LNG

Singapore's Maritime and Port Authority (MPA) issued data showing liquefied natural gas bunkering sales jumped in June and for the first half of 2024 as overall bunker sales increased for all fuel types because Red Sea shipping disruptions have led to longer voyages and higher expenses for shipowners.

Feb 24 (LNGJ) - Kawasaki Kisen Kaisha (K-Line), the Japanese shipping company, said it was pleased to be the operator of the first Singapore-owned LNG bunkering vessel, the 7,500 cubic metres capacity “FueLNG Bellina”, as it entered service in the Asian port city. The vessel is owned by the FueLNG joint venture comprising Keppel Offshore and Marine and Shell Eastern Petroleum. “We are proud to get involved in this meaningful event through our technical expertise on ship management of liquefied gas carriers,” explained K- Line.

   “Singapore is one of the busiest bunkering locations on the globe. The vessel’s debut is part of the maritime industry’s efforts to reduce emissions of greenhouse-gas,” added K-Line. “LNG enables vessels to emit less GHG when used as marine fuel compared to conventional heavy fuel oils, and having the ‘FueLNG Bellina’ provide LNG bunkering on a ship-to-ship basis in Singapore offers more opportunities to various ship operators to choose a greener marine fuel,” stated K-Line.

The American Bureau of Shipping, the US maritime classification society, and Singapore-based Keppel Offshore and Marine said they were currently completing key features of the world’s first smart LNG bunkering vessel.

Swiss-Swedish company ABB said it was chosen to provide the electric propulsion and power distribution package for Southeast Asia’s first liquefied natural gas hybrid tug ordered to operate in the Port of Singapore.

ABB said its equipment, including energy storage, control and automation technology will be at the heart of the first tug capable of switching between low-emission LNG engines and zero-emission battery power.

The tug, which will operate in Singapore harbour, has been ordered by Sembcorp Marine subsidiary Jurong Marine Services for delivery from the Singapore shipyard by the end of 2020.

LNG as a fuel virtually eliminates sulphur-oxide emissions, while the Maritime Port Authority of Singapore (MPA) is also incentivizing its use to support the International Maritime Organization’s aims to halve ship carbon-dioxide emissions in the years ahead.

ABB said the project represents the first delivery of ABB’s award-winning power and distribution system, the Onboard DC Grid, for a tug application.

Leveraging the system, the vessel will be able to deploy 904 kilowatt hours of battery power for zero-emission operations, as well as for peak shaving, improving utilization of electricity use on board.

“This is a breakthrough in the tug market for the ABB’s energy storage technologies and a strong validation of Onboard DC Grid™ as the ultimate solution for power management efficiency for hybrid propulsion,” said Juha Koskela, Managing Director of ABB Marine & Ports.

“Future-proofing for a different energy mix makes particular sense for tugs and other port service vessels, as the most likely candidates to face imminent environmental restriction, added Koskela.

“This is also a great example of a local team meeting a regional priority,” he stated.

ABB noted that gas-fueled engines face a particular challenge when it comes to handling the fast-changing load capabilities demanded by tugs.

“Leveraging the Onboard DC Grid system, the tug’s engines will be able to run at variable speeds for optimized LNG fuel economy at each load level,” said the company.

“Additionally, through integration with an energy storage source, the batteries will be able to provide power to the tug’s propulsion system almost instantaneously,” added ABB.

Singapore LNG spot cargo prices surged by 12 percent in the past week as trading picked up and North Asian shipments for the second half of November were quoted at US$6.000 per million British thermal units.

Singapore LNG spot cargo prices recovered slightly in the past week to be above the US$4.000 per million British thermal units level for southeast Asia and higher for North Asia and the Dubai-Kuwait-India market amid continuing over-supply.

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Singapore LNG spot cargo prices dropped to four-year lows of under US$4.000 per million British thermal units for southeast Asia, though managed to stay above the lowest levels for North Asia shipments.

Singapore LNG spot cargo prices declined by around US$0.20 per million British thermal units, though managed to stay above the $4.00 per MMBtu level for southeast Asia with North Asia shipments slightly higher.

Singapore LNG spot cargo prices dropped to around three-year lows because of high volumes and plunging seasonal demand as cargoes for North Asia destinations such as China and Japan lost US$0.66 per MMBtu in a week from already depressed levels.

Singapore LNG spot cargo prices dropped as excess volumes and lower seasonal demand led to the highest price quoted being under US$5.500 per million British thermal units for the first half of August for North Asia.

The Singapore average index for July dropped to US$5.084 per MMBtu from last week’s June average of US$5.306 per MMBtu.

Singapore’s latest LNG indices released on May 16 included a price of US$5.005 per MMBtu for the second half of June and US$5.052 per MMBtu for the first half of July.

The surplus in global LNG supplies continued to put downward pressure on prices in the Northern Hemisphere summer market as crude oil prices stayed solid on the week at around $71 per barrel.

Cargo prices for the second half of July were at US$5.116 and were highest for the first half of August at US$5.176.

The Sling is an index series for LNG developed by the Singapore Exchange (SGX) and its subsidiary Energy Market Company (EMC).

It is a spot index for cargoes “on the waters in the vicinity of Singapore which could go into any port” and based on cargo sizes of 135,000 cubic metres capacity to 175,000 cubic metres capacity.

The North Asia price fell to a July average of US$5.354 per MMBtu versus last week’s June average of US$5.555 per MMBtu.

North Asia cargoes for the second half of June were at US$5.245 per MMBtu, before rising for the first half of July to US$5.310 per MMBtu, then moving higher to US$5.380 for the second half of July.

The first half of August price for the North Asia market was US$5.475 per MMBtu, the highest on the board.

The North Asia prices are for delivery ex-ship (DES) to all ports in Japan, Korea, Taiwan and China.

The Dubai-Kuwait-India Sling index is assessed in collaboration with London-based, inter-dealer global brokerage Tullett Prebon for regional cargoes shipped to India and the Middle East and averaged US$5.192 per MMBtu for July, much lower than last week’s June average of US$5.400 per MMBtu.

The DKI index, based on a cargo of between 138,000 cubic metres capacity and 170,000 cubic metres, is seen in the second half of June at US$5.113 per MMBtu before edging higher to US$5.167 per MMBtu for the first half of July.

The price for the second half of July was at US$5.217 per MMBtu and the highest for the region was the first half of August price of US$5.320 per MMBtu.

The SGX LNG Index Group (Sling) is an initiative by SGX and EMC for spot LNG price discovery.

It is a benchmark based on assessments of LNG cargo value by market participants. They provide assessments based on the value of an LNG cargo at a specific location for delivery.

The Sling is based on participants submitting assessments to determine an index value.

“The participant pool consists of a broad group of market players to ensure that any Sling Assessment is as representative of actual market conditions as possible,” says the SGX, while pointing out that the participant is kept confidential at all times.

The SGX-EMC LNG prices include both lean and rich cargoes.