Fuel Variants For LR1 Product Tankers

 

Considering the current volatile market situation, the conclusions are quite different depending on the development of fuel prices.

 

The goal of this study was to analyse costs and benefits of various fuel options for a newbuild. The alternative fuels selected included LNG, LPG and methanol and others. The costs and benefits were determined by looking at the additional investment and operating costs compared to a standard fuel variant using HFO and MGO. 

 

An LR1 product tanker on a fixed route was selected for a financial analysis. The machinery set-up was the same for the various fuels except for the fuel system. The ship was assumed to operate on a route between North America and northern Europe. 

 

Based on AIS data, the typical speed for similar-sized product tankers on comparable trades was determined to be 12.5 knots. This speed was then used as the fixed transit speed of the ship. For the selected operating pattern, 87 per cent of the time is spent in transit, three per cent in approach and ten per cent in port.