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The global multi-sector industry coalition SEA-LNG has announced the results of its latest independent investment study which highlights the commercial benefits of LNG as a marine fuel for a newbuild 210,000dwt ore carrier sailing from Australia to China.
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\nThe study illustrates strong returns on investment for LNG as a marine fuel on a Net Present Value (NPV) basis over a conservative 10-year horizon. The modelling analysis is bolstered by payback periods of two to four years for the newbuild Capesize on this major ore trade corridor.<\/p>\n
The key findings from the study were:<\/p>\n
• LNG delivers a superior return on investment on an NPV basis of several million dollars in comparison with conventional compliant fuels across all fuel scenarios investigated;
\n• LNG engine and fuel systems investment is paid back within two to four years.<\/p>\n
SEA-LNG commissioned the study as the fourth in a series of investment evaluations by simulation and analytics expert Opsiana. It follows studies covering a 14,000-TEU container vessel operating on the Asia-U.S. West Coast liner route, a dual study examining an 8,000-CEU pure car and truck carrier on the Pacific trade and a smaller 6,500-CEU vessel on the Atlantic trade and a 300,000dwt VLCC sailing from Arabian Gulf to Asia.<\/p>\n
The investment returns were calculated within traditional frameworks without including the significant extra benefits and branding value gained by choosing LNG as a more environmentally friendly marine fuel which SEA-LNG says could be worth hundreds of millions of dollars across the global Capesize fleet.<\/p>\n