LNG propelled short-sea shipping in Australia; an opportunity or obligation

Amidst the looming possibility of increasing regulations to limit ship emissions, marine industry continues to explore the availability of cost effective compliance options. Following developments in Norway, the EU and U.S., adopting liquefied natural gas (LNG) as marine-fuel is considered as a necessity for compliance in Emission Control Areas (ECA). Whilst such global trends obligate Australia to be LNG ready, the likely declaration of future ECA in Australian territorial waters could intensify the need for an assertive approach. Nevertheless, compared to other regions, it is rather an opportunity backed by the abundance of natural gas reserves in Australia.

This paper explores the feasibility of LNG fuelled short-sea shipping in Australia and illustrates the long-term cost and emission benefits. The findings of the study prove that LNG as a marine fuel in Australia is indeed an opportunity with long-term environmental and societal benefits.