The Relevance of Liquefied Natural Gas as an Alternative for the Shipping Industry to Comply with the Global SO2 Limits

An Analysis Based on a Small and a Large Shipping Company

Thèse de Bachelor , 2017 , 50 Pages , Note: 1,0

Gestion d'entreprise - Commerce et Distribution

The International Maritime Organization confirmed in 2016 the introduction of a global sulphur cap in 2020, establishing a 0.5% sulphur content limit in fuels. All shipping companies operating in international waters will be affected by this emission regulation. LNG as a maritime fuel is widely thematised in current discussions regarding alternatives to achieve compliance, as it brings in the most significant environmental benefits. However, the current LNG-use is scarce, as vessels operating with LNG accounts for ca. 0.1% of the global fleet, and are mainly located in the Baltic region. To gain significance as a marine fuel, LNG has several challenges to overcome. LNGs main hurdle is the lack of bunkering infrastructure, which discourage its adoption by shipping companies, generating the so-called chicken-and-egg problem. Although small-scale bunkering facilities are already available, mostly in Northern Europe, the required infrastructure for large vessels is not provided.

This study looks at the relevance of LNG as a maritime fuel with the focus on the forthcoming global sulphur cap, from the perspective of a small and a large shipping company, in their decision-making to achieve compliance. Thereby, major drivers and impediments considered by both shipping companies for its adoption as well as their forecast regarding the future of LNG in the shipping industry are discussed.

Inhalt

I Outline

II LIST OF FIGURES

III LIST OF ATTACHMENTS

IV LIST OF ABBREVIATIONS

1 INTRODUCTION
1.1 RESEARCH PROBLEM
1.2 AIM
1.3 METHODOLOGY

2 THE SULPHUR OXIDES LIMITS
2.1 REGULATION 14 OF MARPOL ANNEX VI
2.2 0.5% GLOBAL SULPHUR CAP BY 2020
2.3 IMPLICATIONS FOR THE SHIPPING INDUSTRY

3 LIQUEFIED NATURAL GAS
3.1 DEFINITION
3.2 LNG AS AN ALTERNATIVE ENERGY SOURCE FOR COMPLIANCE
3.3 GLOBAL LNG TRADE
3.4 LNG BUNKERING
3.5 ADVANTAGES AND DISADVANTAGES OF LNG FOR SHIPPING COMPANIES

4 CASE STUDIES
4.1 THE SMALL SHIPPING COMPANY
4.2 THE LARGE SHIPPING COMPANY
4.3 MAIN FINDINGS

5. CONCLUSION
5.1 SUMMARY
5.2 CRITICAL ACCLAIM
5.3 OUTLOOK

V LIST OF REFERENCES

VI GLOSSARY

VII DECLARATION OF ORIGINALITY

VIII DECLARATION OF AGREEMENT

IX ATTACHMENT

• Université: Hamburg University of Applied Sciences
• Note: 1,0
• Auteur: Andre Dassau (Auteur)
• Année de publication: 2017
• Pages: 50
• N° de catalogue: V379487
• ISBN (ebook): 9783668568013
• ISBN (Livre): 9783668568020
• Langue: anglais
• mots-clé: LNG, shipping industry, fuel, bunker, global sulphur cap, compliance