It’s interesting to read GlobalData’s take this week on BP’s LNG business as it pivots away from big oil in the long-term, and the commitments that it’s claimed it needs to make in what is a relatively uncertain LNG market right now.
It’s been a mixed year for LNG markets. On the one hand, it was hoped that 2020 would be a cornerstone year for LNG as one of many fuelling options available to help the maritime sector navigate the choppy waters of IMO 2020. Under a new global cap, in force from 1st January 2020 by the International Maritime Organisation (IMO), ships have to use marine fuels with a sulfur content of no more than 0.50%, in an effort to reduce the amount of sulfur oxides emitted. It’s a move which has been a long time coming and had been expected to lean on the use of LNG as a shipping fuel.
At gasworld, we understand that a relatively healthy compliance with IMO 2020 has indeed provided a boost to the LNG sector.
From an industrial gas equipment perspective, there have been other highlights throughout the year too, not least the news in June that the US Department of Transportation (US DOT) and the Pipeline and Hazardous Materials Safety Administration (PHMSA) would allow the use of cryogenic railcars to ship LNG from production plants to destinations across the US. This is expected to provide a lift to those in the small-scale LNG sector.
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