Live From Nor-Shipping 2017

Live From Nor-Shipping 2017

The Seatrade Maritime News reporting team bring you all the key stories in the run-up to, and live on the ground during, Nor-Shipping 2017 in Oslo from 30 May - 2 June.

Green sells - LNG as a marine fuel coming quicker than we think

The shift to LNG as a major part of the fuel mix is coming quicker than people think according to Peter Keller, chairman and evp of SEA/LNG and Totem Ocean Trailer Express (TOTE).

We all know what's happening in Singapore, our own port of Jacksonville a bunker barge comes onstream later this year as well as a liquefaction plant,” Keller told the Nor-Shipping conference on Wednesday.

“Certainly we know what's happening in Scandinavia, Rotterdam, Zeebrugge, I think we expect New York is going to come online in a year or two, we have great hope in California now the leadership in the Port of Long Beach has changed and Mario Cadero (former Federal Maritime Commission chairman) is there who is great champion of LNG. I think its coming quicker than we think, there's a lot of investment out there,” he said.

TOTE has both ordered LNG powered newbuildings as well as retrofitting existing ships to dual fuel for the US Jones Act Trades.

Lauran Wetemans general manager downstream LNG for Shell International said that demand was there but is was about unlocking the demand with key scaleable hubs as it had done in Norway.

“What we've done with Gasnor in Norway with leading shipping hubs in Norway we're taking to a larger scale. That is about find those keys about around Rotterdam, Singapore, the US and the Middle East and with customers make that infrastructure actually happen,” he said.

“What has happened in Norway is very good example in being able to take the lead.”

Keller also saw commercial dimension to opting for LNG if one took the long term regulatory environment view.

“When one looks forward to the regulatory environment to what the social sustainability requirements over the time and tie that into the potential value of LNG as an alternative fuel over the long term you start to develop a business case. You start to take a long term view against that short term view many shipowners unfortunately take,” Keller said.

“From a commercial point of view today, we all understand environment sells, green sells and we're all in the business of selling and you have to remember that when you look at the long term view.”

Posted 31 May 2017

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Marcus Hand

Editor, Seatrade Maritime News

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