New SEA-LNG study backs LNG-fuel investment

The multi-sector industry coalition SEA-LNG noted that an independent investment study backs commercial benefits of LNG as fuel for a newbuild 210,000 DWT ore carrier sailing from Australia to China. 

Illustration purposes (Image courtesy of Port of Zeebrugge)

The study illustrates strong returns on investment for LNG as a marine fuel on a Net Present Value (NPV) basis over a conservative 10-year horizon.

The modeling analysis is bolstered by payback periods of two to four years for the newbuild CAPESIZE on this major ore trade corridor, SEA-LNG said.

Commenting on the study Peter Keller, chairman, SEA-LNG, said, “The impressive results of this latest installment in our investment case series further underlines LNG’s position as a financially sound investment for deep-sea vessels, across a range of vessel specifications.”

This study was designed to provide greater clarity for those investing in LNG as a marine fuel for large bulk vessels.

The study findings show that LNG delivers a superior return on investment on an NPV basis of several million dollars in comparison with conventional compliant fuels across all fuel scenarios investigated, and also that LNG engine and fuel systems investment is paid back within two to four years.

SEA-LNG commissioned the study as the fourth in a series of investment evaluations by simulation and analytics experts Opsiana.

It follows studies covering a 14,000 TEU container vessel operating on the Asia-US West Coast liner route, a dual study examining an 8,000 CEU Pure Car and Truck Carrier (PCTC) on the Pacific and smaller 6,500 CEU on the Atlantic Trade Lanes, and a 300K DWT VLCC running Arabian Gulf to Asia.