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LNG as a marine fuel – the Capesize Ore Carrier investment opportunity

27th February 2020

Liquefied Natural Gas (LNG) is a safe, mature, commercially viable marine fuel offering superior local emissions performance, significant Greenhouse Gas (GHG) reduction benefits and a pragmatic pathway to a zero-emissions shipping industry.

SEA-LNG has commissioned the fourth in its series of independent studies by simulation and analytics experts Opsiana, to support shipowners and operators in analysing options in an informed way, while simultaneously providing a deeper analysis of the assumptions that go into their investment decisions.

The VLOC investment case study explores the relative investment performance of LNG as a marine fuel for a newbuild 210DWT capesize ore carrier, sailing the major ore corridor between Australia and China, in comparison with other alternatives currently available and scalable to the shipping industry across three fuel pricing scenarios.

The 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, bolstered by compelling payback periods of two to four years.

Download the full findings of the study

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