SINGAPORE (Oct 26): Demand for liquefied natural gas (LNG) as a shipping fuel could soar over the next 10-15 years if authorities this week agree a global cap on sulphur dioxide emissions, a senior executive of French energy firm Engie said. Using LNG as shipping fuel, known as bunkering, would be more effective in reducing oversupply than investing in small-scale LNG power projects, given the high fixed costs of such facitlies, Bonhomme told Reuters during the Singapore International Energy Week. "If you have to invest into new ships, why go in-between when you know in (a few) years you will anyway have to switch to LNG," Bonhomme said. So far, shipping fuel is dominated by diesel and bunker fuels, which are cheaper than LNG. The IMO will meet in London this week to decide whether to impose a global cap on sulphur dioxide emissions from 2020 or 2025.

Source: The Edge Markets October 26, 2016 02:15 UTC