Vancouver to play host to LNG2023
Canadian LNG will be in the spotlight at LNG2023 between 10th and 13th July, 2023 in Vancouver, BC. The global conference, which is the 20th edition of the largest triennial LNG conference and exhibition, is being hosted by the Canadian Gas Association (CGA). Jason Klein, CEO of LNG Canada, will open the conference on the first day speaking about ways the LNG Canada project, under construction in Kitimat, on the traditional territory of the Haisla Nation, can help provide global energy security, while reducing global greenhouse gases emissions by supplying LNG to displace coal as an energy source. Up to 15,000 delegates and stakeholders from more than 85 countries are expected. The event will feature more than 250 speakers and 150 exhibitors. “Canada is on the cusp of becoming an LNG exporting leader in a world demanding reliable, sustainable sources of responsibly produced energy. “Our future LNG business will provide security of supply for global markets that rely on Canada’s natural gas reserves to fuel their economies, reduce global GHG emissions as natural gas replaces the use of coal, and bring significant economic growth and stability to British Columbia,” Klein said. LNG2023 is presented by the International Gas Union (IGU), GTI Energy and the International Institute of Refrigeration (IIR). It is hosted by the Canadian Gas Association (CGA), and supported by incoming 2026 host, QatarEnergy.
Eesti Gas agrees LNG cargoes - wants more
Estonian gas supplier Eesti Gaas said it will have imported 14 LNG cargoes in the January/September period this year. The company has handled three cargoes in the first quarter of this year imported at Lithuania's Klaipeda terminal, and has also received all four cargoes that have arrived at Finland's Inkoo terminal thus far. Earlier this year, Eesti Gas reserved seven slots at Inkoo for April/September cargoes. Inkoo has thus far allocated three spot cargo slots for the rest of the summer. Eesti Gaas has increased its market share in Finland to nearly 40% as a result of the regular LNG deliveries.
South Korea plans new LNG terminal
An LNG receiving terminal is to be built at Kodae Pier in Dangjin Port, Chungcheongnam-do, South Korea. According to local media, an agreement was signed at the end of last month. Under the agreement, Dangjin Tank Terminal Co Ltd, a newly established joint venture between POSCO International and LX International, plans to invest Won760 bill to build the terminal at the Asan National Industrial Complex by 2027. The terminal will consist of two LNG storage tanks with a capacity of 270,000 Kl, two vaporisers capable of processing 200 tonnes per hour, LPG regasification facilities and a berth for up to 100,000 dwt LNGCs. Once completed, it will become a significant LNG terminal in South Korea’s western region, capable of handling 3.5 mill tonnes of LNG annually, according to local sources. Including plans to expand the tank capacity at Gwangyang and Dangjin, POSCO will have a total LNG storage capacity of around 1.87 mill kl, nearly 2.6 times its current capacity of 730,000 kl.
Ships - Newbuildings
HD Hyundai Heavy Industries, Hanwha Ocean, and Samsung Heavy Industries are due to start negotiations this month for the QatarEnergy LNGC order said to be worth Won14 trill ($10.7 bill). According to South Korean business newswires, in the first phase of this project in 2020, QatarEnergy ordered 54 vessels from the so called Big 3 (17 from HD Hyundai Heavy Industries, 19 from Hanwha Ocean, and 18 from Samsung Heavy Industries). HD Hyundai Heavy Industries and Samsung Heavy Industries have set their order negotiation deadline this month, while Hanwha has opted for September. The second order phase has decreased to around 40 vessels (10 from HD Hyundai Heavy Industries, 12 from Hanwha Ocean, and 16 from Samsung Heavy Industries). However, the profitability is expected to increase, due to the rising LNGC newbuilding prices, the newswires said. Industry sources said that if QatarEnergy orders 170,000 cu m LNGCs, the price per ship would be around $260 mill. QatarEnergy plans to finalise contracts with the vessel operators by the end of this year. Elsewhere, brokers have reported that Tianjin Southwest Maritime has ordered two 174,000 cu m LNGCs at Hudong-Zhonghua, while confirming H-Line’s order for a similar size vessel, due to be delivered in June, 2025 at Hyundai Samho, under a long term charter to POSCO; another 174,000 cu m LNGC at Samsung for ‘K’ Line for delivery in June, 2026, also under a long term charter; plus China Merchants’ two LNGCs at Dalian (DSIC) for 2026/2027 deliveries, ordered under a 30-year charter to Sinopec. The last two were priced at a lower equivalent of $235 mill each, which probably reflects that it is a domestic order negotiated in local currency. QatarEnergy has celebrated the steel cutting of the first of its new generation of chartered LNGCs to be constructed in a South Korean shipyard, as part of its LNG fleet expansion programme. The Qatari energy major joined Samsung Heavy Industries, and JP Morgan Asset Management in a special ceremony on Geoje Island. This follows QatarEnergy's 2020 decision to enter into ship slot reservation agreements with three South Korean shipyards: Samsung Heavy Industries, Hyundai Heavy Industries, Daewoo Shipbuilding and Marine Engineering (since renamed Hanwha Ocean). Last year, QatarEnergy signed several timecharter parties with various shipowners, including affiliates of JP Morgan Asset Management.
WFW advises NYK on LNGC charters
Watson Farley & Williams (WFW) has advised NYK on the execution of long-term charter contracts of four LNGCs with German energy company EnBW. The four vessels will be constructed at HD Hyundai Heavy Industries in South Korea and will be completed in sequence during 2027. They will be fitted with 174,000 cu m capacity membrane-type tanks that will be made from advanced insulating materials to reduce the vaporisation rate. Each vessel will be powered by fuel-efficient dual-fuel, slow-speed 2-stroke marine engines, and will also feature shaft generators and air lubrication systems (ALS) rendering the ships more environmentally friendly than conventional LNGCs, WFW said. A cross-border WFW Maritime team advised NYK, which was led by London Partner, Joe McGladdery who primarily advised on chartering matters.