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Captain Walter P. Purio, Chief Executive Officer of the LNG Marine Fuel Institute

LNG as a marine fuel in Australia – Supporting the green corridor from Northwest Australia to China and North Asia

Captain Walter P. Purio, Chief Executive Officer of the LNG Marine Fuel Institute, and Mike Utsler, Chief Operating Officer of Woodside and board member of the LNG Marine Fuel Institute, spoke at the 4th Annual Bunkering Conference in Singapore on 27 July 2017.

International regulations on the air pollution created by ships is becoming increasingly stringent, with increased pressure for reduced emissions from ships coming from the International Maritime Organization, following 1 January 2020 being confirmed as the implementation date for the global sulphur limit of 0.5%.

A number of OECD countries including China, USA, Canada, the North Sea and Baltic States have already started the process – introducing Emission Control Areas, most with even more stringent standards relating to emissions of SOx, NOx and particulate matter from ships sailing through their territorial waters.

On the back of this global focus, the marine industry is rapidly transitioning to gas for shipboard power generation and propulsion. The desire for cleaner fuels is creating a potential worldwide market for LNG as a transition fuel to renewables, and LNG bunkering projects are gaining traction across the world.

Mike Utsler, Chief Operating Officer of Woodside and board member of the LNG Marine Fuel Institute discussed the ‘Green Corridor’ LNG Bulker JIP which has release a new LNG-fuelled Newcastlemax design that is in the process of receiving approval in principle (AiP) from DNV GL. The ‘Green Corridor’ JIP has shown that solutions fulfilling the requirements of both owners, operators, and charterers can be achieved by bringing together key stakeholders from across the marine, bulk, and oil and gas industries.

This new, innovative Newcastlemax design offers solutions for operations that are cost-effective, safe and flexible, and can easily comply with both the 2020 implementation date for the 0.5% global sulphur cap, and the 0.1% sulphur cap imposed in increasingly established emission control areas (ECAs).

Captain Walter P. Purio, Chief Executive Officer of the LNG Marine Fuel Institute discussed how Australia is well positioned to embrace early adoption of LNG as a marine transport fuel. Trade routes from northern Western Australia are the perfect place to drive the transition to LNG as a marine fuel, with bulk exporting companies in close proximity to world-class LNG supplies. Speaking at the 4th Annual Bunkering Conference in Singapore – Walter discussed the opportunity for the establishment of a ‘Green Corridor’ for bulk carrier trade between Australia and China and other North Asian countries and the need for collaboration across industry, government and the community for the use of Australia’s energy resources for positive environmental, social and economic outcomes.

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