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SEALNG calls for greater commitment as 2020 sulfur cap looms

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SEA\LNG, the industry coalition working to facilitate and accelerate the widespread adoption of liquefied natural gas as a marine fuel, today urged a greater commitment to compliance with Marpol VI regulations as the 2020 sulfur cap looms.

The 28-member coalition said port state authorities have a clear obligation to ensure even-handed and consistent enforcement of the International Maritime Organization regulations. While enforcement has always been a difficult issue, now is the time for all IMO members to understand the importance of this regulation and ensure that it is implemented and enforced as envisioned, SEA\LNG urged.

The coalition acknowledged shipowners are operating in a challenging economic environment amid stringent and increasing environmental regulations. With a complex investment decision matrix of risks when considering how to comply with the global sulfur cap of 0.5% from 2020, shipowners must make decisions that remain viable into the future and choose among a limited number of options: LNG, scrubbers or low sulfur fuels.

'Shipping has made significant progress in reducing its environmental impact from harmful emissions, but more needs to be done,' SEA\LNG chairman Peter Keller said. 'All parties, especially the port state authorities, must play their part. Effective and consistent enforcement, across all jurisdictions of the IMO emissions regulations, will be essential to ensure more environmentally friendly shipping and a level playing field for all shipping companies.'

He added: 'Flag states and port authorities have a clear and key responsibility in ensuring compliance. If we do not collectively commit to compliance and enforcement, then we will continue to miss a tangible and viable opportunity to eradicate harmful emissions such as sulphur oxide, nitrogen oxide and particulate matter. This seems unacceptable given the opportunity we have readily at hand.'

SEA\LNG said that in addressing the primary concerns of cost and compliance, LNG provides a means of negating current and potential future local emissions challenges, and is a step in the right direction toward reducing greenhouse gas emissions from maritime transport.

Keller noted LNG 'far exceeds' alternative options in terms of emissions reductions. It emits zero SOx and virtually zero particulate matter. Compared to existing heavy marine fuel oils, LNG emits 90% fewer NOx and, through the use of best current practices and appropriate technologies to minimize methane leakage, offers the potential for up to a 25% reduction in greenhouse gas emissions.

'Advancements in dual fuel technology and propulsion, enhanced control systems, and future use of gas turbine technologies present further opportunity for increased greenhouse gas reductions,' Keller said.

According to SEA\LNG, the vast majority of the world’s top 10 bunkering ports offer LNG bunkering or have firm plans to do so by 2020. As this LNG bunker market continues to develop, there is already a drive to meet demand for LNG as marine fuel at these and other critical locations. By the end of 2017, six LNG bunker vessels will be in operation, up from one at the start of the year. These vessels are key to scaling up demand for LNG as a marine fuel and delivering fuel in a way that is 'normal' for shipowners. Added to this, new bunkering hubs are developing that will leverage existing bulk LNG infrastructure.

'LNG will be one of a portfolio of solutions going forward to help lower emissions, creating a more sustainable future for shipping,' Keller said. 'We recognize that there are barriers and limitations, but we are confident that by working together, we can overcome these hurdles as the industry has always done in the past. We do, however, require a greater sense of urgency and commitment.'

In the cruise sector, 14 firmly contracted newbuilds are designed to use LNG at sea as well as in port. They include three for Disney Cruise Line, two each for Royal Caribbean International, MSC Cruises, Costa Cruises, AIDA Cruises and Carnival Cruise Line, and one for P&O Cruises.