Marine Link
Monday, October 23, 2017

Lng Contract

LNG Destination Clauses May End: IGU

Destination clauses on contracts for liquefied natural gas (LNG)shipments will soon be a thing of the past because of the shale revolution in the United States, the head of the International Gas Union said in an interview. Japan and other buyers of LNG have long complained that the destination clauses on multiple-year term contracts place an unfair restriction on trade of the fuel. Those objections have been rebuffed by producers up until recently, but that is changing as the United States is on the verge of becoming a gas exporter. The conversion of U.S. sites formerly planned as import terminals into liquefaction plants - after its natural gas output surged with the use horizontal hydraulic fracturing - has meant that supplies contracted for deliveries to the United States often have no market. "It will be more and more difficult to maintain destination clauses, based on the recent experience with the reverse of the U.S. market," Jerome Ferrier, the president of the International Gas Union told Reuters in an interview. "It doesn't make sense to send Yemen production with the destination Boston in the U.S. when there is no market and not accepting to send (the cargo) to Asia ... sharing the margin or the advantage of such a reroutage," Ferrier said. Boston, Massachusetts, is the main destination of the few LNG cargoes still heading into the United States

Japan LNG Prices Fall to Lowest in More Than 2 Years

Prices for liquefied natural gas (LNG) spot cargoes for Japan, the world's top buyer, fell in May to the lowest since the trade ministry started publishing figures more than two years ago, official data showed on Thursday.   The average price of spot LNG contracted in May fell by 10 cents from the previous month to $4.10 per mmBtu, the monthly data by the Ministry of Economy, Trade and Industry (METI) showed, down from $14.80 two years ago.  

Oil Ministry Hopes to Get Iran LNG Contract

With the UN referral issue creating uncertainty about India's future relations with Iran, the Petroleum Ministry is fairly assured of the supply of five-million-ton contracted liquefied natural gas (LNG) from Iran. According to the Hindu Business Line, the 5 mt per annum LNG deal was legally binding, which ends speculations that the $20 billion LNG deal with Iran may be in trouble. The ongoing negotiations with Iran are for the additional 2.5 mt per annum

Yamal LNG Inks Deal with Gazprom to Sell LNG in Asia

A trading subsidary of Russian gas producer Yamal LNG has signed a long-term supply contract with a trading subsidiary of Gazprom, under which liquefied natural gas (LNG) produced by Yamal LNG will be sold in Asia, Yamal LNG said on Friday.   The company said in a statement that the contract involved sales of 2.9 million tons of LNG per annum which would be sold to the Asia-Pacific region, primarily India, with the LNG priice indexed to crude oil.  

Yamal LNG Bags Contract for 96% output

Image: Yamal LNG

The Yamal LNG project has signed contracts for the sale of 96% of liquefied natural gas (LNG) it produces, Tass news agency reported, citing Evgeny Kot, head of Yamal LNG.   "96%, practically the total volume of LNG we produce will be sold under long term contracts. This means 20-25 years," he said.   According to him, the countries of Asian-Pacific region account for 86% of the contracts.   

Crowley to Supply LNG in Puerto Rico

Photo: Crowley

Crowley Maritime Corp.’s  liquefied natural gas  (LNG) services group has been awarded a multi-year contract to supply additional volumes of containerized, U.S.-sourced LNG to a major pharmaceutical company’s manufacturing plants in Puerto Rico.   The contract, executed through Crowley’s Carib Energy LLC subsidiary, extends a 2014 contract awarded to Crowley for LNG supply for the facilities by expanding LNG services to additional plants

Torghatten Nord Names LNG Supplier for Ferry Fleet

Barents NaturGass AS reportedly won a contract to supply liquefied natural gas (LNG) to Torghatten Nord AS for seven new LNG ferries in one of Norway’s busiest waterways, according to a report on www.ngvglobal.com. The contract takes into consideration the full environmental profile of fuel supply and stipulates that trucks delivering fuel to depots must also be LNG-powered. Torghatten Nord signed the largest ferry contract in Norway, to a value of $238m

Korean Shipyard Wins LNG Carrier Contracts

LNG Carrier: Photo credit Wiki CCL Wolfgang Meinhart

Hyundai Heavy Industries (HHI) & its affiliated shipyard obtain orders totalling US$1.05 billion to build five liquefied natural gas (LNG) carriers. One of the LNG carriers of 155,000-cubic-metre capacity and worth US$210 million is for Brunei Gas, reports the Oman Daily Observer. HHI's affiliated shipyard, Hyundai Samho Heavy Industries, also won a contract for four 174,000-cubic-metre LNG carriers valued at $840 million from Greece’s Maran Gas

MOL, Mitsui Ink Charter Deal

Courtesy  Cameron LNG

  Mitsui O.S.K. Lines, Ltd. signed a contract with Mitsui & Co., Ltd. today (January 29) to charter a new 177,000m3 liquefied natural gas (LNG) carrier. This is the third newbuilding vessel chartered by Mitsui & Co., following a contract signed last September 26 for two carriers. MOL will manage the new vessels and transport shale gas-derived liquefied natural gas (LNG) from Cameron Project in Louisiana, the United States.

LNG Prices Low on Oversupply

By Henning Gloystein   The Asian market for liquefied natural gas (LNG) remained subdued this week, weighed down by oversupply concerns and as the northern hemisphere exits its high demand summer season.   Spot prices for Asian LNG <LNG-AS> were at $5.40 per million British thermal units (mmBtu), down 5 cents from a week ago. That's more than 70 percent below the $20.50 per mmBtu peak from February 2014.  

BP’s LNG Carrier Fleet is Growing

BP said it will take delivery of six new, state-of-the-art liquefied natural gas (LNG) tankers in 2018 and 2019 to support its expanding global LNG portfolio.   BP’s finance partners KMarin and ICBC Leasing are investing more than $1 billion in the tankers. The vessels will join BP’s exixting fleet to help service a 20-year liquefaction contract with the Freeport LNG facility in Texas, as well as other international LNG projects in BP’s global portfolio.  

The Nautical Safety Profile

(Image: MARIN)

MARIN is working together with the industry to develop the Nautical Safety Profile for operations and risk management.   Liquefied natural gas (LNG) is increasingly being used as an alternative fuel, both at sea and on land, to reduce pollution from transportation.    In 2011 the first LNG carrier arrived at the Rotterdam Gate terminal, and last year the terminal was upgraded to facilitate the transfer of LNG to shuttle tankers

Wärtsilä Inks Maintenance Deal with GasLog

LNG carrier GasLog Greece (Photo: Wärtsilä)

Wärtsilä said it has signed an engine maintenance agreement with Monaco-based GasLog LNG Services, covering eight LNG carriers operating on Wärtsilä dual-fuel engines.   The agreement, effective as of October 1, 2017, consists of Dynamic Maintenance Planning (DMP), technical support, secured availability of spare parts and specialized technical personnel around the clock as well as constant performance monitoring

Nakilat Net Profit Down for the Last Nine Month

Nakilats flagship, the QMax Mozah. Photo: Qatar Gas Transport Company

 Qatar Gas Transport Company (Nakilat), the largest LNG ship owner in the world, concluded its financial results for the nine-month period ended 30 September 2017, with a net profit of QR 607 million compared to QR 749 million of the same period last year in 2016.   The lower profit was mainly attributed to the effect of changing the estimated scrap value of vessels in accordance with applicable International Accounting Standards and the lower number of charter hire days in the

Statoil Selects Gas4Sea for LNG Bunkering in Rotterdam

Photo: Gas4Sea

Gas4Sea partners - ENGIE, Mitsubishi Corporation and NYK - have been selected by Norwegian multinational energy group Statoil to be their liquefied natural gas (LNG) marine fuel supplier in the port of Rotterdam, in the Netherlands, for four crude shuttle tankers.   The four planned dual fuel vessels are to come into service in early 2020 and will be operated by Statoil in Northern European seas.   Gas4Sea will supply LNG using the ENGIE Zeebrugge which started operations earlier

Skangas Delivers Milestone Fuel Change

(Photo: Skangas)

Skangas said its vessel Coralius has for the first time both cooled down tanks and delivered liquefied natural gas (LNG) in one operation. The receiving vessel LEG/C Navigator Aurora was supplied with just under 500 mt LNG in the middle of a voyage between Sweden and South Europe over October 7 and 8, 2017.   Going from using diesel oil to LNG requires time consuming but necessary process of cooling down operation of the receiving ship’s fuel gas tanks from ambient conditions to

Gothenburg Port Extends Discount Period for Vessels

The Port of Gothenburg has opted for the third year in succession not to increase the charges set out in the Port Tariff. Photo: Gothenburg Port Authority

 Gothenburg Port Authority has opted to keep the Port Tariff unchanged for the third year in succession. The charges for 2018 will thus be on the same level as 2015.   Port charges are levied on all vessels that call at the Port of Gothenburg. The charges are based on vessel type and gross tonnage, and are used to finance a range of activities, including fairway maintenance, traffic information and port safety.  

FLNG Hilli Episeyo Departs Singapore Early

 Golar LNG Limited said today that its floating liquefied natural gas (FLNG) vessel Hilli Episeyo departed Singapore for Cameroon earlier than anticipated, leaving at 10 a.m. local time on October 12.   Hilli Episeyo was scheduled to leave Singapore between October 15 and October 20, but Golar LNG said a decision was made to complete LNG bunkering in Cameroon rather than in Singapore. The voyage to Cameroon is expected to take between 32 and 40 days.   

Hybrid Energy Storage Solution Installed on Viking Princess

Viking Princess and Wärtsiläs expert analyzing the new hydrid system on board Viking Princess  (Photo: Wärtsilä)

Wärtsilä said it completed the installation of a hybrid energy system on board offshore supply vessel (OSV) Viking Princess.   The Norwegian vessel is now the first ever OSV in which batteries reduce the number of generators aboard the ship. The new energy storage solution will improve engine efficiency, generate fuel savings and reduce greenhouse gas emissions. Viking Princess completed sea trials and the system was handed over to customer Eidesvik Offshore on

Cheniere Partners Completes Train 4 at the Sabine Pass LNG

Loading of the first commissioning cargo at the Sabine Pass LNG Terminal - February 2016. File Photo: Cheniere Energy, Inc.

 Cheniere Energy Partners has announced that Substantial Completion of Train 4 of the Sabine Pass liquefaction project in Cameron Parish, Louisiana (SPL Project) was achieved on October 9, 2017.    Commissioning has been completed and Cheniere Partners' EPC partner Bechtel Oil, Gas and Chemicals has turned over care, custody, and control of Train 4 to Cheniere Partners.   Under a sale and purchase agreement (SPA) with GAIL (India) Limited

SUNY Maritime College to Host LNG Conference

© Александр Беспалый / Adobe Stock

As demand for liquefied natural gas (LNG) grows, so does the need for LNG carriers. Many shipping companies in recent years have placed orders for LNG ships, and shipyards are busy building them. The maritime industry is also exploring ships powered by natural gas, rather than more traditional sources.   To address this topic, SUNY Maritime College will host a conference, LNG: Not just a cargo, on Thursday, November 2

MOL Names Newbuilding LNG Carrier 'Energy Liberty'

MOLs LNG carrier Papua. File Photo: MOL

 Mitsui O.S.K. Lines (MOL) has announced that on October 16, a naming ceremony for a newbuilding LNG carrier, jointly owned by MOL and Tokyo LNG Tanker, was held at the Tsu Shipyard of Japan Marine United Corporation.  Among the crowd of well-wishers on hand for the ceremony were Tokyo Gas Co., Ltd. President Michiaki Hirose, who gave the name Energy Liberty to the vessel, after which his wife cut the rope.  

Wood Wins LNG Platform FEED Contract

Pic:  John Wood Group PLC

 The Honghua Group Limited has awarded a $12 million front-end engineering design (FEED) contract to Wood for its liquefied natural gas (LNG) platform development in the West Delta area of the Gulf of Mexico.   The main objective of the FEED is to finalize the design of the world’s first offshore platform-based natural gas liquefaction and storage facility. Wood recently completed the pre-FEED for this project.  

Wärtsilä Dual-fuel Engines for LNG Carrier Newbuilds

Wärtsilä 34DF dual-fuel engine (Photo: Wärtsilä)

Wärtsilä, through its joint venture company CSSC Wärtsilä Engine (Shanghai) Co (CWEC), has been contracted to deliver 16 engines for four new LNG carrier vessels being built at the Hudong Zhonghua shipyard in China. The order was booked in August 2017.   Each of the four 174,000 m3 capacity vessels will be fitted with four Wärtsilä 34DF dual-fuel generating sets running primarily on LNG fuel to provide the ships with auxiliary power

Dordrecht Inland Seaport to Get LNG Bunker Station

Photo: Port of Rotterdam

 The Port of Rotterdam Authority wants a new multi-fuel bunkering station for refuelling with LNG and other cleaner fuels. The anticipated location of the bunkering station is Krabbegors/Duivelseiland at Dordrecht Inland Seaport.    The Port of Rotterdam Authority and PitPoint.LNG have therefore signed a declaration of intent regarding a joint investigation into the construction of such a multi-fuel bunkering station.    

Maritime Reporter Magazine Cover Oct 2017 - The Marine Design Annual

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