LNG

Ahead of the implementation of a major new regulatory frameworks by the International Maritime Organization (IMO), shipowners have clashed over the role of LNG.

In a strategic move, Argentina's state-run oil firm YPF has announced that it will forego the construction of an onshore natural gas liquefaction plant. Instead, the company will rely on floating liquefaction vessels to process and export LNG.

French shipping line CMA CGM has taken delivery of the world’s largest LNG-fuelled container vessel from China State Shipbuilding Corporation (CSSC), marking a new milestone for the LNG fuelling sector.

The giant CMA CGM Siene was built by CSSC’s Hudong-Zhonghua Shipbuilding at its fabrication site in Pudong New Area, eastern Shanghai.

With capacity for 23,872 TEU, the ship is the first of four sister vessels to be delivered to CMA CGM as part of the contract with CSSC.

LNG commitment

The landmark delivery follows nine LNG-powered ships that CSSC built for CGA CGM at the start of the decade and is part of a large-scale investment programme by the shipping line to bolster LNG fuel in its fleet.

“By choosing LNG, CMA CGM confirms its ambition to be a leading force in the industry in environmental protection by being a pioneer in innovative and eco-responsible technologies,” Rodolphe Saadé, CMA CGM Group CEO, said adding that the firm had made the ‘bold decision’ to focus its largest new vessels on LNG fuel in order to protect the environment.

The CMA CGM Seine measures almost 400 metres in length, and over 61 metres in width. It comprises plug slots for 2,200 refrigerated containers within its total capcity as well as the ability to carry 220,000 tonnes of cargo.

MARK III storage

LNG storage onboard is care of a 18,600-cubic-meter MARK III membrane LNG tank, providing 20,000 nautical miles of range from a single LNG refuelling.

Following completion of all tests and other preparations the vessel as deployed on a Far East-Europe route starting from mid-April.

Headquartered in Marseille, France, CMA CGM is the third largest container shipping company in the world. 

Authorities in India are facing an ‘inflection point’ when it comes to the country’s LNG use, with the potential for the fuel to emerge as a key driver of growth over the next decade.

Japanese energy company Osaka Gas has launched its first shore-to-ship LNG bunkering service, marking the first gas utility company in the country to offer LNG direct from its own terminal.

Technology developer Nikkiso is to design a new hydrogen-pump unit, as it seeks to diversify its existing LNG fuel systems portfolio.

The firm announced the move to design and manufacture the new pump unit following an order by Kawasaki Heavy Industries for a hydrogen-fuelled ship.

“Nikkiso has long been a market leader in supplying the marine industry with cryogenic pumps and fuelling systems for LNG-powered vessels,” Adrian Ridge, President and CEO, Nikkiso CE&IG Group, says. “Now we are designing and manufacturing the first-of-their-kind hydrogen and ammonia pumps for the marine market.”

High-pressure hydrogen

The design for the new pump system will be based around a low speed, two-stroke engine that will offer dual fuel capabilities. This will act as the main propulsion engine.

The firm aims to combine its existing technologies and products that are designed for LNG-fuelled ships and hydrogen stations. It is hoped that this will allow for multiple types of pumps to boost the pressure, helping to supply high-pressure liquefied hydrogen from the hydrogen fuel tank to the evaporator.

“Our history and commitment of working with customers to deliver innovative solutions means we are perfectly positioned in the marine market to apply the technology of high-pressure pump units for LNG-fuelled ships to the design and manufacture of units for hydrogen-fuelled ships,” Ridge adds.

Green Innovation Fund

Nikkiso Clean Energy & Industrial Gases Group is part of Nikkiso’s Industrial Division. The group is working closely with Kawasaki as part of its “Development of marine hydrogen engines and marine hydrogen fuel systems” project.

This ambitious project was approved by the New Energy and Industrial Technology Development Organization (NEDO), Japan’s largest public R&D management organization. 

As the marine industry undergoes its most significant transformation in decades, the drive to decarbonize is powering growth for a range of new fuel types.

Engineering firm TGE Marine has announced its collaboration with Turkish shipbuilder RMK Marine to develop a new LNG bunker vessel.

LNG throughput at the Port of Rotterdam strengthened in the first quarter of the year, as demand for the fuel rose.

The roll out of European methane regulation this year is set to reshape the LNG sector, with the potential for significant upside depending on the final implementation.

The Regulation on the Reduction of Methane emissions in the Energy sector (MERR) is one of several regulatory frameworks developed by the EU to reduce fossil fuel impacts. This legislation first entered into force on 4 August 2024 but is set to be implemented in phases over the coming years.

While much of the regulation has been agreed there remains some room for debate on key aspects and some within the bloc are now calling for tweaks to boost LNG imports. Lithuania’s energy minister, Zygimantas Vaiciunas, is one proponent, calling for “serious talks” to take place to boost imports of LNG from the US.

“There should not be too many technical burdens, technically no thresholds for US LNG to come into the market,” Vaiciunas said.

Tightening requirements

While the MERR is only one in a raft of regulatory measures imposed by the EU, it is set to become increasingly important for operators as it focuses across the entire supply chain.

In May this year, MERR will require operators to submit a leak detection and repair (LDAR) programme to authorities. This will require a detailed audit to identify and detect sources of methane leaks and other unintentional methane emissions for existing sites. For new sites, there is a stay of six months from the date of start of operations.

Next year, routine flaring and venting will become prohibited in nearly all cases, with limited exceptions only in case of an emergency, malfunction or where otherwise unavoidable. The European Commission is also expected to establish a methane transparency database and a methane monitoring tool based on satellite data in 2026.

This initiative aims to enhance the tracking and management of methane emissions, ensuring that operators comply with the regulation's stringent requirements. The database and monitoring tool will be crucial in identifying and addressing methane super-emitting events, further reinforcing the EU's commitment to reducing methane emissions.

The investments required to detect and repair methane leaks, as well as to monitor and report emissions, will all add to the overall cost of compliance, but on the flip side this may act as an accelerator for the energy transition. As new biofuels enter the market it is hoped that monitoring will help provide better justification for LNG pathways over more polluting alternatives.