As the interest towards LNG as a marine fuel increases, one of the main obstacles to the accelerated uptake is the uncertainty regarding future market volumes of LNG, according to a market study by DNV GL.
The classification society has addressed this issue in the study on the future LNG market in the Iberian Peninsula, as part of driving the development of an EU-wide network of LNG refuelling points.
DNV GL conducted the market study on behalf of the six-year CORE LNGas hive project, which aims to provide an investment plan for LNG fuelling in Spain and Portugal. The EUR 33 million project is coordinated by Enagas, and co-funded by the European Commission.
The study has forecasted the potential future demand for LNG as a ship fuel and the required future infrastructure for the areas around Spain and Portugal, covering the Mediterranean, Atlantic and Gibraltar Strait peripherical regions. The results of DNV GL’s analyses have contributed to the CORE LNGas Hive project’s recommendations for the development of the LNG supply chain infrastructure, involving over 40 ports in the project area.
“Through this market study we now have a strong decision basis to prepare the supply side on the Iberian Peninsula in meeting future demand for LNG bunkering at competitive conditions,” Fernando Impuesto, CORE LNGas hive project coordinator from Enagas, said.
The study has revealed a huge potential for LNG as a marine fuel that will utilize the current spare capacity of the existing LNG import terminals. The consolidated quantitative results show that by 2030 up to 2 million m³/y of LNG is to be bunkered by ships and by 2050 approximately 8 million m³/y of LNG.