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LNG Marine Fuel Institute applauds ‘Green Shipping’ incentives at Pilbara Ports

LNG Marine Fuel Institute applauds ‘Green Shipping’ incentives at Pilbara Ports

The LNG Marine Fuel Insitute (LNG MFI) has welcomed moves by the Government of Western Australia to introduce new incentives encouraging ships visiting Pilbara Ports to use cleaner marine fuels like liquefied natural gas.

McGowan Government leads push to establish a job-creating international LNG fuelling hub in the Pilbara through port fee discounts.

Building on the Pilbara's strength as a global LNG production hub, the McGowan Government will offer a 50 per cent discount in port dues to bulk vessels bunkering with LNG at Pilbara ports - saving each vessel around $20,000.

The discount comes into effect on July 1, 2020, and will remain in place for five years. If taken up, the discounts could be worth up to $5.3 million by 2025.

The West Australian Premier Mark McGowan said: "The Pilbara is already globally renowned as an LNG production powerhouse, and my Government is taking steps to turn the Pilbara into an international LNG fuelling hub.”

“Today’s announcement sends a clear signal that the WA government is taking a strong position to help Australia reach greenhouse gas emission targets set by the International Maritime Organisation,” LNG MFI chief executive officer Margot Matthews said.

“We’ve strongly advocated with our members, including the Pilbara Port Authority, for these changes which we believe are good for the state and the country.”

LNG MFI’s position is that Australia can meet and exceed new IMO 2020 regulations by establishing early adoption of natural gas, providing the Australasian maritime industry with a superior and cost-effective fuel source.

“There’s a strong business case for this change, one that will see us play a leading role in the supply of cleaner emerging fuels, leading to significant industry and jobs growth and emission reduction for Australia,” Ms Matthews said.

“While shipping remains a hugely efficient means of transporting goods across the world, ships can emit levels of sulphur oxides (SOx), nitrogen oxides (NOx) and particulate matter (PM) pollution that impacts people living near ports and in coastal areas.

“Which is why alternative fuels need to play a significant role in the shipping industry achieving the IMO 2050 50 per cent net emission target. LNG will be a large part of the marine fuel mix beyond 2050.”

Ms Matthews said that currently, LNG is the only available option for reducing greenhouse gas emissions on deep-sea vessels, such as those that run out of Pilbara ports. 

“Since 2017 LNG MFI has worked to bring together key players to develop a cleaner marine fuel industry in Australia as we work towards a carbon-free future and we’d call on other governments and ports to follow the example now being set at Pilbara Ports,” the CEO said.

“While there’s no single pathway to a low emissions future, expanding the use of LNG as a transition marine fuel is one way to help reduce greenhouse gases from shipping and help reduce this country’s environmental footprint,” Ms Matthews said.

“We believe it has a critical role to play in Australia’s rapidly evolving energy sector and today’s announcement sends a clear signal to organisations of government support for what is a relatively new industry but one that has huge potential to drive jobs and economic growth.”

 

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