Gas for Transport

Chicken-and-egg problem for Asian LNG bunkering

Asia faces a dilemma in developing LNG bunkering infrastructure, which could mean it will take time for the fuel to be used for shipping Asia faces a dilemma in developing LNG bunkering infrastructure, which could mean it will take time for the fuel to be used for shipping.
By Andrew Walker 14 March 2017 0 25025
Singapore’s LNG terminal, which aims to offer bunkering services later this year. (Singapore LNG Corp.)

Asia’s LNG bunkering sector is caught in the chicken-and-egg dilemma of needing to offer refuelling services before shipowners invest in new vessels, according to experts.

Tighter limits on the sulphur content of marine fuels are due to be implemented over the next few years and will quadruple the cost of bunkering if compliant fuels are used, according to Sushant Gupta, Asia refining research director at Wood Mackenzie. This should encourage shipowners to look for alternative ways to comply with the rules, including switching to LNG.

However, the...