Government of BC taking action to increase the use of LNG as a marine fuel

BC marine industryThe Government of British Columbia is taking action under the Climate Leadership Plan to support investments by natural gas utilities that will increase the use of LNG and renewable natural gas in the transportation, marine and other sectors and reduce greenhouse gas (GHG) emissions.

“We’re working with utilities to stimulate the use of LNG as a marine fuel in large, ocean-going ships, and to increase the supply and use of renewable natural gas,” said Energy and Mines Minister Bill Bennett. “Building the market for B.C.’s abundant supplies of natural gas offers the opportunity to achieve significant GHG emissions reductions and supports jobs and economic opportunities in British Columbia’s natural gas sector.”

Amendments to the Greenhouse Gas Reduction Regulation (GGRR) under the Clean Energy Act will enable utilities to increase incentives provided to shipping companies for the conversion of vessels to run on LNG, invest in LNG bunkering (marine fuelling) infrastructure, and increase the supply and use of renewable natural gas (RNG).

Programs under the GGRR are funded by the utility, not the Province. The amendments are enabling only, and set the parameters for potential utility programs and investments that will reduce GHG emissions.

“We are creating market opportunities for British Columbia’s natural gas sector, offering utilities flexibility to create new incentive programs so we can continue to build a strong economy and a cleaner future,” said Deputy Premier and Minister of Natural Gas Development Rich Coleman.

Converting just one ocean-going tanker, cruise ship, or container ship to run on LNG instead of heavy fuel oil will reduce GHG emissions by about 93,500 tonnes per year, equivalent to taking over 19,800 vehicles off the road. Utility investments in LNG fuelling infrastructure will help establish B.C. as a marine bunkering centre on the west coast capable of providing LNG to an increasing number of LNG vessels and leading to global reductions in GHG emissions.

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