LNG Bunkering: A Promising Solution for Shipping

LNG bunkering is the process of transporting liquefied natural gas to a ship for usage as fuel. It is a popular process for supplying gasoline to ships because it is a less polluting procedure compared to other traditional methods of refuel, including marine gas oil and heavy fuel oil.

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LNG fuel has a lower sulfur content than conventional gasoline, which makes it less costly to comply and modify with sulfur content limitations. These price savings fuel the market. In addition, according to a research report by Astute Analytica, the Global LNG Bunkering Market is likely to rise at a compound annual growth rate (CAGR) of 46.2% over the projection period from 2023 to 2031.

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LNG & the International Maritime Organization (IMO's) emission target:

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Lighter fuels like LNG and low-sulfur marine petrol oil are a very profitable alternative to the heavier fuels now in use because of the IMO's increasingly strict emission regulations The most recent IMO directive requires marine fuels to have a sulfur concentration of 0.50% m/m (mass by mass).

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Due to this, most of the shipping sector has switched to marine distillate fuels or Very Low-Sulfur Fuel Oil (VLSFO) which swiftly rendered the sulfur-heavy fuels obsolete.

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Other long-term options like LNG, hydrogen, or ammonia fuel cells can be taken into account. Many people think that LNG may be the fuel of the future due to the predicted stability of LNG pricing and the dependability of natural gas as a resource.

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Reasons for transitioning to LNG

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LNG is without a doubt preferable to normally utilized fuel oils from an environmental perspective. In comparison to heavy fuel oil or marine diesel, It emits much fewer carbon dioxide (CO2) emissions, with a reduction of 20 to 25 percent, as well as hardly any emissions of sulfur oxides, particulate matter, and nitrogen oxides (reduction of 90 to 95 percent) comparison to marine diesel or heavy fuel oil. 

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Additionally, there is an excellent financial argument. The LNG bunkering process is typically less expensive than marine gas oil. Fuel bunkering accounts for the majority of a voyage's expense, so converting to LNG will have a significant overall benefit.

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In addition, more and more governments are encouraging LNG vessels to take the initiative, and incentives are being given out for infrastructure building, which might lower the price of LNG.

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The future and present of LNG bunkering

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International Association of Ports and Harbours (IPAH) and other groups are urging ports all over the world to build LNG bunkering facilities. The majority of bunkering facilities are located in Northern Europe. However, new facilities are also appearing in the US and Southeast Asia. Japan has built LNG bunkering facilities and aspires to become a major supplier to the world through the port of Yokohama.

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The LNG bunkering is attracting a lot of attention from the commercial sector and different governments throughout the world. Total working on projects in the ports of Dunkirk and Sohar in Oman to establish a liquefaction facility that can produce one million mt/ton of oil per year.