Opportunities grow as shippers chart course with LNG

Rapid uptake of LNG-powered vessels presents multi-billion dollar opportunity for gas producers

Stricter environmental regulations could provide gas producers with a billion-dollar business opportunity over the next few years, as the number of ships using liquefied natural gas (LNG) for fuel looks set to expand rapidly. There are around 30 LNG-fuelled ships currently in operation, but the fleet could increase to 10,000 by 2020 due to new global maritime regulations effectively outlawing heavy fuel oil (HFO) for ship fuel, according to Norwegian LNG bunkering firm Gasnor. And this could add another 5 million tonnes a year of LNG demand, head of commercial Trude Gullaksen told Petroleum Economist. At $8 per million British thermal units (Btu), the average European gas price, this would m