Economic assessment of liquefied natural gas (LNG) as a marine fuel for CO2 carriers compared to marine gas oil (MGO)

Byeong-Yong Yoo

Energy, 2017, vol. 121, issue C, 772-780

Abstract: CO2 carriers are considered as a solution for CO2 transport as a part of carbon capture and storage (CCS) and ship fuel cost is an important parameter impacting total cost of CO2 shipping. Heavy fuel oil (HFO) is a traditional marine fuel but alternative marine fuels such as MGO and LNG shall be considered for future researches on CO2 shipping because low sulphur content fuel is required in sulphur Emission Control Areas (SECAs) from January 2015. However, LNG has not been seriously considered as a marine fuel for CO2 carriers and its economic feasibility has not been studied so far. This paper assesses economics of LNG fueled CO2 carriers based on a CO2 shipping scenario in North Sea and fuel price in June 2016. Parameter studies are conducted to understand the influence of important parameters such as a marine fuel price, LNG fuel system cost, and small LNG distribution cost. The results show that LNG fueled CO2 carriers are more cost-effective than CO2 carriers utilizing MGO based on fuel price in June 2016 and when crude oil price is higher than approximately 30–50 USD/bbl. Furthermore, technology development on LNG fuel system and bunkering infrastructure could strengthen the competitiveness of LNG as a marine fuel for CO2 carriers.

Keywords: LNG; CO2 carrier; CO2 transport; Marine fuel; LNG fueled ship; CCS (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (28)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0360544217300610
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:121:y:2017:i:c:p:772-780

DOI: 10.1016/j.energy.2017.01.061

Access Statistics for this article

Energy is currently edited by Henrik Lund and Mark J. Kaiser

More articles in Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().