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Posts tagged ‘LNG bunkering’

11
Feb

7- GLEAMERGY and the LNG Bunkering Industry

GLEAMERGY and the take-off of the LNG Bunkering Industry

 

1       Context:

“LNG bunkering” is a novel concept where ships engines will use Liquefied Natural Gas (LNG) instead of liquid fuels (“bunkers”).

LNG tankers have been using LNG as a fuel since the very beginning, owing to the natural evaporation of the LNG transported as a liquid at minus 160°C and atmospheric pressure.

The concept of using LNG as a fuel on other ships such as ferries or cruise ships has emerged recently, prompted by :

  • new IMO (International Maritime Organization) MARPOL VI emission regulations due to be effective in 2020
  • attractive price of LNG compared with clean-burning liquid fuels.

2       A landmark deal for the LNG bunkering industry:

Real growth of the LNG bunkering was however hampered by the proverbial “chicken and egg” situation:

  • Shipowners were conditioning their investing in LNG fuelled ships on a guarantee that LNG refueling infrastructure would be in place in their various Ports of call ….
  • ….and Ports and Infrastructures Operators were conditioning their investing in LNG infrastructures on a guarantee from the Shipowners that these facilities would be used.

This “chicken and egg” situation is now being sorted out by moves such as CMA-CGM landmark decision that constitutes a world première:

  • CMA-CGM, one of the leading containerships operators worldwide, orders 9 giant containerships ( 22.000 TEUs ) using LNG as a fuel
  • CMA-CGM signs a long term ( 10 years – 300.000 t / year ) LNG supply contract with Total

The size and duration of this contract makes it a worldwide first in the LNG bunkering industry, and makes it possible for Total to build the required infrastructure, in this case an LNG bunkering ship suitable to refuel the CMA-CGM containerships.

Gleamergy was Advisor to CMA-CGM for this deal 

Gleamergy : dominique.venet@gleamergy.com – +33 6 32 54 25 97

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