FMC Commissioner Gives Keynote on Panama Canal

MarineLink.com
Friday, September 20, 2013
Commissioner Doyle: Photo in public domain

Commissioner William P. Doyle of the Federal Maritime Commission, has given the keynote address at the Eno Center for Transportation Forum on the Panama Canal entitled: Lessons Learned and Implications for World Commerce.  His comments on the future of the canal's LNG trade are also extracted below.

Commissioner Doyle noted that the Obama Administration, members of Congress and state and local officials support the tremendous economic, business, job-supporting, energy and transportation related opportunities the expanded Canal will bring to the United States.

The Commissioner also addressed:  The Administration’s efforts to expedite regulatory reviews of infrastructure projects, the Panama and Suez trade routes, recent progress on discussions for slot and transit fees associated with the expanded Canal, and LNG export potential through the Canal.  

Extract from the speech: LNG Exports — Preparing for the Expanded Canal
"I would like to provide an example of a new type of U.S. manufactured export product that could really benefit from the expansion of the Panama Canal.

Not long ago the United States was positioning itself to be the world’s largest importer of natural gas. In 2006 there were approximately 50 proposed liquefied natural gas (LNG) import projects in some stage of regulatory review. 20 The U.S. was on the verge of becoming ever more reliant on the Middle East for its natural gas.

That all changed in 2008 when the independent natural gas producers in the U.S. proved that abundant amounts of natural gas could be extracted and produced from shale basins in places like the Pennsylvania, Ohio and West Virginia. Indeed, these producers perfected the technique known as horizontal multistage hydraulic fracturing.

Today, the U.S. has not only slashed its imports of natural gas from overseas, but we are on the verge of becoming a major competitor on the supply-side of natural gas through our LNG exports.

The world’s largest market for liquefied natural gas is Asia. As it stands now, South Korea and Japan are the largest importers of LNG. In the coming years, China may be added to that list.

With the Dominion Cove Point decision issued by the Department of Energy last Wednesday, the Obama administration has now authorized 6.37 billion cubic feet of liquefied natural gas to be sold overseas. 24 Dominion, located in Maryland, is the first East Coast export project that has been approved and it is the closest terminal to Appalachia’s Marcellus and Utica shale formations.

Previously, the Energy Department approved conditional export licenses to three Gulf Coast terminals: Lake Charles, Louisiana project, as well as the Freeport LNG project on Quintana Island, Texas, and, in 2011, Houston-based Cheniere Energy’s Sabine Pass facility in southwest Louisiana.

How do we get the domestically produced natural gas into the export market?

Once the expanded Panama Canal opens, the distance to ship U.S. natural gas from the Gulf Coast of the United States to Asia will decrease by 9,000 miles. 25 Only 21 of the existing global fleet of 370 LNG tankers can currently fit through the Panama Canal. 26 None use the Canal.

However, more than 80 % of the tankers will be able to make the passage through the Canal once the widening is complete (Platou Consultants). 27 The U.S. will be competing with Australia, Russia, East Africa and the Middle East as a natural gas supplier for Asia. The development of U.S. natural gas resources, together with the Panama Canal Expansion, will have a transformative impact on the U.S. energy and transportation landscape, helping to improve our energy security while spurring economic development and job creation around the country."

The full speech is available at:
http://www.fmc.gov/commissioner_doyles_keynote_address_to_the_eno_center_for_transportations_forum_on_the_panama_canal/
 

Maritime Reporter February 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

MOL Expands Container Fleet

Mitsui O.S.K. Lines, Ltd. announced today that the company has signed a deal for construction of four 20,000 TEU containerships with Samsung Heavy Industries.

Record Thames Ridership

A record 9.8 million passengers are using the River Thames‎, two years on from the launch of the Mayor's River Action Plan, it was announced today. The River Action Plan,

Tallink & Meyer Turku to Build LNG Ferry

AS Tallink Grupp and Meyer Turku Oy signed a contract for the construction of LNG powered fast ferry for Tallinn-Helsinki route shuttle operations. The dual

Tanker Trends

ClassNK's Structural Rules for Bulkers & Tankers

The Nippon Kaiji Kyokai (ClassNK) has announced the establishment of its “Common Structural Rules for Bulk Carriers and Oil Tanker” (Rules for the Survey and

Brightoil Reports Steady Growth in Interim Results

Brightoil Petroleum (Holdings) Limited announced its interim results for the six months ended December 31, 2014, reporting steady growth over the period.   During the period,

Lithuania Looks to U.S. for Gas

Lithuanian liquefied natural gas (LNG) importer Litgas has signed a preliminary agreement with a U.S. supplier, looking to lessen the Baltic nation's dependence on Russia.

LNG

Tallink & Meyer Turku to Build LNG Ferry

AS Tallink Grupp and Meyer Turku Oy signed a contract for the construction of LNG powered fast ferry for Tallinn-Helsinki route shuttle operations. The dual

ADB Okays $30mln for Pak LNG Terminal

The Asian Development Bank (ADB) has approved a $30 million project loan to Engro Elengy Terminal Private Limited, a special purpose company which will build Pakistan’s

Davie Building LNG-powered Ferries

Canadian shipbuilder Davie held a keel laying ceremony for MV Armand-Imbeau II, marking the beginning of the hull assembly for this first of two sisterships under

Government Update

Italy to Begin Naval Exercises off Libya

Italy will begin annual naval exercises this week near the coast of Libya, where a breakdown in order has allowed tens of thousands of migrants to try to reach

India to Appoint Coastal Shipping Consultant

As part of Narendra Modi government plan to promote coastal shipping, India is all set to appoint a consultancy firm to assist the Shipping Ministry.    The

Indian Ports to Set Sail on Corporatization

Indian Finance Minister Arun Jaitley said in Union Budget 2015 that government-run ports in India will be encouraged to corporatize and become companies under the Companies Act.

Logistics

1st lifejacket for Working at heights

The first lifejacket custom-designed specifically for offshore personnel carrying out rope access or work at height has been developed by Survitec Group, the

Golden Ocean, Knightsbridge Set for Merger

Dry bulk shipping companies Golden Ocean Group Limited (GOGL) and the listed dry bulk shipping company in John Fredriksen's business empire Knightsbridge Shipping

Delay in Relocating Guangzhou Shipyard

Guangzhou Shipyard International (GSI) has not commenced the relocation of its factory. According to the plan of Guangzhou city, the shipyard should have finished

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Navigation Offshore Oil Salvage Ship Electronics Ship Repair Ship Simulators
rss | archive | history | articles | privacy | terms and conditions | 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: 0.2089 sec (5 req/sec)