LNG fuelling at Hamburg |
The old chicken and egg issue of LNG development being delayed by lack of adequate bunkering may be about to be solved, through a venture between the Linde Group and Bomin.
The rise in eco-legislation and the search for emission lowering fuels has prompted the pair to get together to build liquefied natural gas (LNG) infrastructure for the European maritime sector, centred in a number of key European ports.
The match, which pairs Linde's experience in cryogenics with Bomin's maritime bunker fuel operations, aims to establish a safe and reliable LNG supply throughout the Emission Control Areas (ECAs) in North-West Europe.
Sulphur in fuels used in ECAs (already restricted) will have to be further reduced on January 1 2015 to 0.1%, and there has been a correlated rise of interest in LNG power, evidenced by both dual fuel and twin engine developments. However, much of the industry has been aware that a lot of development has been awaiting a more complete network of LNG bunkering facilities.
In any case, it seems that the balance has finally tipped: global demand for LNG is expected to increase by more than 10% per year, making it the fastest growing energy product in the world. In 2015, some 70 vessels are expected to run on LNG in the Nordic region. According to a study by the Danish Maritime Authority the consumption potential of LNG is estimated to reach approximately 4m tonnes by 2020.
Headquartered in Hamburg, the 50:50 venture (given the relevant antitrust approval) is due to start its operations in the latter part of 2012.