The industry coalition SEA\LNG said that it is crucial to understand the opportunities presented by the adoption of LNG as a marine fuel as well as to tackle the associated commercial barriers.
With a major transition to stricter emissions levels from marine bunker fuel due in 2020, when the global Sulphur cap will be reduced to 0.5 percent, the coalition has called for a collaborative approach an unbiased appraisal of barriers to LNG as a marine fuel.
In its statement, SEA\LNG said that the ship owners, fuel suppliers, and other associated supply chain stakeholders would need to make major investments to comply with these new global regulations. It also added that the barriers need to be better understood and overcome if LNG is to reach its full potential.
These barriers include LNG infrastructure and market maturity, the lack of understanding of LNG’s benefits among end users, investors, governments, and civil society; capital expenditure (capex) premiums for vessels and bunkering infrastructure; and fragmented and evolving regulations.
SEA\LNG believes that collaboration, demonstration, and communication are essential to continue to develop an effective and efficient global LNG value chain by 2020.
Peter Keller, SEA\LNG chairman and executive vice president, Tote said, “We all need to do more to help break down the commercial barriers to LNG, particularly in the deep-sea shipping segment.”
He went on to note that, a collaborative approach is the only way to overcome current challenges. Creating the infrastructure to enable quick, safe, and cost-effective LNG bunkering in key global ports; making LNG-fueled vessels cost efficient; and, establishing consistency of international and national regulations are all essential if LNG is going to fulfill its potential as a solution for the shipping industry.