- News
- Insights
- Bunkerworld .
- APPEC: LNG offers viable solution to tackle maritime decarbonization: AET CEO
.
-
May 26
-
May 18
-
May 13
-
May 11
-
May 4
-
Apr 26
-
Apr 22
-
Apr 11
-
Apr 7
-
Apr 6
-
Mar 23
-
Mar 15
-
Mar 8
-
Feb 28
-
Feb 11
-
Feb 2
-
Feb 1
-
Jan 17
-
Dec 27
-
Dec 10
-
Dec 3
-
Nov 25
-
Nov 16
-
Oct 29
-
Oct 25
-
Oct 12
-
Oct 8
-
Oct 4
-
Sep 30
-
Sep 24
-
Sep 23
-
Sep 17
-
Sep 10
-
Sep 9
-
Sep 6
-
Sep 2
-
Aug 30
-
Aug 27
-
Aug 23
-
Aug 20
-
Aug 17
-
Aug 13
-
Aug 9
-
Aug 3
-
Jul 29
-
Jul 26
-
Jul 22
-
Jul 15
-
Jul 5
-
Jul 2
-
Jun 28
-
Jun 22
-
Jun 18
-
Jun 11
-
Jun 7
-
Jun 4
-
May 31
-
May 28
-
May 25
-
May 21
-
May 5
-
Apr 28
-
Apr 27
-
Apr 26
-
Apr 23
-
Apr 22
-
Apr 19
-
Apr 16
-
Apr 15
-
Apr 14
-
Apr 13
-
Apr 9
-
Apr 7
-
Apr 5
-
Mar 31
-
Mar 23
-
Mar 19
-
Mar 17
-
Mar 12
-
Mar 5
-
Mar 4
-
Mar 3
-
Mar 1
-
Feb 25
-
Feb 24
-
Feb 22
-
Feb 17
-
Feb 12
-
Feb 10
-
Feb 9
-
Feb 5
-
Feb 1
-
Jan 27
-
Jan 25
-
Jan 22
-
Jan 20
-
Jan 18
-
Jan 13
-
Jan 11
-
Jan 8
-
Jan 7
-
Jan 4
-
Dec 31
-
Dec 28
-
Dec 24
-
Dec 21
-
Dec 14
-
Dec 9
-
Dec 9
-
Dec 8
-
Dec 4
-
Dec 2
-
Dec 1
-
Nov 30
-
Nov 27
-
Nov 25
-
Nov 23
-
Nov 17
-
Nov 16
-
Nov 11
-
Nov 10
-
Nov 6
-
Nov 5
-
Nov 4
-
Nov 2
-
Oct 29
-
Oct 27
-
Oct 23
-
Oct 22
-
Oct 20
-
Oct 14
-
Oct 12
-
Oct 6
-
Oct 5
-
Sep 30
-
Sep 29
-
Sep 25
-
Sep 21
-
Sep 18
-
Sep 16
-
Sep 15
-
Sep 14
-
Sep 9
-
Sep 8
-
Sep 4
-
Sep 2
-
Aug 31
-
Aug 27
-
Aug 25
-
Aug 20
-
Aug 19
-
Aug 14
-
Aug 12
-
Aug 7
-
Aug 6
-
Aug 4
-
Jul 31
-
Jul 30
-
Jul 29
-
Jul 28
-
Jul 24
-
Jul 20
-
Jul 16
-
Jul 13
-
Jul 9
-
Jul 9
-
Jul 7
-
Jun 30
-
Jun 26
-
Jun 25
-
Jun 23
-
Jun 22
-
Jun 22
-
Jun 19
-
Jun 16
-
Jun 10
-
Jun 9
-
Jun 5
-
Jun 2
-
May 29
-
May 26
-
May 21
-
May 20
-
May 15
-
May 12
-
May 8
-
May 5
-
May 4
-
May 1
-
Apr 28
-
Apr 24
-
Apr 23
-
Apr 22
-
Apr 21
-
Apr 20
-
Apr 17
-
Apr 16
-
Apr 16
-
Apr 3
AET Tanker Holdings, a part of Malaysia's MISC Group, is upbeat about LNG's prospects as a viable fuel solution to tackle maritime decarbonization as international shipping's environmental emissions come under the scanner.
"AET sees LNG as the most viable fuel solution available today, and possibly with technology advances, it will be part of the fuel solutions longer-term, well past 2030," Rajalingam Subramaniam, president and CEO, AET, said in an interview during the 37th Asia Pacific Petroleum Conference, or APPEC 2021, organized by S&P Global Platts from Sept. 27-29.
In the past four years, AET has made strategic investments of $2 billion in new assets, of which about $1 billion was invested in LNG dual-fuel assets across its vessel segments, Subramaniam said.
The company currently owns and operates 70 tankers, which include Aframaxes, Suezmaxes, VLCCs, Dynamic Positioning Shuttle Tankers (DPSTs), LRs and chemical tankers, and has an orderbook of 11 vessels with deliveries scheduled between 2022 to 2023.
"Currently, we have three Aframaxes, two DPSTs operating and five VLCC newbuildings on LNG dual-fuel. We are working together with key clients to further rejuvenate our fleet with dual-fuel assets," Subramaniam said.
AET’s investments in LNG dual-fuel solutions underscores its commitment to reduce the carbon footprint of shipping using the best fuel solution immediately available in the market with the existing and growing infrastructure, Subramaniam said.
Despite some challenges on the limitations of the existing technology and issues such as methane slip, LNG offers numerous advantages, it is a proven and mature technology, is readily available, has a rapidly growing bunkering network, and emits about 20%-25% less CO2 than conventional marine fuels when providing the same amount of propulsion power, Subramaniam said.
"We acknowledge the methane slip debates from 'well to wake', and we are investing in technologies to reduce the methane slip onboard – where we can control our tank to wake solutions," he said.
AET was also contemplating other solutions for decarbonization and "will select the most effective long-term solution for zero-carbon vessels," he said.
MISC Group is already advancing the Castor Initiative – a joint development project to develop zero-carbon ammonia-fuel tanker – that is aligned with the International Maritime Organization’s 2050 goals.
So, there will be multiple pathways to achieve decarbonization, Subramaniam said.
Teamwork
To create a truly sustainable decarbonized global trade network and in an appropriate timeframe to meet the IMO GHG 2030 targets, all participants must partner and work together toward a common goal, Subramaniam said.
Meanwhile, market-based measures are also needed. "We all need to play our part now and not wait until the last possible moment."
"I am a strong supporter of carbon tax centrally coordinated and equitably proportioned to users of the products and services," Subramaniam added.
The revenues raised from the carbon tax must be reinvested into further maritime and related research and development to advance low-carbon technologies to support the industry’s decarbonization goals, Subramaniam said.
According to Subramaniam, the market for “carbon neutral” shipments is still in its infancy.
There must be more transparency when it comes to offsetting emissions from fossil fuels with carbon credits and priority should be given to reducing emissions directly with carbon crediting playing a supplementary role in reducing emissions, he added.
"I believe LNG molecules and crude barrels pricing would also be differentiated based on the CO2/GHG emissions per unit produced – that would create the commercial reasons for better emissions standards in the production process, which will further reduce the CO2/GHG footprint in a sustainable manner whilst the world adjusts to renewable energy pivot in a transitionary manner," Subramaniam said.
Tanker outlook as pandemic drags
As far as the outlook for crude oil tankers was concerned, Subramaniam noted that tonnage oversupply coupled with reduced demand, due in part to the COVID-19 pandemic, had depressed freight rates.
A standard VLCC must earn around $25,000/d to break even, BIMCO said in a report recently. The last time average VLCC earnings were above this level was at the end of December 2020, it said.
Daily VLCC earnings on the key Persian Gulf-North Asia routes are currently around $4,000 in the spot market, but they were suffering losses until as recently as a week ago, according to brokers’ estimates. The average daily losses so far this year in the spot market are almost $3,000 for non-scrubber fitted VLCCs, which use VLSFO.
However, brokers pointed out that one year time-charter rates for such non-scrubber-fitted VLCCs were around $20,000-$25,000/d.
LNG carriers have fared better, with Platts Sept. 28 assessing the rates in the Pacific basin at $61,000/d.
Some positive signals coming from a gradual increase in production and enhanced refinery utilization herald a gradual improvement for the tankers segment in the fourth quarter of 2021 and into 2022, Subramaniam said.
High newbuilding prices, the IMO EEXI/CII legislations coming into force in 2023, oil demand improvements forecast back to pre-pandemic levels in 2022, and a longer tonne mile demand equation are key to sustainable improvements in the tanker market.
Meanwhile, there needs to be more consolidation in this industry among progressive owners and shareholders to create further positive pivot, with increasing environmental, social and corporate governance demands in the maritime industry, he added.
Bunkerworld .,