| | | LNG ready to take off as an aviation fuel
by: Paul Garvey From: The Australian July 04, 2013 12:00AM
theaustralian.com.au
THE global aviation industry has been identified as a significant potential new market for liquefied natural gas producers that could help shore up demand and prices into the future.
Graham Dorrington, an aeronautical engineer and a senior lecturer at Melbourne's RMIT University, told The Australian he had met with groups such as European aircraft giant Airbus and was convinced that LNG could be a viable fuel source for the industry.
Dr Dorrington said LNG use would generate substantially lower emissions than traditional kerosene fuels and could eventually emerge as a much cheaper fuel source for airlines.
In addition, LNG for aviation could emerge as a premium-priced product and provide an extra earnings stream for companies that produce the commodity, he said.
Dr Dorrington's findings, if realised, could open up a new revenue source for LNG companies at a time when the longer-term dynamics in global gas markets are under scrutiny.
The rise of shale and coal-seam gas in North America and elsewhere has threatened to drive up gas supplies into the key Asian markets, potentially undercutting the prices received by the companies currently spending more than $200 billion building LNG facilities along the Australian coast.
Speaking on the sidelines of the Australian Gas Technology conference in Perth, Dr Dorrington noted that the changing nature of the gas market had seen LNG prices start to decouple from oil prices, which could open up a major pricing advantage for the use of LNG in aviation.
He said there were no technological barriers to using LNG in aviation, noting that some Russian aircraft in the 1980s had been powered by the fuel.
"I've looked at it from every angle. (The aircraft manufacturers) can do it and it's well within their technical capability," Dr Dorrington said.
He said the biggest delays to getting LNG off the ground as an aviation fuel would be the rollout of LNG infrastructure at airports, and the certification of LNG-fuelled aircraft by regulatory bodies. "If Airbus decided today that they wanted to convert their A380s to LNG, it would take them five to seven years to get them to fly because of all the paperwork and safety testing," he said.
Using LNG instead of kerosene would deliver an immediate 20 per cent drop in carbon emissions, he said, which could appeal to an airline industry that is under pressure from governments around the world to curb greenhouse emissions.
Forecasts of major growth in gas supplies over the coming years could also see LNG become a much cheaper fuel source for airlines. Fuel accounts for 30-40 per cent of their costs.
LNG needs to be kept at a temperature of -160C or lower to retain its liquid form, but Dr Dorrington said insulation would be able to achieve that.
In the event of a plane crash, Dr Dorrington said LNG would prove safer than kerosene. LNG evaporates quickly when exposed to open air, whereas kerosene is more prone to burn.
LNG is in limited use as a transport fuel, but the changing gas dynamics are seeing increased efforts to introduce it into long-haul logistics.
Royal Dutch Shell recently began rolling out a network of eight LNG refuelling ports at existing truck stops along the Hume Highway between Sydney and Melbourne.
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LNG could ensure airline growth and reduce ticket prices
by Ferret
ferret.com.au
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