Does the LNG “Bridge” Become the “Road”?

In 2012, liquefied natural gas (LNG) as a marine fuel was a budding contender in the maritime industry, holding less than one percent market share.

At the same time, NASA's Aura satellite, equipped with an Ozone Monitoring Instrument, finished capturing images of elevated nitrogen dioxide (NO2) levels along shipping lanes, highlighting the environmental impact of traditional marine fuels. These oxides of nitrogen (NOx) are known to produce fine particles and ozone, significantly harming cardiovascular and respiratory health—a concern underscored by the World Health Organization, which attributes approximately seven million premature deaths annually to air pollution.

The landscape has dramatically shifted forward since then: 469 LNG-fueled ships are now in operation with an additional 537 newbuilds on order. This surge places LNG at the forefront of the alternative fuel orderbook, as reported by DNV.

LNG's appeal lies in its ability to cut greenhouse gas emissions by 23 percent, sulfur emissions by 99 percent and nitrogen oxide emissions by nearly 99 percent. This is done by purifying and super-cooling natural gas to reduce its volume by 600 percent, enabling efficient transport and storage.

In the “basket of alternative fuels,” LNG stands out for its environmental benefits, established infrastructure and the industry's commitment to future-proofing maritime operations through significant investments.

Benson Peretti, Executive Vice President of Seapath  asks, "LNG has been called a ‘bridge,’ but when does the 'bridge' become the 'road'?"

Considering LNG's more than a decade of use—nearly half the lifecycle of many ships—this question hints at the broader implications of shifting trade routes and the resonating effects of LNG infrastructure investments, which could yield unknown yet impactful dividends.

The dual-fuel Carnival Jubilee, the first new ship to homeport in Galveston, showcases the cruise industry's dedication to LNG. The vessel has secured fuel services with Stabilis Solutions and Seaside LNG, utilizing a specially equipped barge for LNG delivery.

The arrangement highlights the operational flexibility of the Jubilee which, aside from running on LNG, is able to use traditional marine diesel fuel as well, ensuring a seamless transition toward cleaner energy sources.

Pivotal LNG, a subsidiary of Berkshire Hathaway Energy, a conglomerate known for its comprehensive involvement in natural gas processing, pipelines, storage and LNG production, recognizes LNG as the most viable marine fuel solution for the North American market in the immediate future. 

Pivotal LNG operates three key facilities—JAX LNG, a joint venture between Pivotal LNG and Seaside LNG in Jacksonville, Florida, Towanda LNG and Trussville LNG—collectively producing 470,000 gallons per day and boasting nine million gallons of storage capacity along the East Coast.

JAX LNG is the pioneering facility, completing over 650 marine bunkerings including the M/V Isla Bella. With the additional access to Jones Act LNG bunker barges owned by Seaside LNG, the Clean Canaveral and Clean Everglades, JAX LNG is a leader in the LNG fueling space.

In the maritime industry's journey to sustainability, LNG has evolved from a transitional “bridge” to potentially becoming the “road” to the future. Infrastructure developments in fueling operations like the Galveston LNG Bunker Port (GLBP) and JAX LNG underscore the sector's commitment to cleaner energy.

With significant investments from industry giants like Royal Caribbean, which signal a broader shift toward LNG, ports like Galveston are poised to play a crucial role in accommodating LNG-fueled vessels.

This collective move toward LNG reflects the industry's dedication to a sustainable future. It redefines trade routes and operational strategies, marking a significant step in the maritime sector's embrace of LNG as a foundational fuel choice. – MarEx