China’s Guangdong province is boosting the use of LNG as fuel and plans to convert a large number of inland vessels to run on chilled fuel as part of a new project signed on Friday.

To implement the plan which aims to reduce emissions, the Guangdong government has teamed up with the China State Shipbuilding Corporation and China National Offshore Oil Corporation.

The two Chinese giants will implement the project led by the provincial government.

The framework cooperation deal promotes conversion to LNG power for inland waterway vessels in Guangdong, especially along the Pearl River, according to a CSSC statement.

Under the project, Guangdong would complete the LNG conversion of about 1,500 inland vessels and build 19 bunkering facilities by 2025, the statement said.

This will lead to the annual demand for LNG as a bunker fuel rising to 400,000 tonnes per year once the project is complete, replacing oil-based fuels.

It would also reduce nitrogen oxide emissions and particulate matter from ships in Guangdong province by 12.6 per cent and 19.5 per cent, respectively, the statement said.

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