Bunker fuel market to convert to LNG in next 10 years -Vitol CEO
SINGAPORE, Sept 5 (Reuters) - The global bunker fuel market is expected to convert substantially to liquefied natural gas (LNG) over the next 10 years, said Russell Hardy, chief executive of the world's largest independent oil trader, Vitol.
"There's going to be a huge growth in LNG bunkering over the next few years, there's going to be a huge use in the use of LNG as a road transport," Hardy told the Gastech 2023 conference.
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This is expected to bring different types of buyers into the market, he added.
"They're going to have to find their own contracting strategy, whether that's five years, 15 years, or 25 years and whether it's half a million tons or 5 million tons," said Hardy, with respect to LNG bunker contracts.
"There is a myriad of opportunities for buyers, he said, adding that buyers have to figure out just what is a feasible duration for their contracts.
LNG bunker sales at world's largest bunker hub Singapore were at 18,300 tons in July, firming from June, latest available data from Singapore's Maritime and Port Authority showed.
The sales totalled 55,100 tons in 2023 so far, exceeding the 16,200 metric tons seen in the whole of 2022, the data showed.
Bunker volumes of alternative fuels such as LNG and biofuels have picked up this year, as shippers sought ways to cut emissions and shift away from conventional fuel oil. (Reporting by Jeslyn Lerh; editing by David Evans)