We’re exploring a new wave of efficient LNG fueling solutions.
The shipping industry is a vital part of the global transportation infrastructure, moving large volumes of people, goods, and commodities every day. Shipowners and operators are increasingly forward thinking in how to address large-scale LNG fueling needs when faced with current and impending environmental regulations.
LNG is an increasingly attractive fuel choice as the marine industry prepares for January 1, 2020 when the International Maritime Organization (IMO) implements a global sulphur limit of 0.50% for international shipping. Natural gas is the ideal carbon molecule, one carbon atom surrounded by 4 hydrogen atoms that contain energy. It forms a very energy rich and dense medium when in liquid form as LNG. The molecule is clean burning because of the carbon/hydrogen 1:4 ratio which produces the least carbon byproducts of all fuels. As the cleanest-burning hydrocarbon, natural gas improves air quality because it emits low levels of nitrogen oxides (NOx) and less carbon dioxide (CO2) while reducing particulate matter (PM) and green-house-gas (GHG) emissions relative to both high- and low-sulfur fuel oils. LNG-fueled engines emit only trace amounts of sulfur.
LNG as Marine Fuel in Jacksonville
Since 2017, Eagle LNG has continued to supply Crowley Maritime with the LNG fuel for two of the world's first LNG-powered combination container (ConRo) vessels. These ships operate in U.S. mainland to Puerto Rico trade. These Jones Act, Commitment Class vessels are highly advanced, environmentally friendly, and are capable of optimal transit times. To support these and future LNG-powered ships, Eagle has developed a sustainable LNG supply infrastructure with fresh, new designs for terminal and shore-side bunker operations. Eagle is meeting the maritime industry's growing need for 'LNG as a marine fuel' with advanced environmental designs capable of operating within a small footprint.
The Eagle LNG Way
Eagle LNG utilizes the type of business models that involve various ranges of risk sharing. One of the key challenges in creating small scale LNG infrastructure is the need for harmonized investments and risk allocation throughout the value chain. Eagle provides potential small scale LNG market participants and investors with familiar types of investment risks (i.e., pricing, contracts). A shipowner considering LNG or dual fuel engines for an upcoming newbuild does not want his fuel purchasing process to dramatically change. The LNG supplier needs to ensure the fuel price is a transparent and predictable price with a commitment term that suits the needs of the customer. The Eagle LNG integrated business model takes into account the entire gas value chain with the risks being shared between partners. Eagle LNG is at the forefront of providing the infrastructure solutions that will be needed by the shipping industry post 2020.
LNG as a fuel appears commercially the most attractive when comparing the expected prices from 2020 of low sulphur heavy fuel oil (LSHFO) or Marine Gas Oil (MGO), and the extensive long term availability of natural gas.
SOURCE: DNV GL Maritime
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