Australia LNG Bunkering Project Kicks Off

Det Norske Veritas (DNV) & nine key members of the Australian maritime, port and energy sectors have established the four-month study.

The Joint Industry Project (JIP) is to facilitate the adoption of LNG fuelled vessels in Australian waters. The use of LNG as marine fuel eliminates SOx and particulate matter emissions, nets a 15% reduction in GHG emissions and diminishes that of NOx by 85-90%, which addresses both local and global pollution issues.

The study aims to cover the infrastructure and regulatory requirements as well as the potential benefits and risks faced by energy majors, ports and ship-owners considering LNG fuelled vessels. The study concentrates on LNG fuelled OSVs and tugs plying in Australian waters, but the key recommendations developed will be valid for most ship types. Geographically, focus will be on the ports of Dampier, Darwin and Melbourne as points of inclusion.

The JIP is managed by DNV and is co-sponsored by DNV along with nine industry Parties and Authorities, namely the 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. and Woodside Energy Ltd.

Key obstacles in promoting LNG fuelled ships will be identified, with an initial consideration of adequate infrastructure and existing regulations; which in Australia is complicated by the diverse state based legislative schemes. Safety is of utmost importance for such a development and ports will face the challenge of offering safe storage and ship-specific bunkering of LNG. These challenges will also be incorporated in the study.

Project goals include an assessment of the regulatory framework and infrastructure necessary for LNG bunkering at the Federal level and for selected States. By the end of 2012 the JIP will deliver a gap analysis and a map of legal and infrastructural challenges and opportunities. The JIP will also produce internal and external reports covering key areas for improvements as well as recommendations on the direction and steps to be taken in the LNG fuel domain for the benefit of the Australian maritime industry.