US-based shipping company Dorian LPG Ltd. announced that it has entered into a memorandum of understanding with Hyundai Global Service Co., Ltd (HGS) seeking to upgrade the main engines of up to 10 of the company’s very large gas carriers (VLGCs) to dual fuel technology, utilizing LPG as a fuel, in line with the upcoming 0,5% sulphur cap.
John Hadjipateras, Chairman and CEO of the Company, stated:
The cargo transported by our vessels is an energy source with well-documented environmental benefits relative to other fuels. We are undertaking this initiative with the dual goals of acting as a responsible corporate citizen and potentially achieving a significant competitive advantage that will benefit both our customers and shareholders.
The initiative follows the conclusion of a study announced in September 2017 by Dorian LPG and ABS, to evaluate the use of LPG as marine fuel in advance of the IMO’s mandate to reduce sulphur emissions by approximately 85% from January 2020. In an official statement, Dorian LPG stressed:
The Company believes in the viability of LPG as an attractive and cost-effective alternative fuel that is widely available and inherently compliant with the IMO mandate. LPG as a fuel source has a significant advantage over other potential sources, including LNG, methanol and marine gas oil given the abundant availability of LPG from the shale exploration boom and the existing global distribution network and onshore and floating storage infrastructure for LPG.
As part of its recent new building program, Dorian LPG proactively included enhancements to its VLGC vessels design to allow for the option of using LPG as a marine fuel.
Ki Sun Chung and Kwang Hean An, Co-CEO & President of HGS added:
Both HGS and Dorian LPG are committed to the advancement of technology that provides the global shipping industry alternatives to achieve compliance with important environmental mandates.