LNG brings benefits and challenges to ports

But the expressions of support are being seen as an export-boosting device rather than genuine observations, as the government’s actions fail to match up to its words.

In a shock announcement after the Rio+20 conference, the Environmental Protection Agency said it will not put restrictions on GHGs from vessels, aircraft or off-road heavy vehicles. “EPA does not have the resources to consider all possible sources of climate change in the near or medium term. EPA has directed its efforts at categories of sources that are the largest contributors to greenhouse-gas emissions.”

Environmental groups say that those sources are responsible for a quarter of US emissions from transport and mobile equipment. A spokesman for the environmental groups noted: “Cost-effective solutions to reduce greenhouse emissions from ships, airplanes and non-road engines are available now.” (He did not give any details, but LNG is clearly one of them.)

Yet, the federal government is solidly behind the Emission Control Area around the US and Canada, which takes effect in August and limits sulphur fuel to 1%.

Observers say that practical politics is behind the reason for not limiting GHGs, because opposition from the huge vehicle manufacturing and distribution sector would sink any effort to clamp down.

The Federal Maritime Commission sees the merits of LNG. Commissioner Mario Cordero told the World LNG Fuels Conference: “LNG continues to make progress as a credible fuel alternative. It should be noted that 90% of global trade is carried by sea thus furthering a policy for the use of LNG fuel by international carriers is not only paramount in reducing the carbon footprint by the industry, but clearly would have a global impact that requires present day commitment by various global stakeholders.”

Internationally, the industry knows that it must be at the forefront of the drive to cut energy costs and pollution, instead of waiting for the authorities to act. But, a chicken-and-egg argument rages between ports and shipping lines as to which should be the leader.

Individual ports are fearful of being too forceful, as carriers might switch to rivals, while shipping lines want to restore profitability before investing in unproven technology.

Which is why both sides look to industry associations such as the IAPH to come up with answers that are acceptable to all.