MARAD Releases New LNG Study

The Maritime Administration (MARAD) has released a new, comprehensive study that looks at options for liquefied natural gas (LNG) bunkering. Bunkering is the process of transferring LNG from a supply station to a vessel for the purpose of using it as a propulsion fuel. The study examines the necessary safety, regulatory, infrastructure, and training components of each in getting LNG to vessels as a propulsion fuel.

Bunkering options

This new study looks at the upsides and downsides of the four bunkering options currently in use, based on various factors including number and type of vessels served, port size, local availability of LNG, congestion and level of activity. The options examined are as follows:

• Truck to Ship Transfer
• Shore Facility to Ship Transfer
• Ship-to-Ship Transfer
• Transfer of Portable Tanks

Suggestions made to address challenges

Additionally, the study makes suggestions to port operators, regulators, vessel operators and LNG infrastructure owners about how to address challenges that come with extensive use of LNG as a marine propulsion fuel. The report says that recommendations or suggestions should be focused on the following:

• Analysis of vessel types that use ports in the U.S. to assess what methods will be necessary, including an assessment of select ports to determine the best alternatives given port-specific constraints.
• Evaluation of bunkering site availability for increases in demand, including an optimization study that determines optimal infrastructure to provide LNG bunkering for both high-frequency, low volume transfers and low frequency, high volume transfers more efficiently.
• Study of road transportation safety risks from initial infrastructure build-out. The specific recommendation is a traffic study to assess LNG transport safety/security risks, determine national, regional, and local limits, and identify risk-reducing measures. Furthermore, a study of routes for LNG transportation (truck, rail, and pipeline) that avoid densely populated areas, as well as emergency response capabilities, should be completed.

Why this report?

Liquid natural gas is a top fuel choice for some vessels because it’s significantly lower-priced than ECA-compliant fuel, though it exceeds the air quality standards set forth in the North American Control Area. But because the use of LNG as a marine propulsion fuel is a somewhat new practice in the United States, there are quite a few regulatory and safety gaps. There also remain challenges regarding the development of a nationwide infrastructure for LNG bunkering.

The use of LNG bunkering is likely to continue to increase, so the recommendations in this report regarding regulations, training, safety, and infrastructure come at a critical time.

You can read the full report here.