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LNG Bunkering

Gothenburg port tariff focuses on LNG bunkering

Vessels that run on LNG to receive an extra discount of 20% each time they call at Gothenburg.




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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:

Year LNG calls
2015 0
2016 16
2017 111
2018 (Jan to May) 56 (135 for the full year 2018)

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


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LNG Bunkering

GLBP submits permit applications to build and operate Galveston LNG bunker terminal

Small scale natural gas liquefaction facility will be the region’s first dedicated LNG bunker terminal to provide clean LNG as bunker fuel.





Galveston LNG Bunker Port

Galveston LNG Bunker Port (GLBP) recently announced that it filed applications with the United States Army Corps of Engineers (USACE) seeking authorization to site, construct and operate the proposed GLBP small scale natural gas liquefaction facility on Shoal Point in Texas City, Texas, in the heart of the Galveston Bay/Greater Houston port complex. 

The GLBP project will be the region’s first dedicated LNG bunker terminal to provide clean LNG as marine fuel.

Galveston LNG Bunker Port has filed key regulatory applications with relevant government agencies, including the US Army Corps of Engineers (USACE) for the Clean Water Act and Rivers & Harbors Act, Texas Railroad Commission (TRRC) for the Texas Clean Water Act (CWA) Section 401 Water Quality Certification, and United States Coast Guard (USCG) for Waterway Suitability Assessment (WSA).

The USACE application for the proposed project includes two natural gas liquefaction trains capable of producing approximately 600,000 gallons per day of LNG; two 3-million-gallon full containment LNG storage tanks; natural gas liquids and refrigerant storage; feed gas pre-treatment facilities; a bunker vessel loading berth and associated marine and loading facilities.

“The Galveston LNG Bunker Port project continues to meet its milestones, and we are very excited to announce that the necessary permitting applications have been submitted,” said Shaun Davison, Chief Development Officer of Pilot LNG. 

“We are confident that we will meet the rigorous requirements of State & Local permitting authorities to ensure that the project is delivered on-time and will meet the ever-growing demand for clean fuel supply in the Galveston Bay, and US Gulf Coast region by the end of 2026.”

Pilot LNG and Seapath Group signed a project development agreement in September of 2023 that provides a framework for the development, technical design, permitting and marketing of the proposed liquefaction project, which is estimated to come online in late 2026. 

The global maritime industry is increasingly adopting LNG as a marine fuel to significantly reduce emissions and meet tightening regulations, including IMO 2020, which came into effect January 1st, 2020.

Joshua Lubarsky, President of Seapath Group, said: “Our experience in developing, building and operating energy infrastructure will help us with this much-needed facility.” Lubarsky continues “This facility is a critical investment into the resilience of the United States’ maritime infrastructure, and upon construction will immediately provide positive environmental and economic impacts in Texas City, Galveston Bay, and the US Gulf Coast.”

Ongoing development of the project is subject to a number of risks and uncertainties. The final investment decision to proceed with construction is contingent upon completing required commercial agreements, acquiring all necessary permits and approvals, and securing financing commitments.

Related: Galveston LNG Bunker Port secures site in Texas for proposed LNG bunkering facility
Related: Seapath, Pilot LNG launch JV to develop dedicated LNG bunkering facility in US Gulf Coast
Related: Houston: Pilot LNG announces regulatory filing for Galveston LNG Bunker Port
Related: Pilot LNG submits documentation to USCG for proposed LNG Bunker Port at Galveston

Related: Pilot LNG awards Galveston LNG Bunker Port FEED contract to Wison Offshore & Marine


Photo credit: Galveston LNG Bunker Port
Published: 19 April 2024

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Methanol Institute and SEA-LNG unite against EU trade barriers to biomethane and biomethanol fuels

Both parties expressed their deep concerns following recent announcement by European Commission impacting the trade of biomethane and biomethane-based biofuels such as biomethanol bunker fuel.





Methanol Institute and SEA-LNG unite against EU trade barriers to biomethane and biomethanol fuels

The Methanol Institute (MI) and SEA-LNG, key representatives of the methanol and liquefied natural gas (LNG) industries respectively, on Wednesday (17 April) expressed their deep concerns following the recent announcement by the European Commission impacting the trade of biomethane and biomethane-based biofuels such as biomethanol. 

The Commission has noted the intention to exclude the automatic certification of biomethane and biomethanol-based fuels produced through mass balance chain of custody in third-party countries outside the EU gas grids within the Union Database (UDB), an IT system to trace the sustainability and origin of renewable fuels placed into service in the European market. 

“This exclusion will severely limit the use of these critical fuels in decarbonising intra-European and international maritime transport even if these fuels were produced in accordance with EU regulations under the Renewable Energy Directive (RED),” MI and SEA-LNG said in a statement. 

Methanol Institute, as the trade association representing the global interests of the methanol industry, and SEA-LNG, a multi-sector industry coalition promoting the benefits of LNG as a marine fuel, are particularly concerned about the potential impacts of these measures on competitiveness and international trade dynamics. 

“If this materialises, it will create a trade barrier that threatens to impede the importation of biomethane and biomethanol into the European Union, limiting the availability and increasing the costs of these fuels to the bunkering industry in Europe,” they said.

“Furthermore, it may also disqualify such fuels produced using a mass balance chain of custody from non-EU gas grids, when bunkered in non-European ports for use by vessels calling at European ports from being recognised under the Renewable Energy Directive (RED). Consequently, these fuels may not be able to generate credits under EU ETS and FuelEU Maritime.”

In response to these challenges, MI and SEA-LNG call for the recognition of biomethane and biomethanol-based fuels produced using a mass balance chain of custody from non-EU gas grids under the UDB. 

“We propose an urgent meeting between our representatives and those of the European Commission to discuss necessary amendments to ensure a sustainable and competitive energy future for the European maritime sector,” they added.


Photo credit: Methanol Institute and SEA-LNG
Published: 18 April 2024

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LNG Bunkering

“KEYS Azalea” performs first ship-to-ship LNG bunkering in western Japan

“KEYS Azalea” carried out its first LNG bunkering operation by supplying bunker fuel to car carrier “Daisy Leader” in Port at Hiroshima on 10 April.





“KEYS Azalea” performs first ship-to-ship LNG bunkering in western Japan

KEYS Bunkering West Japan Corporation (KEYS), a joint venture established by Kyushu Electric Power, NYK Line, ITOCHU ENEX, and Saibu Gas on Friday (12 April) said a LNG bunkering vessel that it owns and operates completed the first ship-to-ship LNG bunkering in the western Japan region.

On 10 April, KEYS Azalea carried out LNG bunkering for the car carrier Daisy Leader in the Port at Hiroshima. The operation also marked the first LNG bunkering the vessel has completed. 

The LNG fuel supplied was shipped from the Tobata LNG terminal of Kitakyushu LNG Co., Ltd., a member of the Kyuden Group. 

KEYS Azalea is equipped with a dual-fuel engine that can use both LNG and heavy oil as fuel for its main power generation equipment. 

“KEYS will continue to carry out LNG bunkering safely and stably in the western Japan region, contributing to the creation of a carbon-neutral society and the development of Japan's LNG bunkering business,” the joint venture said.

Related: KEYS Bunkering West Japan names and launches LNG bunkering vessel “KEYS Azalea”


Photo credit: KEYS Bunkering West Japan Corporation
Published: 17 April 2024

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