Gulf Coast to up LNG supply

Some skeptics have written off LNG bunkering, but it’s likely going to be a key solution to comply with the International Maritime Organization’s upcoming 2020 global sulfur cap. There likely won’t be enough gas-oil and scrubbers to meet demand for 0.5 percent sulfur-compliant marine fuels, according to industry sources at the 10th International Fujairah Bunkering and Fuel Oil Forum. A growing number of organizations are joining industry coalitions to accelerate LNG bunkering in the shipping industry. “2020 creates a new reality, creating potential threats, but also an opportunity that can help reposition shipping,” Lauran Wetemans, general manager of the LNG fuel division at Shell. “We believe that 10-to-20 percent of all bunker fuel oil could switch to LNG by 2030,” Wetemans said. Spot LNG prices are expected to come down as supply grows, says Fereidun Fesharaki, charmain of Facts Global Energy. By 2020, LNG supply additions in Australia and the U.S. Gulf Coast will increase the current global supply by more than 40 percent. This could spell good news for ship-operators promoting them to switch to its use, sources said. Commoditizing LNG and expelling myths around its safety aspect would also spur it use, they said. (Source: Hellenic Shipping News 04/03/17)