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Looking ahead, the supply side is gearing
up significantly and we are seeing
announcements for investments in the next
tier of bunker vessels, focused on NW
Europe, the US East Coast, China, and Korea.
ENN Group, for example, has announced
plans to develop an LNG-bunkering hub at
Zhoushan, near Shanghai, which includes
plans for an 8,000m³ LNG bunker-supply
ship. The Wärtsilä built Tornio Manga LNG
terminal project in Northern Finland also has
plans to provide bunkering for LNG fuelled
ships visiting the northern Baltic Sea waters.
And with increasing bulk LNG supply
capacity from Qatar, the US, Australia, and
Russia, new entrants and pressure from
existing buyers for more flexible, shorterterm
contracts are likely to stimulate the
emergence of a more liquid LNG market.
On the regulatory side, we are seeing a push to develop uniform bunkering standards, informed by the work
our partner association, the Society for Gas as a Marine Fuel (SGMF), is doing. Striving for harmonisation of
regulations on a global level is critical to the long-term success of LNG. Ports, for example, are learning from
early adopters, such as the Ports of Rotterdam and Jacksonville, and sharing knowledge and best practice to
create uniform local regulation.
The global 0.5% Sulphur cap provides immediate impetus for the development of LNG as a marine fuel, but
as new Emission Control Areas (ECAs), with far tighter local emissions limits, emerge, this stimulus will
increase further. ECAs are being considered in areas including the Mediterranean, the Strait of Malacca, Central
America, Japan, and Australia. And China is taking a phased approach to the introduction of full ECAs by
regulating the Sulphur content of fuels at four locations around their major ports. The introduction of new ECAs
supports local and regional uptake of LNG as a marine fuel, and longer term, bunkering infrastructure
established in the ECAs is likely to emerge as key hubs for the deep-sea shipping space.
We know that ship owners are looking for certainty on LNG supply and infrastructure, and those developing
the infrastructure are looking for people to order LNG-fuelled ships. With so many examples of tipping points
and step changes for LNG in terms of both newbuilding orders and infrastructure developments throughout
2017, it seems that the blizzard of change will continue through 2018, with a snowball effect that’s gathering
momentum apace towards 2020 and beyond.
As an organisation, SEA\LNG has grown from 13 founding members to more than 30, representing the
entire marine LNG value chain, uniting key players including shipping companies, classification societies, ports,
major LNG suppliers, downstream companies, infrastructure providers, shipyards, and OEMs. We are proud
that our members have been at the forefront of developments during 2017, which will no doubt continue
through 2018 and the years ahead.
MEM Marine Engineers Messenger
Publisher: Seaborne Communications Ltd
Contributions: Bill Thomson
Email: mem@seabornecomms.com
Web: www.seabornecomms.com
The information published in MEM does not
necessarily represent the views of Seaborne
Communications Ltd. The publisher makes no
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correctness of the information or accepts
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pertaining to the information published in this
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©2018 Seaborne Communications Ltd
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