Drewry Maritime Equity Research - Dual-fuel LPG propulsion: A smart decision or a premature move?

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Ishan Dafaria

Dual-fuel LPG propulsion: A smart decision or a premature move?

BW LPG’s BW Gemini is the first of 12 vessels to get retrofitted with dual-fuel propulsion engines in China. On 4 November 2020, the
vessel received class certification and embarked on a historic Transpacific voyage with LPG as its primary fuel. In order to comply with
the IMO 2020 sulphur emission guidelines, BW LPG opted for LPG dual-fuel engines over exhaust gas scrubbers and VLSFO. While BW
LPG has widely marketed the various benefits of the technology, its peer Dorian LPG has opted for scrubber retrofits. EPIC Gas, a smaller
vessel operator, has stated that it does not intend to use this technology at least until 2030 as it does not make “economic sense” at this
point in time. It is noteworthy that the cost of retrofitting is close to $9 million per ship.

23/11/2020 1 EN

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Drewry Maritime Equity Research

Drewry, since 1970, has been providing research and advisory services on the global Maritime and Shipping industries and has established itself as a firm with long history of credibility and expertise on various aspects of the maritime industry. Leveraging this in-depth market knowledge and understanding, we have extended our offering to deliver a unique, independent investment research service on globally listed companies operating in the maritime industry. Under the brand Drewry Maritime Equity Research and in accordance with the FCA, DMER led by Rahul Kapoor and his team, offers fundamental analysis on listed companies. DMER analysts have access to one of the most up-to-date, comprehensive and reliable sources of market insight and research data available today. By combining these market-leading resources with seasoned sector expertise and commercial awareness, we are able to offer a highly differentiated and comprehensive investment research service to prospective investors in listed maritime companies. We look at globally listed companies within the following sectors: Port Operators, Container Shipping, Container Manufacturing & Leasing, LNG Shipping, Dry Bulk Shipping and Tanker Shipping. Combine in-depth sector expertise with financial analysis focusing on over 50 stocks globally.

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Analysts

Ishan Dafaria

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Dual-fuel LPG propulsion: A smart decision or a premature move?

Westports_Result Update 3Q22

Star Bulk Carriers - Changing our view to Neutral as market gets challenging in 2023

Nordic American Tankers to benefit from improved supply-demand fundamentals of mid-sized tankers

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