LIQUEFIED natural gas bunkering developments in Asia Pacific have ramped up as spot prices for the cleaner burning fossil fuel fell to record lows.
Korea Gas, as one of the world’s biggest LNG importers, has gone ahead to install loading arms at terminals in Tongyeong to allow for bunkering operation to take place, The Korea Herald reported.
This spells progress, after a long lull, in the state-owned player’s earlier LNG bunkering plans in its home country.
Kogas has already on hire from Korea Line a small-scale LNG tanker initially built with the option to cater for bunkering capabilities.
The tanker, which entered into service last year, has so far been active only in transporting LNG between two South Korea cities, Jeju and Tongyeong.
A lack of immediate demand is widely seen as holding back LNG bunkering plans in South Korea and elsewhere, given investments in LNG-fueled newbuilds have not picked up as quickly as expected.
But LNG proponents have argued that interest in the marine use of this fossil fuel is set to increase given it has been trading at persistently low prices on the spot market.
Australia as a top LNG exporting nation, has also taken more steps to push for LNG bunkering.
The state of Western Australia, which hosts the country’s largest LNG plants, is rolling out a 50% discount in port dues to bulk carriers bunkering with LNG at Pilbara.
Pilbara is a major port for iron ore exports from Australia.
The state government estimates that transitioning iron ore exports shipped from the Pilbara from heavy fuel oil to LNG would slash carbon emissions by up to 6m tonnes annually.
Australia’s LNG producer, Woodside Energy is working with the country’s three largest iron ore exporters, Rio Tinto, BHP and Fortescue Metals to develop vessels that can be fueled by LNG, Argus Media reported.
Going by Woodside’s estimates, converting ships exporting iron ore from Pilbara to run on LNG may create a 4m tonne per annum market for the commodity.
Meanwhile, Japan has also launched its first LNG bunkering vessel, owned by the Central LNG Shipping Japan Corporation joint venture of K Line, JERA Co, Toyota Tsusho Corporation and NYK hitting the water at Kawasaki Heavy Industries earlier this week.
The vessel was ordered in 2018 and is scheduled to be delivered at the end of September 2020 when it will be based at JERA’s Kawagoe Thermal Power Station and commence ship-to-ship LNG bunkering business for LNG-fueled vessels.
Central LNG Marine Fuel Japan Corporation will promote the LNG bunkering business in the central Chubu region of Japan and help promote a shift to marine LNG for ships.
