While seemingly miniscule in terms of deadweight tons ordered and delivered per year as compared to the shipbuilding business as a whole, the production of gas tankers, LNG and LPG, are high-value, high prestige orders that are likely to rise significantly in the coming years. Consistently high oil prices have effectively forced the production and processing of gas, and the current trend is towards increased usage of this valuable commodity. Late last month, the gas and power division of Royal Dutch/Shell ordered two additional liquefied natural gas (LNG) carriers to support its growing global LNG business. Shell International Gas Limited ordered a membrane-type carrier from South Korea's Daewoo Shipbuilding & Marine Engineering and a moss spherical tank carrier from Japan's Mitsubishi Heavy Industries. While a price was not publicly disclosed at the time of the ordering, the market level for a typical LNG carrier is about $175 million. The two new vessels have been secured against the background of a growing portfolio of Shell LNG projects around the world which require shipping capacity and will help supply growing demand for LNG. In its annual market report, Norway R.S. Platou reports that in 2000 there was a "huge interest" in LNG tonnage, triggered by a range of new LNG projects and low newbuilding prices. Platou claims that there were reports of contracts as low as $140 million for 138,000 cu. m. ships, marking the lowest level since the late 1980s
South Korean shipyards are expected to win about 75 percent of an estimated 48 orders for liquefied natural gas (LNG) carriers this year, industry officials said on Wednesday. "There are virtually no rivals to compete with Korean shipbuilders in making LNG carriers in terms of price and quality," said Yoo Jae-won, a spokesman for the Korea Shipbuilders' Association. Surging demand for environmentally friendly LNG was expected to raise the number of LNG carrier orders to around 48 this year
With the UN referral issue creating uncertainty about India's future relations with Iran, the Petroleum Ministry is fairly assured of the supply of five-million-ton contracted liquefied natural gas (LNG) from Iran. According to the Hindu Business Line, the 5 mt per annum LNG deal was legally binding, which ends speculations that the $20 billion LNG deal with Iran may be in trouble. The ongoing negotiations with Iran are for the additional 2.5 mt per annum
California Governor Arnold Schwarzenegger issued his formal disapproval to United States Maritime Administrator Sean T. Connaughton for the licensing of the BHP “Cabrillo Port” LNG deepwater port planned for construction off the coast of Ventura County, California. The Governor did however make it clear that he supports the state’s need for an increased LNG supply. Excerpts from the Governor’s letter follow: While I believe strongly that California needs to expand its access to natural
LNG tankers have avoided a slump in new ship prices because of rising Asian gas demand and limited competition from Chinese shipbuilders According to Bloomberg Business Week, prices for tankers able to hold 160,000 cubic meters of gas have held steady at about $202 million since 2010, based on Clarkson Plc data, bolstering earnings for South Korea-based Samsung Heavy Industries Co. and Daewoo Shipbuilding & Marine Engineering Co., the biggest makers of the vessels.
Teekay LNG Partners L.P. is to acquire a second 155,900 cubic meter liquefied natural gas (LNG) carrier newbuilding from Awilco LNG ASA, a Norway-based owner and operator of LNG carriers. The vessel is currently under construction by Daewoo Shipbuilding & Marine Engineering Co., Ltd. (DSME) of South Korea and is expected to deliver in the fourth quarter of 2013, when it will be chartered back to Awilco. As with the first vessel
Golar LNG announced an agreement to sell its existing interest in new building DSME hull number 2244 to Maran Gas for $92.5m, this represents an implicit vessel price of $201 million. Golar estimates that its book cost of investment in this vessel at completion of the sale will be approximately $51.5 million and this transaction therefore represents a significant return on investment for shareholders.
Hyundai Heavy Industries Co., Ltd. (HHI) signed a technical agreement for a cargo pump for LNG carriers with Carter Cryogenics of the U.S. The agreement was signed by Choi Weon-gil, COO of HHI¡¯s Engine & Machinery Division, and Mr. Lance A. Schroeder, vice president of Carter Cryogenics. The LNG carrier's cargo pump is a cryogenic pump at the bottom of containment tanks used to load and unload liquefied natural gas at -163oC. There are eight to ten pumps equipped on each LNG carrier
Golar LNG Limited announces that the Company has entered into firm contracts with Samsung Heavy Industries Co. Ltd for a further two LNG carriers. The two additional vessels, each with a capacity of 160,000cbm have a combined total cost of slightly above $400 million. The first of the carriers is scheduled for delivery in the second quarter of 2014 and the second in early 2015. Subject to declaration deadlines
Small scale LNG: GDF Suez takes positions in this high potential market with capacities in Zeebrugge, Belgium, LNG terminal. GDF Suez continues to develop its small scale liquefied natural gas (LNG) activities in North West Europe following the award by Fluxys of additional berthing and storage capacity long term rights at the Zeebrugge LNG terminal. GDF Suez will have access to these capacities after the completion of the second jetty being constructed by Fluxys (expected in 2015)
Another active week in the newbuilding market is reported in the latest Clarkson Hellas S&P Weekly Bulletin, as follows: Dry Bulk Carriers Starting with the larger sizes Hyundai Merchant Marine (HMM) are understood by Clarkson Hellas to have placed an order for two firm 210
Wärtsilä say they are to provide a full propulsion package for a new passenger ferry being built for the Germany based ferrry operator Reederei Cassen Eils GmbH at the Fr. Fassmer GmbH shipyard. The new ferry will operate between Cuxhaven and the island of Helgoland in Germany
United Arab Shipping Company (UASC) will expand its fleet with new super-efficient container vessels, prepared for “dual fuel” through a later LNG Fuel Gas Supply System (FGSS) retrofit after the delivery of the vessels. Through a technical cooperation with Japan Marine United
Wärtsilä said it will will provide a complete dual-fuel propulsion and LNG equipment package for a new passenger ferry being built for the Germany based Reederei Cassen Eils GmbH. The contract was signed in October 2013 with Fr. Fassmer GmbH
The November 2013 edition of Lloyd’s Register’s Gas Technology Report is dedicated to LNG as a marine fuel. Highlights include a look at developments in Canada – a shipowner, the regulator and a shipbuilder talk about gas fuelled shipping
Joakim (Kim) Ullman has been appointed President of Concordia Maritime AB with effect from 1 January 2014. Kim comes from Stena LNG where he has been CEO since 2012 and he will replace Hans Norén who will leave Concordia Maritime at the end of the year after ten years as president.
British Columbia’s first liquefied natural gas (LNG) proposal at Grassy Point near Prince Rupert has filed its export application with Canada's National Energy Board (NEB). "Aurora LNG is moving forward with their plans to export B.C
Capstone Turbine Corporation, a clean technology manufacturer of microturbine energy systems, is expanding its product offering in the marine market and has appointed six Capstone marine distributors. Capstone marine microturbines, which run on cleaner and less costly liquid natural gas (LNG)
GE Marine, Dalian Shipbuilding Industry Company (DSIC) and Lloyd’s Register announce they have jointly developed a design for a gas turbine-powered LNG carrier. This unique carrier will provide low life cycle cost, high environmental performance and flexible design.
International classification society Bureau Veritas is classing the world’s largest bilobe gas tanks. They are nearing completion at China’s Sinopacific yard and will be installed in a series of four 27,500 cu m semi-refrigerated LNG/Ethylene carriers building for Denmark’s
Russian President Vladimir Putin has signed a law on the liberalization of exports of liquefied natural gas (LNG). According to the document, two new categories of license holders are entitled to the right to export LNG, in addition to Gazprom, reports Arctic-Info.
Bristol Harbor Group, Inc. (BHGI) was awarded a task order for an Alternative Fuel (LNG/CNG) Initiative through its Indefinite Delivery Indefinite Quantity (IDIQ) Naval Architecture and Marine Engineering contract with the U.S. Army Corps of Engineers (USACE) Marine Design Center (MDC).
Hamburg-based Hybrid Port Energy GmbH, has awarded a building contract to Shipbuilding and Machinery of Komárno, Slovakia to build the world’s first LNG Hybrid Barge to supply low-emission electrical power to cruise ships in port.
AWILCO LNG ASA say that their second 156,000 cbm Tri-Fuel Diesel Electric powered newbuilding 'WilPride', has been delivered from South Korea by Daewoo Shipbuilding & Marine Engineering Co., Ltd., (DSME) prior to the following business transactions:
Five shipbuilding companies have been listed to bid on the design and construction of the new BC Ferries ships, but only one Canadian company made the shortlist, as follows: The company explains that nine pre-qualified shipyards responded to a Request for Pre-Qualification