LNG

The latest events at the Gastech Virtual Summit saw many interesting technical presentations, including one marking the steady progress of LNG bunkering operations in the US and centred in the state of Florida.

Sea-LNG, a global coalition of energy and shipping companies and other sector participants backing the increased use of liquefied natural gas as a maritime fuel, has signed up US LNG equipment-maker Chart Industries as the newest member.

US regulators have issued a positive final environmental impact statement for the planned small-scale liquefaction plant planned for Jacksonville in Florida by Eagle LNG Partners to supply customers in the US and the Caribbean.

Crowley Maritime Corp., one of the US shipping lines pioneering vessels with LNG fuel capability, marked its commitment to the Florida-Puerto Rico trade route with a ceremony at San Juan port in the US Caribbean territory.

Crowley said it had christened the US-flag combination container-roll on-roll off ship “Taino” in San Juan, where the company’s investments have ushered in a new era of world-class supply chain services.

Clara Crowley, daughter of Chairman and Chief Executive Tom Crowley and board member Christine Crowley, served as the ship’s sponsor and broke the ceremonial bottle of champagne on the bow of “Taino” at the company’s Isla Grande Terminal in the presence of several hundred employees, customers and officials.

It was the first time a container ship had been christened in San Juan in recent memory.

“We are thrilled to christen this magnificent new ship here with our employees, customers and people of Puerto Rico, whom she will serve for many years to come,” said CEO Tom Crowley.

“The ‘Taino’ vessel is a source of pride for us all and in particular the men and women who built and or crew her, many of whom are Puerto Rican,” added Crowley.

The vessel is among the first US-flagged vessels to have LNG capability, like its sister “El Coqui”, which entered service in 2018. Both have dual-fuel engines to operate with LNG and conventional fuel.

Both ships were constructed at the VT Halter Marine’s shipyard in Pascagoula, Mississippi.

Crowley has also made significant investments in terminals and related infrastructure on the mainland and in Puerto Rico.

At Isla Grande, the company added a new, 900-foot pier and three ship-to-shore gantry cranes, the first newly constructed cranes for San Juan Harbor in more than 50 years.

The company also implemented a new terminal operating system and added container staging areas and handling equipment for both refrigerated and dry cargo.

“This major investment, which is resulting in jobs, a positive economic impact, a cleaner environment and world-class supply chain services for Puerto Rico shippers, would not have been possible without the Jones Act,” said Crowley.

The Jones Act is a federal law that regulates maritime commerce in the United States.

It requires goods shipped between US ports to be transported on ships that are built, owned and operated by United States citizens or permanent residents.

“Also known as the Merchant Marine Act of 1920, the law is vitally important to maintaining a strong US maritime capability and national defense,” said Crowley.

“While the act ensures that we have a robust shipbuilding capability and skilled merchant mariners in the US essential to our national defense, it has also created a commercial shipping market between the mainland and Puerto Rico that is highly competitive, customized and dedicated,” said the CEO.

“We should be strengthening this critically important maritime law, not tearing it down as some special interest groups espousing highly inaccurate and misleading information would like to do,” he stated.

Domestic carriers get no direct subsidies, but their routes between US ports are protected from foreign competition.

Many countries have so-called "cabotage” laws restricting who may provide transport services within their borders, and the laws don't just apply to ships, they may also cover airlines, railroads and trucking.

About 90 percent of US-flagged tankers and 36 percent of US-flagged container ships are used on routes protected by the Jones Act.

If the Act were repealed, these vessels would either cease operation or be registered elsewhere. The US Navy would also have to build and greatly expand its sealift assets.

Jan 10 (LNGJ) - Eagle LNG, a subsidiary of Ferus Natural Gas Fuels, said it supplied fuel to the Crowley Maritime Corp. vessel “Taino”, the second of two of the world’s first combination container and roll-on-roll-off ships powered by LNG. The “Taino” was refueled at the Eagle LNG shoreside bunkering depot at Jacksonville port in Florida before starting service on the Puerto Rico trade route. The “Taino”, built at the VT Halter Marine shipyard at Pascagoula in Mississippi, is joining its sister ship “El Coqui” to provide fast and environmentally-friendly shipping between Florida and the US territory in the Caribbean at a cost of $550 million, including port upgrades.