Interview with DNV GL: The fastest growing markets for gas in Europe

Interview with DNV GL: The fastest growing markets for gas in Europe

In this interview, Liv Hovem, Senior VP and Director of Europe & Africa Oil & Gas at DNV GL discusses DNV GLs new study on the LNG market in the EU, how to maximise the use of LNG as ship fuel as well as the fastest growing markets for natural gas in Europe.




Gastech News: We have heard DNV GL has been undertaking a new study on the LNG market in the EU, what is the aim of this research?

Liv Hovem: Yes, this is related to a very exciting development for Europe: the study will contribute to the development of an EU-wide network of LNG refuelling points. While LNG has proven to be a viable option as a bunkering fuel for ships, there are still challenges to the pace of its development and demand as a fuel. One of the obstacles to the uptake is the uncertainty tied to its availability. Our study contributes to the CORE LNGas hive project which addresses this challenge; it is co-funded by the European Commission and aims to develop a safe and efficient, integrated logistics and supply chain for LNG in the transport industry.

Gastech News: In a recent report for the EU, DNV GL has come out with new recommendations on how to address barriers to the use of LNG as ship fuel in Europe, what are DNV GLs key findings?

Liv Hovem: Our research and experience shows that more shipowners would consider LNG as fuel if reliable information on LNG availability was easily accessible. We have responded to this need for more knowledge and insight with our new online portal, LNGi. LNGi provides comprehensive and up-to-date information on worldwide LNG bunkering availability and market data on LNG as fuel for ships. It aims to bring stakeholders from across the LNG industry together to share market intelligence and contribute to the uptake of LNG as a ship fuel. LNGi is supported by The Society of Gas as Marine Fuel (SGMF).

In order to continue meeting and supporting the market in its growing demand for cleaner fuels and versatile LNG applications, DNV GL has recently updated the Recommended Practice (RP) for development and operation of LNG bunkering facilities (DNVGL-RP-G105). The RP provides the first industry guidance on how to perform quality measurements and quantity metering of LNG fuel supply. This enables the industry to understand the business impact of proper fiscal measurement.

Gastech News: Where do you see the fastest growing markets for natural gas in Europe in terms of areas such as NGVs and gas-fired power stations, for example?

Liv Hovem: One area is the shift from coal to gas for power generation, where the benefits are many. These advantages include less CO2 and much smaller amounts of NOx, Sox, as well as the absence of fine particulates and other pollutants like mercury and arsenic. In addition, there is far less power plant water usage involved. All this comes in addition to the much greater flexibility that gas offers to power grids, especially with the integration of more and more renewables. As to how much switching there will be from coal to gas-fired generation, this is mainly a USA-based theme in the medium term. We still lack a global price on CO2 emissions that would improve the competitiveness of gas versus coal.

Another area is the role of gas as a transportation fuel: The proportion of gas currently used in transport is very low some 5% of the transportation fuel mix. While it is difficult to build projections for the uptake of gas in road transportation, it is a different matter in seaborne transport. For deep sea shipping, LNG is almost certainly the only viable alternative for significantly reducing GHG emissions apart from maybe nuclear power. However, the volume of LNG powered ships is low; we currently have 80 LNG vessels in operation and a further 90 on order. Shipping is the life blood of the global economy it moves about 80 per cent of world trade by volume so a cleaner alternative to bunker oil and diesel will have a massive impact. This is why DNV GL has recently launched a new calculator which helps the industry overcome reliability issues and protect engines by calculating the PKI methane number. It is based on years of research in collaboration with one of the energy majors.

Last but not least, with the demand for gas for low temperature heating diminishing over time in (Western) Europe due increasing insulation of housing and commercial buildings and substitution towards renewable energy sources, gas needs to find new markets. Gas-to-chemicals offers a higher value application of gas: gas is a cost effective and readily available source of hydrogen and hydrocarbons for the chemical industry.

Read Part 2 of Liv Hovems interview: Driving the European gas industry forward, DNV GL explains

Liv Hovem will be participating in a panel discussion on Costs in the Commodity Downturn at the European Autumn Gas Conference in The Hague next weekBook your delegate place and join leading natural gas experts.

Subscribe to our  Newsletter & Follow us @GasInteract


Restaurant JAG - We Are Open
Morning Briefing on Workplace Wellness with Cigna, Wednesday, November 14, 2018
Hear from the leaders in solar on the latest trends and updates
Final chance to sponsor the Accounting & Finance Show ME 2018
Join international cleaning exhibitors
The Largest Canadian Infrastructure Project in History Goes Ahead
Visit ADIPEC 2018 to source 1000s of products and services for the oil and gas industry
Where is healthcare going. Get the Report
20 Percent OFF Tuesdays for MyCLUB
Win a trip to San Francisco with du Tuesday
FM EXPO - open today from 10:00 - 19:00
Securing The Enterprise From Mobile Malware
Join the largest retail gathering in the Middle East
Find out who is attending the technical conference at ADIPEC 2018
Morning Roundtable Series on Emerging Trends in Intellectual Property (IP) Rights with The White Houses IP Enforcement Coordinator, September 26, 2018
Schlumberger joins list of global partners supporting UIOGS 2018
10th Amcham Abu Dhabi Annual Roundtable Summit
GPEX 2018 Opens Next Week
Establishing a Long Term Vision for Abu Dhabi Energy Sector
Registration for ADIPEC 2018 and connect with the worlds leading oil & gas organisations
Spend overseas with RAKBANK Mastercard and win $2,500 every week
Waste and Recycling at a glance
UAE Labour Law Workshop
Measuring what matters: Wellness at your workplace - Oct 1 - H Hotel
Schedule at Gastech 2018
3rd Annual GCC HVAC Summit and Awards
Call for speakers, Seamless Retail and E commerce Middle East 2019
Learn about North Americas gas and LNG industry in this 30-minute webinar
Want to network with all of West Africas oil and gas community under one roof
Gas and renewables to feature more prominently in South Africas updated Energy Plan - Hear more at the DLO Africa Power Roundtable London October 2018
Play Fun and Exciting Games throughout the Evening and Win Many Fabulous Prizes
Gas Indonesia Summit & Exhibition From 1-3 August 2018
CUPET International Bid Round
Join KNPC, KOC, Saudi Aramco, at the World Digital Refineries Congress