In this issue

 

Industry consortium SEA\LNG has welcomed its first port member in North America with the addition of the Vancouver Fraser Port Authority (VFPA). 
Joint venture fuel supplier Marine LNG Zeebrugge has signed an agreement with Norwegian energy group Equinor for provision of LNG to multiple crude shuttle tankers at the port of Rotterdam. 
Free ReadThe Gothenburg Port Authority has launched a new bunkering app to ease the use of LNG bunkering at the Energy Port on the west coast of Sweden.  The digital solution…
Norwegian shipping line Knutsen OAS has selected Finnish equipment manufacturer Wärtsilä for the supply and installation of an integrated LNG propulsion and cargo handling solution on a newbuild vessel. 
Singaporean tanker operator AET has completed the first ship-to-ship (STS) LNG bunkering of its newest Aframax tankers at the port of Rotterdam in the Netherlands. 
Free ReadLNG-fuelled container feeder vessel Wes Amelie has completed a world first ship-to-ship refuelling operation, having bunkered with the world’s largest LNG supply vessel Kairos in Sweden.  The operation was completed…
The world’s first LNG-fuelled icebreaker vessel, Polaris, has completed bunkering operations in Finland, ahead of planned operation in the Arctic. 
Infrastructure provider BUA Group is to utilise LNG fuel to power a new cement production facility under construction in Nigeria. 
Joint venture bunker specialist FueLNG has completed its 100th LNG bunkering operation in Singpaore, setting “a new industry milestone” for the island state. 
Free ReadSingapore state-owned developer Pavilion Energy has chartered its first LNG bunker vessel for the supply of LNG in the Port of Singapore.  The vessel is the largest LNG bunker vessel…
The global LNG-fuelled fleet is set to double by 2022, as demand for bunker fuel grows ‘significantly’, according to research by The Oxford Institute for Energy Studies (OIES). 
Thursday, 31 January 2019
The board of directors of Russian national energy firm Gazprom has backed plans to support new LNG bunkering investment in line with expected growth in LNG consumption. 
LNG bunker vessel Coral Methane has completed its first ship-to-ship refuelling operation, in Tenerife in the Canary Islands. 
Free ReadFollowing a tipping point for LNG as a marine fuel last year, industry demand is expected to increase sharply in 2019, according to multi-sector coalition SEA\LNG.  In an outlook statement SEA\LNG…

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.