Study supports LNG price advantage for U.S. ships
A new study finds that liquefied natural gas (LNG) provides a clear long-term cost advantage as a fuel for U.S. coastal and inland waterways, according to NGV Global News, a natural gas vehicle industry news site.
The study by Princeton Sovereign Maritime finds that LNG has a clear price advantage over ultra-low-sulfur crude oil distillates for vessels operating within the North American Emission Control Area (ECA).
The development of newly accessible domestic shale drives the fuel's price advantage.
The viability of the fuel source means that is is now "certain" capital will become available for the necessary infrastructure to transport and distribute LNG, and to improve ship technology for the fuel's use.
Currently, there is limited liquefaction infrastructure around U.S. ports and waterways, although some projects are now in development. Royal Dutch Shell Plc is working to expand its LNG sales for shipping in ECA areas including the Great Lakes and the Gulf of Mexico.
However, some have raised concerns about the safety of LNG transportation and storage as initial bunkering projects, including one at New York's Staten Island Ferry, get underway.
