Study says big potential for LNG bases around Iberian Peninsula

  Jul 18--CLASSIFICATION society DNV GL has released a study that predicts huge demand for low-sulphur LNG fuel around Spain and Portugal, the Mediterranean, Atlantic and Gibraltar Strait.

  The study has revealed huge potential for LNG sales as a marine fuel that will utilise the current spare capacity of the existing LNG import terminals, reports the American Journal of Transportation.

  By 2030 up to two million cubic metres of LNG a year will be bunkered by ships from Algeciras, Las Palmas and Barcelona and by 2050 that figure will rise to eight million cubic metres of LNG a year, said the report.

  Said DNV GL vice president Liv Hovem: "The study shows the major potential LNG. We hope our study will help shipowners, natural gas suppliers, bunker companies, port authorities and LNG terminal operators to gain confidence to move forward with LNG for a more sustainable shipping industry."

  With the global fuel sulphur limit of 0.5 per cent entering into force in 2020, the interest towards LNG as a marine fuel is increasing.

  One of the main obstacles to the accelerated uptake of LNG, however, is the uncertainty regarding future market volumes for LNG, said the DNV GL release.

  The EUR33 million (US$37.8 million) project is coordinated by Enagas, and co-funded by the European Commission.

  DNV GL conducted the study, co-funded by the European Commission, on behalf of the six-year CORE LNGas hive project1, which aims to provide an investment plan for LNG fuelling in Spain and Portugal.

  Said CORE LNGas hive coordinator Fernando Impuesto: "Through this market study we now have a strong decision basis to prepare the supply side on the Iberian Peninsula in meeting future demand for LNG bunkering at competitive conditions."


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