LNG Bunkering Commences in Australia

Under an agreement with Woodside, EVOL LNG refueled the platform supply vessel, Siem Thiima, on January 23 at King Bay Supply Base near Dampier. Business Manager, Nick Rea sees it as just the beginning. “Our decision to enter the LNG bunkering market is part of a long-term strategy that recognizes environmental and economic sustainability of LNG as a transport fuel,” said Rea. 

“It also recognizes that the LNG marine fuel market is still in development so the fact EVOL has over 15 years’ experience in distributing LNG means we saw an opportunity to provide a suite of services that perhaps others can’t.

“EVOL can safely manage the bunkering process plus provide key services such as training in safe handling of LNG, enabling our customers to confidently adopt LNG as a marine fuel.

 “With growing demand for lower emission fuels over the past decade, we’ve seen the number of LNG-fuelled ships in operation worldwide increase steadily from a handful to more than 75, with an additional 80 expected to be built in the next three years.” 

Growth has had largely been driven by International Maritime Organisation (IMO) regulations and the introduction of emission control areas in Europe and North America, said Rea.  In addition, China has introduced emission control areas around its three major ports.

“Interest in LNG as a marine fuel is growing, especially since the IMO announced that it would introduce a global marine fuel sulfur limit of 0.5 per cent from 2020,” he said.

“It’s certainly an offering we’d like to expand, particularly as truck-to-ship LNG bunkering can be achieved relatively inexpensively with existing logistics assets. If interest is there, EVOL LNG will obtain licences from other major Australian and regional WA ports to conduct LNG bunkering operations, and look at investing in infrastructure to meet the market’s needs.”

Mr Rea said EVOL LNG would be able to supply Fremantle customers with LNG at a price competitive with low-sulphur marine diesel and would be able to refuel ships at up to 45 tonnes per hour, which is comparable to traditional bunker fuels.

EVOL LNG secured its second major Australian port bunkering license from Pilbara Ports Authority, permitting LNG bunkering at King Bay Supply Base and transport through the Port of Dampier. This followed its first license from Fremantle Ports in July last year.