Australia's plans for a huge increase in its production of liquefied natural gas (LNGLF) are being dealt a big blow by a series of production delays, as energy companies struggle with technical problems and cost overruns. The country is still likely to become the world's biggest LNG exporter, dispatching about 85 million tonnes a year by the end of the decade, up from 30.7 million tonnes in 2015 and 45.1 million tonnes last year.
Not every analyst is as convinced as our readers on prospects for the liquefied natural gas trades, writes Jason Jiang. Splash readers have chosen LNG as the best shipping segment in 2017 in an ongoing online poll. However, research institutes and shipowners remain cautious about the outlook.
One of China’s leading LNG equipment manufacturers has released a number of innovations to support the nation’s push for LNG for shipping. CIMC Enric has designed large-capacity LNG tanks that it says will redefine ocean transport of LNG. The new 40-foot (12.2 meter) containers passed security tests in the United States recently. They enable LNG imports in small batches suitable for multi-modal road, rail and water transport.
Mitsui O.S.K. Lines has reached an agreement to launch a joint study of a liquefied natural gas (LNG)-fueled Capesize bulker with five other companies- BHP Billiton, DNV GL, Rio Tinto, Shanghai Merchant Ship Design and Research Institute (SDARI) and Woodside Energy.
I.M. Skaugen has announced that it has signed long-term contracts for the time charter of three multi gas vessels. The ten-year contracts are for two 10,000 cbm and one 12,000 cbm multigas vessels, and valued at around $420m in total. The charterer was not disclosed. The contracts are for a project representing a proof of concept of I.M. Skaugen’s small scale LNG logistics solutions (SSLNG) – providing natural gas for power generation.
New Guide provides standards for growing LNG bunkering vessel sector. ABS, a provider of classification and technical services to the marine and offshore industries, has published the ABS Guide for LNG Bunkering. This new Guide provides standards for the design, construction and survey of LNG bunkering systems that are on board a vessel.
A rapid increase in liquefied natural gas supplies is threatening to flood the market for at least the next three years, forcing producers and traders to find more nimble ways to place cargoes of the super-chilled fuel into the global market. The looming glut is focusing attention on whether existing customers stretching from Asia to the UK will benefit from lower prices, but also whether LNG can increase its market share by utilising a growing fleet of ships that can deliver directly into power plants and gas networks.
Singapore Exchange (S68.SI) (SGX) is developing a spot pricing index for the Middle East and India liquefied natural gas markets (LNG) in collaboration with inter-dealer broker Tullett Prebon, says WSJ. The index is aimed at market participants who are forced to rely on tenders for setting up prices due to the lack of an accepted price marker.
A new record for gas exports from Norway was set in 2016, when 108.56 billion standard cubic metres (scm) (3.8 tcf) were delivered within Gassco’s operatorship to Germany, Belgium, France and the U.K. In 2015, 108.44 billion scm of gas were exported from the Norwegian continental shelf to European buyers.
The biggest divergence between U.S. and Asian gas prices in a year has created an opportunity for tankers delivering liquefied natural gas, with most departures from a key Louisiana terminal in the last month-and-a-half heading toward East Asia, shipping data released on Wednesday show.
On Thursday, the U.S. Energy Information Administration (EIA) published its Annual Energy Outlook for 2017, one of the most closely watched long-term forecasts for the petroleum, gas, coal and renewables markets.
Global LNG markets are in the midst of profound changes. These are happening under conditions that are very different to those anticipated two years ago.
A more substantial increase in LNG supply is under way, demand appears weaker and oil and gas prices have collapsed.
Enagás sees its native Spain as a crossroads that can supply LNG as marine fuel to global deepsea shipping. Gas assets general manager Claudio Rodriguez tells Karen Thomas how the energy giant is expanding along the LNG supply chain – at home and abroad
Gasunie hopes to start work this year to develop “a midsize LNG terminal in the Hamburg region” to support German moves to import its first cargoes of liquefied gas.
January is traditionally a time to look forward. And so LNG shipping turns its focus to the year ahead and to the developments and the trends that will shape our market.
LNG World Shipping’s next infographic will highlight how much new supply is due to hit the market between now and 2020. Of a total 120.2 million tonnes a year (mta) of LNG-producing capacity confirmed to year-end 2020, this year’s share comprises a – relatively – modest 24.9 mta.
Low energy prices, depressed day rates and slow growth of bunkering infrastructure has dampened progress for the marine industry’s ‘white knight’ of environmentally friendly fuels. LNG, nevertheless, is here to stay.
Although 2018 is touted as the year when the benefits of a recovering LNG market will be felt, 2017 will not be short on good news.
Momentum is building for a return to a healthy, balanced industry and will gain strength in the coming year. Volumes of LNG shipped by sea are expected to grow by 11 per cent in 2017, pushing global trade above 300 million tonnes per annum (mta) for the first time.
Antonis Trakakis, Technical Manager, Arista Shipping, responded to GREEN4SEA questions regarding company’s plans and aspirations for the next year. Mr Trakakis said that Arista Shipping, being the leader of a joint development project called Project ‘Forward’, will commit further to adopting LNG as fuel to commercial vessels in 2017 as well.
Skangas has signed an agreement with Statoil for a small-scale LNG reload at the Klaipeda LNG Terminal in Lithuania. The reload will take place early January 2017 and will be the first conducted at the terminal. The floating LNG terminal at Klaipeda started operations in 2014 with the arrival of the FSRU Independence as part of Lithuania's efforts to reduce dependency on Russian gas. Independence was built by Hyundai Heavy Industries and is leased from Höegh LNG.
Japan’s Ministry of Land, Infrastructure, Transport and Tourism, announced that a feasibility study on the development of LNG bunkering hub at the port of Yokohama has been completed.
On Friday 23 December, ENGIE and the Turkish construction companies Kolin and Kalyon inaugurated the ETKI LNG terminal. The facility, located close to Çakmakli, Izmir, is the country’s first floating liquefied natural gas import terminal.
The number of cars on roads was limited and factories were temporarily shut in some northern Chinese cities on Monday to reduce pollution during a national smog red alert. More than 700 companies stopped production in Beijing and traffic police were restricting drivers by monitoring numberplates, state media reported. In choking conditions, dozens of cities closed schools and took other emergency measures after the alert was issued for much of northern China.
The number of ports planning to offer LNG bunkering facilities is growing, and oil majors are increasingly looking at adding this service to their portfolio. IBIA’s Annual Convention heard about concrete plans in Tenerife, and by the oil major Shell, and got a forecast from SGMF about the uptake of LNG bunkers in the next 7-10 years.
China’s Tianjin Port has suspended all operations until December 21, due to an air pollution red alert issued by the city government.
Most regions of North China are suffering heavy air pollution. The Central Meteorological Observatory warns that Beijing, Tianjin, Hebei, Shanxi, and Shaanxi will experience severe haze and the pollution will peak from Monday to Wednesday.
A unique LNG-fuelled ship operated by SeaRoad of Australia has arrived at its home port, Devonport, Tasmania. Searoad Mersey II is the first coastal ship in Australia to use LNG fuel and the first pure dry cargo ship in the world to use a roll-on roll-off LNG supply system.
All of the ship’s principal engines are dual-fuel, burning LNG as the primary source of energy. In regular service, Searoad Mersey II will use diesel for less than one percent of ship operations.
ABS was recently added as one of the newest partners to the SEA\LNG coalition. The objective of the coalition is to accelerate the widespread adoption of LNG as a marine fuel.
Company teams up with US and Japanese firms to supply Singapore’s first LNG bunker tanker.
In the build up to this year’s World LNG Summit, CWC interviewed Richard Nelson, Partner, King & Spalding.
You’re chairing the session on LNG demand at the 17th World LNG Summit in December, where do you consider to be the best LNG demand growth prospects?
Pasha Hawaii recently announced that the company has narrowed its selection to two U.S. shipyards for the construction of two new Liquefied Natural Gas (LNG) fueled containerships, with the option to order two additional vessels. Contract specifications are expected to be finalized by the end of the month, with the final selection decision anticipated in January 2017.
Honolulu-based Pasha Hawaii today announced that the company has narrowed its selection to two U.S. shipyards for the construction of two new Liquefied Natural Gas (LNG) fueled containerships, with the option to order two additional vessels. Contract specifications are expected to be finalized by the end of November, with the final selection decision anticipated in January 2017.
In the build up to this year’s World LNG Summit, CWC interviewed Richard Nelson, Partner, King & Spalding.
Peter Keller is the executive vice president of TOTE Inc. and the chairman of the SEA\LNG coalition, a consortium of prominent suppliers, shipping firms, class societies and others who are working to lower barriers to the adoption of LNG as a marine fuel.
The pressure on Europe to take action on shipping’s climate emissions is building after the International Maritime Organisation (IMO) decided last month to delay by at least a further seven years any decision on a global agreement to cut greenhouse gas emissions (GHG) from ships, Transport & Environment reports. Leading members of the European Parliament called the delay an abject failure by national governments and the shipping industry.
Whilst LNG has proven to be a viable option as a bunkering fuel for ships, there are still challenges to the pace of its development and demand for LNG as a fuel. One of the obstacles to the accelerated uptake is the uncertainty regarding its availability. DNV GL is undertaking a new study on the LNG market in the EU as part of its efforts to drive the development of an EU-wide network of LNG refuelling points. The company has also developed a new tool and guidelines to facilitate wider adoption.
Greater use of LNG as fuel would reduce global emissions of greenhouse gases, but barriers remain to its widespread adoption. One challenge is the varying compositions of LNG fuel globally, which can lead to engine damage and failure. DNV GL has now addressed this by developing a new online PKI Methane Number Calculator to match fuel quality with an engine’s requirements, and which can also support the development of an international standard.
he European Investment Bank and France’s Société Générale have signed a framework agreement to mobilise €150m of support for shipbuilding projects that promote “sustainable transport and environmental protection”. The agreement is the first time the EU guarantee mechanism has been used to deliver emissions reductions from the shipping industry. The move was backed by the French government, which hinted the deal could be followed by similar investments.
ENGIE has signed a Memorandum of Understanding (MoU) with Wärtsilä, a global leader in advanced technologies and complete lifecycle solutions for the marine and energy markets to develop solutions and services in the small scale LNG business.
BANGKOK/TOKYO -- Southeast Asian nations could soon double import capacity for liquefied natural gas as domestic energy sources fall short, collectively becoming a key player in the global LNG market.
Energy providers in the region will boost annual LNG receiving capacity from 25 million tons to some 50 million tons over the next five years. The expanded figure equates to about 20% of the LNG carried on tankers worldwide in 2015.
The IMO’s Marine Environment Protection Committee (MEPC) agreed to limit Nitrogen Oxide (NOx) emissions from ships' exhaust gases during its meeting last week. The agreement relates to both the Baltic and North Seas, and final confirmation is expected at the next MEPC meeting in spring 2017.
IMO MEPC 70 has agreed to limit Nitrogen Oxide (NOx) emissions from ships’ exhaust gases in the Baltic Sea as proposed by HELCOM countries. A similar proposal from the North Sea countries was also approved. After final confirmations at the next MEPC meeting in spring 2017, these two decisions will create a larger Nitrogen Emission Control Area (NECA) for new ships built in or after 2021.
Gazprom approved the development program for 2017-2019 that includes construction of natural gas filling stations and the production and use of small-scale LNG.
The development program for small-scale LNG production and use includes a list of gas distribution stations and liquefaction technologies most suitable for LNG production, the company said in its statement.
Multi-sector coalition SEA\LNG has announced its board of directors. This follows the announcement that Peter Keller, Executive Vice President of Tote Inc., will chair the coalition.
The board of directors is responsible for the strategic development and oversight of SEA\LNG’s vision, mission, objectives and activities, directed towards the accelerated use of LNG as a marine fuel.
Furetank and Älvtank extend the order with two more of next generation Intermediate Product/Chemical Tankers with LNG propulsion. Furetank Rederi AB and Rederi AB Älvtank have added the previous order with two more newbuildings.
Last year a contract signed by the constellation Furetank, Älvtank and Thun Tankers to let build four chemical/product tanker in the intermediate segment of the Chinese shipyard Avic Dingheng Shipbuilding.
The International Maritime Organisation (IMO) has come to a broad agreement to implement a global 0.5% limit on the sulphur content of fuel from 2020.
The current limit is 3.5%. The chair at the marine environment protection committee (MEPC) meeting indicated the date rather than the 2025 alternative in a decision to be confirmed on Friday.
Our gas-to-liquids technology turns natural gas into high-quality liquid fuels, base oils for lubricants, and other liquid products usually made from oil. It is founded on more than 40 years of research, development and commercial experience.
The world’s leading maritime nations are leaning toward setting rules next week to cut the sulfur in oceangoing vessels’ fuel by more than 85% in 2020, people familiar with the matter say.
The rules are aimed at reducing the air pollution from burning high-sulfur fuel oil—a viscous refining byproduct—that health officials blame for respiratory and heart diseases. Shipping executives say it would cost around $40 billion for the industry to meet the new rules, with some of the outlays starting soon, during one of the sector’s worst-ever downturns.
With the price differential between oil and LNG sending mixed signals to the market, is the time right to look at small scale LNG? This article will outline six key reasons why the outlook is positive.
The Sustainable Shipping Initiative (SSI) sets out what it believes are the required immediate actions for creating a framework to reduce Greenhouse Gas (GHG) emissions from shipping.
LNG supplier Bomin Linde LNG has secured the largest LNG bunker supply vessel of its kind to date with a capacity of 7,500 cubic meters (two million gallons). Commissioning of the vessel is scheduled for late 2018, and Bomin Linde LNG will be using it to supply marine customers and small-scale LNG terminals along the Baltic Sea coast.
JAX LNG has announced that it has completed the engineering and procurement contracts required to begin construction of a new liquefied natural gas (LNG) liquefaction and storage facility in Jacksonville, Fla.