LNG

Dec 12 (LNGJ) - The United Nations International Maritime Organisation’s Secretary-General Kitack Lim from South Korea has issued an urgent warning about threats to commercial shipping in the Red Sea used by vessels entering or exiting the Suez Canal. “The recent reports of threats made to commercial shipping in the Red Sea are extremely alarming and unacceptable,” Lim said.

   “Ships, cargoes and seafarers must be protected at all times. I invite Member States to work together to ensure unhindered and safe global navigation,” he added. About 60 vessels including LNG carriers normally transit the Suez Canal each day, though numbers have dropped recently due to war risks. “Commercial shipping should never be a collateral victim of geopolitical conflicts. Any attack on commercial shipping is contrary to international maritime law, including laws which protect the freedom of navigation,” Lim stated.

The Marine Environment Protection Committee (MEPC) 80th session in-person conference is under way in London at the International Maritime Organisation with the LNG shipping industry hoping for clear-cut decisions rather than the obfuscation often favoured by UN agencies as they try to please too many interests.

SEA-LNG, the coalition established to demonstrate the commercial and environmental benefits of LNG and the pathway it provides for cleaner shipping, has urged “clear and consistent” regulation from the International Maritime Organisation.

Sea-LNG, a global coalition led by energy and shipping companies backing the increased use of liquefied natural gas as a maritime fuel, said the LNG and energy Port of Corpus Christi, the largest in the United States by total revenue tonnage, has become the latest member.

The Port of Corpus Christi in Texas is the fourth North American port to join the coalition but is the first port located on the strategic, energy-rich Gulf of Mexico.

Since launching in July 2016, Sea-LNG’s membership has grown from 13 to more than 40 members from leading global companies,
“The Port of Corpus Christi is one of the United States’ leading energy ports, and has been quick to appreciate the importance of LNG into its bunker offering,” said Peter Keller, Chairman of Sea-LNG.

“ We’re delighted to welcome this forward thinking and innovative port into our membership at a time when the maritime sector continues to aggressively work to decarbonise its operations as well as reduce local emissions harmful to human health,” added Kellner.

The Port of Corpus Christi’s decision to join Sea-LNG was a part of its commitment to environmental stewardship.

The Port purchases 100 percent of its power from renewable sources, is upgrading its vehicle fleet to electric and hybrid technology, and is creating a technological advancement programme for emissions control and decarbonisation.

“As the leading energy port in the Americas, the Port of Corpus Christi considers LNG indispensable in our energy export portfolio, with the expansion of local operations helping to propel the United States as a top global LNG exporter,” said Port of Corpus Christi Chief Executive Sean Strawbridge.

“By joining Sea-LNG, we’re sending a clear message that LNG as a marine fuel aligns with our ambition to strengthen our competitiveness in LNG as a leading fuel for the transport sector,” added

Sea-LNG has members across the entire LNG value chain including providers of the product, users, engine and asset suppliers, and class societies.

The group is already recognised as an international leader in LNG matters. Each member organisation commits mutually agreed human resources, data analysis and knowledge sharing.

Sea-LNG said it regarded itself as a driver in a multi-sector industry aiming for a global adoption of LNG to create cleaner shipping by 2025.

Sea-LNG’s other members include: ABS, Carnival Corp., Chart Industries, Clean Marine Energy, DNV GL, Eagle LNG Partners, Fearnleys, FortisBC, Gasum AS, GE Marine, GTT, JAX LNG, “K” LINE Group, Lloyd’s Register, Maritime and Port Authority of Singapore (MPA) and NYK Line.

The membership list additionally includes The Port of Long Beach, Port of Rotterdam, Port of Virginia, Qatargas, Shell, Société Générale, Sohar Port & Freezone, Stabilis Energy, Sumitomo Corp., Total, TOTE Inc., Toyota Tsusho, Uyeno Group of Companies, Vancouver Fraser Port Authority, Wärtsilä, and Yokohama-Kawasaki International Port Corp.

The LNG Marine Fuel Institute formed in Australia to help improve access to bunkering has praised the first move by the Pilbara Port Authority in Western Australia to issue a ship-to-ship LNG bunkering licences to plant operator Woodside.

LNG MFI Chief Executive Margot Matthews said Pilbara Port and Woodside had executed non-exclusive licences to provide ship-to-ship LNG bunkering services at the ports of Port Hedland and Dampier, the first licences of their type issued in Australia.

“Since 2017 LNG MFI has worked to bring together key players to develop a cleaner marine fuel industry in Australia as we lower emissions for a better future and it’s exciting to see this now moving full steam ahead,” Matthews explained.

LNG MFI is an independent not for profit organisation established to enable LNG, the cleanest alternative available, to be a primary fuel for marine transportation.

The body is also supporting the plans by commodities giant BHP to use LNG as fuel for future iron ore carriers on the Australia-Asia trade route.

LNG MFI’s position is that Australia can meet and exceed the new International Maritime Organization 2020 regulations by establishing early adoption of LNG as a transition marine fuel and providing the Australasian maritime industry with a superior and cost effective fuel source

Pilbara Ports Authority’s General Manager Development & Trade, Lyle Banks, said the Authority has issued three licences for LNG bunkering operations in the Pilbara.

“In addition to Woodside’s ship-to-ship licences, a truck-to-ship LNG bunkering licence was issued to Evol LNG in early 2017,” added Banks.

“Western Australia is well-placed to become an LNG bunkering hub, with LNG production facilities close to large iron ore mining operations and the many hundreds of ocean-going vessels that use ports in the Pilbara region,” stated banks.

Woodside Executive Vice President Marketing for Trading and Shipping, Reinhardt Matisons, described working with Pilbara Ports Authority to finalise LNG bunkering licences “as a key step in developing an LNG fuels industry” in Western Australia.

“Woodside is finalising plans for an LNG bunkering operation in the Pilbara to capture the significant environmental and economic benefits of using LNG, instead of fuel oil, for the busy iron ore shipping trade,” added Matisons.

“We continue to work with potential customers on this opportunity,” he said.

LNG MFI’s CEO Matthews expects Australia to play a leading regional role in LNG fuel.

“While there’s no single pathway to a low emissions future, expanding the use of LNG as a transition marine fuel is one way to help reduce greenhouse gases from shipping and help reduce this country’s environmental footprint,” said Matthews. 

BHP, the Australian commodities and energy company whose assets include a stake in the North West shelf liquefied natural gas export plant in Western Australia, has issued the world’s first bulk carrier tender for LNG-fueled transport for up to 27 million tonnes of its iron ore.

“Through this tender, we are seeking potential partners who share our ambition of lowering emissions to the maritime supply chain,” said BHP.

The company said the tender was open to a select group of industry leaders, from ship owners, banks and LNG fuel network providers.

The apparent aim of the tender is to find a partner for an LNG-powered newbuild iron-ore carrier, or a shipping company willing to order one with a pre-booked charter from BHP.

BHP said that introducing LNG-fueled ships into its iron ore maritime supply chain would eliminate nitrogen oxide and sulphur oxide emissions and significantly reduce carbon-dioxide emissions along the busiest bulk transport route globally from Western Australia to North Asia.

As well as LNG-fueled transport for up to 10 percent of its iron ore, the tender seeks other innovative solutions that can lower greenhouse gas emissions and increase productivity from BHP’s freight requirements.

“We are fully supportive of the International Maritime Organisation’s (IMO) decision to impose lower limits on sulphur levels in marine fuels,” said Rashpal Bhatti, Vice President, Maritime and Supply Chain.

“While LNG may not be the sustainable homogenous fuel of choice for a zero carbon future, we are not prepared to wait for a 100 percent compliant solution if we know that, together with our partners, we can make significant progress now,” added Bhati.

“This new tender adds to the work BHP is doing with customers, suppliers and parties along our value chain to influence emissions reductions from the transport and use of our products,” stated the BHP executive.

“We recognize we have a stewardship role, working with our customers, suppliers and others to influence emissions reductions across the full life cycle of our products,” he explained.

BHP, whose main offices are in Melbourne, London and Singapore said that as well as making investments in emerging technologies, it sets GHG emissions reduction targets for its operations and works across sectors to strengthen its global policy.

Lloyd’s Register, the UK maritime classification society, has awarded South Korean shipbuilder Samsung Heavy Industries, with approval in principle for a very large crude carrier (VLCC) powered by liquefied natural gas.