Dw News

Demand for LNG-fuelled newbuilds is growing across the shipping industry, and with it Danish pump specialist Svanehøj reports it has quadrupled its sales of fuel pump solutions in 2021 and is heading for an all-time high order intake. 2021 has been a record year for new LNG dual-fuel shipbuilding contracts, which has a very positive impact on the order books at Svanehøj. The company reports 2021 was a banner year with an order intake of nearly $122 million, or 50% more than the previous record set in 2014.Svanehøj’s patented DW fuel pump solution is one of the main growth drivers.

Svanehøj said it has landed two major P&C pump orders in China, most recently securing a contract with GSI Shipyard on a total of 96 deepwell pumps for four new MR Tankers.Svanehøj has manufactured pump systems for P&C tankers for decades, but the segment is now becoming a significantly larger part of the business. The Danish specialist in deepwell pumps for marine and offshore has a target of increasing sales of P&C cargo pumps by 40% over the next three years and has just won its largest single P&C order since 2005.The customer is Guangzhou Shipyard International Company Limited (GSI)…

Nothing is left to chance when Korean shipyards Samsung Heavy Industries and Hyundai Heavy Industries are building giant gas tankers worth billions of dollars."It’s as close to reality as we can possibly get," says Project Manager Lars Foged from Svanehøj, which designs and manufactures deep well and in-line pumps for applications in areas such as relief of liquefied gas, management of gas fuel, engine cooling, fire protection and scrubber technology.In recent months, Foged and his colleagues have been busy in the pump factory’s 35-metre test tower in Aalborg, Denmark.

ST Engineering Halter Marine and Offshore (STEHMO) installed a NOV crown mounted compensator (CMC) on Diamond Offshore’s Ocean Blackhawk drillship.The 215-metric-ton passive heave compensator was fully assembled and lifted on the top of the derrick on May 22, 2019. Carol Crane Rigging & Lifting Technology and Mammoet supported STEHMO with completing the engineered lift. STEHMO also cleaned and painted tanks, lifeboats and the exterior hull above the waterline.Before the lift,…

Project, breakbulk and heavylift cargo transport company Intermarine, LLC announced that its President & CEO, Andre Grikitis, will be awarded with the Admiral of the Ocean Sea by the United Seaman’s Service (USS) at the organization’s 48th annual gala at the Sheraton New York Times Square Hotel, New York City, on October 13, 2017. The Admiral of The Ocean Sea Award (AOTOS) has been presented annually by United Seamen's Service for the past 47 years. The AOTOS Award is given in…

Odfjell SE has announced the signing of long term charter agreements for two chemical tankers with stainless steel cargo tanks, for construction in Japan.   The agreement includes two vessels of 35,500 dw tonnes and 28 stainless steel cargo tanks. They are scheduled for delivery in Q4 2018 and Q1 2019 and the agreements run for a minimum of eight years. The vessels will be built in Shin-Kirushima dockyard in Japan.   The agreement is in line with the new Odfjell strategy as launched in February, where the Company announced its targets for tonnage renewal and fleet growth.

German banks are still struggling with bad loans from exposure to the shipping industry, reports DW. The banks are struggling to recoup tens of billions of dollars of loans as a global shipping industry slump hits them hard. A report published on Sunday by German public broadcaster ARD has suggested that the northern German states of Hamburg and Schleswig-Holstein may have to offer up to 20 billion euros ($21.4 billion) in credit guarantees to prop up banks with bad investments in container shipping. "Many competitors here have hardly any chance against the new mega-shipping companies in Asia," reporter Heinz-Roger Dohms wrote. That's bad news for the banks that underwrite German shipping companies - and German banks maintain around $100 billion in shipping loans…

Since it started publishing in 1939, Maritime Reporter & Engineering News has recognized excellence in ship construction. The Switch has been engaged in the maritime industry for only three and a half years, but it already has approximately 20 ships in its reference list, including the first, the 15,000 dwt M/T Ternsund  (featured on this month’s cover) owned by Terntank, which is a fourth generation company that in 1958 was a one ship company, and today is an operator of ten modern chemical/product tankers in the range from 8,000 to 15,000 dwt.

The Offshore Maintenance, Modifications & Operations (MMO) market experienced a substantial fall of 22% in total expenditure between 2014 and 2015, and an additional 5% decline is projected by the end of 2016, says a Douglas-Westwood report. This is a result of the postponement of non-critical work which otherwise would have been sanctioned in a $100 oil period. However, whilst efforts to reduce bottom line figures have paid off and continue to be in play, E&P operators must acknowledge the inevitable threshold levels of MMO that are required in the prevention of lost-time incidents. Therefore, DW anticipates a recovery in MMO expenditure to 2021 as Operators address maintenance backlogs that can no longer be postponed.

The LNG industry is undergoing a dramatic transformation. North American activity (the majority of which is committed spend) is driving a return to growth in global capital expenditure. A wave of new LNG carrier newbuilds will also be required to support a huge increase in traded base-load LNG volumes. Douglas-Westwood’s (DW) new World LNG Market Forecast 2017-2021 indicates global LNG expenditure will total $284 billion (bn) between 2017 and 2021. This represents a 50% growth compared with the preceding five-year period. Report author, Mark Adeosun, commented, “Liquefaction terminals will remain the principal driver of expenditure with spend in the segment totalling $192bn. This will subsequently lead to a 42% increase in liquefaction capacity by the end of the forecast period.

Offshore surveys are a necessary precursor for both Oil & Gas (O&G) and renewable energy installations on the seafloor. Particularly for new projects in remote regions, surveys (oceanographic, geotechnical, geophysical etc.) are critical for successful project design and implementation. However, current market conditions are forcing all parties in the supply chain to rethink their approach. Douglas-Westwood (DW) has engaged with industry experts within the market on future strategy and operator expectations. Feedback includes the obvious – “outprice competitors”, “meet highest standards”, “be flexible to operators’ needs” and “specialise” – but this is tough advice for those who are already attempting to accommodate all of these factors whilst trying to remain afloat.

DW’s recently released quarterly World Oilfield Services Market Forecast (OFS) and World Oilfield Equipment Market Forecast (OFE) continue to suggest 2016 will see the start of a barren period for the offshore OFS and OFE sectors. In line with previous editions of the report, a significant drop in project sanctioning, coupled with low rig dayrates, will see annual OFS expenditure average $49 billion (bn) over 2016-2020, while OFE expenditure will decline from $69bn to $43bn over the same period. Growth in offshore drilling seen since 2010 has been sharply halted – offshore well spuds saw an 8% reduction last year and a further 9% is anticipated for 2016.

Brent oil price reached lows of $27/bbl in mid-January, but has recovered over the past two weeks to above the $30/bbl mark. Nevertheless, volatility is expected to remain as the market is yet to find a new equilibrium, according to market analyst and consultant Douglas-Westwood (DW). So far, only modest cuts in U.S. shale production have been realized, and global oil supply has continued to increase, DW said. Nevertheless, in spite of the oversupplied market, OPEC – led by Saudi Arabia – continues to pump in order to defend its market share against non-OPEC supply. With a coordinated change in strategy highly unlikely, according to DW, prices will have to remain lower for longer to force the market to reach a new equilibrium.

Oil prices have been extremely volatile since the first trading day of 2016 and hit 12-year lows last week with Brent dropping below $33 a barrel for the first time since 2005. The fall in the Chinese manufacturing index, the Saudi-Iran standoff and North Korean nuclear test have all had a significant impact on shaping oil price trends, says market analyst and consultant Douglas-Westwood (DW). Brent crude rose to a three-week high of $38.91 a barrel on January 4 as a consequence of the Saudi-Iran geopolitical risk but these gains were quickly diminished due to concerns over economic slowdown. Rising tensions in the Middle East typically trigger an increase in the price of oil, yet it seems that bearish sentiment elsewhere has prevailed over potential risk.

This year, the offshore oil and gas industry has had to come to terms with the worst downturn for more than a decade. With commodity prices plummeting to an 11-year low in December, market research and consulting firm Douglas-Westwood (DW) reflects on the year gone by and considers the outlook for the year to come. Offshore rig markets still have a lot to digest before recovery. Rig dayrates have plummeted as a function of significant oversupply. Many of these rigs were ordered in the previous up-cycle, but have only recently entered the fleet at a time when the appetite to drill is poor.

There will be significant growth in both investment and activity in the FLNG market over the next seven years, with Douglas-Westwood (DW) forecasting total expenditure of $58.3 billion in its new market report. Sixty-one percent of this spend is attributed to liquefaction infrastructure, with the remainder from import and regasification facilities. Report author, Ben Wilby, commented, “The industry is about to see the installation of the first floating liquefaction projects. The application of LNG technology offshore has been proposed and studied within the industry for more than 30 years so there is intense industry interest in the first applications. The success of these first pioneering projects will no doubt impact future commitments by operators to FLNG developments.

After 10 years of diplomatic negotiation, the UN P5+1 countries (the U.S., the U.K., France, China, Russia and Germany) reached an agreement to unwind economic sanctions on Iran in return for significant international control and surveillance over its nuclear activities. The deal will revive foreign investment in Iran, as Western IOCs renew pre-sanction projects, notes energy industry market research and consulting company Douglas-Westwood (DW), who adds Brent dropped $1.15 to $56.70/bbl on the back of the announcement, with markets fearing a worsening of the global supply glut. Iran holds the world’s fourth-largest oil reserves and second-largest gas reserves, while being the second largest OPEC producer after Saudi Arabia.

A sustained supply glut has maintained Brent oil prices through the first five months of 2015 at some 47 percent lower than the same period in 2014. Industry observers expect low oil prices to eventually take supply out of the market and drive a price correction, noted Douglas-Westwood. So, when will this happen? To-date, supply appears unaffected - latest figures from the EIA indicate that US production has risen almost 13 percent in the last 12 months. Saudi Arabia is much the same, production has hit a record rate of 10.3 mb/d.

Douglas-Westwood (DW) forecast in its new World Offshore Accommodation Market Forecast that over the period 2015 to 2020 demand for offshore accommodation vessels will average almost 42,000 Personnel on Board (PoB) per year. An increase of 14% compared to the preceding six-year period. Report author, Kathryn Symes, commented, “Despite a peak between 2016 and 2018, the market will plateau towards 2020 as decreasing fixed platform installations and capital expenditure (Capex) restrictions lead to a decline in construction support. “Offshore accommodation units are utilized throughout a field lifecycle in both the operational expenditure (Opex) and Capex stages.

Capital expenditure (Capex) on global liquefied natural gas (LNG) facilities is expected to total $259 billion over the forecast period 2015-2019, according to the new ninth edition of Douglas-Westwood’s (DW) World LNG Market Forecast 2015-2019, which predicts investments to be 88% larger than during the previous five-year period. Report author, Amanda Tay, commented, “Global LNG Capex witnessed a slowdown in the period 2009 through to 2012, as a result of the global recession. Post-2012, alongside stronger confidence in the global economy and a growing appetite for energy, the industry started picking up and has piqued investors’ interest in LNG projects again.

Shipbuilder Ferus Smit has launched newbuild bulk carrier vessel Arklow Breeze on Friday, March 20 at Westerbroek. Arklow Breeze is the sixth and final vessel of a series to be delivered to a client from the city of Arklow, Ireland. The design is a bulk oriented general cargo ship that will be mainly employed in the shipment of wheat, corn and other bulk commodities in European waters. Arklow Breeze will be delivered in April 2015. The hull form adapts the bulbless principle, creating a slender bow without bulb.

The global offshore accommodation market has seen significant growth over the past five years, with PoB requirements increasing by 27% between 2009 and 2014. Although the recent oil price decline has negatively impacted the accommodation market to some extent, the affect thus far has been largely limited to demand for units supporting Capex-related activities. However, Capex support is proportionally smaller in terms of total accommodation demand; of greater significance are the Opex markets which will account for 69% of PoB requirements in 2015. Accommodation units are utilised to reduce downtime during periods of essential maintenance. In the current oil price environment, sustaining production levels is key; moreover, reducing downtime from vital maintenance programs will be essential.

Ferus Smit will launch newbuild bulk carrier Arklow Breeze on Friday, March 20 at Westerbroek. Arklow Breeze is the sixth and last vessel of a series to be delivered to a client from the city of Arklow, Ireland. The design is a bulk oriented general cargo ship that will be mainly employed in the shipment of wheat, corn and other bulk commodities in European waters. The hull form adapts the bulbless principle, creating a slender bow without bulb. Taking into account the various loading drafts and wave conditions to be encountered in service…