Gas carrier owner and operator Dorian LPG has entered into a memorandum of understanding with Hyundai Global Service to study the retrofitting of engines onboard ten of its very large gas carriers to use liquefied petroleum gas (LPG) as fuel.
The study is being undertaken as the company readies its ships for the upcoming environmental regulations to reduce Sulphur emissions.
“The cargo transported by our vessels is an energy source with well-documented environmental benefits relative to other fuels. We are undertaking this initiative with the dual goals of acting as a responsible corporate citizen and potentially achieving a significant competitive advantage that will benefit both our customers and shareholders,” John Hadjipateras, Dorian LPG’s Chairman and Chief Executive Officer, said.
The initiative follows the conclusion of a study announced in September 2017 by Dorian LPG and the American Bureau of Shipping to evaluate the use of LPG as marine fuel in advance of the International Maritime Organization’s (IMO) mandate to reduce Sulphur emissions by approximately 85% effective January 1, 2020.
What is more, on April 13, IMO members agreed to require the shipping sector to reduce its emissions by at least 50 pct by 2050 compared to 2008.
Dorian said it believes in the viability of LPG as an attractive and cost-effective alternative fuel that is widely available and inherently compliant with the IMO mandate.
“LPG as a fuel source has a significant advantage over other potential sources, including LNG, methanol and marine gas oil given the abundant availability of LPG from the shale exploration boom and the existing global distribution network and onshore and floating storage infrastructure for LPG,” the company said.
As part of its recent newbuilding program, Dorian LPG included enhancements to its VLGC vessels design, making them LPG-ready.
Dorian LPG currently owns and operates twenty-two VLGCs.