LNG

Clarksons, the UK provider of integrated maritime services including broking, finance and research has brokered the world’s first 174,000 cubic metres capacity LNG Forward Freight Agreement (FFA) trade with the Chicago Mercantile Exchange (CME) Group.

Gaztransport and Technigaz (GTT), the French LNG storage technology company, has signed a deal with another Chinese shipyard that will allow the use of designs for tanks in floating storage and regasification units (FSRUs) as well as floating production vessels and conventional LNG carriers for the largest Chinese shipping group.

Sept 5 (LNG) - The American Bureau of Shipping has issued China’s Hudong-Zhonghua Shipbuilding with an approval in principle for its new liquefied natural gas carrier design with 271,000 cubic metres of cargo tank capacity. The design approval was awarded at the Gastech energy event in Singapore and the Chinese design is seen as suitable for the next generation of vessels being ordered by LNG producer QatarEnergy for expansion projects.

   The design features flexible dual-fuel propulsion and an air lubrication system as well as an enhanced cargo containment system together with a real-time sloshing monitoring system. “As the world’s premier classification society for gas carriers, with more than 50 years of experience, we are proud to support this advanced new design from Hudong-Zhonghua,” said John McDonald, ABS President and Chief Operating Officer.

May 25 (LNGJ) - Four cargoes are scheduled to be delivered to the UK later this week from the US, Qatar and Trinidad. The “GasLog Houston” is due to discharge a cargo at the Dragon terminal at the Port of Milford Haven from the Atlantic LNG plant at Point Fortin in the Caribbean, according to shipping data. A second delivery is scheduled from Qatar for the South Hook facility at Milford Haven onboard the “Aamira”, a Q-Max vessel with 260,910 cubic metres capacity.

   Two more cargoes are headed for the UK Isle of Grain terminal on the Medway River in Kent, both from the US Gulf Coast. The “Castillo De Caldelas” with 176,300 of capacity will have a cargo unloaded on May 27 that was lifted on May 11 from the Sabine Pass plant in Louisiana. A second shipment is due on May 28 at the National Grid-operated Isle of Grain facility onboard the 173,400 cubic metres capacity vessel “BW Pavilion Aranda” from the Freeport export plant in Texas.

Feb 20 (LNGJ) - Höegh LNG Holdings has signed a deal with CoolCo, a shipping investor group including Eastern Pacific Shipping and Golar LNG, to acquire the 2013-built LNG carrier “Golar Seal” with 160,000 cubic metres of capacity for an undisclosed sum. “The purchase price is in line with current market level for similar vessels. Höegh LNG expects to take delivery of the vessel in late March or April 2023 and subsequently employ the vessel in the carrier market on a term time charter,” said Höegh LNG.

   “We are very pleased to make this investment which underpins our growth ambitions. The vessel will be an excellent addition to our fleet, and provide flexibility to pursue FSRU conversion opportunities,” said Erik Nyheim, the President and Chief Executive of Höegh LNG.

Gaztransport and Technigaz (GTT), the French LNG storage technology company, reported a slight drop in full-year revenues though the results were strong as orders also reached a record level with demand increasing for new vessels.

Of the top ship-owning nations, the Greeks continue to outperform the nation’s size with a fleet ranked third globally behind Japan and China respectively in both the number of vessels and the total value, though Greece’s fleet value has been augmented by an increasing number of quality LNG carriers.

The European Commission’s competition officials are preparing to block a $2 billion merger between two of the world's biggest shipbuilders Hyundai Heavy Industries and Daewoo Shipbuilding and Marine Engineering.

Chevron Shipping Company, which has a fleet of more than 30 tankers including 10 LNG carriers as the transportation arm of Chevron Corp., said it had joined the Sea Cargo Charter, a benchmark initiative for responsible shipping activities and transparent reporting as part of the International Maritime Organization’s efforts to reduce emissions, especially in ports.

Mitsui OSK Lines (MOL), the Japanese shipping company with an operating fleet of almost 100 liquefied natural gas carriers, said it would use cash flow from the energy transportation boom to invest in a huge fleet of LNG-powered vessels of all types rather than wait for any future fuels.

The company, involved in all shipping sectors from oil tankers to car carriers and containerships, said it planned to launch 90 LNG-powered vessels by 2030 and has already announced an order for four car carriers.

“Strong demand for shipping services has given us more freedom on management decisions,” said MOL President and Chief Executive Takeshi Hashimoto in an interview with the Japanese financial daily newspaper Nikkei.

“The stepped-up investment will speed Mitsui OSK's shift towards LNG-powered vessels, which emit 25 percent less carbon-dioxide than ships running on conventional fuel oil,” stated Hashimoto.

Hashimoto noted that Mitsui was also investing in “green ammonia” as a key carbon-free fuel source for the future.

However, while ammonia is expected to start powering real-world vessels in the late 2020s, import limitations may pose a challenge for Japanese shipping companies.

“We don't have enough volume to use ammonia to fuel ships,” declared Hashimoto.

Can't wait

“We can't afford to wait for somebody else to produce the material,” he added.

The company announced in May 2021 that it would resume transporting ammonia for the first time in half a decade.

MOL will consider producing and exporting ammonia derived from natural gas.

“We will look into ammonia-related mergers and acquisitions as well,” he added.

MOL is making the LNG-powered shipping investment in response to growing demands from the logistics sector to reduce carbon emissions.

Volkswagen, for example, requires shipping companies to be using LNG-powered vessels to even bid on a contract.

Japan’s Honda Motor is also urging key suppliers to reduce emissions by 4 percent every year.

Another Japanese shipping company Nippon Yusen Kabushiki Kaisha (NYK) has already revealed plans to replace 100 of its 215 large and midsize bulk carriers, as well as 30 to 40 of its 117 car carriers, with LNG-powered vessels by 2030.

“We'll be able to put in a few hundred billion yen into this soon thanks to improvements in our performance,” said NYK Line President and CEO Hitoshi Nagasawa.