LNG Marine Bunkering | East Coast Container Port.

Client: Joint Industry Partnership

BE&R participated in the DNV Joint Industry Partnership project on East Coast LNG bunkering to assess the opportunities for LNG as a fuel for the maritime sector operating out of the east coast of Australia inclusive of local, coastal, import/export and transit maritime traffic, focusing on period beyond 2022. The objective of the JIP was to align key stakeholders to address common challenges and position Australia at the forefront of developments in LNG fueled shipping.

Challenge:

The enforcement of International Maritime Organisation guidelines to reduce the emission of Sulphur has seen a dramatic shift in heavy fuel usage in marine industry. The ship owners and operators are looking to invest either in installing scrappers to strip Sulphur onboard the ship or upgrading the ship engines to LNG power. In the current environment there are a minimal number of ships which are powered by LNG; however, the recent trends have seen LNG as an alternative fuel to diesel. LSFO or other alternative technologies such as methanol or battery electric systems. Australia is the largest exporter of LNG in the world but lacks sufficient infrastructure to instigate an LNG bunkering industry. The East coast of Australia was targeted as the industrial centers of Sydney, Melbourne, and Gladstone were shown to have the highest projected market growth in terms of shipping volume and fuel demand.

Solution:

BE&R developed three high-level scalable LNG bunkering facility concept designs for the three locations on the East Coast: Newcastle Port, Gladstone Port and Port of Melbourne. The intent to provide scalable LNG solutions to match the market demand as the industry developed.

BE&R produced preliminary site layouts for each port, reviewing the terminal compatibility vs LNG bunker vessel size and SIMOPS concerns. Each concept was developed to include facility functional specification, estimation of CAPEX and OPEX and a high-level delivery schedule, and SWOT Analysis. BE&R determined the financial viability and feasibility of operating an LNG bunkering service and loading infrastructure at the nominated locations.

The opportunity for LNG bunkering infrastructure at these ports is shown to be a strong driver for port development and investment.  Ports authorities and local government are onboard for further cross industry partnerships to realise the opportunity and deliver the clean energy fuel to the marine market.

If you’re interested in starting a project with BE&R Consulting, speak to our expert, Sara Subra.