Deloitte surveyed over 80 senior energy industry leaders, which responded that retrofitting or redesign the existing shipping fleet to accommodate the LNG bunker fuel option is the second biggest barrier, while the price competitiveness of LNG versus liquid fuels is also important.

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Nevertheless, 68% responded that if the marine fuel market switches to LNG, it will have a positive effect on their overall business.

Bernadette Cullinane, Deloitte Global LNG leader and Australia oil and gas lead noted:

LNG is particularly well placed to benefit from the IMO’s emissions legislation. Our survey results are clear recognition the stricter standards will open the door for cleaner marine fuels like LNG and low sulphur marine gas oil to displace heavy fuels.

In order to be widely adopted, LNG needs to develop new customer markets to absorb supply and justify investment in new production facilities, Ms. Cullinane said.

She also added that now LNG bunkering is a serious alternative to fuel oil, mentioning that:

Almost every maritime authority in the world that offers bunkering is now taking a serious look at LNG as an alternative to fuel oil. Whilst infrastructure is an issue, it is being built, and new vessels have been designed, built and are on order.