Doyle Talks LNG, Exports, Panama Canal with Japanese Officials

Posted by Eric Haun
Friday, November 08, 2013
From left: Kazuhiro Yokoi (Chubu Electric Power Company), David Tubman (FMC), Yoshiro Taguchi (Japanese Embassy), Hidehiro Muramatsu (Japan Oil, Gas, and Metals National Corp.), William Doyle (FMC Commissioner), Takashi Horie (Mitsubishi), and Nobukazu Nagai (Japan International Transport Institute, USA).

Earlier this week, Commissioner William P. Doyle met with Japanese public and private sector officials to discuss U.S. natural gas, exports, and the Panama Canal. Japan is the world's largest importer of liquefied natural gas (LNG). The country has relied on imported natural gas for decades as part of its energy portfolio. However, the Tohoku earthquake and tsunami of March 11, 2011, disabled the Fukushima Daiichi Nuclear Power Plant. Subsequently Japan has increased its level of reliance on LNG imports.

The U.S. may become an important LNG supply source for Japan in the coming years. With the widening of the Panama Canal expected to be completed in 2015, LNG exported from the U.S. to Asia would save nearly two weeks transit time if the Panama Canal is utilized. Currently, there are no LNG tankers utilizing the Panama Canal.

"Japanese officials are interested in learning more about the tolls and cost structure associated with LNG tankers transiting the Canal," said Commissioner Doyle. He continued, "It's important that the toll structure and economics work for all parties-- Panama wants LNG business which it does not have right now – natural gas produced in the U.S. must compete on the world market with LNG from Russia, Australia and the Middle East - and Asia is where the demand will come from."

Japanese interests have actively pursued discussions with the Panama Canal Authority (ACP) on transit costs; the Japanese Shipowners Association and some of its auto-manufacturers were one of the first groups to engage in substantive talks with the ACP.

ACP officials have been conducting meetings with all segments of the maritime industry on the waterways toll structure. In early October, ACP Administrator Jorge Quijano met with the Union of Greek Shipowners, the International Association of Independent Tanker Owners (INTERTANKO) and the International Association of Dry Cargo Shipowners (INTERCARGO) in Greece.

The ACP is consulting with the Society of the International Gas Tankers and Terminal Operators (SIGTTO) to determine how it can best serve the LNG market. According to its website, SIGTTO's purpose is to promote shipping and terminal operations for "liquefied gases which are safe, environmentally responsible and reliable."

Commissioner Doyle committed to work with the Japanese and all interested parties to ensure usage of the expanded Panama Canal is a success.

The Obama Administration is focused on U.S. manufacturing and exports.

In September the U.S. Department of Energy conditionally approved the fourth LNG terminal for the export of natural gas.

Yesterday, the Secretary of Transportation Anthony Foxx and Acting U.S. Maritime Administrator Paul "Chip" Jaenichen announced that that the Maritime Administration would provide funding for two projects supporting the increased use of alternative fuels and technology in the maritime industry. The funds will be used to collect information on use of LNG for marine propulsion and study the issues and challenges associated with shore side storage and bunkering of LNG vessels. Additionally, yesterday, Aker Philadelphia Shipyard (APSI), announced that U.S.-flag domestic carrier Matson Navigation Company agreed to construct two 3,600 TEU container ships in the Pennsylvania shipyard. Firm contracts are in place for the two vessels with a total value of $418 million. These dual fuel ships and will be ready for conversion to LNG propulsion and will be delivered in 2018. In the meantime, Aker Philadelphia is in the process of constructing two tankers for the Alaska Jones Act trade to be delivered in 2014: and it will build eight product tankers scheduled for delivery between 2015 and 2017.

fmc.gov
 

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

LNG

Solving the LNG Propulsion Puzzle

The last piece of the LNG infrastructure puzzle, in the form of North America’s first LNG bunker barge, falls into place at Conrad’s Orange, Texas Shipyard. With

LNG Emergency, Incident Response Study

Safety around Liquefied Natural Gas (LNG) is a hot topic, now that LNG is more and more becoming the fuel of the future. The results of a recent LNG emergency

Sea Star Line, ACT Sign LNG Bunkering System Agreement

System will be the first of its kind in the US for maritime industry   Sea Star Line, LLC and Applied Cryo Technologies (ACT), in cooperation with Dragon Products,

News

China Shipbuilders may Merge to Stay Afloat

The China's four state-run shipping-related companies  are reportedly in the initial phases of combining units in order to beef up the national shipbuilding industry, says local media.

Termination of Seadrill Unit's and Rosneft Deal Extended

North Atlantic Drilling (NADL), a subsidiary of Seadrill, will delay the closing of a deal with Russia's Rosneft by two years and has agreed to renegotiate the terms of the agreement,

Taiwan's Yang Ming Marine to Add Bigger Vessels to its Fleet

Yang Ming Marine Transport Corporation, Taiwnanese global shipping and logistics services company,  will take delivery of 14 large-sized ships over the next two years,

Government Update

USN Names Littoral Combat Ship

Secretary of the Navy Ray Mabus announced today that the next Freedom-variant littoral combat ship (LCS) will be named USS St. Louis. The future USS St. Louis,

China Snubs G7 Declaration on Sea Row

Reacting to recent declaration of  the Group of Seven (G7) major nations' Foreign Ministers on maritime , China said “the situation of this region is generally stable,

Newport News Shipbuilding Hosts Sen. Inhofe

Huntington Ingalls Industries (HII) today hosted Sen. James M. Inhofe, R-Okla., for a tour of the company's Newport News Shipbuilding division.   The senator,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Port Authority Salvage Ship Electronics 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: 0.3943 sec (3 req/sec)