Related Articles
Forward article link
Share PDF with colleagues

LNG now a viable alternative to fuel ships

As a transport fuel for shipping, liquefied natural gas (LNG) is still in its infancy. But stricter environmental regulations and rising bunker fuel costs are prompting operators to weigh up the benefits of using natural gas instead of oil products

Classification society Lloyd's Register reckons 653 deep-sea, LNG-fuelled ships could be in service by 2025, compared with around 30 today. Between them, these container ships, cruise vessels and oil tankers will require 24 million tonnes a year (t/y) of LNG, or about a third of Qatar's LNG output now. At an LNG price 25% beneath today's, the number could rise to almost 2,000 ships. Worldwide maritime transport uses about 370m t/y of bunker fuel of all types, accounting for about 9% of world oil consumption. As global trade rises in the coming decade, however, consumption could reach 500m t/y, according to the US Environmental Protection Agency (EPA). LNG could displace a good portion of thi

Also in this section
The end of producer power
29 September 2016
The wave of LNG supply hitting the market is putting buyers in control
Gazprom's commitments strain the budget
28 September 2016
The revival of a project to ship gas to Turkey puts more pressure on a company already struggling
Is Nord Stream 2 really needed?
28 September 2016
Rising liquefied natural gas supplies to Europe and better gas interconnection raise more doubts about the project