The Pros and Cons of using LNG in Shipping

There has been a lot of discussion about Liquefied Natural Gas (LNG) as a viable fuel option for the shipping industry, so we thought we’d take a look at some of the pros and cons. More than 100 vessels in merchant, offshore and ferry applications already operate on gas, and it’s likely to become more popular with new regulations and environmental legislation coming into force.

Advantages

• Natural gas is mainly made up from methane, a potent greenhouse gas. Using LNG as shipping fuel could reduce sulphur oxide (SOx) emissions by up to 95 per cent. The lower carbon content of LNG compared to traditional ship fuels gives a 20 – 25 per cent reduction of carbon dioxide (CO2) emissions.
• LNG is likely to cost less than marine gas oil. Lower LNG prices in Europe and the USA suggest that the price is likely to be price below heavy fuel oil even when taking the small-scale distribution of LNG into account.
• LNG is readily available - carriers move the natural gas from liquefaction terminals to re-gasification terminals at locations all over the world, making the fuel easily available from shore-based facilities. 
• There are Marine LNG import and export terminals everywhere, which means that LNG is available anywhere in the world. In addition to this, there are more terminals planned for the future.

Disadvantages

• LNG does need more storage space, and specific bunkering arrangements also have to be provided. 
• LNG is pumped from one location to another through pipelines in gaseous form or transported by sea as a liquid, and during the transformation phase from gas to liquid it requires cryogenic temperatures.
• The infrastructure can make things harder with LNG, and the ability to transfer it from terminals and into the vessels that need it. On the plus side, though, availability of LNG bunkering is spreading, especially in regions with a strong environmental awareness or where it’s more economical than other fuels.

What do you think about using LNG? Is it a viable option for your business?