LNG Marine Fuel Institute opens in Australia

In mid-2016, several industry bodies from the Australian marine sector came together, sharing a conviction that bunkering Heavy Fuel Oil (HFO), which traditionally powers global maritime shipping trade, had to change. It was clear that LNG was a significantly cleaner transitional energy source, that could replace HFO. To this end, a LNG Marine Fuel Institute is officially launched in Australia.

The vision of LNG MFI is for Australia to play a leading role in the supply of LNG as a global marine fuel. At his official speech for the launch of the Institute, Chairman Richard Sandover said that the parties saw opportunities to:

• Secure global health and climate emissions benefits

• Position Australia at the forefront of the development of LNG as a marine and transport fuel

• Establish an LNG bunkering industry in Australia with the economic benefits that would flow

• Increase the nation’s security of energy supply.

“As a great trading nation and soon to be the single biggest exporter of LNG, Australia is well placed to embrace early adoption of LNG as a marine transport fuel”, he noted.

As explained, the LNG MFI supports the establishment of a ‘green corridor’ for the bulk ore and LNG export trade between China and Australia, Japan and Australia and other south east Asian countries.

“With collaboration between industry, government and the community this can lead to the establishment of an LNG bunkering industry in Australia, jobs for Australians and enhanced energy security for Australia.”

In addition, the MFI could address the fact that, today, Australia is over 90% reliant on imported transport fuels, despite extensive gas reserves in its backyard. This reliance on imported fuels is an unsustainable model. Bunkering LNG produced in Australia could strengthen its national energy supplies.

“LNG as a marine fuel is the first step towards helping Australia achieve energy independence and is part of our transition to a cleaner energy mix”, Mr Sandover said.

Mr Sandover also underlined that LNG MFI is an opportunity, applying an evidence based model, to make a contribution to securing Australia’s energy independence, establishing new industry and contributing to a cleaner global environment.

A number of OECD countries including China, USA, Canada, the Baltic States and the European Union have started the process. They have introduced even more stringent standards relating to emissions from ships sailing through their territorial waters. For example, they have mandated lower standards for CO2 from the proposed IMO level of 0.5% to 0.1%. Such a standard cannot practically be met by using Heavy Fuel Oil.

LNG as a marine fuel emits negligible sulphur dioxide, nitrous oxide and particulates emissions and 10-20% lower greenhouse emissions, meeting compliance with the strict international regulations set by IMO. On the back of this global focus, the maritime industry is in a rapid transition to gas for marine power generation and propulsion.