In its base case, Lloyd’s Register expects 653 newbuilds to be LNG-fuelled, or 4.2% of global deliveries, from 2012-25. Under that scenario, LNG bunker demand could reach 24m tonnes by 2025, or 1.5% of global LNG production and 3.2% of global HFO bunker consumption.
From a macro-economic perspective, one factor driving increased conventional fuel prices is the environmental regulation on conventional fuels. In today’s cost-conscious environment, the price of LNG relative to current and future fuel alternatives will be a key factor determining whether LNG bunkering facilities will be established around the world. This in turn will depend on the demand for LNG fuel on deep-sea trades.
“LNG bunkering in short-sea shipping regionally could facilitate investments in deepsea routes,” Raitt said at the Fujairah Bunkering and Fuel Oil Forum. “Solutions will be ship-type and trade-route specific. Existing oil bunkering hubs are well positioned to supply LNG bunker for ships, if demanded by owners.”
The event, organised by Singapore-based company, The Conference Connection Inc., attracted 300 delegates from 20 countries. Fujairah is undergoing a tank-farm boom as oil storage, blending and trading companies rush to establish a foothold at the port, said to be the world’s second-largest bunkering location after Singapore.