Page 40 - ΝΑΥΤΙΚΑ ΧΡΟΝΙΚΑ - SEPT 2025

Shipping markets

Through our subsidiary, BW LPG India,
which owns and operates the larg-
est fleet of Indian-flagged VLGCs,
we have gained valuable experi-
ence in the Indian LPG market and
are firm believers in the fuel’s prospects
in India. We are also seeing signs that
India is looking to diversify its energy
sources by importing more from the US,
which in turn is increasing its shipping
capacity.

What are the prospects for the
ammonia/VLAC market? What
challenges should be addressed
for ammonia to be considered a
viable marine fuel option?
The development of the VLAC mar-
ket is closely tied to the realisation of
large-scale blue ammonia projects in
the US over the coming years. A key
enabler for this will be the establishment
of long-term offtake agreements with
importers in the Far East, which would
and corporate investment decisions. drive demand for long-haul transporta-
That said, the current political environ- tion of ammonia in significant volumes,
ment under President Trump appears suitable for VLAC deployment.
more favourable for permitting new At present, the ammonia trade is effec-
natural gas and crude oil projects. This tively served by midsize and handysize
could, in turn, lead to increased LPG LPG carriers, and most of the existing
availability for export. onshore infrastructure is not yet con-
Moreover, we view the planned invest- figured to accommodate VLACs. Over-
ments by US export terminal operators all, the pace of growth in the ammonia
as a positive sign for the future growth trade has been slower than initially
of LPG exports, as they are expected anticipated and remains reliant on
to support a sustained demand for LPG supportive policy measures, such as
shipping capacity. the US Inflation Reduction Act (IRA),
to gain momentum.
Why is BW LPG enhancing its presence From a technical perspective, the LPG
in the Indian market? What are shipping industry has decades of expe-
India's prospects in the seaborne rience handling ammonia as cargo.
LPG trade? However, for ammonia to become
India is the second-largest importer a viable marine fuel, several consider-
of LPG, where it is primarily used able challenges must be addressed,
for heating and cooking. The coun- including the commercialisation
try already accounts for 50% of LPG of ammonia-compatible propulsion
exports from the Middle East, and technology and engines, the resolution
with the world’s largest population of safety concerns related to its use,
on a path toward prosperity, its energy and the establishment of a cost-com-
needs are expected to grow. LPG fits petitive fuel supply chain. The new
well into India’s energy mix – it is easy emission regulations are beginning
to distribute, competitively priced, to support this transition through
and a versatile energy source. Due to a combination of taxes and subsidies,
this versatility, we anticipate that India and we remain cautiously optimistic that
will use additional LPG as feedstock for a technically and economically viable
its growing petrochemical industry, sim- pathway will emerge.
ilar to what we’ve seen in China.

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