Future and Prospect of LNG Bunkering
by Ambarish Verma PresidentLNG Bunkering is a particular type of operation where LNG fuel
is transferred from a given distribution source to a LNG fuelled ship. It
involves the participation of different stakeholders, from the ship-side, LNG
supplier, ports, safety personnel, administrations and policy makers. In this
report, LNG bunkering only refers to LNG bunkering fuel.
The International Maritime Organization has established regulations on the fuel
sulphur content of ship fuels and set mandatory NOx emission limits for
new-build engines. These regulations are implemented through the IMO’s
International Convention for the Prevention of Pollution from Ships (MARPOL).
The liquefaction process involves removal of certain components,
such as dust, acid gases, helium, water, and heavy hydrocarbons, which could
cause difficulty downstream. The natural gas is then condensed into a liquid at
close to atmospheric pressure by cooling it to approximately −162 °C (−260 °F);
maximum transport pressure is set at around 25 KPa (4 psi).
Liquefied natural gas (LNG) is natural gas (predominantly
methane, CH4) that has been converted to liquid form for ease of storage or
transport.
LNG is an attractive fuel choice for many vessels because it
exceeds the air quality standards set forth. It takes up about 1/600th the
volume of natural gas in the gaseous state. It is odorless, colorless,
non-toxic and non-corrosive. Hazards include flammability after vaporization
into a gaseous state, freezing and asphyxia.
In addition to these engine and fuel requirements, certain areas
have also been designated as emission control areas where stricter emissions
limits are enforced. Besides air quality measures the IMO is also introducing
instruments to monitor and reduce GHG emissions from shipping.
The US EPA has implemented MARPOL Annex VI in its national legislation NOx and
sulphur emission control areas The US EPA has also introduced a “Ports
Initiative” to look at protecting human health, addressing climate change and
supporting economic growth. The state of California has also adopted several
state-specific regulations. The Clean Fuel Regulation for Ocean Going Vessels
regulates the fuel sulphur content of ship fuels used by vessels within 24
nautical miles of the California coast. The At-Berth Regulation requires
vessels to plug into shore power or use alternative controls to meet emission
reduction requirements.
The European Union’s Fuel Sulphur Directive implements MARPOL Annex VI in EU
legislation. Non-EU countries like Norway and Russia have likewise implemented
Annex VI in national legislation. In addition, the EU is promoting the use of
LNG as a ship fuel. To this end, an EU proposal on alternative fuel
infrastructure aims to guarantee sufficient infrastructure in the form of LNG
bunkering stations and terminals, while at the same time provide subsidies via
the TEN-T fund to develop and further improve such infrastructure.
According to new market research over the next five years, study projects that LNG Bunkering will register a 65.2% CAGR in terms of revenue, reach US$ 24400 million by 2023, from US$ 1200 million in 2017.
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Created on Dec 7th 2018 11:35. Viewed 368 times.