regulation Decarbonization & energyCompliance & regulation BIMCO
The advent of the decarbonisation era is far from fiction and a variety of regulations, as well as economic considerations, call for the use of non-conventional fuel sources with less CO2 emissions. In this context, the use of Liquified Natural Gas (LNG) as a ship’s fuel has increased over the past decade. Even though LNG is essentially a fossil fuel, meaning that it still emits CO2 into the atmosphere, it is effectively used as a transitional energy source to reduce emissions. It is projected that until sustainably produced renewable and low-carbon fuels become largely available, LNG will serve as a means of reducing CO2 emissions. During the past five years, the number of merchant ships capable of using LNG as their fuel has gone up by an impressive 137%, indicating the industry's strong interest in the LNG bunker market. Currently, 1,031 vessels capable of using LNG for propulsion are being built, accounting for 15% of the global orderbook. Not to mention that existing ships may be converted to run on the fuel. What is more, Bio-LNG (liquefied biomethane), an advanced biofuel that has the same chemical composition as conventional LNG, can be used by the same engines, on its own or mixed with conventional LNG. The newly-adopted FuelEU Maritime regulation aims at promoting the use of sustainably produced renewable and low-carbon fuels in maritime transport and will require from all vessel operators to develop a compliance strategy by which to meet the greenhouse gas (GHG) targets set by the regulation. To assist industry players using LNG contractually, BIMCO has prepared the below clauses and annexes to provide clarity and legal certainty. BIMCO LNG Fuel Delivery and Redelivery Clause for Time Charter Parties 2022 This clause gives parties the opportunity to agree on the condition of the LNG fuel tanks prior to delivery/redelivery as well as on issues relating to the payment of LNG fuel loaded either prior to delivery or during the term of the charter party. Natur
LNG: Clauses for TCP and bunker terms
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