A new joint industry project (JIP) named “Green Corridor” will assess the commercial potential of LNG fuelled vessels in a “green corridor” between Australia and China, culminating in the creation of a next generation Capesize design.
The JIP was signed recently in Singapore between BHP Billiton, Mitsui O.S.K. Lines, Rio Tinto, SDARI, Woodside, and DNV GL, looks to capitalize on this opportunity to drive the development of the market.
LNG Business Case for Australia-China
The JIP has two main objectives – building and assessing the business case of LNG as fuel for Capesize bulkers operating in the trade between Australia-China, and developing an efficient LNG fuelled Capesize concept design. These activities will be run together, with the immediate results generated from one project fed into the other.
The financial and technical feasibility study examines an LNG fuelled Capesize bulker operating from Australia. It will look at a wide range of factors including the capital costs, operational costs and price sensitivities in terms of LNG and low sulphur marine fuel oils, in comparison to both a conventionally fuelled vessel and an LNG retrofit, as well as undertaking a high level bunker supply chain assessment to identify the key issues affecting the vessel design and business case.
LNG Fuelled Capesize Design
The project partners will also work to develop a concept design for an efficient LNG fuelled Capesize vessel. The ship will be optimised for operations from and to Australia, and will be developed to a technical stage so that it may achieve an Approval in Principle (AiP) in compliance with the new DNV GL rules. An Approval in Principle is an independent assessment of a concept within an agreed framework, confirming that the design is feasible and no significant obstacles exist to prevent the concept from being realised.
Picture: LNG storage facility (by Fletcher6).
