In this issue

 

Thursday, 11 January 2018
French banking group Societe Generale has become the first financial institution to join multi-sector industry coalition SEA\LNG. 
Free ReadThe Maritime and Port Authority of Singapore (MPA) has announced plans to invest S$12 million to boost LNG bunkering at the Port of Singapore.  Around half of the investment will be…
Thursday, 11 January 2018
Singaporean LNG supplier Pavilion Gas has been awarded a contract by PSA Marine for the supply of LNG bunker fuel from 2019. 
Thursday, 11 January 2018
Authorities in South Korea have backed investment in LNG-fuelled newbuild vessels as part of a strategy to restore the country’s position in the global shipbuilding sector. 
French energy firm Total has signed a strategic agreement with shipping line CMA CGM to provide LNG for its newest container ships. 
Free ReadShipbuilder China Merchants Industry Holdings has signed a Letter of Intent (LoI) with cargo firm Jumbo to construct an LNG-powered heavy-lift vessel.  The deal marks one of the largest heavy-lift…
Thursday, 14 December 2017
Marine transportation and fuel storage specialist Teekay Offshore has declared options with Samsung Heavy Industries for the construction of two LNG-fuelled tankers. 
Thursday, 14 December 2017
Scandinavian fuel supplier Skangas has signed an agreement with the UK’s National Grid for provision of LNG via the Isle of Grain import terminal. 
Free ReadFuelling specialists LIQAL and Technical Services Group (TSG) have signed a partnership for the resale and servicing of LNG fuelling systems for road transport.  The deal will see Netherlands-based LIQAL…
Cryogenic membrane containment developer GTT and technology group Wärtsilä have finalized a cooperation agreement to explore potential business opportunities in relation to LNG for the marine sector. 
Maritime services firm KVH Videotel has launched an LNG bunkering training course designed to teach crew and port staff best practice to conduct bunkering processes safely. 
Uptake of LNG as a fuel for shipping has so far proven slower than expected but is now primed to accelerate, according to the latest research from standards agency DNV…
Thursday, 30 November 2017
Free ReadThe Scottish First Minister Nicola Sturgeon has presided over the launch of the UK’s first LNG passenger ferry on the Clyde in Scotland.  The 102-metre, roll-on/roll-off vehicle passenger ferry has…
Thursday, 30 November 2017
Malaysian oil major Petronas has signed an agreement with Argo Engineering and Eastport Marine to provide LNG services in Labuan, Malaysia.

News Nudges

Affinity facilitates first LNG freight swap

Trading specialist Affinity has facilitated the first LNG freight swap settled against the Baltic Exchange LNG spot assessments. "With liquidity increasing in the LNG market in recent years, freight has come under the spotlight as participants look to manage their exposure to vessel spot rates. Using the Baltic Exchange's rate assessments, we are able to help clients benchmark their freight exposure and develop a forward market for hedging price risk,” Benjamin Gibson, Head of LNG Derivatives at Affinity, said. The move is expected to bolster the case for LNG fuelling as it “represents an important milestone in the development of an LNG forward freight market”. "Initial trades are all about testing the settlement mechanism. Now is the time to try things and see how they work. We have lots of interest in the Baltic's forthcoming Atlantic routes and a weighted average of routes to give a global LNG freight benchmark," added Gibson.


Clarksons: LNG demand driving global fleet growth

Rapid growth in LNG infrastructure is fuelling an increase in the global fleet of LNG carriers, according to the latest data from consultancy Clarksons Research. The firm predicts that the global LNG carrier fleet will expand by 5.6% and 6.9% in 2019 and 2020 respectively, rising form a base of 570 vessels as at the end of June 2019. “Global trade in LNG continues its strong growth phase, with an expected 8.4% growth in 2019 and 7.4% in 2020… With 93 million tonnes per annum of export capacity under construction, and a further 313 mtpa of capacity at FEED, growth potential remains strong,” Steve Gordon, managing director at Clarksons Research, said. Longer term modelling by Clarksons also suggests that the LNG fleet will outnumber the VLCC fleet by 2026, with growing interest in small scale LNG, FSRU, FLNG and LNG as a marine fuel. “This trade expansion, combined with high day rates for vessels trading on the short term market over the past twelve months, has supported newbuilding orders totalling US$17 billion since start 2018 and helped build a total newbuilding orderbook of 25% of the fleet (US$24.5 billion),” he said. Clarksons forecasts that between three and four percent of world tonnage will be “LNG fuel capable through 2020”, with the majority still in LNG carrier sector. LNG infrastructure is also set to continue growing, with number of ports equipped with LNG bunkering having increased from approximately 20 to 100 in the past five years.


Virginia first U.S. port to join SEA/LNG

The U.S. Port of Virginia is the latest to join the SEA/LNG consortium as it plans to scale up LNG bunkering operations. The port is the first in the U.S. to join the multi-sector industry coalition and in in March established a working group to examine the benefit and scalability of LNG bunkers for maritime trade. “We’re very pleased to welcome the Port of Virginia as our first US port member. The US has vastly increased its LNG export capacity since the industry really took flight in early 2016, inspiring development in LNG bunkering capabilities on the East and West Coasts. The addition of the Port of Virginia to the coalition marks the climbing interest in LNG as a commercially viable, environmentally sustainable fuel for US domestic and international shipping,” Peter Keller, Chairman, SEA\LNG, said. SEA\LNG’s mission is to address the key barriers to the adoption of LNG; advocating for collaboration, demonstration, and communication amongst industry players. The coalition includes ABS, Carnival Corporation, DNV GL, Eagle LNG Partners, ENGIE, ENN Group, GE, GTT, JAX LNG, Keppel Gas Technology, Lloyd’s Register, Mitsubishi, NYK Line, Port of Rotterdam, Qatargas, Shell, Total, TOTE, Toyota Tsusho, YKIP, Marubeni, and Wärtsilä.