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LNG as bunker fuel developments gather pace globally

LNG as bunker fuel developments gather pace globally
Gothenburg: The results of a survey into levels of interest in LNG as a fuel in Sweden show strong industry support for developing LNG infrastructure whilst in the US DNV are helping a large ferry operator explore LNG as a fuel.  

The survey, carried out by Swedish energy infrastructure company Swedegas in the planning stages of an LNG terminal at the Port of Gothenburg, quizzed 20 major shipping, industrial and gas trading companies on their views on LNG. "The response was highly encouraging. The replies clearly show that LNG is a fuel of the future and that companies are prepared to invest in line with the introduction of LNG onto the Swedish market," said Lars Gustafsson, president of Swedegas.

The Port of Gothenburg is the largest port in the Nordic region and has attracted the interest of Swedegas and Dutch company Vopak who are planning an open access LNG terminal for any company seeking to import LNG into Sweden, making the market completely free to choose LNG supplier for the first time.

"There is potential in Swedish industry to replace over 10 TWh of oil with natural gas. With an LNG terminal in Gothenburg, we could satisfy around half of the entire needs of industry. There are substantial environmental benefits in the form of almost complete elimination of sulphur emissions from shipping and a 25% reduction in carbon dioxide emissions by industry," added Gustafsson.

In the US, the world's third biggest ferry operator and the largest in the US, Washington State Ferries (WSF) is exploring LNG as a fuel together with class society DNV. “WSF burns more than 17m gallons of ultra-low sulphur diesel each year – and it’s our fastest growing operating expense. LNG has the potential to significantly reduce emissions and the cost of fuel,” said Washington State Department of Transportation (WSDOT) Assistant Secretary David Moseley.

Recognising LNG as a promising but young technology for shipping, WSF have partnered with DNV for their experience in LNG ships and infrastructure. Thirty-five of the 37 LNG fuelled vessels in the world are built to DNV standards including the very first, built in 2000.

“As the biggest ferry operator in the US, and the third biggest in the world, WSF can really lead the way for its industry. In DNV, we can now clearly see a tipping point when it comes to global interest in LNG fuelled ships. Knowing that LNG as a fuel helps reduce emissions and costs, our team of researchers, engineers, and business analysts are looking forward to assist WSF and other companies with managing risks related to their LNG operations,” said Kenneth Vareide, director of DNV’s maritime operations in North America.