United States: Fill ‘er Up With Gas: The Advent Of LNG As Bunker Fuel

25-Jun-2014

Market, regulatory, and technological developments are acting in concert to accelerate the development of a liquefied natural gas ("LNG") bunker fuel market. U.S. domestic gas production has reached all-time highs with the country becoming the world's number one gas producer, which serves to keep natural gas prices relatively low and stable. U.S. and international regulations have tightened vessel emissions standards by implementing emission control areas ("ECAs") around certain coastal regions. Various U.S. and international shipyards are in the process of designing and building or refitting vessels with LNG-propulsion plants. Together, these evolving changes are giving LNG an inroad in the highly competitive bunker fuel industry. Meanwhile, regulatory programs are in the works to address new risks attendant to LNG-fueling operations.

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