The global multi-sector industry coalition SEA-LNG has announced the results of its latest independent investment study which highlights the commercial benefits of LNG as a marine fuel for a newbuild 210,000dwt ore carrier sailing from Australia to China.
The study illustrates strong returns on investment for LNG as a marine fuel on a Net Present Value (NPV) basis over a conservative 10-year horizon. The modelling analysis is bolstered by payback periods of two to four years for the newbuild Capesize on this major ore trade corridor.
The key findings from the study were:
• LNG delivers a superior return on investment on an NPV basis of several million dollars in comparison with conventional compliant fuels across all fuel scenarios investigated;
• LNG engine and fuel systems investment is paid back within two to four years.
SEA-LNG commissioned the study as the fourth in a series of investment evaluations by simulation and analytics expert Opsiana. It follows studies covering a 14,000-TEU container vessel operating on the Asia-U.S. West Coast liner route, a dual study examining an 8,000-CEU pure car and truck carrier on the Pacific trade and a smaller 6,500-CEU vessel on the Atlantic trade and a 300,000dwt VLCC sailing from Arabian Gulf to Asia.
The investment returns were calculated within traditional frameworks without including the significant extra benefits and branding value gained by choosing LNG as a more environmentally friendly marine fuel which SEA-LNG says could be worth hundreds of millions of dollars across the global Capesize fleet.
The study is available here.