LNG

Japanese shipping company Mitsui OSK Lines (MOL), whose energy fleet includes over 150 tankers for oil and other products and around 90 LNG carriers, reported stable LNG profits while the containership business was badly hit by a “tidal wave” of new vessels in the sector.

Oct 31 (LNGJ) - Mitsui OSK Lines, the Japanese shipping company with an operating fleet of around 100 liquefied natural gas carriers, reported a more than doubling of fiscal first-half net profits to 603.64 billion yen ($4.10Bln) compared with 278.07Bln yen ($1.88Bln) for its overall business including oil tankers, car carriers, containerships and dry-bulk vessels. MOL manages its LNG carriers and other fleets through six firms based in Tokyo, London, Hong Kong, Jakarta, Oman and Algeria and also has extensive fleets in the other sectors.

   MOL said first-half shipping revenues from April to the end of September came to 821.33Bln yen ($5.56Bln). “While continuing to generate stable profit through existing long-term charter contracts, the LNG carrier business posted a year-on-year decline in profit partially due to the expiration of some long-term contracts,” said the company. “The floating storage and regasification unit (FSRU) business posted a year-on-year increase in profit,” it added.

US oil and natural gas and LNG production companies are monitoring Tropical Storm Karl that has formed in the southern part of the Gulf of Mexico in the Bay of Campeche.

Asian spot LNG cargo prices and European values remained high as tanker charter rates rose for West and East of Suez amid renewed demand from China and steady flows of shipments to Europe.

Dec 10 (LNGJ) - Shipping charter rates for LNG carriers in the spot market edged higher as Northern Hemisphere winter market demand increased. Rates were quoted at an average of between $112,000 per day and $118,000 per day West of Suez. The same levels of spot rates were also heard for the East of Suez charter market for vessels of between 155,000-165,000 cubic metres capacity, according to various brokers. One-year time charters were also little changed for the most modern vessels and were available for around $47,000 per day.

The American Bureau of Shipping, the US classification society, along with the American Club of insurers and Lamar University in Texas are calling on the industry to advance the cause of safety at sea with more comprehensive reporting requirements for injury and near-miss reporting.

South Korean shipbuilders are maintaining their dominance in the liquefied natural gas carrier construction sector in the face of some competition from yards in China and Japan.

Evol LNG, a company involved with liquefaction and export plant owner Woodside Petroleum in developing LNG fuel use in Western Australia, has entered into a long-term  agreement to supply a large gold mining operation for processing and power.