Low prices and tougher emissions regulations are pushing US shipowners to invest in LNG-fuelled tonnage, with eight Jones Act newbuildings due to join 10 already on the water in the next three years, according to the latest figures from the US-based Energy Information Administration (EIA).

“Recent announcements in the US and globally of orders for or completions of LNG-fuelled vessels suggest growing interest in LNG as a maritime fuel,” the EIA says.

It attributes the trend to the fact that LNG prices are lower than petroleum-product prices in energy-equivalent terms, “despite the rapid fall in crude oil prices since the second half of 2014”.

“Furthermore, because of tightening US and international maritime emissions standards, shipping fleet operators may adopt relatively cleaner-burning LNG as a fuel, instead of distillate,” the EIA reports.

“This is especially true for vessels that frequent regions – including most of the US and Canadian coastline – designated emission-control areas by the International Maritime Organization (IMO).”

The live US-flag LNG-fuelled fleet now includes Harvey Liberty, the third Harvey Gulf International Marine offshore supply vessel, delivered three weeks ago, to be contracted to Shell Offshore.

Harvey Gulf is a leading player driving growth in LNG as marine fuel in the States. In January, the company launched the first LNG bunker-supply operation in the US, out of Port Fourchon in Louisiana. It also plans to build three more LNG-fuelled vessels.

Another pioneer is San Diego-based General Dynamics NASSCO, which built two LNG-powered container ships for TOTE Maritime and will convert two other TOTE vessels from diesel to LNG.

NASSCO is also building five vessels for American Petroleum Tankers that are designed to be LNG-conversion ready. The conversion-read option, of course, allows companies to delay investing in expensive onboard LNG storage capacity until fuelling infrastructure becomes more widely available – both in the US and internationally.

source: http://www.lngworldshipping.com/news/view,us-eyes-lngfuelled-newbuildings_43119.htm