LNG fuelled tugs and OSVs, managed by DNV with nine partners in Australia.

The use of Liquid Natural Gas (LNG) as a fuel for ships is seen as one of the options to address the future environmental and commercial challenges in the shipping industry. With proper combinations of bunkering solutions such as tank trucks, permanent tanks and barges in the different ports, efficient LNG bunkering can be established.

The partners of the JIP, Australian Maritime Safety Authority (AMSA), BOC Limited (Linde Group), Farstad Shipping Pty. Ltd., Ports Australia, Rolls-Royce Marine AS, SVITZER Australia, Swire Pacific Offshore Operations (Pte) Ltd., Teekay Shipping (Australia) Pty. Ltd., Woodside Energy Ltd. and DNV are optimistic about the future of LNG as maritime fuel in Australia after having screened the possibilities to establish LNG bunkering in ten Australian ports.

This study recommends more technical guidelines and a clearer regulatory framework to be established, along with financial incentives to kick-start the development. When establishing LNG bunkering, the critical business phase is the first 2-4 years of operation when the LNG suppliers rely on a few brave ship owners willing to be industry forerunners. After some years of successful operation a second wave of ships is expected to enter the market, which will reduce suppliers’ uncertainty and reinforce the business case. The JIP focused specifically on the initial phase, and created roadmaps for necessary action for most rapid establishment of LNG bunkering in shortlisted ports. An accelerated approach can open up LNG bunkering in Australia by 2016.

DNV Maritime Country Manager, Tim Holt, states “We have been impressed with the interest and commitment shown by the Australian shipping industry in investigating LNG as a cleaner and locally available marine fuel.” JIP Project Manager Henning Mohn adds, “Increasing LNG production along with new international regulations boost the interest in LNG fuelled shipping; this may actually to some extent switch ships from fuelling with imported fuel to using domestically produced LNG.”

A summary report is available here.
 

Maritime Reporter February 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Technology

Ice Coverage on Great Lakes 89 pct: NOAA

Ice coverage on the Great Lakes is nearing 90 percent, reveals high resolution satellites images from National Oceanic and Atmospheric Administration (NOAA).   The entire Great Lakes is at 88.

COMPIT to Showcase Smarter Ships, Systems & Solutions

The 14th International Conference on Computer and IT Applications in the Maritime Industries (COMPIT) will take place from 11th to 13th May 2015 in Ulrichshusen, Germany.

China's Maritime Advances Worry US

The Director of U.S. National Intelligence, James Clapper, has expressed his concern at the progress of China in maritime zones it shares with its neighbors, accused

Fuels & Lubes

ADB Okays $30mln for Pak LNG Terminal

The Asian Development Bank (ADB) has approved a $30 million project loan to Engro Elengy Terminal Private Limited, a special purpose company which will build Pakistan’s

Brightoil Reports Steady Growth in Interim Results

Brightoil Petroleum (Holdings) Limited announced its interim results for the six months ended December 31, 2014, reporting steady growth over the period.   During the period,

Lithuania Looks to U.S. for Gas

Lithuanian liquefied natural gas (LNG) importer Litgas has signed a preliminary agreement with a U.S. supplier, looking to lessen the Baltic nation's dependence on Russia.

LNG

ADB Okays $30mln for Pak LNG Terminal

The Asian Development Bank (ADB) has approved a $30 million project loan to Engro Elengy Terminal Private Limited, a special purpose company which will build Pakistan’s

Davie Building LNG-powered Ferries

Canadian shipbuilder Davie held a keel laying ceremony for MV Armand-Imbeau II, marking the beginning of the hull assembly for this first of two sisterships under

ClassNK Updates Guidelines for Floating Offshore Facilities

ClassNK released a new version of its Guidelines for Floating Offshore Facilities for LNG/LPG Production, Storage, Offloading and Regasification.   Available on the ClassNK website,

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Pipelines Pod Propulsion Port Authority Salvage Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1302 sec (8 req/sec)