LNG

The Port of Rotterdam, host to the Dutch Gate LNG import terminal in the Maasvlakte area, reported “significant changes” in the first half of 2022 because of Russia’s conflict with Ukraine with incoming LNG shipments increasing by over 55 percent and coal imports also surging.

The Port said in its first-half report that total cargoes increased by 0.8 percent to 233.5 million tonnes compared with 231.6MT in the first six months of 2021.

Revenues at the port, which is owned by the City of Rotterdam and the Government of the Netherlands, increased by 6.3 percent to €412 million ($420M) versus €387.6M in the first half of 2021.

The increase in port dues accounted for €16.1M of the revenues and this rise was primarily attributable to a higher number of vessels, resulting in a higher price per throughput tonne.

“In many segments, the war in Ukraine led to significant changes. For example, imports of both LNG and coal rose very sharply as an alternative to reduced European imports of Russian gas by pipeline,” said the report.

The Port said it handled 5.32 million tonnes of incoming LNG from January through June compared with 3.41MT in the first half of 2021, a rise of 55.9 percent.

Dutch LNG imports for all of 2021 amounted to 5.64MT, an increase of 5.8 percent over the previous year.

Coal imports

Rotterdam’s coal imports in the first half jumped 31.9 percent to 14.05MT from 10.65MT in the prior-year period.

“There is very strong demand for LNG as an alternative to the natural gas entering Europe by pipeline from Russia,” said the Port.

“The throughput of crude oil increased, with oil products falling off. Throughput of iron ore, agricultural bulk and containers was lower than in the same period last year,” it added.

LNG shipments come under the Port’s Liquid Bulk segment and first-half traffic of liquid bulk rose by 4.6 percent.

“The 4.3 percent increase in crude oil was mainly caused by the flow of Russian oil through Rotterdam to India in particular. Refineries in Northwest Europe are switching to non-Russian oil, with the result that Russian oil is finding its way to other markets,” the Port explained.

“It was possible to see a shift in the origin of imports of coal, crude oil, oil products and LNG in the second quarter. Companies are sourcing these energy carriers and raw materials less and less from Russia and purchasing them elsewhere in the world,” said the report.

CEO overview

Allard Castelein, Chief Executive of the Port of Rotterdam Authority, noted that Europe has relied heavily on Russian energy.

“The current geopolitical situation makes Europe very vulnerable. The availability of energy and raw materials at reasonable prices cannot be taken for granted,” said Castelein.

“A positive development is that concrete steps have been taken in recent months to make our energy supply more sustainable and to further our energy independence, particularly through investment decisions to build a large biorefinery,” he added.

“In addition to the vulnerability of the European energy system, nitrogen emissions continue to be a major bottleneck. Several major projects, including the carbon dioxide-capture and storage project Porthos, are being delayed or threatened with delays due to uncertainty and restrictions associated with nitrogen emission,” stated the CEO.

Rotterdam’s Gate LNG terminal started operations in 2011 and is a joint venture between Dutch utility Gasunie and global storage company Royal Dutch Vopak.

Gate Terminal BV, the operating company, said in early July 2022 that annual capacity was now 12 billion cubic metres on a firm basis and in addition 4 Bcm on an interruptible basis will be available in the future.

The terminal company said it had started working on a permit application, regulatory conditions and technical feasibility with the aim of launching an open season on 15th August 2022 to increase the firm annual capacity by 4 Bcm.

Heerema Group, the Dutch marine offshore contractor and owner of the biggest and strongest semi-submersible crane ever built, the “Sleipnir”, said the vessel has received the world’s largest ever LNG bunkering load in the Port of Rotterdam.

Sea-LNG, a global coalition of energy and shipping companies backing the increased use of liquefied natural gas as a maritime fuel, has signed up its first North American port as a member.

The latest member is the Vancouver Fraser Port Authority, the federal agency of the Port of Vancouver in the Pacific Coast province of British Columbia, Canada’s largest port and the fourth port member to join the coalition.

The other port company members are the Port of Rotterdam, Yokohama-Kawasaki International Port Corp. of Japan and most recently the Maritime and Port Authority of Singapore.

“Together, the ports remain committed to supporting the coalition’s vision of a competitive global LNG value chain for cleaner maritime shipping,” said Sea-LNG.

The Sea-LNG group, founded in 2016 to help provide strategic development of the emerging LNG marine fuel market and encourage the building of bunkering infrastructure, now has around 40 company and port authority members.

Peter Keller, the Sea-LNG Chairman is also Executive Vice President of US shipping line TOTE Maritime Inc.

“We are pleased to welcome the Vancouver Fraser Port Authority to our growing coalition and look forward to leveraging their expertise to realise our vision of developing LNG infrastructure in ports around the globe to enable quick, safe and cost-effective bunkering,” said Keller.

Sea-LNG said that the Pore of Vancouver was working closely with the regional gas supplier, Fortis BC and with industry and governments to advance LNG bunkering.

“As part of our vision to be the world’s most sustainable port, we engage in a number of emissions management initiatives that help support a healthy environment,” said Duncan Wilson, Vice President of Environment, Community and Government Affairs for the Canadian port.

“This partnership with Sea-LNG represents an opportunity for us to be part of a multi-sector group that is reducing marine shipping emissions and improving air quality,” added Wilson.

Sea-LNG said it was undertaking studies and developing tools with partners for the industry to better understand the true benefits of LNG from both an air quality and greenhouse-gas mitigation perspective.

“The coalition continues to encourage meaningful debate using accurate, independent data which has been academically verified through sound analysis,” said Sea-LNG.

Containerships, the Finnish shipping line and part of the French CMA CGM Group, said its first LNG-powered vessel, “Containerships Nord”, successfully underwent its first marine LNG bunkering at the Dutch Port of Rotterdam.

The Port of Rotterdam and a Dutch energy body called the National LNG Platform plans have launched a joint study that focuses on opportunities to develop liquefied natural gas from bio-methane extracted from waste for use in the port itself.

Feb 9 (LNGJ) - The Gate LNG import terminal in The Netherlands posted a decrease of around 26 percent in throughput volumes during 2016 compared with last year, according to the annual earnings report from the Port of Rotterdam. LNG throughput reached 1.7 million tonnes compared with 2.3MT in 2015. “Although the extent of throughput of LNG is still modest, it more than doubled in the first six months of the year,” the port said. “The principal reasons for this were the gradual decline of the LNG price in Asia and the increase in the re-export of LNG to industrial clusters in Europe; where there has been a shift from fuel or gas oil to LNG as the fuel for production processes,” the port said. However, the port pointed to rising demand from inland vessels and trucks refueling with LNG in Rotterdam and a growing number of sea-going vessels adopting the dual-fuel system.

The Dutch Port of Rotterdam said it would soon begin using a liquefied natural gas-powered dredging vessel, currently being built at the Barkmeijer shipyard in Friesland in northwest Holland, for service in basins of the port, one of Europe’s main LNG import terminals.

The two Dutch owners of the Rotterdam Gate LNG import terminal, natural gas utility Gasunie and global storage giant Royal Dutch Vopak, have formally opened their break-bulk terminal, comprising a third jetty and special loading facilities for small-scale regional vessels.