Lloyd’s Register and Penn Oak Energy Corp. collaborate

Lloyd’s Register North America Inc. and Penn Oak Energy Corp. have partnered to help develop the use of LNG as a fuel for ships. The companies will help companies raise capital and mitigate the technical risks associated with retrofitting LNG-fuelled ships.

The primary expense for ship operators is fuel and personnel. Shipowners have been unwilling to invest in LNG-fuelled ships if supplies of LNG bunker are difficult to obtain. However, this challenge is lessening as more LNG facilities are built.

The LNG Bunkering Infrastructural Survey 2014, conducted by Lloyd’s Register indicates that several major ports are either planning for or anticipating wide-scale development of LNG bunkering.

Combined expertise

Based in Scottsdale, Arizona, Penn Oak Energy develops LNG fuel solutions for industrial clients. The value that Penn Oak Energy adds to ship-owners and their fleets is through a fuel-procurement agreement, where they can spread the cost of the LNG conversions and the upfront capital requirements for these conversions over the life of the project.

Lloyd’s Register is well placed to support a new fleet of gas-fuelled ships and help them to operate safely and efficiently. The organisation also provides training on key aspects of modern LNG carriage by sea and risk management services, to support safe LNG bunkering.

Lloyd’s Register's, Marine Business Development Manager, Rafa Riva, said: "The infrastructure to support this new class of ships has started to mature, and we have seen great strides in companies willing to convert their existing ships to this new fuel or constructing new ships in the US Emission Control Areas. Our relationship with Penn Oak Energy will help provide the private equity to ship owners to undertake these ambitious projects, and assist those ship builders that the US will need to expand this growing demand.” 

Philip Parker, Head Of Business Development for Penn Oak Energy, added: "Working with Lloyd’s Register and various shipyard owners throughout North America, Penn Oak Energy has been able to sign up exclusive relationships with various shipyard builders to bring their yards up to spec on certification, safety and standards required to convert ships to dual fuel solutions."

Edited from press release by Callum O'Reilly

Read the article online at: https://www.lngindustry.com/small-scale-lng/21072015/lloyds-register-and-penn-oak-energy-corporation-collaborate-1047/