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
 


LNG

BV Classes First LNG-fuel Oil/Chemical Tanker

Leading international classification society Bureau Veritas has classed the first LNG-fuelled newbuilding oil/chemical tanker, the 15,000 dwt Ternsund, built under BV class at Avic Dingheng,

SK Shipping Selects 5X72DF for LNG Carriers

Securing the position of its low-speed low-pressure X‑DF engines as market leaders, Winterthur Gas & Diesel (WinGD) has been selected to supply two 5-cylinder X72DF

NASSCO Christens LNG-ready Tanker Constitution

On Saturday, August 27, shipbuilders at General Dynamics NASSCO celebrated the christening and launch of the Constitution, the sixth ship in a series of eight eco-friendly

News

Ingalls Secures Design Work for US Navy’s New LX(R) Ships

Huntington Ingalls Industries (HII) announced that its Ingalls Shipbuilding division has been awarded a $13.7 million contract (with incremental funding) to perform contract design effort for the U.

Arctic Sea Ice Melt Continues

As of August 14, Arctic sea ice extent is tracking third lowest in the satellite record, according to the National Snow & Ice Data Center (NSIDC). The southern

Hyundai Merchant Marine to buy Hanjin's 'Good' Assets

South Korea's financial regulator said on Wednesday that Hyundai Merchant Marine Co Ltd will seek to acquire healthy assets of troubled shipper Hanjin Shipping Co Ltd.

Government Update

Hyundai Merchant Marine to buy Hanjin's 'Good' Assets

South Korea's financial regulator said on Wednesday that Hyundai Merchant Marine Co Ltd will seek to acquire healthy assets of troubled shipper Hanjin Shipping Co Ltd.

Hanjin files for Receivership, Ports Turn Away Vessels

Hanjin says asks court for its assets to be frozen; Hyundai Merchant looking to buy Hanjin's "good" assets. South Korea's Hanjin Shipping Co Ltd filed for court

Hanjin Shipping to File for Court Receivership

South Korea’s biggest container shipping line Hanjin Shipping Co has decided to apply for court receivership after lenders halted all support, says a report in Bloomberg.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Naval Architecture Navigation Offshore Oil Ship Electronics Ship Simulators Sonar 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: 0.1532 sec (7 req/sec)