"Hapag-Lloyd First to Convert Large Containership to LNG"

Even with the demand for scrubbers bumping up prices as we approach 2020 converting is still more expensive in the short run. What this action means is that Hapag Lloyd thinks they can make up the difference on lower LNG costs and there are indications that they are right. Natural gas is cheap and looks to remain that way for a few years.

From World Maritime News:

German shipping major Hapag-Lloyd has revealed its plans to retrofit its 15,000 TEU ship Sajir to operate using liquefied natural gas (LNG).

The contract for the retrofitting was signed last week with Hudong HONDHOA Shipbuilding, the company said, adding that the conversion would be carried out in the Shanghai-based shipyard Huarun Dadong Dockyard.

During its time in the shipyard, the ship’s fuel system and its existing heavy fuel oil-burning engine would be converted into a dual fuel engine. The company’s plan would be to operate the vessel using LNG, but to also be able to use low-sulphur fuel oil as a backup.

“By converting the ‘Sajir’, we will be the first shipping company in the world to retrofit a container ship of this size to LNG propulsion,” Richard von Berlepsch, Managing Director Fleet Management at Hapag-Lloyd, said....MORE

It should be noted that the ship was designed to be LNG ready but the conversion is still a bet on natural gas prices.