DNV GL has conducted a market study on the future LNG market in the Iberian Peninsula.
The study was conducted on behalf of the CORE LNGas hive project, which aims to provide an investment plan for LNG fuelling in Spain and Portugal.
The study has forecasted the potential future demand for LNG as a ship fuel and the required future infrastructure for the areas around Spain and Portugal, covering the Mediterranean, Atlantic and Gibraltar Strait peripherical regions.
The results of the analyses have now contributed to the CORE LNGas Hive project’s recommendations for the development of the LNG supply chain infrastructure, involving over 40 ports in the project area.
Fernando Impuesto, CORE LNGas hive project coordinator from Enagas, said: “The consortium partners selected DNV GL to execute the demand studies of the project based on the fact that DNV GL has been at the forefront of the development of LNG as a ship fuel. DNV GL’s network and market knowledge have added to a successful outcome. Through this market study we now have a strong decision basis to prepare the supply side on the Iberian Peninsula in meeting future demand for LNG bunkering at competitive conditions.”
DNV GL’s study suggests that compliance with emissions regulations is the key motivation for LNG-fuelled shipping demand.
The study has revealed a huge potential for LNG as a marine fuel that will utilise the current spare capacity of the existing LNG import terminals. The consolidated quantitative results show that by 2030, up to 2 million m³/y of LNG is to be bunkered by ships. This is set to increase to approximately 8 million m³/y of LNG by 2050.
The study suggests that existing LNG terminals will need to develop break bulk capacity to allow for loading LNG to small carriers and LNG bunker vessels. In most ports, development of local intermediate storage capacity needs to be synchronised with increasing LNG demand by larger vessels. Besides bunker stations and local storage facilities, small carriers for delivering batches of LNG to ports over sea will play an important role.
DNV GL’s study suggests that approximately €1 billion in CAPEX investment in required to realize the predicted LNG supply chain in 2030.
Liv Hovem, Senior Vice President, DNV GL – Oil & Gas, said: “DNV GL’s market study has clearly shown the major potential LNG has as a fuel in the region. We hope that the conclusions from our study will help ship owners, natural gas suppliers, bunker companies, port authorities and LNG terminal operators gain the confidence they need to move forward with LNG as a fuel for a more sustainable shipping industry.”
Read the article online at: https://www.hydrocarbonengineering.com/clean-fuels/10072017/lng-fuel-has-big-future-in-iberian-peninsula/