20AUG2019 - NEWS - SEA\LNG: Factual Analysis Shows LNG is Optimal Fuel Choice

Environmental regulations controlling SOx, NOx and greenhouse gases have completely changed the equilibrium of the shipping industry. Until a few years ago, there was little rationale for shipowners to give much thought to fuel choice as heavy fuel oil was the cheapest and easiest option. The choices were simple and there was a level playing field. 

Today, however, the “game” has fundamentally and irreversibly changed. To remain competitive, choosing the right fuel has now become a critical. component of owners decisions not just in the short term but the longer, strategic view as well. Owners and operators are challenged with making significant operating and investment decisions amidst a range of seemingly future uncertainties. 

As a veteran of our exciting and dynamic industry, I have noticed that informed decisions are often being jeopardized by unqualified assumptions about the operating and investment case for the available choices. Today, there are really only three viable options: very low sulfur fuel oil (VLSFO), installing onboard abatement technology (scrubbing) or switching to an alternative fuel such as LNG.