The participants enjoyed a series of highly informative and stimulating talks on the prospective of using LNG (liquefied natural gas) fuel in the shipping industry. Among the many high profile speakers were Mr. Lam Yi Young, CEO of the Maritime and Port Authority of Singapore, and Mr. Thor Jørgen Guttormsen, President of the Norwegian Ship Owners Association.
LNG and the environment
The conference had a strong focus on the environmental issues related to shipping. Around 3 % of global carbon emissions come from the shipping sector, which is the same emission level as all of Germany. The industry is therefore facing increasing pressures from the EU, the UN and environmental groups to reduce its carbon footprint.
Mr. Lam Yi Young, Chief Executive of MPA, was one of the key note speakers at the LNG conference. Photo: MPAThe question of how shipping’s carbon emissions can be cut without harming the industry’s cost efficiency is now a central issue for all ship owners. The conference’s focus on LNG as a cost-efficient and clean fuel alternative to the heavy oil widely used today is therefore very well-timed. During his speech, Mr. Lam was positive to the benefits of LNG, stating that “with its low sulphur content and abundant availability, LNG has the potential to be an environment- friendly and viable alternative to marine fuel oil and marine gas oil, particularly for short sea hauls”.
Singapore central in the development of a global LNG market
The switch from heavy fuel oil to LNG could in fact prove to be an exceptional business opportunity for both Norway and Singapore. Mr. Guttormsen emphasized that Singapore, as the world’s leading bunker port, has a major role to play in the development of the LNG market and the set-up of LNG distribution, especially in the South East Asian region. Norway, as a producer of LNG and one of the world’s five largest shipping nations, is already aiming for a much more widespread use of LNG in the shipping industry.
Not only will oil become more expensive in the years to come, the industry will also have to respond to consumer demands for more environmentally sustainable transportation. While sharing some of the findings of an ongoing joint industry project on the use of LNG in the region, Mr. Markussen from Det Norske Veritas (DNV) concluded that “it is not a question of if we will see adoption of LNG as fuel for ships, but rather a question of when”.
The event is the second sustainable shipping conference in a row arranged by the Embassy.