SEA\LNG: Understanding the opportunities for the wider use of LNG as a marine fuel and tackling commercial barriers is crucial

Coalition challenges industry to collaborate to assure LNG’s vital role as a clean and economically viable marine fuel.

LONDON, 26th JANUARY 2017: SEA\LNG, the multi-sector industry coalition aiming to accelerate the widespread adoption of liquefied natural gas (LNG) as a marine fuel, today stated that a collaborative approach to understanding the opportunities and then tackling the associated commercial barriers to LNG is crucial to encourage its use as an alternative to traditional bunker fuels.

With a major transition to stricter emissions levels from marine bunker fuel due in 2020, when the global Sulphur cap will be reduced to 0.5%, SEA\LNG has called for a candid appraisal of barriers to LNG as a marine fuel. Ship owners, fuel suppliers, and other associated supply chain stakeholders will need to make major investments to comply with these new global regulations. By addressing the core issue; the fuel itself, LNG provides a viable solution for the long term. However, barriers need to be better understood and overcome if LNG is to reach its full potential.

These barriers include LNG infrastructure and market maturity; the lack of understanding of LNG’s benefits among end users, investors, governments and civil society; capital expenditure (capex) premiums for vessels and bunkering infrastructure; and fragmented and evolving regulations.

SEA\LNG believes that collaboration, demonstration and communication are essential to continue to develop an effective and efficient global LNG value chain by 2020.

Peter Keller, SEA\LNG Chairman and Executive Vice President, Tote said: “We all need to do more to help break down the commercial barriers to LNG, particularly in the deep-sea shipping segment. From LNG suppliers, bunkering companies, shipping lines, and shipyards, to OEMs (original equipment manufacturers), classification societies, and port authorities, organisations from across the marine value chain must work together to collectively drive the change needed for the Industry to meet the environmental thresholds.

He went on to note that, “The reality in the world today is that environmental stewardship is now an essential element of the maritime Industry. How we collectively deal with this reality will set the stage for the Industry for decades to come.

Keller added: “A collaborative approach is the only way to overcome current challenges. Creating the infrastructure to enable quick, safe and cost effective LNG bunkering in key global ports; making LNG-fueled vessels cost efficient; and, establishing consistency of international and national regulations are all essential if LNG is going to fulfil its potential as a solution for the shipping industry.”

LNG emits zero SOx, virtually zero particulate matter and – depending on the technology used – 90% fewer NOx emissions. LNG’s greenhouse gas (GHG) performance represents a major step forward when compared with traditional marine fuels. Utilising best practices and appropriate technologies can result in realistic reductions of GHG by about 20%.

For further information please see SEA\LNG’s “Accelerating the Adoption of LNG as a Marine Fuel,” which outlines in detail why LNG provides an essential solution for the long term, more detail on addressing the key barriers to uptake, and how SEA\LNG will work towards an effective global LNG value chain for cleaner maritime shipping.


SEA\LNG brings together key players from across the supply chain, including shipping companies, classification societies, ports, major LNG suppliers, downstream companies, infrastructure providers and OEMs (original equipment manufacturers) to address market barriers and transform the use of LNG as a marine fuel.

SEA\LNG is a not for profit collaborative industry foundation serving the needs of its member organisations. SEA\LNG’s members include: ABS, Bureau Veritas, Carnival Corporation & plc, Clean Marine Energy, DNV GL, Eagle LNG Partners, ENGIE, ENN Group, Gas Natural Fenosa, GE, GTT, Keppel Gas Technology, Lloyd’s Register, Mitsubishi Corporation, NYK Line, Port of Rotterdam, Qatargas, Shell, Total, TOTE Inc., and Wärtsilä.

SEA\LNG is guided by a board, which is led by chairman Peter Keller. Each member organisation commits mutually agreed human resources, data analysis and knowledge sharing in support of SEA\LNG initiatives and activities and financially contributes via a membership fee.

The SEA\LNG coalition was established by Xyntéo, an advisory body which works with global companies to identify and implement collaborative initiatives that enable businesses to grow in a new way, fit for the resource, climate and demographic realities of the 21st century.

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