• 2019 July 12 17:03

    SEA\LNG releases study showing benefits of LNG

    SEA\LNG has today released an independent study showing that LNG as a marine fuel delivers the best return on investment and is a competitive option for newbuild Pure Car and Truck Carriers (PCTC) on Pacific and Atlantic trade lanes.

    Peter Keller, Chairman, SEA\LNG, stated: “This is the second in a series of studies commissioned from independent simulation and analytics expert Opsiana. Similarly to the results of the liner investment case, this study shows that shipowners ordering PCTC newbuildings should take advantage of the environmental, operational and commercial benefits of LNG.”

    The study considered two PCTC trading scenarios using a 6,500 Car Equivalent Unit (CEU) vessel on the Atlantic Trade and an 8,000 CEU vessel on the Pacific Trade. The study indicated that LNG as a marine fuel delivers the best return on investment on a net present value (NPV) basis over a conservative 10-year horizon, with fast payback periods ranging from one to three years on the Atlantic Trade and from less-than-one year to two years on the Pacific Trade.

    These two routes were chosen based on trading scale, with approximately 3.2M vehicles shipped on the Pacific Trade and 1.7M on the Atlantic Trade every year. LNG proved to be the best investment across both trading zones. This higher investment return was achieved without including the significant additional benefits and branding value gained[1] by choosing LNG as a more environmentally friendly marine fuel. When corporate sustainability and environmental goals are included, including potential future charges on CO2 production, choosing LNG as a marine fuel brings additional benefits.

    The study provides greater clarity for those investing in LNG and highlights six key findings: LNG has a better return on investment, the CAPEX hurdle is diminishing, it delivers competitive energy costs, has higher environmental performance, and is the most financially effective long-term method for complying with the 2020 sulphur cap. It also underlines the fact that scrubber operation is significantly more expensive than widely reported, and that the cost of LNG is stable.

    The financial results are more compelling given that this higher traditional investment return was achieved by choosing LNG, the only commercially viable marine fuel alternative available at scale today which is successfully able to achieve corporate sustainability and environmental goals.

    To ensure the best possible data was available to Opsiana, SEA\LNG members contributed their maritime expertise and current corporate information and data from across the LNG value chain, to guarantee a high level of creditability in the study and results. All cost data was accurate in accordance with the latest estimations from industry experts, derived from their experiences in operation.

    While this study focuses specifically on the PCTC investment case for LNG within a specific trade route, the coalition continues to collaborate with third parties on further independent research which will analyse the investment case for a dry bulk vessel and a very large crude carrier (VLCC).

    About SEA\LNG

    SEA\LNG is a UK-registered not for profit collaborative industry foundation serving the needs of its member organisations committed to furthering the use of LNG as an important, environmentally superior maritime fuel.

    SEA\LNG has members across the entire LNG value chain including providers of the product, users, engine and asset suppliers, and class societies. SEA\LNG is already recognised as an International leader in LNG matters. Each member organisation commits mutually agreed human resources, data analysis and knowledge sharing in support of SEA\LNG initiatives and activities and financially contributes via a membership fee. SEA\LNG is guided by a board, which is led by chairman Peter Keller, who was elected as Founding Chairman in 2016.

    SEA\LNG’s members include: ABS, Carnival Corporation & plc, Clean Marine Energy, DNV GL, Eagle LNG Partners, ÉNESTAS, Exeno Yamamizu, Fearnleys AS, Gasum, GE, GTT, JAX LNG, Keppel Gas Technology, “K” LINE Group, Lloyd’s Register, MAN Energy Solutions, Maritime and Port Authority of Singapore (MPA), Marubeni Corporation, Mitsubishi Corporation, Mitsui & Co., Ltd., Naturgy, Novatek Gas & Power, NYK Line, Pivotal LNG, Port of Rotterdam, Port of Virginia, Qatargas, Shell, Société Générale, Sumitomo Corporation, Total, TOTE Inc., Toyota Tsusho, Uyeno Group of Companies, Vancouver Fraser Port Authority, Wärtsilä, and Yokohama-Kawasaki International Port Corporation (YKIP).

    About Opsiana

    Opsiana is a Scandinavian consultancy providing innovative solutions to the most complex business problems. Opsiana’s consultants are recognized optimization, simulation, and analytics experts with deep knowledge of the shipping and marine fuels segments. Opsiana has developed proprietary algorithms for the optimization of liner networks, strategic and tactical fuel procurement, and marine pilotage.




2019 September 20

18:41 Vostochny Port joins Coordinating Council on Trans-Siberian Transportation as its permanent member
18:22 IAA PortNews offers photo release from 'Development of Icebreaking and Support Fleet' conference held on NEVA 2019 zero-day
18:05 Global Ship Lease announces new five-year $268 mln credit facility for debt refinancing
17:24 Vostochny Port’s harbour services fleet presented at dedicated conference in Saint-Petersburg
17:05 F. A. Vinnen places entire fleet with Verifavia Shipping & Rina for IHM services
16:50 Helsinki Shipyard (Finland) to build two liners for polar cruises
16:35 COSCO SHIPPING Ports announces disposal of interest in various port assets and possible disposal of Taicang Terminal and Jiangsu Petrochemical Terminal
16:21 ABB presents electric power and propulsion solutions for icebreaking vessels at NEVA 2019
16:05 Port of Los Angeles protects overall clean air gains
15:19 Port of Riga rapidly increases volume of handled wood pellets
14:53 South Korean port to slash passenger vessel emissions with ABB shore power
14:15 Krasnoye Sormovo launches Pola Pelagia, dry cargo carrier of Project RSD59З, for Pola Rise
13:30 Damen Shipyards Group is ready to ensure construction of electric water buses for rivers and canals of Saint-Petersburg and Russia
13:12 MSC Cruises and Fincantieri unveil further details of MSC Seashore at coin ceremony
12:24 Victor Olersky sees promising future of electric river passenger ships in Saint-Petersburg and in Russia
12:09 Algoma Central Corporation announces agreement to acquire Croatian-built vessel
11:28 Specifications for 0.50% sulphur fuels and the PAS from ISO: IBIA explains
11:09 GTT obtains Approval in Principle from Bureau Veritas for the Mark III Flex technology on ice-breaking LNG carriers
10:52 IBIA and S&P Global Platts collaborate to help shipping industry comply with IMO 2020
10:31 Workshop for training on emergency response, preparation and planning held in Manila
10:09 Van Oord and Shell test the use of biofuel on trailing suction hopper dredger HAM 316
09:50 State Duma ratifies Convention on the Legal Status of the Caspian Sea
09:33 Brent Crude futures price is up 0.20% to $63.73, Light Sweet Crude – up 0.98% to $58.7
09:25 Lloyd’s Register, China Merchants, GTT, CNOOC, DSIC form jv to design LNG-fuelled VLCC
09:17 Baltic Dry Index is down to 2,192 points
08:58 MABUX: Bunker Market this morning, Sept 20

2019 September 19

18:04 Bibby Marine Services takes the next step to optimize walk-to-work operations
17:56 Marinet approves Poseidon maritime cyber security project
17:37 American Ethane reveals plans to order 17 VLECs
17:34 Wärtsilä’s Board of Directors decided on the distribution of the second dividend instalment
17:22 Marinet approves T2OT project for high accuracy positioning of seagoing vessels
17:04 VARD secures advanced stern trawler contract with Luntos
16:50 Average wholesale prices for М-100 HFO down to RUB 14,328 in RF spot market
16:34 Zeebrugge port authority invests in new 1,071 meter quay wall
16:04 RINA to classify Swedish Maritime Administration fleet
15:53 Marinet set to establish exports support center in Finland in 2020
15:34 MacGregor secures orders worth more than EUR 20 million for projects in Europe and Asia
15:05 Wärtsilä foresees a lower result for 2019
14:31 North Pole ice-resistant platform presented by Admiralteiskie Verfi at NEVA 2019
14:09 ABS announces LNG Cargo Ready notation for ethane carriers at Gastech 2019
13:46 Hyundai Heavy Industries receives AIP for new LPG carrier design
13:03 Bunker prices go up at the Far East ports of Russia (graph)
12:40 ABS and AEC сollaborate on newbuild VLEC fleet
12:17 Murmansk Sea Fishing Port handled 171,200 tonnes of cargo in 8M’2019, down 28.5% Y-o-Y
11:58 PortNews-TV offers video on naming ceremony for PortNews tanker
11:36 International symposium on Anthropogenic Underwater Noise held in Hamburg on 10 September
11:09 LR awards DSME AiP for 98,000 m3 VLEC design with High MnA steel tank
10:42 Ships of RF Navy’s Caspian flotilla take part in Tsentr 2019 maneuvers
10:09 Singapore and Panama ink MoU to strengthen maritime relations
09:51 Brent Crude futures price is up 0.20% to $63.73, Light Sweet Crude – up 0.33% to $58.23
09:49 MABUX: Bunker market this morning, Sept 19
09:33 Baltic Dry Index is down to 2,266 points
09:18 ABS grants AIP for two next generation gas carrier designs

2019 September 18

18:26 SGRE confirmed member of the Dow Jones Sustainability Indices in 2019
18:03 MOL repays existing loans through issuance of project bond for FPSO charter project
17:48 Russia’s Rosmorrechflot and Ministry of Industry and Trade develop preferential leasing programme
17:30 Vympel DB develops concept design for Arctic cruise ship
17:22 Metal Shark delivers new foil-assisted catamaran excursion vessel to Pure Florida
17:11 US Coast Guard shifts response efforts in Bahamas
17:03 ECSA considers the European State Aid Guidelines for maritime transport highly successful and key to maintaining a strong European shipping sector