Published By : 11 May 2016 | Published By : QYRESEARCH
For the past many decades, oil-products have been the exclusive norm for transport fuels owing to the simple reason that oil-products are abundantly available, are practical for use and are cheap. Natural gas and liquefied natural gas (LNG) were recognized as better fuel options over conventional oil-products in terms of energy content and environmental footprint. However, since LNG was not abundantly available and was comparatively more expensive, the use of LNG in application was limited to a few areas of research and very specific market areas. In the past few years, however, many factors have converged to bring a radical change in the LNG market and the applications of LNG are rising at a favorable pace.
The global demand for energy is still outpacing the global supply of cheap oil-products, resulting in the exponential price structure of crude oil and oil-products. A continuously rising share of world’s oil production is operated by national oil companies, making oil a geopolitical issue. This restricts the availability of resources from certain regions, making the imbalance between supply and demand worse. This scenario, combined with the rising global production and availability of LNG is leading to an increased adoption of LNG as a bunkering fuel for the marine transportation industry.
Some of the major drivers enabling this change are: