The Hong Kong Liner Shipping Association (HKLSA) expressed its support for the Hong Kong Government’s intention to explore the feasibility of green methanol bunkering, as laid out by chief executive John Lee in his policy address on 25 October.
“It appears that the Chief Executive (Mr Lee) has caught this vision and will allocate necessary resources and attention to explore this through thoroughly. We can only support this,” said HKLSA chairman Roberto Giannetta.
On the other hand, the Government’s plan to provide LNG bunkering could be a case of too little too late, according to Mr Giannetti.
“After the initial wave of LNG vessels, the next wave (which is already bigger in terms of planned deliveries) is methanol. While Hong Kong missed the opportunity to capitalise on the carriers’ need for LNG bunkering years ago when the trend was evident, there are plenty of other ports who can provide sufficient supply for those carriers looking for LNG bunkering.”
During the Policy Address, Mr Lee said the Government will take forward the preparatory work, including technical studies and installations, on providing LNG bunkering for ocean-going vessels.
Bunkering website SEA-LNG, there are currently 96 ports which can offer LNG bunkering services with a further 55 ports in the process of facilitating LNG bunkering investments and operations.
Hong Kong’s new LNG Terminal, operated by CLP Power and Hong Kong Electric, was originally slated to begin operations in 2020 before it ran up against the stultifying power of the global Covid-19 pandemic. The terminal finally opened in mid-2023. This proved to be an unlucky break. In 2020 there were just 12 LNG bunkering facilities in operation worlwide.
Meanwhile, Mr Giannetti offers a more positive view of green methanol bunkering, as mooted in the Policy Address.
“Green methanol, however, is a very different story,” he said.
“Given the slow scalability of methanol production, there will be a shortage of supply in the coming few years. Meanwhile, methanol powered ships are hitting the oceans. The first one has already completed its trip to Northern Europe where it will be put into service. Subsequent vessels will start coming out (at least one per month for the following couple of years) starting in Jan 2024. These vessels will largely be deployed in Asia trades. Hence, need for green methanol bunkering facilities in Asia are needed.
“Production of methanol will be heavily dominated by China in the initial few five-10 years before other methanol producers start kicking into gear. Methanol produced in China will need to be delivered to the coast for loading onto tankers to the rest of the world (including Singapore – currently the largest bunkering hub globally). Shanghai certainly has its fingers in this pie – but not all vessels go to Shanghai. Hong Kong, therefore, has a golden opportunity to capitalise on this trend and market itself as the South China bunkering and transport hub for green methanol … if HK plays its cards right.
“If Hong Kong can place itself on the map as a bunkering hub for methanol vessels, this will be a big incentive for those new ships coming out in the next few months to consider port calls here.”
Source:
Hong Kong Maritime Hub
The opinions expressed herein are the author's and not necessarily those of The Xinde Marine News.
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