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Small scale LNG in Asia Pacific region

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LNG Industry,

In the build up to this year's CWC World LNG & Gas Series 8th Asia Pacific Summit, held in Singapore from 20 - 23 September, CWC interviewed David Colson, Commerical Vice President of Gaztransport & Technigaz (GTT).

How do you see the applications and growth of LNG bunkering taking off in Singapore and the Asia Pacific region as a whole?

A lot depends upon the regulations in the short to medium-term. Today, LNG is still relatively uncompetitive compared to Heavy Fuel Oil (HFO) due to the low oil barrel price and the lack of infrastructure and the optimising of small scale LNG distribution. If deep-sea shipping is required by 2020 to reduce emissions (under review by IMO at the moment), there will be a legal requirement to use other fuels and this will give an impulse for the use of LNG. Singapore is ideally placed and has already begun initiatives for LNG bunkering and these could be accelerated.

What are the main opportunities for small scale development in Asia Pacific? What are the challenges you have experienced?

LNG is an ideal alternative for more polluting fossil fuels (coal, oil), and is very attractive in this respect for electricity generation in growing economies such as Malaysia, Indonesia, the Philippines, etc. There exist enquiries for solutions for small scale distribution of LNG in these areas, but they are hampered by cost. LNG infrastructure and transportation is not cheap. This is where GTT is concentrating e¬fforts to optimise vessel/barge and land storage costs.

Aside from small scale, what are the main new market applications for increasing demand growth, and in which countries are you most interested, in terms of new demand?

LNG as a fuel for sea transportation, particularly in regions already with ECA regulations (USA, Northern Europe, etc.)

How much demand do you think the road transportation and marine sectors will develop for the industry (LNG as a fuel) in Asia Pacific?

For shipping, see above comments on 2020, but we are already seeing increased interest and enquiries from cruise liner and container vessel operators. In theory, over 100 vessels could be using LNG by 2020 (with tank capacities ranging from 3000 to 15 000 m3 for each voyage.

What are the main reasons for GTT’s support of CWC’s World LNG Series year on year?

To follow developments on above, and to cement our presence in the region after the opening of the GTT SEA office in Singapore last year.

Interview conducted by CWC Group. Edited by

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