The Gothenburg Port Authority (GPA) is encouraging liquefied natural gas (LNG) bunkering operations at the port through increased discounts on port tariff for LNG fuelled vessels.

As part of the GPA environmental discount scheme, vessels that report good environmental performance receive a 10% discount on the port tariff, assuming they achieve a certain level according to the globally recognised environmental indexes ESI and CSI.

Vessels that run on LNG receive an extra discount of 20% each time they call. The LNG discount is subject to a time limit and is due to run to the end of this year, although the Port Authority is considering extending the discount period.

According to GPA, use of LNG marine fuel began to gather momentum at the Port of Gothenburg in the second half of 2016. Prior to that, shipping companies were sceptical about investing as there was no means of bunkering LNG at the port. At the same time, the bunkering companies were unwilling to supply LNG without a customer base.

“A catalyst was necessary to break the deadlock, and the energy discount has been a strong contributing factor behind many players choosing to follow the LNG route,” said Edvard Molitor, Environmental Manager at the Gothenburg Port Authority.

“It took time before it really took off, but today these players are at the LNG forefront at the Port of Gothenburg.

“Now that the discount period is drawing to a close, we can see that the upward trend is continuing at the port with a growing number of LNG calls.

“We aim to maintain our support for this development, and we are therefore planning to extend the four-year discount period by a further two years.”

The extra LNG discount of 20% will be carried out till the end of 2019 and phased out during 2020 with a reduction to 10%.

However, during the phase-out period the Port Authority will focus on developing the regular indexed environmental discount, which takes greater account of the vessels’ environmental impact rather than the technology or the fuel used to run the vessel.

“We will of course continue to support vessels that offer a good environmental profile, but we won’t make any distinction in the discount between vessels that produce the same environmental outcomes,” notes Molitor.

“As the environmental effects of LNG operation continue to be good, these will also be incorporated into our future environmental control system.”

The rise in the number of LNG calls at the Port of Gothenburg are as follows:
 

Photo credit: Gothenburg Port Authority
Published: 2 July, 2018