Shell sees rapid uptake in LNG as a marine fuel over last year

Oil and gas major Shell sees a growing commitment to LNG as marine fuel and bio and synthetic options would make it “a robust step” in meeting IMO CO2 targets.

“LNG fuelled vessels are represented across all shipping segments now, increasingly it’s seen as a solution for oceangoing vessels globally,” Nick Potter, general manager, Shipping & Maritime, Asia Pacific Middle East at Shell Trading.

“In the last year there’s been a rapid uptake in both the demand and supply aspects of LNG as a marine fuel across all geographies Asia – Europe and across all geographies, and all sectors,” he told a Maritime & Port Authority of Singapore (MPA) and Singapore Shipping Association (SSA) seminar on IMO 2020.

While LNG has pushed for alternative marine fuel for a number of years now Shell sees two reasons why it is taking off now – environmental and supply infrastructure.

On the environmental front, as is well known, LNG complies with IMO 2020, reduces NOx emissions by 85% and CO2 emissions by 21%.

Read more: LNG - The marine fuel of the near future?

The reduction in CO2 emissions is not large enough to meet the IMO’s ambitions for a 50% cut in CO2 emissions by 2050, however, Potter said options under development could bring this target much closer.

“Additionally work is being done to on and to scale up bio-LNG and synthetic LNG reducing CO2 by a further 13% thus making LNG a robust step in the pathway to IMO’s CO2 targets,” Potter said.

On the availability front he said that the “chicken and egg” situation had largely been solved.

“In the last year the number of LNG bunker vessels globally has doubled,” Potter said.

“Regionally LNG will be available in Singapore, Malaysia, China, Korea and Japan, and the network has the potential to be extensive. LNG is already available in 150 locations worldwide but it is missing that last mile of the value chain which needs to put in small scale jetties and specialist bunker vessels for delivering to ships.”

Looking ahead Shell forecasts the LNG as marine fuel market will reach 35m tonnes by 2035.

Posted 13 June 2019

© Copyright 2019 Seatrade (UBM (UK) Ltd). Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Seatrade.

Marcus Hand

Editor, Seatrade Maritime News

Seatrade Offshore Marine Workboats stacked

Seatrade Offshore Marine and Workboats Middle East

Madinat Jumeirah, Dubai • 23 – 24 September 2019

Join nearly 3,000 powerful personalities and alight at the meeting point for the global offshore marine, specialist vessel and workboat industry.

Exhibitor Opportunities >