UK P&I Highlights Risks and Opportunities of Dual-Fuel Vessels Amid LNG Adoption
Ansuman Ghosh, Director of Engineering at UK P&I, highlighted the risks and opportunities presented by the growing adoption of dual-fuel vessels in the maritime sector, driven by regulatory frameworks promoting cleaner technologies. While LNG serves as a transitional fuel with benefits such as reduced emissions, challenges like methane slip and fuel degradation remain. The UK P&I Club advises updating charterparty agreements to mitigate emerging operational and contractual risks associated with this trend.
Theia Market Signal Identification - AI Assisted
Ansuman Ghosh, Director of Engineering of UK P&I, discussed the risks associated with the increasing presence of dual-fuel vessels in the maritime industry. Regulatory frameworks like the EU Emissions Trading System and FuelEU Maritime have spurred the adoption of clean technologies, with LNG emerging as a transitional fuel.
LNG reduces sulphur oxides, nitrogen oxides, and particulates, with potential pathways to bio-LNG and synthetic LNG. However, challenges such as methane slip and fuel degradation pose risks. The Maritime Port Authority of Singapore reported a fourfold increase in LNG bunker volumes, with 1,381 LNG-fueled vessels operational by the end of 2024.
The rise in dual-fuel vessels, which can use various fuels including VLSFO and MGO, introduces operational and contractual risks. The UK P&I Club recommends amending charterparty agreements to address these evolving risks and emphasizes robust fuel management practices.
Comments