NEW REPORT HIGHLIGHTS BENEFITS OF LNG IN CANADA’S MARINE SECTOR
The Steering Committee of Canada’s West Coast Marine LNG Joint Industry Project has released a report highlighting the benefits of using LNG for Canada’s marine sector. According to the report, Liquefied Natural Gas: A Marine Fuel for Canada’s West Coast, all of the technologies needed to use LNG as a marine fuel are proven and commercially available. “Allowing access for LNG in the marine sector is smart and strategic for Canada,” said Alicia Milner, President of the Canadian Natural Gas Vehicle Alliance (CNGVA) and Chair of the project steering committee. “British Columbia is uniquely positioned to become a preferred North American destination for LNG bunkering.” In the near-term, coastal vessel operators have the best opportunity to benefit from LNG. For six coastal vessels analyzed, fuel costs were reduced by more than 50 percent with five of the ships having a payback on initial investment of less than six years. New marine regulations taking effect in January 2015 require a 90 percent reduction in fuel sulfur content. Compared to traditional marine fuels, LNG use can reduce sulfur emissions by at least 90 percent, lower nitrogen oxide emissions by 35 percent or more, decrease particulate matter by at least 85 percent and reduce greenhouse gas emissions by up to 19 percent. Jointly funded by Transport Canada and a broad group of industry and other participants, the report recommends changes to Canada’s marine regulatory framework to allow for the review and approval of new LNG projects. These changes would support new projects moving forward, including the use of three LNG ferries that BC Ferries plans to have in operation in 2017.