U.S. Outlines Guidelines for LNG Bunkering

Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--With shippers looking to clean up their act, the U.S. Coast Guard spelled out new guidelines for vessels looking to use liquefied natural gas (LNG) as an alternative fuel.

Various protocols outlined by the U.N.-backed International Maritime Organization (IMO) call on shippers to move away from the heavily-polluting fuel oil commonly used today and embrace cleaner options ranging from wind to LNG.

The U.S. Coast Guard issued new guidance for shippers that refuel, or bunker, with LNG. A policy letter for captains of port (COPT) seeks to account for the rapid expansion of alternative fuels, while noting the gaps in existing regulations covering bunkering in U.S. waters.

Legislation drafted by the IMO in April outlined new fuel standards and global-pricing mechanisms for emissions. Set for implementation in 2027, the standards would apply to vessels of more than 5,000 gross tonnage, vessels that are responsible for more than 80% of the global shipping emissions.

IMO already has standards that mandate reductions in sulfur-dioxide emissions and other pollutants. For shippers traversing U.S. waters, port captains should expect the fuel supplier to file a bunkering proposal with enough advance to determine "any areas of concern" prior to the refueling operation.

At a minimum, the Coast Guard said port authorities are called on to address hazard associated with the following issues:

• Mooring/Docking/Anchoring
• Connection and testing to include compatibility assessment
• Fuel transfer operations to include pressure management and vapor return
• Completion and disconnection
• Unmooring/Undocking/Weighing anchor
• Critical infrastructure, waterway, people and environment
• Port emergency response capabilities
• Simultaneous operations

Coast Guard guidance on bunkering was issued late July. In the U.S. market, Galveston LNG Bunker Port (GLBP) (Houston, Texas) was permitted to start construction on a fueling facility for vessels off the greater Houston-Galveston region early this year. When it starts bunkering operations in 2027, it will be the first dedicated marine bunker port on the U.S. Gulf Coast for LNG.

GLBP already has the permits necessary for construction from the U.S. Army Corps of Engineers and U.S. Coast Guard. A joint venture between Pilot LNG and Seapath Group, the operation will use fuel barges to supply LNG to ships in the region.

GLBP said LNG is finding a home in everything from roll-on-roll-off, or RoRo, car carriers to container vessels and cruise ships. At Galveston, cruise ships typically make around 380 port calls each year.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can view a related project report on GLBP here.

LNG is estimated to emit 20% less carbon dioxide than other fuels, though critics note that methane leaks up and down the LNG supply chain are a concern. Methane is a far more potent greenhouse gas than carbon dioxide, and releases offshore present a risk.

The United States is the largest natural gas producer and the largest exporter of LNG in the world, recently overtaking Russia to become the No. 2 market player in the European economy, behind Norway.

Canada too is interested in LNG developments, with the Canada LNG and the Cedar LNG facilities in coastal British Columbia. In May, Seaspan (Vancouver, British Columbia) bunkering vessel Seaspan Garibaldi
Seaspan in late 2024 became the first accredited LNG supplier to ships calling at the Port of Vancouver and now operates three bunkering vessels there. Port authorities said the option of delivering LNG as an alternative fuel supports its efforts to reach net-zero emissions by 2050.

Subscribers can view a profile of Cedar LNG here and can click here to view details on LNG Canada.

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