Ship Reportedly Booked for First US Condensate Export

Posted by George Backwell
Wednesday, July 16, 2014

The first condensate cargo for export is due to load in Texas at the end of this week, headed via the Panama Canal to Asia, shipping sources said.

Westport Petroleum Inc., the Franklin, Tennessee-based shipping arm of Japanese trader Mitsui & Co., chartered the BW Zambesi, an LR1 tanker, also known as a Panamax class vessel.

Reuters previously reported that Mitsui had bought a 400,000-barrel cargo, and is said to be being marketed to refiners in Asia.

According to a Reuters shipping database, the BW Zambesi has capacity of more than 76,000 deadweight tons (DWT). Shipping sources said the BW Zambesi will likely carry less than its maximum capacity, due to draft restrictions in the Panama Canal.

The $1.8 million one-way trans-Pacific trip is expected to take a month or more, sources said.

The vessel is currently anchored outside of Galveston, Texas. It arrived in the Galveston Offshore Lightering Area on June 22, according to Reuters shiptracking data.

Shipping industry sources said this was the first cargo of three purchased by Mitsui.

First of many?
The first cargo is a sign that U.S. oil companies could be on the verge of unleashing light, gaseous petroleum from the country's massive oil and gas fields to markets overseas. By the end of the year, as much as 300,000 barrels could be exported each day, according to an analysis by Citibank.

Two companies - Enterprise and Pioneer Natural Resources - have approval from the U.S. Department of Commerce to export condensate that had been minimally processed to reduce volatility. U.S. condensate supply is estimated at about 1 million barrels per day.

The approvals represent a softening of a total ban on U.S. oil exports in place since the Arab oil embargo of the 1970s, and they open up the United States to global oil consumers for the first time in a generation.

(By Anna Louie Sussman)

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

People & Company News

Sapurakencana Wins 3 Petronas Oil blocks

SapuraKencana Petroleum Berhad today announced that it has entered into Sale and Purchase Agreements to acquire the entire interest of PETRONAS in 3 blocks offshore

Kemp Succeeds Semple at Wood Group

Wood Group announced following changes to its senior management team. Alan Semple, chief financial officer (CFO) has advised the board that he intends to

ST Engineering Rejigs Top Deck

Singapore Technologies Engineering Ltd (ST Engineering) today announced the appointment of senior management personnel to new key management positions in the

Contracts

Sapurakencana Wins 3 Petronas Oil blocks

SapuraKencana Petroleum Berhad today announced that it has entered into Sale and Purchase Agreements to acquire the entire interest of PETRONAS in 3 blocks offshore

Time-out for Kwanza Drilling

Statoil has decided to cancel the Stena Carron rig contract after fulfilling the work commitments in the Statoil-operated blocks 38 and 39 in the Kwanza basin offshore Angola.

President Pryor Retires from ExxonMobil Chemicals

Stephen D. Pryor, president, ExxonMobil Chemical Company and vice president of Exxon Mobil Corporation, has elected to retire on January 1, 2015, after more than 44 years of service.

Energy

Sapurakencana Wins 3 Petronas Oil blocks

SapuraKencana Petroleum Berhad today announced that it has entered into Sale and Purchase Agreements to acquire the entire interest of PETRONAS in 3 blocks offshore

Kemp Succeeds Semple at Wood Group

Wood Group announced following changes to its senior management team. Alan Semple, chief financial officer (CFO) has advised the board that he intends to

Baker Hughes to Present at Wells Fargo's 2014 Energy Symposium

Baker Hughes Incorporated announced today that the Company's Vice President and Chief Strategy Officer, Derek Mathieson, will present at Wells Fargo's 2014 Energy Symposium on Wednesday,

Fuels & Lubes

Environmental Groups: IMO Polar Code Too Weak

The International Maritime Organization (IMO) today adopted the Polar Code aimed at regulating shipping in Polar Regions. Several environmental groups have criticized

Cost to Fuel Ships Falls

For a ship that burns 24 tonnes of fuel per day while steaming, fuel costs are reduced by as much as $1 million a year if current price level stay put. Assuming

Belgian Strike to Impact Antwerp Port

A strike in parts of Belgium on Monday is expected to disrupt rail services and one of Europe's largest ports as trade unions and workers voice their anger over

 
 
Maritime Careers / Shipboard Positions Maritime Security Navigation Pipelines Port Authority Salvage Ship Electronics Ship Repair Sonar Winch
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: 0.1389 sec (7 req/sec)