LNG-Fueled Marine Industry at 48 Ships and Growing, Zeus Conference to Examine Implications - Market Wire

 Posted - Dec. 13, 2011, 1:56 p.m. EST

A survey of the marine industry by Zeus Development Corporation finds that 48 non-LNG-carrier ships will soon be fueled with LNG. In January, the company will host the World LNG Fuels Conference to discuss this trend.

"Low natural gas prices make the switch to LNG-fuel tempting for some marine operators," said Tom Campbell, analyst at Zeus. "However, it is the enforcement of IMO emissions standards that is driving the trend."

In 2015 and 2016, the International Maritime Organization's Tier III standards ratchet down sulfur and nitrogen oxide emissions in a 200 nautical mile radius around North America and Europe, known as emission control areas. The alternatives to LNG include scrubbers and after-exhaust treatment systems, which are expensive and cumbersome.

"Fleets tend to use after-exhaust treatment systems for existing ships, but newbuild ships that can be designed for LNG's characteristics tend to use LNG," Campbell said.

In the past two years, 11 new LNG-fueled ships have been built, Campbell notes. They vary from patrol vessels to fueling barges to tugboats and ferries. Within these categories, LNG usage varies from high-speed ferries to large cruiser ferries. A complete list can be obtained online at www.zeusintel.com/ZeusEvents/WLNGF2012/VesselInventory.aspx .

LNG-fuel is also beginning to take root in new geographic regions like South America and the Gulf of Mexico. Units are also being considered in Quebec, Washington State and New York.

Alongside the trend are proposals for fueling facilities. New bunkering facilities are being discussed in Trinidad and Tobago, Dubai and Singapore.

Complete post at:
http://www.marketwatch.com/story/lng-fueled-marine-industry-at-48-ships-and-growing-zeus-conference-to-examine-implications-2011-12-13