Ship and Bunker: Europe Looks to LNG Bunkering to Boost Demand

With liquefied natural gas (LNG) demand in Europe down, terminals are looking to LNG bunkering as a possible way to boost business, Reuters reports.

"European LNG deliveries will drop by 24 percent in 2013, which comes in addition to a 30 percent fall in 2012," said Thierry Bros, senior gas and LNG analyst at Societe Generale.

The need for natural gas is relatively low in Europe, driving many sellers to Asia and Latin America, where high demand has driven prices up to more than $15 per million British thermal units (mmBtu), compared with around $10 per mmBtu in Europe.

Falling imports are forcing some European operators to idle their import capacity, and, in some cases, to either accept deliveries or pay fines under take-or-pay contracts.

The Gate terminal in Rotterdam is leading the way in shifting to the use of LNG as ship fuel.  MORE