Posted: March 4th, 2024

Analyzing the costs and benefits of LNG as a ship fuel in the Red Sea region

Analyzing the costs and benefits of LNG as a ship fuel in the Red Sea region compared to other options like LPG and conventional bunker fuels.
1. Introduction
1.1 Background
1.2 Research Objective
2. LNG as a Ship Fuel
2.1 Definition and Characteristics
2.2 Environmental Benefits
2.3 Cost Considerations
3. Comparison with LPG
3.1 Similarities and Differences
3.2 Advantages and Disadvantages
4. Comparison with Conventional Bunker Fuels
4.1 Environmental Impact
4.2 Economic Factors

Analyzing the costs and benefits of LNG as a ship fuel in the Red Sea region compared to other options like LPG and conventional bunker fuels.
1. Introduction
An introduction is the first part of any field of research, however comprehensive or meticulous in the rest of the writing. Modern researchers are inclined to use it, knowing that readers are quite likely to consider and study the beginning part of the writing. Some researchers prefer to start with a key fact or theory, which may directly raise interest or cast doubt over the current literature, i.e. the literature has not recognized the significance of the theory. Then by showing the deficiencies or uneasiness among current research, the researchers will be able to arrive at a coherent new idea that marks a clear step forward. A very easy way to start off and come up with a good introduction is to try to answer the research. Use an anecdote or story relevant to your research, though be careful that it is short and to the point. Some students naturally gravitate to the option of starting with a personal relevant to the study which when properly executed can be quite effective. And yet some put off their introduction till the end; very often the writer find that this is indeed their final draft and there will not be much changing anymore. Last but not least, though the introduction is the first part of any writing (while it is actually covering only a small portion of the writing in terms of content), we still need time and efforts to revise and finish it. Through each draft of the writing, the introduction may change somehow. For example, one may change the thesis presented at the end of the introduction.
1.1 Background
Liquefied natural gas (LNG) is natural gas that is cooled to around -162°C. As a result, the gas becomes a liquid and its volume is reduced by a factor of more than 600, which makes it more efficient to transport and store. In the past decade, the global shipping industry has started to consider LNG as a fuel for ships as opposed to the traditional oil-based bunker fuels or the other alternative – liquefied petroleum gas (LPG). This is mainly because LNG has been proven to be able to meet the more stringent emissions regulations introduced by the International Maritime Organization (IMO) in so-called Emission Control Areas (ECAs) – those areas where the emission of nitrogen oxides, sulphur oxides and particulate matter are regulated – as well as reducing carbon dioxide (CO2) emission and is more cost-efficient, at least in some aspects. At the moment, there are some LNG-fuelled ships travelling across the globe but the number is limited. The adoption of LNG in the shipping industry is not as fast as expected due to various reasons, including the high initial investment costs and the lack of bunkering infrastructure. The 2020 global restrictions of sulphur emissions in the sea may be a boosting step for the industry, but the overall competitiveness of LNG relative to the other alternatives has to be further examined. After having a general view of the potential benefits and barriers of using LNG as a ship fuel, we are interested in understanding how the economics and the environmental impact of using LNG would differ from the other options. Using the Red Sea as the region of case study, this research aims to analyze the costs and benefits of using LNG as a ship fuel compared to the other options like LPG and the conventional bunker fuels, through investigating both the economic and environmental aspects. This would pair with identifying the required policy measures to promote the use of LNG in the Red Sea shipping industry and assessing the potential effectiveness of short-term and long-term policies. By achieving this goal, the research would shed light on whether the regional state and port authorities should lead the industry by making strategic investments in the bunkering infrastructure and providing financial incentives, or the market itself will naturally choose the optimal option. By and large, it could also help to reveal the potential impacts of the IMO setting stricter emissions targets on the global shipping industry and the appropriate measures that various stakeholders should take.
1.2 Research Objective
What are the key research objectives? The main objective of this research is to compare the costs and benefits of LNG with those of other fuels, including LPG and conventional bunker oil, for various shipping types in the Red Sea, based on established and developing shipping routes. In order to do that, the analysis has the following milestones: updating the shipping routes of the Red Sea; updating the current ship types and engine technologies, and using accurate cost and sea conditions data to provide a rigorous fuel comparison. Therefore, the analysis of the research would help in understanding what the introduction of LNG as a ship fuel in place of conventional bunker oil and LPG may bring in terms of reducing emissions, increasing sustainable development, and any economic benefits associated with it. Also, it can give policymakers a good basis on what and how the future policies should address the improvement of the environmental quality and shipping sustainability in the Red Sea.
2. LNG as a Ship Fuel

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