[vc_row][vc_column][vc_column_text]LNG fuels have been on the forefront of alternatives for the shipping industry for quite some time now, but the latest developments with the IMO decision to limit sulphur content of marine fuels by 2020 are putting things into “fast forward” mode. In its latest weekly report, shipbroker Intermodal noted that “from January 2020, global sulphur content of marine fuels will be condensed from the current maximum of 3.5% to just 0.5%.
This decision is designed to radically reduce emissions produced by vessels using marine diesel and fuel oil and
principally the levels of Sulphur oxides (SOx), nitrogen oxides (NOx) and particulate matters (PM). The shift will impose major costs for the shipping industry in search for efficient solutions. As of 2015 vessels in the SECAs areas comprising of the Baltic Sea, North Sea, North American ECA, most of the US and Canadian coast and the US Caribbean ECA, are compelled to use marine fuels with only 0.1% Sulphur content”. Intermodal’s Katerina Restis, from the Tanker Chartering department noted that “nowadays, natural gas in most nations is a significant power source for residential, commercial & industrial sectors’ energy needs. Several arguments indicate that LNG utilization as transportation fuel and in particular its shipping implementation may provide a future-fit solution as it has nearly no Sulphur content (0.004%). Even though LNG requires more tank space (volumetric) compared to other transportation fuels to generate equivalent energy, is of lower cost and environmentally friendly”.
Ms Restis added that “furthermore, it emits zero SOx and with the use of appropriate technology almost 90% fewer NOx. Furthermore, it is a global commodity widely available, with more than 20 countries exporting to 35 importing countries. Market penetration is increasing in areas such asMiddle East, Africa, Latin America and South-East Asia. The market is currently heading into oversupply with estimates of approximately 150million tons per annum of new export capacity due to come on line between 2015-2020, representing 50% increase over current capacity”.[/vc_column_text][/vc_column][/vc_row]
