Dorian LPG has entered into a Memorandum of Understanding (MOU) with Hyundai Global Service (HGS) to upgrade the main engines of up to ten of Dorian LPG’s very large gas carriers (VLCCs) to dual fuel.
The agreement will see the companies begin research and engineering studies into the feasibility of converting the engines to use liquefied petroleum gas (LPG) to meet the upcoming 2020 global sulphur cap regulation. The regulation will require ships to operate with fuels containing no more than 0.5 per cent sulphur across the globe, aside from in Emission Control Areas where the sulphur cap will remain at 0.1 per cent.
John Hadjipateras, Chairman and Chief Executive Officer of the Company, stated: “The cargo transported by our vessels is an energy source with well-documented environmental benefits relative to other fuels. We are undertaking this initiative with the dual goals of acting as a responsible corporate citizen and potentially achieving a significant competitive advantage that will benefit both our customers and shareholders.”
Ki Sun Chung and Kwang Hean An, Co-CEO & President of HGS added: “We are pleased to be partnering with a first-class organisation with whom we have a long-standing relationship. Both HGS and Dorian LPG are committed to the advancement of technology that provides the global shipping industry alternatives to achieve compliance with important environmental mandates.”
The initiative comes following the conclusion of a study by Dorian LPG and the American Bureau of Shipping, which found LPG to be an attractive and cost-effective alternative fuel that has advantages over comparable fuels like liquefied natural gas (LNG), methanol, and marine gas oil. According to the study, LPG is abundantly available and has benefited from the shale exploration boom. There is currently a solid global distribution network of the fuel and onshore and floating storage infrastructure is available.
