LNG as a Bunker Fuel and the Buildout of LNG Ships and Fueling Infrastructure: Decarbonization and Local Pollution Advantages

 

     Rystadt Energy notes that “The majority of CO2 emissions in LNG take place during liquefaction when compressing gas turns it into a liquid that can be shipped overseas.” Shell reported in 2020 that LNG for shipping offers a 15-21% reduction in well-to-wake life cycle carbon emissions compared to diesel bunker fuel. SEA-LNG reports now in 2023 that recent new LNG ship builds are outfitted with low slip engines with well-to-wake life cycle carbon emissions reductions up to 23% plus drastically reduced emissions of particulates, SO2 (90%), NOx, and other pollutants, which can be high in coastal and portside areas with diesel-fueled ships. Higher emissions reductions can be achieved if the upstream gas is certified as responsibly sourced gas (RSG) and especially if the liquefaction is outfitted with electrification of compression and other processes as is the Freeport LNG facility in the US which just came back online after being offline for several months due to a fire. In Freeport's eLNG plant three 75MW electrically driven motors power the propane and mixed-refrigerant compression. Many of the other processes at the plant are also optimized for low emissions operation. Flaring is reduced. If the electricity for the electric motors is powered with renewable energy, then emissions can be reduced even further.

      LNG ship builds and planned ship builds are set to double by 2024 from 2022 levels. LNG is also bunkering infrastructure is growing around the world. Typically, these are LNG bunkering ships or shore facilities. Since reductions in sulfur emissions were enacted in near shore regions in 2020 shipping has been turning more and more to LNG. Investments in LNG ships and bunkering buildout are at an all-time high as the shipping industry decarbonizes and moves into the future. The life of a seaborne ship is about 25-30 years, so as old ships retire more new ones will likely be powered by LNG.

References:

 

Rystadt. Chart of the Week. :https://okt.to/dyraOu

 

LNG Delivering Decarbonization. SEA-LNG, January 18, 2023. LNG – DELIVERING DECARBONISATION - SEA-LNG

 

Natural Gas and Decarbonization: Key Component and Enabler of the Lower Carbon, Reasonable Cost Energy Systems of the Future: Strategies for the 2020’s and Beyond. Kent C. Stewart. March 2022. Amazon Publishing.

 

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