Lpg Shipping News

Astomos Energy, the biggest LPG distributor and trader in Japan, has chosen Maersk Tankers as voyage manager for, initially, five very large gas carriers (VLGCs).The Maersk Tankers service includes day-to-day vessel operations, fuel optimisation and claims handling. It covers full post-fixture support from the time the vessel is fixed for a voyage, through its successful execution, to the closure of the voyage books.“We are honored to commence the partnership with Maersk Tankers, not only pursuing efficient operation but also environmental goals.

Liquefied petroleum gas (LPG) shipping company Dorian LPG announced it has taken delivery of the newly built very large gas carrier (VLGC) Captain Markos from Japanese shipbuilder Kawasaki Heavy Industries.The 84,000 cubic meter capacity VLGC is a dual-fuel vessel capable of running on on LPG and low-sulfur fuel oil.The ship  is owned by a Japanese owner will be operated by Dorian LPG under a 13-year bareboat charter, trading in the Helios LPG Pool which Dorian LPG jointly operates with Phoenix Tankers Pte. Ltd., a wholly-owned subsidiary of Mitsui OSK Lines Ltd.

Oslo-listed BW LPG, the world’s largest LPG shipping company, ordered Wärtsilä LPG Fuel Supply System (LFSS) for retrofit to three very large gas carrier (VLGC) vessels. BW LPG had previously ordered four Wärtsilä LFSS’ in 2018, and an additional eight systems in February 2020. The initial order was placed following Wärtsilä’s successful full-scale testing of the system in 2018 with a full-sized two-stroke marine engine operating on LPG fuel, which was the world’s first such testing protocol.

Avance Gas Holding, a company engaged in the transportation of liquefied petroleum gas (LPG), has entered into shipbuilding contracts for two 91,000 cbm,  LPG dual-fuel very large gas carriers (VLGCs) with South Korea’s Daewoo Shipbuilding and Marine Engineering (DSME).The Norwegean LPG shipping firm said that the vessels are are scheduled for delivery in Q4 2021 and Q1 2022.The transaction enhances the green profile of the Avance Gas fleet while increasing its competitiveness. The state of the art dual-fuel propulsion system will significantly lower fuel consumption, reduce fuel costs and reduce emissions compared to any VLGC on water.The outlook for the freight market is healthy, supported by continued strong US LPG exports and growing Asian demand.

BW LPG Limited, owner and operator of LPG vessels,  said that Martin Ackermann has decided to step down as CEO at the end of this year for family reasons, after five years leading the company from Singapore.Anders Onarheim, a non-executive director of BW LPG since 2013 and former Managing Director of Carnegie, will act as interim CEO of BW LPG.Martin Ackermann, CEO of BW LPG, said: “It has been a privilege to lead BW LPG through some challenging years and to see it continue as a strong platform for the future”.Andreas Sohmen-Pao, BW LPG Chairman, said: “On behalf of the Board of Directors, I would like to thank Martin for his contributions over the past five years…

Qatari shipping and maritime company Qatar Gas Transport Company (Nakilat) reported a 10.5% year-on-year increase in net profit to QR728mn (USD 200 million) in the first nine months of this year.Nakilat, which has the largest LNG shipping fleet in the world, comprising 69 vessels, said in a press note that its positive financial performance can be primarily attributed to better operational performance in managing its liquefied natural gas (LNG) and liquefied petroleum gas (LPG) vessels.The company also realized higher revenues on additional income from the acquisition of two additional LNG carriers and one Floating Storage Regasification Unit (FSRU) in 2018…

Epic Gas, the liquid petroleum gas (LPG) shipping solutions company, announced that it has completed the acquisition of two of the four ships that it previously referenced in April 2019.The vessels, the Kahyasi and Kris Kin, , are all modern second-hand 11,000cbm Japanese-built pressurised LPG carriers that were built in 2015.The remaining ships, the Kingcraft and Kisber, also both 11,000cbm Japanese-built pressurized LPG carriers built in 2015, are due to complete in July and August.Two of the four vessels immediately enter a two-year time charter with a leading LPG commodity trading and shipping company, said a press release from the Oslo-listed company.The four vessels will sit alongside six sister vessels already in the Company fleet…

Anthony Veder, which operate gas tankers in all the segments of gas shipping, from LPG shipping to LNG shipping and from CO2 shipping to ethylene shipping, will take over the commercial management of five gas carriers of Chicago-based GATX Corp.The vessels will start trading in Anthony Veder’s gas pool in June, the Rotterdam-based shipowner said in a press note.With this transaction Anthony Veder further strengthens its position as liquified gas shipping company to a fleet of 38 ethylene, LPG and LNG carriers, it said.The gas carriers previously were part of the Norgas pool and will be renamed starting with Coral, the release noted.Three out of five vessels will transport liquefied petroleum gas and petrochemical gasses such as ethylene.

North American liquefied petroleum gas  (LPG) export capacity is forecast to grow considerably over the next two years, said Dorian LPG.According to the LPG shipping company, bolstered by additional volumes out of Marcus Hook in the northeast U.S. due to the startup of the Mariner East 2 pipeline, U.S. exports reached their highest levels for the first calendar quarter of 2019 in January with over 3 million metric tons of LPG exported during the month.However, significant reductions in U.S. exports were seen during the rest of the first calendar quarter of 2019 due to closure events in the Houston ship channel.Additionally, there was tightness in the East due to a reduction in Middle Eastern supply related to OPEC production cuts and U.S. sanctions on Iran.

Singapore-based BW Group has increased its stake in the pressurised LPG shipping solutions company Epic Gas to 82.58% with the completion of its voluntary unconditional offer.On 16 April, BW Group received acceptances under the Offer for a total of 9,698,135 shares, corresponding to approx. 13.76% of the outstanding shares and voting rights in the Company.Under the Offer, BW Group has received acceptances for a total of 19,646,947 shares, corresponding to 27.88% of the outstanding shares and voting rights in the Company.Together with the 38,548,329 shares BW Group already owned, it now owns and holds the rights to a total of 58,195,276 shares…

Dutch gas carrier operator Anthony Veder said it is expanding its fleet with a 30,000-cbm liquefied natural gas (LNG) carrier that is currently being constructed by China’s  Zhejiang Xinle Shipbuilding in Ningbo.The vessel will be completed by Zhejiang Xinle Shipbuilding under supervision of Anthony Veder and is expected to be ready for worldwide trading in the summer of 2019, said a press release from the operator of gas tankers in all the segments of gas shipping, from LPG shipping to LNG shipping and from CO2 shipping to ethylene shipping.After delivery it will be renamed with a Coral name. Anthony Veder will handle the commercial operation and ship management…

Singapore-based owner of gas carriers BW LPG has established a product services division in an effort to support its core shipping business.The  Product Services division is part of BW LPG’s ambition to propose a low-risk and fully-integrated product delivery service to customers.The owner and operator of LPG vessels will purchase LPG and offer it delivered on the basis of cost, insurance and freight, directly to the end user.Through this new division, BW LPG aims to maximise utilisation of its vessels by providing full LPG delivery service, including product, while remaining focused primarily on shipping services.Martin Ackermann, BW LPG CEO said:  “The new product services division reflects BW LPG’s ambitions to provide existing and new customers with reliable…

Global seaborne liquefied petroleum gas (LPG) volume is expected to grow by over 6% in 2019 and surpass 100 million tonnes for the first time.Singapore based provider of pressurised LPG vessels, Epic Gas said that it is well positioned to benefit from the improving fundamentals of the LPG shipping market.For the fourth quarter of 2018, freight levels for most sizes in the pressurised sector were similar to the stronger levels seen in the third quarter. Rates for the 3,500cbm, 5,000cbm, 7,500cbm and 11,000cbm averaged $8,671, $9,870, $10,565 and $13,315 per day, respectively, up 12% for the 3,500cbm, 6% for the 5,000cbm and 7,500cbm vessels…

The biggest market change in the fourth calendar quarter of 2018, was the decline in crude oil prices, with Brent falling from a monthly average of nearly $82/barrel in October, finishing the year below $51 per barrel. As a result, global  liquefied petroleum gas (LPG)prices followed the downward trend.Dorian LPG, the Stamford-based owner and operator of 22 very-large gas carriers, said that without the additional LPG cargoes out of Marcus Hook from Mariner East 2, which started operations in January 2019, U.S. exports remained similar to the third calendar quarter of 2018, if not slightly lower.Total LPG exports from the U.S. are estimated at 32.8 million metric tons for the full year, up nearly 10% year-over-year.

The Middle East is the most active export market of LPG exports on very large gas carriers(VLGC), said Norway-based LPG shipping firm Avance Gas.Oslo-listed Avance Gas said in a statement that traditionally Saudi Arabia was the largest exporter, but though growing LNG production from mid-2000 combined with increased petrochemical use of LPG in Saudi Arabia, resulted in Qatar and UAE becoming the largest exporters.Today Qatar and UAE each export about 10 million tons annually, Saudi Arabia 8-9 million tons and Kuwait 4-5 million tons. The Iranian export, which recent years has been 3-4 million tons annually is expected to fall significantly by early November with new US sanctions coming into force.

Seaborne LPG trade rebounded in the second calendar quarter of 2018 thanks to heavy lifting schedules in the Middle East and the United States, as well as an improvement in arbitrage economics towards the end of the three-month period, said Dorian LPG.After a lackluster first calendar quarter of 2018, exports from the United States peaked at approximately 2.7 million metric tons in May 2018, and total U.S. exports for the first half of 2018 were 4% higher as compared to the same period in 2017.Appetite for LPG in the East remained strong throughout the second calendar quarter of 2018 due to robust consumption within both the retail and petrochemical markets.

Among the different size categories of LPG ships, the small vessel segment is expected to be the best performer in 2018 while Handysize vessels will be the worst, according to the latest edition of the LPG Forecaster, published by global shipping consultancy Drewry. The LPG shipping market is currently oversupplied with vessels (with the exception of the small segment 1,000-5,000 cbm), as a result of strong fleet growth during the last three years. The global LPG fleet expanded at an annual average rate of 17% in 2015 and 2016, and is expected to grow by 9% in 2017. However, shipowners can now breathe a sigh of relief as fleet growth is set to slow down to 5% in 2018 and 3% in 2019, respectively.

The Woodmac report we saw offered us cause for pause — “Strong activity from the (major oil companies)” while “national oil companies have tightened their purse strings.” What Maritime Reporter found, was that national oil companies — nation-builders, for many — are putting their money in affiliate shipyards. The hope of two, new shipbuilding giants is jobs, innovation, national survival and export security. The model is to invite those who have done it before: Koreans, Japanese, French and a contractor with offshore and marine experience.

Given the weak freight rate outlook for LPG shipping over the next twelve months, Drewry believes there is more downside risk to the second-hand values of very large gas carriers (VLGCs), according to the latest edition of the LPG Forecaster, published by global shipping consultancy Drewry. Shipping analysts have been bearish on the VLGCs market since the beginning of the year and rates so far have been in line with expectations. Vessel earnings in the spot market are currently below operating cost. Drewry maintains a bearish outlook and believes that the next twelve months will continue to be tough for VLGC owners due to strong fleet growth. The recovery phase will not start until the second half of 2018 as fleet growth slows as a consequence of weak ordering over the past 18 months.

After reaching record levels during the first four months of 2017, U.S. LPG export cargoes have seen a number of cancellations or deferments in June and July, said Dorian LPG in a press statement. Steady domestic demand has kept U.S. propane prices firm and, therefore, priced above levels conducive to the arbitrage trade. U.S. propane inventories have continued to build in recent weeks and could reach levels of 75 million barrels by the end of September 2017. The overall U.S. exports at the half-year mark remain at similar levels to 2016 due to the cancelled cargo volumes from the U.S., driven by waning Far East demand caused by seasonal factors and high inventories.

Vessel oversupply will persist in the LPG shipping market for the next two years, keeping freight rates under pressure across most size segments. However, the small vessel segment is the only category where fleet growth will be minimal, leading to a recovery in rates, according to the latest edition of the LPG Forecaster, published by global shipping consultancy Drewry. Most vessel size segments are expected to witness another year of rapid supply growth in 2017, with the overall fleet forecast to expand by 16%. This will keep freight rates under pressure over the next two years. However, the small LPG vessel segment (1,000-5,000 cbm) will be the exception where fleet growth will be minimal and rates are expected to improve.

The LPG shipping trade will continue to grow at a healthy pace on the back of strong Asian demand, but fleet growth will outpace it, keeping rates under pressure in 2017, according to the latest edition of the LPG Forecaster, published by global shipping consultancy Drewry. 2016 was a tough year for LPG shipping with rates coming under pressure across all size segments. 2017 is expected to be no different with the fleet set to grow by another 16%, on top of the 17% expansion seen last year. Asia-Pacific countries have been the major drivers of the LPG trade for several years, and imports to this region have grown at a robust rate of 12% annually over the last four years.

Eletson Gas and Evergas announced an alliance of the two companies that will trade the companies’ semi-ref/ethylene capable vessels. The new venture, to be called the E3 Pool, will commence trading on the 30th of January from the Eletson offices in Piraeus and London and the Evergas offices in Copenhagen and Singapore. The new commercial venture will control the 15-strong fleet of modern gas carriers that are currently trading. It will be joined by a further four vessels to be delivered to Eletson over the next twelve months and will create a single point of contact for cargo owners. A larger fleet will provide more flexibility and more options for Charterers…