LNG-fuelled vessels said to be US$9-$11/TEU less expensive than diesel

LNG-POWERED-fuelled vessels are cheaper to run than diesel by as much as US$10 per TEU and produce less emissions

LNG-POWERED-fuelled vessels are cheaper to run than diesel by as much as US$10 per TEU and produce less emissions, according to senior consultant of Ocean Shipping Consultants and IAA PortNews journalist David Bull.

The price point of liquefied natural gas, based on prices in South Korea, can save containership carriers of average capacity as much as $9 to $12 per container on a route such as South Korea to Rotterdam, he said, at a VIII annual international congress Oil Terminal held in St Petersburg.

The calculation takes into account that the LNG fuel system is housed in two to five per cent more space than a conventional fuel system, said the report from St Petersburg's Port News.

Crowley to Build Revolutionary LNG-Powered ConRo Ships

The next chapter in Crowley’s storied history of shipping and logistics services between the United States mainland and Puerto Rico will be written with larger, faster and environmentally-friendly liquefied natural gas (LNG)-powered, combination container – Roll-On/Roll-Off (ConRo) ships.

Crowley yesterday announced that it has signed a contract with VT Halter Marine Inc., of Pascagoula, Miss., to build two of the world’s first LNG-powered ConRo ships, which are designed to travel at speeds up to 22 knots and carry containers ranging in size from 20-foot standard to 53-foot-long, 102-inch-wide, high-capacity units, along with hundreds of vehicles in enclosed, weather-tight car decking.

The Commitment Class, Jones Act ships, scheduled for delivery in second and fourth quarter 2017, will replace Crowley’s towed triple-deck barge fleet, which has served the trade continuously and with distinction since the early 1970s. These new ships, which will be named El Coquí (ko-kee) and Taíno (tahy-noh), will offer customers fast ocean transit times, while accommodating the company’s diverse equipment selection and cargo handling flexibility – benefits customers have enjoyed for nearly 60 years

Powered by LNG, the Crowley ships will set a new standard for environmentally responsible shipping.

LNG is a stable gas that is neither toxic nor corrosive and is lighter than air. It is the cleanest fossil fuel available, netting a 100-percent reduction in sulphur oxide (SOx) and particulate matter (PM), and a 92-percent reduction in nitrogen oxide (NOx). LNG also has the ability to significantly reduce carbon dioxide (CO2), a contributor to greenhouse gas emissions, as compared with conventional fossil fuels.

The November 2013 edition of Lloyd’s Register’s Gas Technology Report, issued yesterday, is dedicated to LNG as a marine fuel.

Highlights include:

• A look at developments in Canada – a shipowner, the regulator and a shipbuilder talk about gas fuelled shipping
• Progress made by the Maritime and Port Authority in Singapore to develop LNG bunkering
• The CEO of Viking Line talks about the LR classed Viking Grace
• Interviews with SIGTTO and the newly formed Society for Gas as a Marine Fuel (SGMF)

Luis Benito, Global Head of Marketing for Lloyd’s Register, commented:“We hope that this report will help readers build a clearer picture of the realities of being ready to use LNG as a marine fuel. Generally, developments so far reflect our view of a likely trajectory for gas-fuelled investment: take-up is mainly by niche or specialised trades, trades located in emission control areas (ECAs) and point-to-point traders predominantly in ECAs, such as ferries and small containership operators.

“It is exciting to see how fast the marine industry in North America is turning to LNG – few would have predicted this a few years ago. Now it will be interesting to see how quickly gas as fuel will develop in the deep sea trades.”

Lloyd’s Register, November 28, 2013