ABSTRACT

Because of rising concerns on traditional fuels in ocean shipping, more ship owners and operators are considering the switch of fuel to clean energy liquefied natural gas (LNG). Many US ports are constructing facilities related with LNG bunkering to meet the demand increase for LNG and international stringent environmental regulations. This study was developed to research the past, present, and future of LNG bunkering in North America.

INTRODUCTION

In accordance with discussions on rapidly changing climate, countries all over the world are announcing more stringent regulations. In particular, to replace current bunker oils with natural gas is becoming more profitable because of strong regulations such as Anne VI by International Maritime Organization (IMO) and various regulations announced by each government. It is also expected that more regulations shall come into effect to keep up with global consensus on low emission of green gases.

For example, in April 2018, International Maritime Organization (IMO) announced a plan to cut the shipping sector's overall CO2 output by 50% by the end of 2050. By using LNG as a fuel, sulphur and particle emission would be reduced to zero and nitrogen oxide emission shall be reduced by 85 – 90 percent. In accordance with this, major ports in the world are competitively trying to construct LNG bunkering terminals. Many ship owners are also considering the change of ship fuel into Liquefied Natural Gas (LNG). To change a fuel is not the matter of the fuel itself, but the matter of changing the maritime shipping industrial sector (Berti, 2018)

However, by 2014, to use LNG as a fuel instead of carrying it as cargo was not a common concept to ship owners and operators in North America. Local governments and various organizations are developing policies, regulations, and laws to meet international standards, requirements, and codes.

This study was developed to examine the current status of LNG-fueled vessels, LNG bunkering infrastructure, maritime regulations, and various LNG-related plans and projects that are being promoted by local governments and ports located in North America.

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