LNG

• LNG of all kinds is almost entirely comprised of methane, which is a colorless, flammable, odorless gas at ambient temperatures.
• To become liquefied, it must be cooled to approximately -162°C.
• When liquefied, its volume is reduced by a factor of 600 and the gas is no longer flammable unless heated and mixed with air.
• LNG has approximately half the density of VLSFO, but a 20% higher calorific value. Moreover, LNG has a 15% higher calorific value on MGO 0.1%. Thus, a shipowner would need fuel tanks 1.8-9 times the size of traditional tanks to get the same energy output.
• Can be replaced by bio- or e-LNG in the future with lower carbon.
• At larger-scale import and export terminals, LNG is widely available. In many locations, investments are currently being made to make LNG available for fuel supply.
• As of 2022, around 200 ports offer LNG bunkering facilities.
• The number of LNG barges will increase in the coming years, enabling quicker turn-around for customers.
• Use of LNG for bunkers is fully regulated and governed by all class societies.
• A spill of LNG in the ocean is considered less hazardous to the environment than fuel oil due to its fast dispersion, where the gas will boil off quickly.
• Risks associated with using LNG as a bunker fuel include is flammability and its extremely cold liquid temperature of -162°C. As most of the gas used onboard vessels is in a liquid state, inhalation proves less of a risk.

• LNG benchmark price publications are widely available, as S&P Global Platts, Ship & Bunker, and Argus publish data for delivered LNG as bunker fuel daily.
• LNG derivative contracts are offered in major ports, enabling fuel price hedging. 
• Currently, most LNG bunkers are sold on term contracts, typically for one to five years. However, some spot volume has also emerged in larger markets.

• Reduction in emissions depends on the engine technology.
• The life-cycle emissions of LNG has little advantage over traditional marine fuels except for Sulphur Oxide (Sox) and particulate matter (PM). 
• If an engine is not able to combust all the methane, it can escape to the atmosphere. This phenomenon is seen more frequently with duel-fueled engines than pure LNG-engines. 

Source: Oxford Institute for Energy Studies, 2018