Cash Lures LNG Carriers to Northern Sea Route

MarineLink.com
Wednesday, October 16, 2013
Northern Sea Route: File photo

One major new development on the Northern Sea Route is the interest in using it to move liquefied natural gas to energy-hungry Asian markets, writes Stan Jones of the Office of the Federal Coordinator, Alaska Natural Gas in a recent article.

Late last year, the LNG carrier Ob River hauled the first LNG cargo over the route, from Norway to Kyushu Electric Power in Tobata, in southern Japan. The icebreaker-escorted trip, from the Snohvit LNG terminal in Hammerfest, took 27 days, and that was in November and December, late in the season. The same trip via the Suez Canal takes about 10 days longer.

While LNG tanker rates vary from company to company and season to season, short-term charters earlier this year were averaging $90,000-plus a day, with long-term charters around $80,000 a day, according to an August 2013 presentation by global consultants PFC Energy in Anchorage. Short-term rates spiked last year at $150,000 a day, with long-term charters running $120,000.

At those prices, cutting 10 days off a trip to Tobata could save $1 million.

Tanker time wasn't the only savings, according to the agency that runs Russia's nuclear icebreakers on the Northern Sea Route. The Ob River also saved about $80,000 in tariffs. The agency, Rosatomflot, put the ship's icebreaker fees for the trip at $332,000, versus $412,000 that would have been charged for passing through the Suez Canal.

The article can be found at: http://www.arcticgas.gov/sites/default/files/documents/northern-sea-route-beckons-lng-shippers.pdf

Source: Alaska Natural Gas, Office of the Federal Coordinator

Maritime Reporter March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Tanker Trends

Petroecuador Tenders to Buy High Octane Naphtha

State-run Petroecuador has launched two tenders to buy a total of 22 cargoes, 240,000 barrels each, of high octane naphtha RON 87 and 93 for delivery starting on May 21-23,

Fredriksen Joins Rival for New Capesize Firm

Shipping tycoon John Fredriksen is joining one of its shipping firms with rival Knighsbridge Tankers Ltd to create the largest U.S. listed Capesize firm, which

Global Shipping Exposed to Cyber Threats

The next hacker playground: the open seas - and the oil tankers and container vessels that ship 90 percent of the goods moved around the planet. In this internet age,

Navigation

GAO: Limited Commercial Arctic Development Foreseen

Decreasing seasonal sea ice has opened up Arctic waters for longer periods with resulting potential economic opportunities in commercial shipping, cruises, commercial fishing, oil, and mining.

Reminder Stresses Importance of Accurate Clearance Information

The Captain of the Port, New York-New Jersey, has issued a reminder about the importance of providing accurate clearance information, and warns that civil penalties

NOAA Begins Hydrographic Survey Season

New data will update nautical charts around the country. As sure as spring arrives, NOAA vessels and independent contractors are hitting the seas for the nation's

Finance

Petroecuador Tenders to Buy High Octane Naphtha

State-run Petroecuador has launched two tenders to buy a total of 22 cargoes, 240,000 barrels each, of high octane naphtha RON 87 and 93 for delivery starting on May 21-23,

DP World in Talks With Banks for $3b Loan

Dubai-owned port operator DP World is in talks with lenders to triple the size of an existing $1 billion loan, as well as extend the lifespan and reduce the interest rate,

Norway's Oil Sector May Face More Project Cuts, Delays

More oil and gas projects in Norway could be put on hold because of rising costs, adding to a growing list of developments that have been delayed or called off,

LNG

ABS Approves Design for GTTNA’s LNG Bunker Barge

GTT North America (GTTNA), the Houston-based subsidiary of French engineering and technology company Gaztransport & Technigaz SA (GTT), received approval in principle from ABS for the design of a 2,

ISS to Support Petrobras Expansion

Inchcape Shipping Services (ISS)  has had its port agency and tanker husbandry services contract significantly enlarged by Petrobras.   The Brazilian government-owned energy giant,

Keystone Backers Keep Their Faith In Embattled Pipeline Plan

Six years after applying to build the Keystone XL pipeline, Canada's frustrated oil industry appears steadfast in its support of the plan even though Washington

Arctic Operations

GAO: Limited Commercial Arctic Development Foreseen

Decreasing seasonal sea ice has opened up Arctic waters for longer periods with resulting potential economic opportunities in commercial shipping, cruises, commercial fishing, oil, and mining.

Canadian Icebreaker Refit Contracts Awarded

The Canadian Government informs it has awarded a $6.5 million contract to Babcock Canada Inc. for critical refit work for Canadian Coast Guard ship 'CCGS Louis S.

Huge Iceberg Broken off Antarctica Heads for Open Ocean

Scientists are monitoring an iceberg roughly six times the size of Manhattan - one of the largest now in existence - that broke off from an Antarctic glacier and is heading into the open ocean.

 
 
Maritime Careers / Shipboard Positions Maritime Standards Naval Architecture Offshore Oil Pipelines Salvage Ship Repair Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1920 sec (5 req/sec)