LNG as a Cost-Effective and Environmentally Friendly Solution for Short-Sea Shipping

The objective of this thesis is to evaluate the use of LNG as a cost-effective and environmentally friendly solution for the ship-owners to accommodate the already existing and implemented regulations, as well as those upcoming, concerning the air emissions of the shipping industry. The method used to evaluate the economic feasibility of LNG and its most common alternatives, namely MGO and HFO, is the development of pricing scenarios for oil and natural gas and the calculation of the Net Present Value for each alternative. The input data were obtained from the literature and The Internet, when available, and other are based on own estimations and assumptions. This study concludes that LNG is not only a cleaner fuel than both HFO and MGO, but it is also the most cost-effective solution in most of the examined scenarios.