The company has 15 VLGCs retrofitted to LPG dual-fuel propulsion technology
Singapore-based owner and operator of LPG vessels BW LPG has inked an agreement with UAE’s energy giant ADNOC for the supply of liquefied petroleum gas (LPG) as bunker fuel, Offshore Energy reported.
BW LPG said that the deal marks a notable milestone as the Middle East’s first dedicated LPG bunker supply contract.
The inaugural vessel to utilize LPG as bunker fuel under this agreement is the BW Volans. The bunkering took place in Ruwais, Abu Dhabi.
The company has 15 VLGCs retrofitted to LPG dual-fuel propulsion technology in partnership with German engine manufacturer MAN ES as part of its decarbonization strategy.
BW LPG expects that LPG propulsion to lead to an estimated 97 percent reduction in sulfur oxide emissions, as well as substantial reductions in particulate matter emissions (around 90%) and decreases in carbon dioxide and nitrogen oxide emissions (about 20%).
Efficiency gains have been identified as another advantage, with output efficiencies expected to improve by approximately 11%.
However, the unconventional nature of LPG as a bunker fuel has necessitated the establishment of new terms with industry stakeholders, including customers, suppliers, and oil majors, to establish a reliable LPG bunker supply network.