Friday 22 December 2017

‘LNG will become widespread fuel for ships’ say experts

Around 80% of liquefied natural gas (LNG) experts believe it will become a widespread fuel for the shipping industry.

That's according to a new survey of 500 industry specialists conducted by Oil & Gas IQ.

This figure is up from 68% in 2016, with the majority of respondents saying the fuel is better suited to short sea shipping rather than long haul journeys.

This is largely because they do not believe there is enough refuelling infrastructure - however, concerns about this being a significant barrier have fallen from 73% in 2016 to 46% this year.

Oil & Gas IQ says as new LNG infrastructure becomes operational, its use as a marine fuel is seeing more traction in the form of new LNG vessels being ordered.

Despite these positive changes, the survey also reveals although the industry is on the cusp of dramatic change, it isn't moving forward as quickly as originally predicted.

It claims slow infrastructure development, the regulatory landscape and competition from alternative fuels are all contributing to the challenges in the sector.

The experts said lower costs, technological innovation and new partnerships are critical to driving LNG forward as the fuel of the future.