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Canada can benefit from marine use of LNG

LNG Industry,

A recent report has highlighted the benefits of using LNG as an affordable, lower emission fuel for Canada’s marine sector.

LNG as marine fuel
The report, titled Liquefied Natural Gas: A Marine Fuel for Canada’s West Coast, claims that all technologies needed to use LNG as a marine fuel are proven and commercially available.

Canada’s natural gas advantage
"Canada has a tremendous natural gas resource advantage. Allowing access for LNG in the marine sector is smart and strategic for Canada. British Columbia is uniquely positioned to become a preferred North American destination for LNG bunkering, with Port Metro Vancouver well-suited to be a leader in this regard," commented Alicia Milner, President of the Canadian Natural Gas Vehicle Alliance (CNGVA).

Vessel operators
Currently, coastal vessel operators have the best opportunity to benefit from LNG. The report analysed six coastal vessels: fuel costs were reduced by more than 50%, with five of the ships having a payback on initial investment of less than six years.

New demand
The marine sector can also serve as an important new market for British Columbia's natural gas resources. Under a ‘medium’ LNG adoption scenario, 150 LNG vessels operating on the West Coast by 2025 would create new demand equal to 8.5% of British Columbia's 2012 natural gas use.

Framework changes
Jointly funded by Transport Canada and a group of industry participants, the report recommends changes to Canada's marine regulatory framework to allow for the review and approval of new LNG projects. These changes would support new projects moving forward including the use of three LNG ferries that BC Ferries plans to have in operation in 2017.

Project participants

  1. American Bureau of Shipping
  2. BC Ferries
  3. British Columbia Institute of Technology
  4. BC Ministry of Transportation and Infrastructure - Pacific Gateway Branch
  5. Canadian Natural Gas Initiative / Canadian Natural Gas Vehicle Alliance
  6. CSA Group
  7. Encana
  8. FortisBC
  9. Government of Canada - Transport Canada, Environment Canada, Natural Resources Canada
  10. Lloyd's Register
  11. Port Metro Vancouver
  12. Rolls-Royce
  13. Seaspan
  14. Shell
  15. STX Canada Marine
  16. Teekay
  17. Wärtsilä
  18. Westport Innovations

Adapted from press release by Katie Woodward

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