Costs preventing shipowners switching to LNG

LNG has a huge opportunity to become a key shipping fuel because of its abundant supply, environmental advantages and relatively stable price, experts in the gas and shipping industries have said.

LNG has a huge opportunity to become a key shipping fuel because of its abundant supply, environmental advantages and relatively stable price, experts in the gas and shipping industries have said. However, equipment costs, regulatory uncertainty and the lack of LNG bunkering facilities are weighing on the minds of shipowners.

Equipment costs could be the determining factor governing whether the shipping industry adopts LNG, Tom Strang, senior vice president of maritime affairs at cruise giant Carnival Corp., told the CWC World LNG Summit in Barcelona last week. “For example, [LNG] tanks are very expensive. We would love to see cost of equipment coming down,” he said.

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© The CWC Group 2017