SZ Energy Intelligence LNG Topic2: Challenges of LNG Fuel to Chinese Shipping Side in 2012

Shanghai, China, February 27, 2012 --(PR.com)-- For more and more stringent emissions requirements of ships, Denmark, Norway and other Nordic countries have already started using LNG as fuel for the ferry, ship, coast guard ships, LNG vessels and platform supply vessels.

“More attention attached to the shipping pollution is forcing the ship owner to the use clean fuel. LNG will become the main fuel of maritime areas. LNG fueled Ships will grow from 100 to approximately 800-1000 vessels,” Mr Jaakko Eskola, Group Vice President and Head of Wastsila Ship Power said.

National Energy Administration’s senior official told SZ Energy Intelligence, “The International Maritime Organization set up stricter emission standards on shipping industry.” CNPC LNG powered ships was set for the trial trip in Yangtze River with quiet desired results at present. Related national authorities will take into account the test case when developing the standards of LNG powered ships. It was yet not decided when to consider starting this work. China Classification Society Wuhan Rules & Research Institute joint with other bodies wrote the new version of "gas powered boat Inspection Guide" which was through the specialists’ examination and approval.

There were 3 constrains in actual ship applications. First was the weak cruising ability. At present, the highest cruising ability for LNG powered ships was 22 days but this figure faded before the ocean transportation demand. The fuel oil tank was large but easy for placement. It was not the same case for LNG tank for its complex systems. There were huge difficulties for ship design and ship build for this reason. Second was the deficiency of LNG replenishment infrastructures. It was known as an easy way to get the LNG replenishment form port but the systems and facilities were not complete. Third is the comparatively high initial cost. The ship owners usually need several hundred dollars to take an LNG tank. They would choose to cancel the ship build project at the step of cost estimate.

As for China’s special condition, related specialists called on, “on one side, more creation and innovation for ship build and modernization to overcome the difficulties in layout of gas supply system and development of coursing ability, on the other side, more research on North Europe countries’ market demand to do purchasing cost check, take initiate attitude in LNG fueled ship build.”

DNV, faced with above challenges, developed a new concept of oil carrier, and called it "Triality." 3 performance breakthroughs proceeded: much greener to the environment than the conventional oil carriers and much more economic than the fuel oil fueled ships. Dr. Henrik Madsen, the President and CEO of DNV (Det Norske Veritas) said, “Triality, the new concept VLCC was expected to increase the build cost by 10-15%, compared with the conventional VLCC. But the decrease of its operation cost in the whole life circle was expected to be 25% of the build cost of conventional VLCC. DNV and German MAN also cooperated with each other to design and build new concept container ships. Its premium propulsion system used LNG firstly and improved the LNG use ratio. DNV believe natural gas will be the main fuel of merchant ships and the majority of ship owners will order the LNG fueled ships by 2020.”

ALNG2012 organized by SZ Energy Intelligence and Shanghai Social Science Academy will take place on May 17-18, 2012, in Shanghai China. From now to May 2012, SZ Energy Intelligence will contribute series topics related to LNG hot issues. All speakers involved these topics will be likely to be the speaker on ALNG2012 for deepening industry communications, and please tell AsiaLNGSummit.com if any interests or ideas.

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