Lloyd’s Register report predicts fast LNG bunkering development
Lloyd’s Register report indicates LNG bunkering is likely to develop fast as global ports get ready for shipping’s gas fuelled future. Lloyd’s Register analysis of ports provides insight into the future of LNG bunkering world-wide as short sea demand grows and the possibility of expansion into bunkering for deep sea emerges. Lloyd's Register’s LNG Bunkering Infrastructural Survey 2014 indicates that major ports around the world are either planning for, or are anticipating, the wide-scale development of LNG bunkering, the classification society said in its release.
22 ports were assessed in the analysis with 18 key questions addressed.
This latest analysis builds on the Lloyd’s Register LNG bunkering Infrastructure Study completed in 2011. Shipowner demand, unsurprisingly, remains the biggest driver from the ports’ perspective but availability of LNG infrastructure has risen from being considered a low priority to the second most important driver after demand. Pricing is third. Most ports surveyed are in the North American and European emission Control Areas (ECAs).
Key findings:
• 59% of ports surveyed have specific plans for LNG bunkering infrastructure.
• Lack of in-port infrastructure will not hamper LNG bunker delivery plans.
• 76% of the ports believe that LNG bunkering operations will commence at their port within 5 years.
• By 2020 key European ports will be able to support deep sea bunkering operations.
• 73% of ports say that LNG will be supplied by existing onshore LNG terminals.
• In the short term, ports will rely on third party specialist suppliers to supply gas from terminals to ship – mainly by either truck or bunker barge.
• In the longer term, 47% of ports will have dedicated LNG storage capability for bunkering. One port is considering the use of floating storage and regasification units (FSRUs).
• By 2020/2025, ports expect that 13%/24% of bunkers supplied will be LNG.
• 86% of the ports surveyed indicate that it is either likely (54%) or very likely (32%) that demand for LNG will be from deep sea ships within a 3-10 year time horizon.
• No significant change in bunker delivery methods is anticipated – for example, if HFO bunkers are being supplied by barge today it is expected that LNG will be delivered by barge in future.
• There is clear awareness that port and land safety issues need to be harmonised.
• Economics (32%) and availability (20%) are the two biggest factors in the development of a gas market.
• The report indicates that societal concerns about LNG as a future fuel are falling.
Lloyd's Register Group Limited (LR) is a global engineering, technical and business services organisation and a maritime classification society, wholly owned by the Lloyd’s Register Foundation, a UK charity dedicated to research and education in science and engineering. The organisation dates back to 1760. Its stated aims are to enhance the safety of life, property and the environment by helping its clients to ensure the quality construction and operation of critical infrastructure.
