Page 29 - European Energy Innovation - Spring 2017 publication
P. 29
Spring 2017 European Energy Innovation 29
LNG IN SHIPPING
perspective of environment and human LNG fuel ship projects
health given the proximity of sea ports
to highly populated areas.
AVAILABLE
The technology is proven and the
LNG distribution network continues
to expand. LNG is available in large
quantities and is able to meet the
demand in the shipping industry.
Moreover, the production technology
of ship engines powered by LNG is
mature and fully available.
SAFE Source: Source: HHP Insight6 operation has significantly increased
The LNG industry’s highest priority has in 2016. By the beginning of 20164
always been safety and security, which based on LNG may well be a stimulus there were 75 LNG-fuelled ships in
is reflected in the industry’s enviable for further development of the industry operation worldwide, with another 84
safety record for LNG operations over at a local level. new ship-building orders confirmed. At
the last decades. This results from the end of 2016 there were 97
proven and detailed industry standards, LNG IN SHIPPING ships in operation and a further 91 ships
strong regulations, and an industry 2016 Update and Factors Influencing on order worldwide. Therefore,
commitment to risk management. Further Development a 29% increase in the number of
Today, it is confirmed that LNG can be Since the first GIE article on LNG LNG-fuelled vessels (22 more) within one
produced, transported and distributed as marine fuel at European Energy year! Furthermore, not only many new
on a safe manner. Innovation Magazine one year ago ships have been built but some ships
many new developments have taken have also been converted to run on LNG.
ECONOMICAL place. Below we briefly analyse some
LNG provides an attractive solution of the important factors influencing the With these figures Europe is currently
from both economic and commercial further development of LNG. the frontrunner in the operation of
points of view. As availability of
infrastructure and competition increase, The number of LNG-fuelled vessels in
prices will continue to reduce further.
The price of LNG is already much Operating area of LNG-fuelled vessels in operation in December 2016
lower than the price of Marine Fuel Gas
Oil (MGO) or Marine Diesel (MDO).
Reducing pollution will lower emission
fees and provide marketing benefits by
highlighting the environmental nature
of the fuel used.
According to DNV data3 LNG propelled Source: GIE based on DNV data7
ship operation costs may be even 45%
lower in comparison to standard MGO
fuelled units over a 20-year period
of operations. Efficient distribution
planning combined with the use
SSL NG units enables operators to
divide fuel transport costs between
several locations. Furthermore, the
implementation of technical solutions
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