The International Maritime Organisation’s (IMO) decision to cap the sulphur content in bunker fuel to 0.5 percent from 2020 will likely increase the use of the liquefied natural gas (LNG) as marine fuel, Eurogas told Trend.

Starting January 2020, the new Marpol Annex VI fuel regulation (hereafter IMO 2020) comes into effect in the maritime industry. The regulation caps the sulphur content in bunker fuel to 0.5 percent for all commercial shipping vessels, down from current 3.5 percent (except for Emission Control Areas).

"The International Maritime Organisation’s decision to slash marine sector emissions in international waters by 80 percent will bring strong contribution to global efforts on fighting climate change. Switching to cleaner fuels will bring significant changes to the shipping industry. As the market will need fuel alternatives, the use of LNG as marine fuel will likely increase and so will the share of LNG in the European energy mix," said Eurogas.

"There are LNG producers in US, Middle East, Egypt, and Russia. This is good news for Europe as it means we have a number of suppliers fighting to serve our market, therefore security of supply is assured and prices will be affordable. This will help industrial competitiveness in the EU."

This is also good news for EU manufacturers of LNG engines, as the decision should result in increased demand for European technology boosting manufacturing jobs and growth, according to Eurogas. "This demonstrates that citizens will also have immediate wins from utilising gas in the energy transition."

Eurogas is an association representing the European gas wholesale, retail and distribution sectors towards the EU institutions. Founded in 1990, Eurogas currently comprises 46 companies and associations from 21 countries.