DNV executive sees Singapore in key role to promote short-sea LNG shipping
Vincent Wee, Business Times 29 Apr 10;
USING liquefied natural gas (LNG) as fuel is the way forward for shipping in Southeast Asia, a clean energy expert said yesterday.
In line with the Martech 2010 conference and exhibition's theme of 'new frontiers', environmental matters came very much to the fore during the opening ceremony.
In his keynote address Bjorn Tore Markussen, managing director of classification society DNV's Clean Technology Centre, spoke on the potential of LNG. Meanwhile, container line APL launched a partnership with the Singapore Maritime Academy (SMA) and the Maritime and Port Authority of Singapore to raise awareness of green issues through a Maritime Environmental Awareness multimedia e-learning project.
The pioneer project aims to ensure that employees of maritime organisations are more aware of environmental trends and challenges, as well as the commitment of their institutions to adopt sound practices. The project will be available through SMA, first in Singapore and subsequently to maritime organisations and educational institutions worldwide.
In his keynote address, Mr Markussen said developments in the LNG sphere are of particular interest to Singapore and South-east Asia because of a combination of factors. He cited a recent World Bank report as saying about US$80 billion a year is needed to reduce carbon dioxide emissions in Asia. With LNG's properties of cutting almost all NOx, SOx and carbon dioxide emissions, it seems a natural choice as a fuel for the future, he said.
The fact that South-east Asia is a major supply and distribution hub for natural gas, with a large intra-regional trading pattern, means the potential for short-sea LNG shipping is promising, he said.
The structure of projected growth in intra-regional transported goods and the high average age of the fleet serving this trade suggests the potential for a shift to an LNG-powered fleet, Mr Markussen added.
Densely populated areas with active short-sea shipping, such as South-east Asia, are ideal for the development of small-scale LNG applications, he noted.
Joint and coordinated efforts by national authorities, ports, gas suppliers and the shipping community are the most effective way to accelerate LNG use, he said, adding that small-scale LNG will have to be part of the solution to reach ambitious emission targets set by national, regional and international authorities and bodies.
While admitting that the development of small-scale LNG applications has been limited so far, Mr Markussen cited his native Norway as a leading light in this field. The reasons for its success there are the provision of infrastructure, plus tax incentives, he said.
Given Singapore's regional leadership in shipping and LNG, the island's maritime cluster and associated agencies are perfect candidates to take on a leadership role in unleashing the potential of short-sea LNG shipping, Mr Markussen said.
The technology, concepts and safety standards are established but will need to be developed as experience is gained, while infrastructure needs to be built and similar tax incentives to Norway would be a plus, he added.
Singapore needs to act fast if it wants to capitalise on these opportunities and make money from them, Mr Markussen said. 'There are already countries close to Singapore, like Vietnam, which are actively looking at this as a solution to meet the increasing demands of land transport between North and South, for example,' he said.
DNV is currently calling for expressions of interest from the industry to take part in a project aimed at defining an LNG shipping roadmap for Singapore and South-east Asia, he added.
