Growing demand for LNG bunkering in the Western Mediterranean has strengthened marine energy firm Peninsula’s strategy around the fuel, with plans to expand its role in decarbonising operations.
The firm’s dedicated LNG bunker vessel, Levante LNG, began operations at the end of last year, supplying LNG to fleets in the Strait of Gibraltar and Western Mediterranean.
“Certainly, we’ve seen an uplift in interest in LNG from our customers in recent months,” a spokesperson for the firm said. “From supplying the Royal Caribbean Group’s cruise vessels Silver Nova and Icon of the Seas to Eastern Pacific’s tanker Starway, MSC’s containership Virginia and, more recently, K Line’s PCC Thor Highway, our Levante LNG bunker vessel has indeed been busy.”
Regulatory pressure
The 12,500 cubic-meter bunker vessel, Levante LNG was first proposed three years ago, as a joint venture with ENAGAS’ affiliate Scale Gas and developed in Hyundai Mipo Shipyard, South Korea.
Since then, regulatory pressure has catalysed LNG’s growth trajectory and it is now ranked as the most popular alternative bunker fuel, by standard agency DNV, some way ahead of second place option methanol.
“Last January, we saw the EU Emissions Trading System come into effect for the maritime sector,” Peninsula states. “Ship operators are now effectively accruing a bill on their emissions for any voyages with a port of call in the EU, and shipping companies will soon need to surrender EU allowances corresponding to their reported aggregate emissions for 2024.”
Flexible routing
The increasing infrastructure for LNG bunkering in Europe is also playing a crucial role in its adoption. As bunkering capacity improves, it becomes easier for ships to access LNG supplies globally, supporting the maritime industry’s constant need to reroute and adapt to new logistical challenges.
“This is good news because as demand for LNG bunkering grows, LNG infrastructure is also improving, making it easier for ships to access LNG supplies all around the world,” the Peninsula spokesperson adds. “For a global industry that constantly grapples with re-routing, that’s crucial.”
Looking to the future, Peninsula is optimistic about the continued growth of LNG as a marine fuel. The firm is investing in further expanding its LNG capabilities and exploring innovations in bio-LNG and synthetic LNG. These developments promise to enhance the environmental benefits of LNG even further, supporting the industry’s long-term sustainability goals.
“By transitioning to LNG now, which is readily available, ship operators and owners can slash their CO2 emissions by around 25%,” Peninsula concludes.
