LNG may soon overtake oil as main ship fuel

Cheaper gas, stricter environmental rules create demand for cleaner alternative

[LONDON] Natural gas has started to challenge oil as the dominant transport fuel with companies building gas-powered ships and installing networks of service stations on water and land. The expectation of cheaper gas and tighter environmental regulation have created demand for a cleaner alternative to the oil-based fuels that have so far dominated the transport world.

Although European and Asian liquefied natural gas (LNG) prices are currently high, trading at almost US$20 per million British thermal unit (mmBtu) in Asia and around US$10 per mmBtu in Europe because of booming demand, analysts expect prices to drop substantially later this decade when new production rises.

Germany, Singapore and...

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