Promoting LNG usage

ISO 20519 ships and marine technology specification for bunkering of LNG fuelled vessels aims to standardise bunkering operations worldwide and help operators select vessel fuel providers that meet required safety and fuel quality standards.

It is set to have an impact on ports which are searching to promote the use of LNG in order to reduce emissions and promote green shipping.

It should be noted though that despite the desire to bunker LNG being positive, the standard may also make it harder for some to comply.

“The requirements of ISO 20519 can be incorporated as a management objective into existing management programs and provide verifiable compliance,” explained Steve O’Malley, convener of the working group that developed the standard.

This is important, he says, because “the requirement to comply with ISO standards is often incorporated into business contracts and may also be referenced by local regulations.”

For most ports though, like the Port of Rotterdam, which has been trying to promote the use of LNG for many years, the standard is good news. Since 2015, the port has been offering a discount to ships at the port which are using LNG as an alternative source of fuel.

This is despite the fact that throughput of LNG has been dropping in recent years. In 2016, throughput of LNG dropped by 26.1% to 1.7m tonnes following an increase of over 90% in 2015. The reason for that though was that the global market saw less arbitrage relating to LNG prices.

Despite this, Port of Rotterdam saw the bunkering of a sea-going vessel with LNG for the first time last year, with a total of four LNG bunkerings taking place during 2016. It is expected that the number of LNG bunkered vessels will increase further this year.

Roland van Assche, director of oil, storage, refining and shipping of the Port of Rotterdam Authority, told GreenPort: “The development of Rotterdam’s LNG port is in full swing. This year, the Ternsund was the first sea-going vessel able to bunker LNG at Rotterdam.”

He added: “At the end of 2016, the gate terminal opened a third LNG berth which will be used to load LNG bunker barges. In 2017, we will have an LNG bunker vessel at our disposal, thanks to Shell. We hope that our example will be followed all over the world, because we will only be able to succeed in our mission if other ports also embrace LNG.”

Shell is due to take delivery of an LNG bunker vessel at the Port of Rotterdam in mid 2017. Alongside this, the company has also signed a deal with a Dutch dredging firm to supply an LNG-powered dredging vessel which will be based at the port starting in 2018.

The new standard is set to cater for the increasing size and longer distances of LNG ships and vessels. As demand increases, there will need to be LNG bunkering facilities at an increasing number or ports around the world.

As the shipping industry increasingly looks towards LNG retrofits and newbuilds, ports will need to look to their own infrastructure. It will be the shippers which will play a significant role in the LNG bunkering changes and regulations going forward.

Players like Japan’s NYK Line, for example.

Japan imports around 35% of the world’s LNG and demand is set to grow.

“We think the market for LNG bunkering will be surely growing, seeing strong environmental regulations and standards. Japan can be one of the most important hubs,” said a spokesman for NYK Line.

The company has confirmed it has a number of vessels which could be used for LNG bunkering going forward. Although details haven’t been confirmed and studies are on-going, the Japanese company looks set to become a key player in LNG bunkering in 2017.