SEA\LNG has published an investment study which claims that using LNG as a fuel is a ‘compelling investment solution’ for very large crude carriers (VLCCs) on the Arabian Gulf to China trade route.
The study, conducted by Opsiana, compared the relative investment performance of four propulsion alternatives: a conventional VLCC sailing with very low sulphur fuel oil (VLSFO); a scrubber-equipped VLCC sailing mostly with heavy fuel oil; and two LNG-powered VLCCs, one with a high-pressure two-stoke engine, the other a low-pressure two-stroke engine.
According to SEA\LNG: ‘The study clearly indicates that LNG as a marine fuel delivers a strong return on investment on a net present value (NPV) basis over a conservative 10-year horizon. The analysis is bolstered by compelling paybacks from three to five years.’
SEA\LNG added: ‘The higher investment return was achieved without including the significant additional benefits and branding value gained by choosing LNG as a more environmentally friendly marine fuel.’
Peter Keller, Chairman, SEA\LNG, commented: ‘As convincing, qualified evidence supporting the environmental, operational and commercial benefits of LNG continues to emerge, acceptance of its credibility is becoming increasingly widespread and concrete. LNG is the only safe, mature, commercially viable marine fuel that offers superior local emissions performance, significant greenhouse gas reduction benefits today, and a pragmatic pathway to a zero-emissions shipping industry.”
The full investment study can be accessed via the following link: https://sea-lng.org/our-work/