LNG

Pavilion Energy, the Singapore-based LNG market participant, shipped its first termed small-scale LNG cargo to China under an agreement signed with Zhejiang Hangjiaxin Clean Energy.

European maritime classification society DNV said that there was still momentum in orders for LNG-powered vessels from ship owners in the month of November even at a time of very elevated LNG bunker prices in ports such as Rotterdam in the Netherlands.

According to the latest figures from DNV’s Alternative Fuels Insight (AFI) platform, 17 LNG vessels were added in November with container vessels and car carriers constituting nearly two thirds of the orders.

The total order figure for LNG-fuelled ships for the year to date has now reached 203 and the overall total is 857 ships operating or on order.

“With the preliminary agreement at the European Union last week that shipping would be included in the EU's Emissions Trading System starting from 2024, all low-carbon options now makes even more sense,” said Martin Wold, Principal Consultant in DNV’s Maritime Advisory business.

“Methane emissions will also be included, so methane slip from engines will come under even greater scrutiny,” added Wold.

Containerships lead

The DNV data showed that the total number of LNG-powered ships in operation or on order at the end of November 2022 comprised in the largest sectors 42 containerships in operation and 176 on order, 10 car carriers operating and 106 on order, 46 crude oil tankers operating and 43 on order and 42 oil-chemical tankers operating and 46 on order.

There were also 68 bulk carriers using and planning to use LNG, 50 car and passenger ferries, 39 cruise liners, 38 tugs, 37 offshore supply vessels and 32 RoPax ships.

This data does not include smaller inland vessels and barges that are part of the Amsterdam, Rotterdam, Antwerp (ARA) refining hub transportation in northwest Europe.

Analysts note that LNG remained the preferred low-carbon solution despite current gas pricing which is expected to last into the near future.

That’s as LNG priced in fuel oil terms at Rotterdam increased on December 6 to $2,414 a tonne compared with $1,890 per tonne on November 6.

Among other emissions-reducing fuels, Ultra Low Sulfur Fuel Oil (ULSFO) at the Dutch port declined over the past month to $690.00 per tonne on December 6 versus $923.50 per tonne on November 6.

Singapore’s main LNG company Pavilion Energy and the biggest Chinese LNG importer, China National Offshore Oil Corp., have signed an accord for strategic cooperation on LNG bunkering from Northwest Europe to China’s coastal areas.

Gasum, the Finnish state-run natural gas and LNG company, has extended its bunkering services in the Antwerp, Amsterdam, and Rotterdam (ARA) region by locating its bunkering vessel “Kairos” in the area.

“This supports Gasum’s strategy to expand its maritime services in Northwest Europe,” said the Helsinki-based company.

Previously Kairos has been operating flexibly in the North Sea and Baltic Sea and only arrived in the ARA area upon request.

The 4,376 deadweight ton vessel is 117 metre in length and 20 metres wide with capacity of 7,500 cubic metres.

“The new location of 'Kairos' enables Gasum to deliver bunkers of LNG, the cleanest available marine fuel to its clients in Northern Continental Europe, whenever they have the need,” said Gasum.

Gasum’s Jacob Granqvist, Vice President of Maritime, said he was happy to have the “Kairos” deployed in the ARA.

Market growth

“We are now constantly present in the region and can better cater for the needs of our old and new LNG customers in the maritime segment,” explained Granqvist.

“LNG is the cleanest available marine fuel, and it’s rapidly becoming the most commonly used alternative to traditional fuels,” he noted

Gasum also owns a network of Nordic terminals and facilities comprising a small-scale liquefaction plant and an expanding chain of LNG fuel stations for vehicles.

Its terminals include Sweden’s Nynashamn facility with 20,000 cubic metres capacity of storage and purchased in April 2020 by Gasum from Germany’s Linde AG.

The Finnish company additionally has a small-scale liquefaction plant in Risavika, near Stavanger in Norway, while owning and operating other small regasification and import terminals in Ora and Alesund in Norway and Lysekil in Sweden.

It partly owns the Pori LNG import terminal in Finland and has a stake in the Finnish Tornio Magna regasification facility.

Titan LNG, a Dutch supplier to the marine and industrial markets with quayside and ship-to-ship delivery of LNG to river barges and sea-going ships in the ports such as Amsterdam, Rotterdam and Antwerp has commissioned a short-term LNG truck-loading facility in the Belgian Port of Zeebrugge.

Titan said its “Project Bridge” has been designed to accommodate LNG truck-loadings as an interim solution during a four-week period in which the Dutch Gate LNG import terminal in Rotterdam is undergoing essential maintenance.

“The Titan LNG chartered ‘Green Zeebrugge’ is filling up trucks at the quay of the PSA terminal in Zeebrugge to serve bunkering customers in the ARA region, Zeebrugge, and surrounding areas,” explained Titan.

Equipped with two loading bays, the interim fuelling station was commissioned and developed by Titan LNG’s in-house team, in collaboration with small-scale LNG market participants to trial the project’s operations.

To ensure safety the HAZOP and HAZID sessions were performed at short notice.

The Port Authorities of Zeebrugge and the terminal were involved in initial plans for the project to ensure compliance for this temporary set-up, including the step-by-step protocols and designs.

The facility was assembled and is being operated by Rijlaarsdam Tech, Titan LNG’s project partners.

“Operator Rijlaarsdam and Titan LNG passed the vetting and approval process due to the preparation and robustness of the documentation and training of the crew on the quay, providing confidence to the Authorities that safe operations could be carried out for the duration of the four-week period,” said Titan.

“During normal operations, the GATE terminal loads some 600 trailers per month and the Fluxys terminal in Zeebrugge cannot fill this demand for extra slots, meaning it would not have sufficient capacity to ensure the demand for the downstream market,” added the Dutch company.

The project aims to handle additional LNG demand coming to Zeebrugge starting from mid-July of this year and is expected to fulfil up to 300 orders during its deployment.

“This is an immensely proud moment for the team at Titan LNG and for the LNG market sector,” said Michael Schaap, Titan LNG’s Commercial Director of Marine.

“It takes LNG terminals years to install this functionality, and we did it in a matter of months. I would like to thank all our project partners for the hard work and perseverance that went into this success,” stated Schaap.

Tom van den Akker, Project Manager at Titan LNG, said that “Project Bridge” required a broad range of competencies and resources from Titan LNG, including safety managers, operations, engineering, and the commercial department.

“The complexity of the project and the innovation required, in addition to the short deadlines certainly presented some challenges,” explained Akker.

“Our project team successfully hit the milestones that were planned, and we’re extremely proud to bring the solution to the market,” he added.

Current truck loadings are done daily during weekdays, while the “Green Zeebrugge” will load LNG from the Fluxys terminal in Zeebrugge on Saturdays and Sundays to replenish the FlexFueler bunker barges in the ARA area.

Following the completion of the “Bridge” project at Zeebrugge, Titan aims to deploy the same facility to other locations across the European Union. 

Gasum, the Finnish state-owned LNG distribution company and regasification and liquefaction infrastructure owner in the Nordic region, posted an annual net loss and lower revenues while expanding its operations.

Gasum, the Finnish state-owned LNG distribution company and regasification and liquefaction infrastructure owner in the Nordic region, is expanding its geographic reach to France after already entering the Antwerp, Amsterdam and Rotterdam region, also known as the ARA area.

“As part of this strategy, Gasum has now obtained a licence to deliver maritime LNG in France, allowing it to add French ports and waters to its supply network,” said Gasum.

The new LNG distribution licence will allow Gasum to deliver to maritime customers in France and to offer LNG, a cleaner shipping fuel, to a larger number of customers.

In addition, the licence will improve the geographic availability of LNG to more European ports.

“Obtaining this licence marks another milestone in our quest to increase the outreach of our maritime LNG deliveries,” said Jacob Granqvist, Vice President at Gasum.

“It underlines Gasum’s commitment to act as a reliable European maritime LNG supplier,” added Granqvist.

At the end of 2020, Gasum extended its bunkering activities to include the ARA area.

The expansion is possible due to a new agreement with Norwegian oil and gas major Equinor for the ARA, an important trading hub in the rivers and canals and ports network where barges and small ships and tankers conduct trading and supply operations.

Gasum is now delivering LNG bunkering supplies to Equinor in the ARA. Gasum and Equinor have been co-operating on various projects and LNG supply chain development for Equinor’s vessels since 2011.

The Finnish company has been fuelling Equinor’s oil tankers that are shipping crude oil from North Sea to Swedish and Baltic ports.

The bunkering is mainly performed by Gasum’s small-scale bunkering vessels such as the “Coralius” and the “Kairos”.

Gasum owns a network of LNG import terminals, a small-scale liquefaction plant and an expanding chain of LNG fuel stations for vehicles in the Nordic region.

Its terminals include Sweden’s Nynashamn small-scale facility with 20,000 cubic metres capacity of storage and purchased in April 2020 by Gasum from Germany’s Linde AG.

The Finnish company also has a small-scale liquefaction plant in Risavika, near Stavanger in Norway, in addition to owning and operating other small regasification and import terminals in Ora and Alesund in Norway and Lysekil in Sweden.

It also partly owns the Pori LNG import terminal in Finland and has a stake in the Finnish Tornio Magna regasification facility.

The Tornio terminal in Northern Finland is the largest in the Nordic region.

It is located on the Swedish border which allows it to serve Gasum’s customers in Finland, Sweden and Norway.

Fluxys, the Belgian grid operator and owner of the Zeebrugge LNG terminal and with a large stake in Dunkirk LNG in France, has taken delivery along with Dutch joint venture partner Titan LNG of a bunkering barge to operate in the Antwerp region of the European Union energy sector.

Gasum, the Finnish state-owned LNG distribution company and regasification and liquefaction infrastructure owner in the Nordic region, has extended bunkering activities to include the Antwerp, Amsterdam and Rotterdam region, also known as the ARA area.

Fluxys, the Belgian natural gas network operator and owner of the Zeebrugge LNG terminal, has joined forces with Dutch company Titan LNG for a bunkering pontoon project to make LNG maritime fuel more widely available in the Antwerp port area and region.