Oil and GasIMO 2020 Regulations; Need for Truck to Ship LNG Bunkering in Africa

IMO 2020 Regulations; Need for Truck to Ship LNG Bunkering in Africa

The new regulations, known as IMO 2020, mandates a maximum sulphur content of 0.5% in marine fuels globally. 

The philosophy behind this regulation, is the need to reduce the air pollution created in the shipping industry by reducing the Sulphur content of the fuels that ships use. 

Reducing pollution levels by ships is imperative, as almost 90 percent of the world’s good trade travels by sea. The new International Maritime Organization (IMO)⚓ decision to lower its global marine fuel sulphur limit to 0.5 percent in 2020 could cost Nigerian shipping companies over N1.8trillion in installation costs for exhaust gas abatement systems also known as scrubbers.

Aside, the use of scrubbers, what else can the shippers do?

LNG as a fuel?

LNG as a Fuel is fast gaining ground, as shippers strive to sail into a much greener future.

Methods of LNG Bunkering

There are various methods for in-port bunkering of LNG-fueled ships.

Truck to Ship

Ship to Ship

Port to Ship 

Floating Barge to Ship

Truck-to-Ship

(TTS) transfer is currently most frequently used. 

During TTS, the LNG truck is connected to the ship on the quayside, generally using a flexible hose. 

 

Depending on the quantity of LNG to be bunkered, and the capacity of the ship two trucks can simultaneously supply LNG to a ship being bunkered with LNG. Please see video on TTS.

https://youtu.be/OAoK14iflWk

The sustainable use of #LNG as a Shipping Fuel, is driving continued investment into LNG Bunkering vessels and more. 

We are currently advising clients on possible investment opportunities in the LNG Bunkering Space in Africa, please get in touch with the Megathos Law Team if this is a service that interests you.

 

 

Video Credit: Port of Rotterdam