LNG as a fuel at the back of shipowners' minds: SS Teo

Despite a major push for LNG bunkering in many parts of the world, Teo, managing director of Pacific International Lines, said on a panel at the Singapore Maritime Lecture on Monday that combination of lower oil prices and hard times had impacted the development of LNG as a fuel.

“I think until the oil price went down LNG (as a fuel) was an option partly because of the to the cost and partly due to the environment. However, today, depending on which sector of the shipping industry (your company is in), you are actually fighting for survival, unfortunately because of that I don’t think it’s in many of the owners/operators minds,” Teo explained.

“The reality is at the moment LNG is at the back of their minds.”

He also called on engine makers to develop more cost effective dual fuel solutions and for government incentives to increase the take-up of LNG as a fuel.

“For the two major engine makers they will have to find a cheaper way to offer a dual fuel engine, a lot of research can still be done,” Teo said.

“We believe that for coastal shipping that may come first, but you do need a lot of policy support or incentive or incentive to make it workable.”