Page 29 - European Energy Innovation - Spring 2017 publication
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Spring 2017 European Energy Innovation  29

                                                                                        LNG IN SHIPPING

perspective of environment and human      LNG fuel ship projects
health given the proximity of sea ports
to highly populated areas.

The technology is proven and the
LNG distribution network continues
to expand. LNG is available in large
quantities and is able to meet the
demand in the shipping industry.
Moreover, the production technology
of ship engines powered by LNG is
mature and fully available.

SAFE                                      Source: Source: HHP Insight6              operation has significantly increased
The LNG industry’s highest priority has                                             in 2016. By the beginning of 20164
always been safety and security, which    based on LNG may well be a stimulus       there were 75 LNG-fuelled ships in
is reflected in the industry’s enviable   for further development of the industry   operation worldwide, with another 84
safety record for LNG operations over     at a local level.                         new ship-building orders confirmed. At
the last decades. This results from                                                 the end of 2016 there were 97
proven and detailed industry standards,   LNG IN SHIPPING                           ships in operation and a further 91 ships
strong regulations, and an industry       2016 Update and Factors Influencing       on order worldwide. Therefore,
commitment to risk management.            Further Development                       a 29% increase in the number of
Today, it is confirmed that LNG can be    Since the first GIE article on LNG        LNG-fuelled vessels (22 more) within one
produced, transported and distributed     as marine fuel at European Energy         year! Furthermore, not only many new
on a safe manner.                         Innovation Magazine one year ago          ships have been built but some ships
                                          many new developments have taken          have also been converted to run on LNG.
ECONOMICAL                                place. Below we briefly analyse some
LNG provides an attractive solution       of the important factors influencing the  With these figures Europe is currently
from both economic and commercial         further development of LNG.               the frontrunner in the operation of
points of view. As availability of
infrastructure and competition increase,  The number of LNG-fuelled vessels in
prices will continue to reduce further.
The price of LNG is already much          Operating area of LNG-fuelled vessels in operation in December 2016
lower than the price of Marine Fuel Gas
Oil (MGO) or Marine Diesel (MDO).
Reducing pollution will lower emission
fees and provide marketing benefits by
highlighting the environmental nature
of the fuel used.

According to DNV data3 LNG propelled      Source: GIE based on DNV data7
ship operation costs may be even 45%
lower in comparison to standard MGO
fuelled units over a 20-year period
of operations. Efficient distribution
planning combined with the use
SSL NG units enables operators to
divide fuel transport costs between
several locations. Furthermore, the
implementation of technical solutions
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