A coalition spanning the shipping and renewable gas sectors has raised alarm over a proposed European Union rule change that it says could restrict the flow of renewable LNG to vessels, according to Ship & Bunker.
According to Ship & Bunker, the warning came in a joint statement issued on Tuesday, signed by trade body Eurogas along with 44 other organisations. Signatories include LNG advocacy group SEA-LNG, energy major Shell Energy, container line CMA CGM, cruise trade body CLIA, and TotalEnergies.
What’s at Stake
The coalition’s concern centers on proposed revisions to Commission Implementing Regulation (EU) 2022/996, which they argue could undermine a mechanism known as “liquefaction by equivalence,” Ship & Bunker reports. This system currently allows renewable gas injected into Europe’s existing gas grid to be certified and accounted for as renewable LNG delivered to ships, without the physical gas needing to be transported to an LNG terminal.
According to the joint statement cited by Ship & Bunker, the proposed methodology would attribute fossil LNG supply-chain emissions to bio-LNG and e-LNG delivered through this mass-balance accounting system. The groups argue this would artificially inflate the reported carbon intensity of renewable fuels, even though those fossil-related emissions do not actually originate from the renewable fuel supply chain itself.
Industry Pushback
The signatories warned that such a change would reduce the availability of renewable LNG fuels, drive up compliance costs for shipowners operating under the EU’s FuelEU Maritime regulation, and dampen investment incentives for biomethane and e-methane production, Ship & Bunker reports.
Andreas Guth, Secretary General of Eurogas, was quoted in the statement as saying: “Restricting a proven pathway for supplying bio-LNG and e-LNG under the proposed certification changes risks reducing fuel availability and penalising shipping companies that rely on these fuels to meet FuelEU Maritime requirements.”
The coalition has called on the European Commission to ensure that any new certification methodology accurately reflects the actual emissions generated within renewable fuel supply chains, rather than incorporating unrelated fossil fuel emissions, according to the report.
Does This Matter to You?
Shipowners and operators using LNG-fuelled vessels to comply with FuelEU Maritime requirements could face higher compliance costs and reduced access to certified renewable LNG if the proposed EU methodology proceeds as described. Bunker suppliers and traders involved in LNG bunkering may also see effects on fuel availability and pricing structures tied to renewable fuel certification. Given that FuelEU Maritime compliance is increasingly tied to fuel carbon intensity classifications, any change to how bio-LNG and e-LNG are certified could directly influence fuel procurement decisions and cost planning for vessels reliant on gas-based propulsion.
Gulf Bunkering does not provide operational or security guidance. This article is for informational purposes only. Operators should consult flag state authorities, P&I clubs, and relevant advisories for decisions relating to transit planning.
Sources: Ship & Bunker
