LNG

The early 2023 LNG shipping market has opened with a “trembling uncertainty” in the LNG freight market with charter rates in the first few weeks alone falling 30 percent in the Atlantic Basin and 16 percent in the Far East,

Nakilat, one of the world’s largest LNG shipping operators, has partnered with the American Bureau of Shipping, the US classification society, to develop a decarbonization strategy.

Burckhardt Compression, the Swiss-based LNG equipment-maker for LNG shipping and compressor equipment for other sectors, reported a rise in fiscal first-half operating income as sales gathered pace and earnings per share increased. 

Burckhardt reported “significantly higher’ order intake of 450.7 million Swiss francs ($493.5M), up 48.7 percent from 303M francs ($332M) in the year-ago period with the Systems Division posting a 78 percent rise in sales and the Services Division reporting an 11.2 percent increase.

Operating income (EBIT) at Group level increased to 26.3 million francs compared with 26M francs in the prior-year period.

Net profits at the Winterthur, Central Switzerland-based company were slightly lower at 17.9M francs versus 19M francs in the first-half of 2020.

“The reasons for this are higher financial expenses resulting from a 100M Swiss francs bond issued in September 2020 as well as currency effects,” added Burckhardt.

Earnings per share attributable to Burckhardt shareholders increased significantly from 4.73 francs to 5.25 francs.

One of Burckhardt’s key new products in the LNG shipping sector is its Laby GI Compressor type LP250, the world’s first oil-free reciprocating high-pressure fuel-gas compressor in service.

Burckhardt’s fuel-gas compressor system plays an important role on LNG carriers to help maximise fuel efficiency.

Expansion

In addition to its Swiss operations, Burckhardt has expanded in recent years to run businesses in the US, Japan and China.

“Markets continued to recover in the wake of the various lockdowns imposed in all parts of the world during last year,” said Burckhardt.

“Asian markets, especially China, but also Central Asia, continued to recover. The European business regained momentum as well, leading to some attractive orders,” the company added.

“The US investment climate was still weak in the markets relevant to us, except for clean fuel technologies,” stated Burckhardt.

Burckhardt gave a qualified outlook for fiscal 2021 as a whole and currently expects group sales of between 620M francs to 650M francs and higher profit margins.

“This assumes that there will be no further serious outbreaks of Covid-19 in markets relevant to Burckhardt and that the economy continues to recover,” the company concluded. 

Qatari liquefied natural gas fleet owner and operator, Nakilat, has taken delivery of a newbuild carrier called “Global Sea Spirit”, its 22nd conventional-sized vessel and taking Qatar’s overall LNG fleet size to 74 ships.

The 174,000 cubic metres capacity “Global Sea Spirit” will be commercially and technically managed by Nakilat affiliate Nakilat Shipping Qatar Ltd (NSQL).

The latest LNG carrier was built by South Korean shipyard Daewoo Shipbuilding and Marine Engineering (DSME) and is the third of four LNG newbuild carriers to be delivered to Global Shipping Co. Ltd., a joint venture owned 60 percent by Nakilat and 40 percent by Greek company Maran Ventures Inc.

The first two LNG carriers newbuilds of the series have high-pressure M-Type Electronically Controlled-Gas Injection (ME-GI) engines.

They were delivered in May 2020 and January 2021 respectively and are currently in service.

The “Global Sea Spirit” is the first Nakilat vessel with X-DF propulsion, a slow-speed diesel engine with a direct drive to the propellers, enabling a substantial reduction in the vessel’s fuel consumption.

The fourth in the current DSME series will also have X-DF engines and delivery is scheduled for early 2022.

Advantages

“Like the ME-GI system, vessels running with X-DF engines propulsion are proven to be more fuel efficient, reduce greenhouse emissions and are more environmentally friendly due to their lower carbon emissions,” said Nakilat.

The “Global Sea Spirit” is chartered to Cheniere Marketing, a unit of Houston, Texas-based Cheniere Energy, owner of the Sabine Pass plant in Louisiana and the Corpus Christi facility in Texas.

The newbuild is the optimum size preferred for sending US Gulf Coast cargoes via the Panama Canal to North Asia.

The delivery of all four newbuild LNG carriers by 2022 will bring Nakilat’s fleet to 74 vessels, which is just under 12 percent of the current global LNG fleet based on carrying capacity.

Of these, there are 24 LNG carriers, four liquefied petroleum gas (LPG) carrier and one floating storage regasification unit (FSRU) vessel being managed in-house by NSQL. 

ABB, the Swiss-Swedish power systems company, said its turbocharging unit had won a contract to equip parts of the new propulsion systems for six liquefied natural gas carrier newbuilds ordered by four companies.

ABB Turbocharging will deliver its A200-L turbocharger brand for the engines of the vessels.

The Zurich-based company said its low-pressure, dual-fuel engine offered environmental benefits at reduced capital cost.

Its A200-L turbochargers will be used on the engines being supplied by MAN Energy Solutions, the Denmark-based subsidiary of the German engine-maker.

The MAN 5G70ME-C10.5-GA engines will be installed in six 174,000 cubic metres capacity LNG carriers ordered by four different shipowners, Korea Line Corp. and PAN Ocean of South Korea, Knutsen OAS of Norway and JP Morgan, the US-based bank and investment firm.

The newbuilds will be the subject of long-term charter agreements with Royal Dutch Shell.

Offerings

ABB pointed out that the ME-GA is MAN’s first low-pressure, dual-fuel, two-stroke engine and sits alongside MAN’s well-established high-pressure M-Type Electronically Controlled-Gas Injection (ME-GI) engines.

The ME-GA, according to ABB and MAN, offers LNG carriers and other vessels an alternative way to cut greenhouse-gas emissions and minimize air pollution.

“Turbocharger performance is particularly important for dual-fuel engines. High turbocharging efficiency ensures that a high air-fuel ratio is maintained during high-load operations,” said ABB Turbocharging.

“The A100/A200-L series is ABB’s most advanced single-stage turbocharger technology for two-stroke engines, using the latest thermodynamic and aerodynamic expertise to pack the highest pressure ratios and efficiency currently available into a compact unit,” it added.

ABB explained that the small footprint also translated into a lower cost of ownership as spare parts are smaller and more economical and the turbocharger itself is easier to handle for servicing.

“When engine designers and makers want reliable high performance to support new engine technologies, they look to ABB turbochargers,” said Alexandros Karamitsos, Head of Global Sales Low-Speed Turbochargers, ABB.

“I am confident that shipowners will increasingly value our combination of technology leadership and global service coverage as incoming emission regulations encourage them to explore new fuels and engine concepts,” stated Karamitsos.

June 28 (LNGJ) - Swiss company Burckhardt Compression said its Laby-GI Compressors for the MAN Energy Solutions M-Type Electronically Controlled-Gas Injection (ME-GI) engines has passed the one million operating hours mark. “The Burckhardt Compression Laby®-GI fuel gas compressor systems play an important role on LNG carriers,” explained the Winterthur-based company.

   “As the liquified natural gas warms up during storage and transportation, the evaporated boil-off gas must be economically managed by either using it as fuel or re-liquefying it,” explained Burckhardt. “Both dual-fuel engines as well as re-liquefaction plants, require a certain operation pressure, ranging up to 300 bar. Therefore, Burckhardt Compression’s LNG solutions have been specifically designed to handle gases at low temperature and high pressure while meeting the requirements for operation at sea,” it added.

MAN Energy Solutions has won an order from German shipping company Hapag-Lloyd for engines with LNG-powered capability and equipment for six ultra-large container vessels to be built in South Korea.

MAN Energy Solutions, the Denmark-based subsidiary of the German engine-maker, has won the order to supply the engines for a shuttle ferry newbuild for Tallink Grupp, the Estonian shipping company, and the vessel will have liquefied natural gas as a primary fuel.

Swiss company Burckhardt Compression, whose LNG offerings include the Laby brand of compressors and boil-off gas solutions, said it signed a five-year service agreement covering nine LNG carriers with a total of 12 Laby-GI Compressors onboard. 

The South Korean company, Hyundai Engine Machinery, has completed the tests for six gas engines for LNG power from MAN Energy Solutions, bound for a series of container ships ordered by Singapore-based Eastern Pacific Shipping.