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Markets & Forecasts

Could IMO 2020 enhance the use of LNG in shipping?

The regulation is expected to add demand for LNG in the maritime sector, but hopes for widespread use of the fuel might not materialise The regulation is expected to add demand for LNG in the maritime sector, but hopes for widespread use of the fuel might not materialise.
By Menelaos Vakalopoulos 3 February 2020 World / LNG 0 34987
An LNG-powered ferry in Norway. (LNG Marim)

Directional impact on forecast:
Upbeat for LNG as a maritime fuel

The new International Maritime Organization (IMO) regulation on the reduction of the sulphur index in marine fuels came into effect on 1 January. According to the new regulation, ships are required to use fuels with a sulphur content of 0.5% instead of the previous limit of 3.5%.

Shipowners have three main options to meet the IMO 2020 standards. They can switch to very low-sulphur fuel oil (VLSFO); keep using high-sulphur fuel oil (HSFO)...