LNG Marine Fuel Taking Hold in America: FMC Commissioner Speaks
In his speech at the LNG Export & Export & Infrastructure Conference Federal Maritime Commissioner Doyle gives insights on the consequences of the adoption of Liquefied Natural Gas (LNG) as a marine fuel in the United States. I am a Commissioner with the U.S. Federal Maritime Commission. The Federal Maritime Commission is an independent regulatory agency responsible for regulating the nation’s international ocean transportation for the benefit of exporters, importers, and the American consumer.
Shell Ships 'Slurry Oil' from Singapore to UAE
In an unusual arbitrage move, Shell International Eastern Trading Company (SIETCO) has chartered a tanker to ship up to 80,000 tonnes of slurry oil from Singapore to Ruwais in the United Arab Emirates (UAE).Shell has chartered the tanker Maersk Prosper to load 80,000 tonnes of fuel oil from Singapore on Aug. 18 to 20 and for discharge into Ruwais at a $450,000 fee, according to data from two shipbroker reports and a trade source with knowledge of the matter.Ruwais in the UAE is the site of Abu Dhabi National Oil Corp's (ADNOC) 800…
Stolt-Nielsen Takes Stake in LNG Logistics Startup
Stolt-Nielsen Limited has announced that Stolt-Nielsen Gas Ltd. (SNG), SunLNG Holding Ltd. (SunLNG) and LNGaz Ltd. have agreed to form a new startup focused on the development of small-scale LNG liquefaction and logistics services in Becancour, Quebec, Canada. The new joint venture, to be named Stolt LNGaz Ltd., will have a Canadian operating subsidiary, Stolt LNGaz Inc. The transaction represents an initial investment of US$ 20 million with SNG owning 50% of the venture. Stolt LNGaz intends to provide clean burning natural gas to remote mining operations and other industrial customers in northeast Canada at a substantially lower cost than diesel and residual fuel oil, which are the primary energy sources today.
Stolt-Nielsen Gas Takes Major Stake in LNG Logistics Start-Up
Stolt-Nielsen Limited (Oslo Børs: SNI) announced today that Stolt-Nielsen Gas Ltd. (SNG), SunLNG Holding Ltd. (SunLNG) and LNGaz Ltd. have agreed to form a new start-up focused on the development of small-scale LNG liquefaction and logistics services in Bécancour, Québec, Canada. The new joint venture, to be named Stolt LNGaz Ltd., will have a Canadian operating subsidiary, Stolt LNGaz Inc. The transaction represents an initial investment of US$ 20 million with SNG owning 50% of the venture.
LR Addresses Fuel Changes when Entering and Exiting ECAs
From January 1, 2015, the maximum sulphur content of fuel oil used within the MARPOL Annex VI Emission Control Areas (ECAs) will be 0.10%, unless using an approved alternative means for controlling sulphur emissions. In most cases, the fuel used will be low-sulphur distillate oil (LSDO). Many ships operating both inside and outside ECAs will changeover between LSDO and residual fuel oil (RFO) when entering and exiting ECAs. The Lloyd’s Register (LR) Rule requirements for fuel oil systems are contained within Pt.5 Ch.14 sections 2, 3 and 4; these contain design requirements for systems which are to operate on either LDSO or RFO grades, or both. LR also offers the optional descriptive note, DIST, for shipowners and operators applying industry best practice to the use of LSDO.
North P&I Publishes 3rd Edition Of Bunker Claims Prevention Guide
The ‘A’ rated, 150 million GT North of England P&I club has published a third edition of its popular loss-prevention guide ‘Bunker Claims Prevention’, which aims to help shipowners avoid potentially large losses arising from loading unsuitable or insufficient marine fuel oil. The new edition reflects recent changes to international marine fuel specifications introduced in ISO 8217:2010. Head of loss prevention Tony Baker says, ‘The guide tackles bunker quality and quantity issues…
Op/Ed: Shiphandlers Beware
Was the closing of the Houston Ship Channel for over three days in March 2015 due to the use of Ultra Low Sulphur Fuel Oil (ULSFO)? After reviewing the testimony, and evidentiary material presented by the National Transportation Safety Board (NTSB) regarding the 2015 Conti Peridot’s collision with the Carla Maersk, it is the authors' opinion the report fails to address significant contributing factors. The NTSB has overlooked a serious threat to vessel operations throughout the world.
Cheaper Fuel to Boost Container Shipping
Lower oil prices are sharply reducing the cost of shipping merchandise from Asia to the United States and Europe as the cost of bunker fuel tumbles. Container shipping companies deal with the volatility in fuel prices by adding a separate bunker adjustment factor or fuel surcharge to their freight rates. Fuel can account for more than 60 percent of the total operating costs of moving freight across the oceans so the surcharges are one of the most important elements of total transportation costs.
BOSTCO Opening to Ease Houston Ship Channel Congestion
When Battleground Oil Specialty Terminal (BOSTCO) on the Houston Ship Channel starts operations in October, ship channel congestion is likely to be lessened. BOSTCO will start operations in October 2013 with 2.84 million barrels of residual fuel oil and feedstock storage, about 40% of its earlier-announced 7.1 million-barrel capacity, report Platts, citing sources close to the project and Gulf Coast fuel oil traders. The BOSTCO terminal will offer two ship docks and three barge docks. The ship dock will be able to accommodate ships with a beam of 168 feet and draft of 45 feet and displacement tonnage of 205,000 mt. The barge docks can load a total of 12 barges each having a maximum length of 300 feet and a draft of 12 feet, according the company's website.
Ship Emissions First: Commercial Scrubber System in Operation
Hamworthy Krystallon announced that the first of four vessels installed with the company’s seawater scrubbers for Italian ship owner Ignazio Messina & Co has come on line. Linea Messina is reported to be the first ever vessel to operate commercially with a scrubber system, enabling Ignazio Messina to meet 0.1% sulfer emissions regulations in EU ports, as well as “future-proofing” the vessel for the impending 2015 0.1% Emission Control Area (ECA). “This is a landmark moment, not just for Hamworthy Krystallon, but the entire shipping industry,” said Sigurd Jenssen, Managing Director, Hamworthy Krystallon. “Bringing Linea Messina on line highlights the validity of scrubbing technology as a viable and cost-effective solution to meet the stringent sulphur emissions regulations…
S-Oil, Petronas Ink Long-term LNG Deal
South Korea's third-largest refiner S-Oil Corp signed a long-term liquefied natural gas (LNG) supply contract with Malaysia's Petronas for 15 years starting from next year, the North Asia company said on Friday. S-Oil expects to buy 700,000 tonnes of LNG per year from state-owned Petronas from March 2018 through March 2033, it said in a stock filing exchange. "We have inked the deal on good terms for our company amid the current favourable LNG market conditions," said the refiner in the filing. S-Oil, whose main shareholder is Saudi Aramco, declined to provide price details for the deal. The refiner said in a separate statement the deal was part of its efforts to ensure stable supplies of LNG.
IMO Low-Sulfur Requirements to Disrupt Industries
The International Maritime Organization (IMO) recently confirmed that global refiners and shippers must comply with new regulations to reduce the sulfur content in marine bunker fuels by January 2020—five years earlier than many expected. As a result, both the global refining and shipping industries will experience rapid change and significant cost and operational impacts, according to new analysis from IHS Markit, the leading global source of critical information and insight.
Global Trade Surge Fuel Oil Markets
Global trade is growing at the fastest rate for six years - which is both a symptom and a cause of the recovery in commodity markets. World trade volumes were up almost 5 percent year-on-year from May to July, according to estimates compiled by government economic planners in the Netherlands. Growth was four times faster than at the same point in 2016 (http://tmsnrt.rs/2y89NxC). Global trade and commodity markets are linked in a circular causal relationship, which is one of the most important in the macroeconomy and a key source of fluctuations in the business cycle. Commodities, from grains to minerals, metals and oil, are the largest item in global trade by tonnage, so the state of commodity markets has a major impact on world trade flows.
A History of U.S. Oil Export Controls
On Oct. 20, 1973, King Faisal of Saudi Arabia imposed a total embargo on oil shipments to the United States among other countries in response to their support for Israel during the Arab-Israeli war. Faisal's decision led directly to the introduction of a ban on U.S. crude exports, which remains in force in a slightly modified form and is now the focus of an intense struggle for reform. Following the U.S. mid-term elections next month, Congress will take up the issue again, a debate that would benefit from an understanding of the history behind the ban. On Oct.
S.Korean Refiners Look to Cash in on 2020 Mandate
Three refiners to spend more than $5 bln to upgrade or add units. South Korean refiners are planning to spend over $5 billion on plant upgrades in response to tighter rules on shipping fuel, boosting production of low-sulphur fuel oil as well as other high-end products. The refiners hope the investment, which comes ahead of the 2020 introduction of the new rules, will make them one of the biggest beneficiaries of the new regulations, with many competitors still waiting to commit to new spending. "Not many refiners are doing so.
OW Bunker Contracted for BOSTCO Terminal
OW Bunker announced that it has signed an exclusive alliance with UNIPEC America to provide products at the new BOSTCO (Battleground Oil Specialty Terminal) fuel oil terminal in Houston. The move further expands the company’s physical presence in the region, complementing its existing operations in the Gulf of Mexico and Panama. UNIPEC America has negotiated the rights to supply bunkers ex-pipe at the new BOSTCO terminal. In conjunction with this, OW Bunker has developed a partnership agreement with UNIPEC America to provide calling vessels with quality products and services from January 2014.
Fuels of the Future
The imposition of a global 0.5% sulfur cap may be less than four years away. This clearly will eliminate residual fuel from the available fuel options unless you have fitted your vessel with a scrubber or other exhaust gas treatment technology in order to comply with MARPOL Annex VI emission regulations. At the start of 2015, permitted sulfur levels in emission control areas (ECA) dropped from 1% m/m to 0.10% m/m. Although this was a large reduction, the switch was relatively…
North American ECA – Today
On August 1, 2012, the North American Emissions Control Area (NAECA) took effect, mandating the use of 1.0% sulfur Heavy Fuel Oil (HFO) or residual fuel oil for ships within 200 miles of the continent of North America. California has mandated the use of distillate fuel when ships are within 24 miles of its coastline since July 1, 2009. Lessons learned from California’s experience with distillate fuels may benefit operators as the next phase of NAECA comes into effect (January 1…
ICS Disappointment at IMO Fuel Study
Switch to Low Sulphur Fuel has Implications for Shore Based Industry Too says ICS. The International Chamber of Shipping (ICS), whose member national shipowners’ associations represent more than 80% of the world merchant fleet, has expressed disappointment and concern at a decision by the International Maritime Organization (IMO) to reject its call to accelerate a critical study into the global availability of low sulphur fuel for ships. A small majority of IMO Members States…
Low Tanker Rates Boost Long-distance Trade -EIA
Recent expansion of the global crude oil and petroleum product tanker fleet has resulted in falling or lower tanker rates for much of 2016 that have widened the geographic scope for economically attractive trade at a time when inventories of both crude oil and petroleum products are at high levels, according to the U.S. Energy Information Administration (EIA). In recent years, growing global oil production and growth in global refining capacity in markets distant from crude sources led to an increase in orders for new vessels in anticipation of an increasing need for tanker transportation.
IBIA on Global sulphur cap
Even if, in theory, globally there is refining capacity to produce sufficient fuels to meet the 0.50% sulphur cap in 2020, if you take a more detailed look the picture is very different. In fact, several countries told the 70th session of the Marine Environment Protection Committee (MEPC 70) that they would not have sufficient refining capacity to offer compliant fuels to ships in 2020. Some of these countries are major bunker markets today, providing large quantities of residual fuel oil to ships calling at their ports…
Royal Caribbean Profit Plunge
Royal Caribbean Cruises Ltd, the world's second-largest cruise operator, said its quarterly profit fell by two-thirds as costs rose and six cruises were canceled or shortened due to several mishaps. Shares of the company, whose cruise lines include Royal Caribbean International, Celebrity Cruises and Azamara Club Cruise, fell as much as 3.2 percent in early trading. The company shortened or canceled six cruises during January-March, typically the strongest season for cruise operators. Voyage disruptions hurt yields, which include ticket sales and spending on board, by about 0.5 percent in the first quarter ended March 31. Royal Caribbean said its cruise operations were hurt by several mishaps in the first quarter.
Op/Ed: Shipping's Energy Challenge
There is no more economically and environmentally efficient way of transporting the world’s goods than by sea. Compared to air or road freight, based on per ton of cargo shipped, shipping’s carbon footprint is small. Yet with the 60,000 or so ships that transport 80 percent of the world’s goods emitting about 1.12bn tons of CO2 each year, almost 4.5 percent of all global greenhouse gas emissions, it is unequivocal that we need a viable way of reducing our environment impact. As other sectors reduce their carbon footprint shipping’s is likely to increase as an overall percentage.