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LNG as a marine fuel – the VLCC investment opportunity

11th December 2019

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.

To support shipowners and operators in analysing options in an informed way, while simultaneously providing a deeper analysis of the assumptions that go into the 2020 decision process, SEA-LNG has commissioned the third in its series of independent studies by simulation and analytics experts Opsiana.

The VLCC investment case study explores the relative investment performance of LNG as a marine fuel for a newbuild 300K DWT VLCC on the Arabian Gulf to China trade route, in comparison with other alternatives currently available and scalable to the shipping industry across three fuel pricing scenarios.

This VLCC study clearly indicates that LNG as a marine fuel delivers a strong return on investment on a net present value (NPV) basis over a conservative 10-year horizon. The analysis is bolstered by compelling paybacks from three to five years.

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