Page 30: of Maritime Reporter Magazine (October 2018)

Image: TOTE

TOTE & LNG’s ‘Field of Dreams’

Build it and they will come mentality serves

TOTE well on ‘world f rst’ LNG Containerships

As environmental mandates for ships These ships operate 51 weeks per year,

As the marine industry collective- continue to get stricter, particularly with they have to make the voyages. We don’t the new fuel rules and drastic reduction have time to mess around with big ret- ly struggles to f nd solutions to the in sulfur emissions coming in 2020 and ro? ts.” with ‘decarbonization’ now on the agen- The second factor was the cost of the da courtesy of mandate from the Inter- fuel: both the cost of LNG and uncer- mounting mandates to cut emissions, national Maritime Organization, many tainty over the long-term price trajectory vessel owners are at a crossroads as to of other compliant fuels.

U.S. owner TOTE, which broke ground the appropriate solution for both the en- “When you look at LNG and contract vironment and the bottom line. for it on a long-term basis, the price of three years ago with the world’s f rst

Peter Keller, Executive Vice President, LNG is stable over time,” said Keller.

TOTE, who was pivotal in bringing from “We inspired the building of liquefaction

LNG-fueled containership, has more drawing board to service the world’s ? rst plants near our facilities, both in Tacoma

LNG-fueled containership, sees the so- and in Jacksonville. So we have a rela- lution dead ahead: LNG. tively ? xed reservation fee, and a ? xed than 36 months experience operating “There are two things that are impor- cost on a barge, so the only ? uctuation tant: First, we all know that environ- in our fuel cost is the Henry Hub, which almost exclusively on LNG. To date it mental regulation will become more is minimal. As a business person I have a stringent. LNG at that time (in 2012/13, pretty good idea of my fuel costs for the has been a rousing success.

when the decision was being made) – next 10 years. When you look at where and still today – is the only viable, scal- the price of compliant fuel is going … is able, safe option,” said Keller. “Since it going to be a 40% differential to crude,

Jones Act ships have a 35-year (or more) 50%? Who knows. I do know that my

By Greg Trauthwein life span, projecting requirements and cost of LNG will be relatively stable.” building a ship to that was a big concern. While the cost of LNG is stable, there 30 Maritime Reporter & Engineering News • OCTOBER 2018

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