Adoption of LNG as Marine Fuel Significantly Accelerated in 2017
Titan LNG says that the stage has been set for a push in the adoption of LNG as a marine fuel beyond the tipping point. The order book for LNG-powered ships grew substantially, the LNG bunkering infrastructure is maturing and the pricing of LNG has become structurally competitive versus MGO. In 2017 around 11% of all new build contracts were LNG powered ships, a trend that we expect to continue during 2018. Titan LNG is very pleased with these developments and we are proud to be at the forefront of this market.
First US Big Ship LNG Bunkering Terminal Proposed
A partnership including Calgary-based Ferus Natural Gas Fuels has unveilled plans to build in Florida the first U.S. terminal to supply liquefied natural gas as fuel for cargo ships, reports 'The Calgary Herald'. The Eagle LNG partnership was announced in September 2013, and includes Ferus, General Electric Co. and Clean Energy Fuels Corp., the transportation-fuel company co-founded by billionare investor T. Boone Pickens; all three are equal equity partners in the project. Citing Ferus chief executive Dick Brown…
Sinopec Plant Resumes Diesel Export after Blasts
A Sinopec Corp -operated refinery in the northern Chinese city of Tianjin resumed exporting diesel this month after a five-month halt following massive explosions in the port area, a Sinopec-run industry paper reported on Friday. Sinopec's unit, Tianjin Petrochemical Corp, loaded 26,800 tonnes (200,000 barrels) of diesel in early February for export, the first such shipment since last August after the blasts led to a halt in fuel exports as the government tightened safety measures, China Petrochemical News said. In August, two huge explosions had ripped through an industrial area in Tianjin where toxic chemicals and gas were stored, killing at least 50 people.
Tanker Market: Electrifying Demand
Twenty years, the investment timeline to consider when ordering a new tanker, is a long time in any industry, not least in the rapidly evolving energy markets and the drive for cleaner fuels, says Gibson tanker report. Whilst, the collapse in oil prices in recent years may have taken the shine off many cleaner sources of energy (at least from a cost perspective) other pressures, mainly environmental, are likely to continue to influence energy consumption. In our industry, changes to bunker specifications will influence the type of fuels consumed…
As Interest in LNG Surges, Regulators Struggle to Keep Pace
The use of Liquefied Natural Gas (LNG) as a transportation fuel for ships, barges and ferries has surged in recent months. This surge is due, in large part, to the boon in the production of natural gas in the U.S.; new low sulfur rules for the North American Emission Control Area (ECA), which go into effect on January 1, 2015; and new technologies for the construction of engines capable of running on LNG. Regulatory regimes both in the U.S. and worldwide are struggling to keep pace with the tremendous growth of LNG as a fuel.
IEA Sees Growth of Natural Gas
But the "Golden Age" is still in full swing as gas emerges as a significant transportation fuel, a new report says. Natural gas will continue to increase its share of the global energy mix, growing at 2.4% per year between now and 2018, the IEA said in its Medium-Term Gas Market Report (MTGMR) issued today. However, this projected growth rate is lower than the IEA’s forecast last year of 2.7%, due to persistent demand weakness in Europe as well as difficulties in upstream production growth in the Middle East and Africa. At the same time, the report sees gas emerging as a significant transportation fuel: Thanks to abundant shale gas in the United States and amid more stringent environmental policies in China…
Washington State Ferries Explores LNG
Washington State Ferries (WSF) is exploring an option to use liquefied natural gas (LNG) as a source of fuel for the Issaquah Class ferries. LNG is used worldwide and provides an opportunity to reduce fuel costs, and better the environment by decreasing emissions. Fuel is WSF's fastest growing operating expense; it burns more than 17 million gallons each year. Its fuel budget is over 30 percent of the FY11-13 operating budget, compared to 12 percent in FY00-01. The fuel cost savings moving from diesel to LNG is approximately 40-50 percent at today’s pricing.
Demand for Gas to Grow 3%
World demand for natural gas could grow by 3% a year over the next 15 years, with demand for liquefied natural gas (LNG) growing much faster, Executive Director Gas & Power of Shell Linda Cook reported at the SPE Technical Conference in Dallas. This will require massive investment. Innovative technology will be needed to maximise recovery from existing resources and lower the cost of developing new ones. Gaining access to resources will require adding real value for resource holders. With customers depending on gas delivered over increasing distances, demand for LNG - with costs continuing to be driven down - could expand threefold. But this investment must be choreographed along a complex value chain in dynamic markets.
MN 100: Ingram Barge Company
CEO: Orrin H. Ingram Barge Company (IBCO) has been a quality marine transporter on America’s inland waterways since 1946, and has grown to become a leading carrier on America’s inland waterways. IBCO has superior customer service, state-of-the-art information systems, and training and safety practices that are second to none. A commitment to continuous improvement involving every associate sets Ingram apart from the competition and provides the best possible service and value for the transportation dollar.
White House Honors Chiarello for LNG Efforts
TOTE, Inc. President and CEO Anthony Chiarello is among 11 honored by the White House as 2014 transportation industry “Champions of Change.” Chiarello was chosen for his role in leading the U.S. maritime industry toward natural gas as fuel. TOTE is building the first natural gas-powered containerships in the world to serve Puerto Rico and is converting its ships in Alaska to natural gas; TOTE is the first in the United States to convert its fleet to liquefied natural gas (LNG).
LNG-Powered Ship in Chinese Waterways
China Natural Gas, Inc. (Nasdaq GM: CHNG), a provider of compressed natural gas (CNG) for vehicular fuel and pipeline natural gas for industrial, commercial, and residential use in Xi'an, China, announced that a ship powered by liquefied natural gas (LNG) and modified by the company successfully completed its test navigation in Wuhan on August 3, 2010. The event is the first time an LNG-powered ship has navigated in China's domestic waterways, demonstrating that LNG can be used both in cars and ships as a transportation fuel. The company succeeded in fueling a tugboat weighing over 300 tons with LNG for Wuhan Ferry Company. The ship now runs on a fuel formula of 30% diesel and 70% natural gas, representing significant energy and cost savings.
D'Arcinoff Group Consortium Announces $4.6 Billion Project
D'Arcinoff Group, Inc. and its consortium partners will deploy the first phase of the $4.6 billion D’Arcinoff Group Energy Program (DGE), an integrated synthetic fuel, power generation and distribution project. D’Arcinoff Group expects to install its first phase 40,000 barrel-per-day alternative fuel facility in Hudspeth County, Texas, to be operational by the end of 2016. DGE is an environmentally clean, natural gas and biomass to liquid fuel and power generation initiative. The project will harness the carbon emissions from electric power generation and integrate them with renewable energy resources to produce drop-in, low emissions transportation fuels. “Our project will enhance domestic fuel supplies, produce clean affordable energy and support significant U.S.
Tanker Market: Sun Sets on Japan Dirty Imports
The Japanese refining industry has been experiencing challenging circumstances for a number of years, with significant rationalisation of refining capacity, according to Weekly Tanker Market Report by Gibson Shipbrokers. Reform in the Japanese refining sector is not a particularly new story; however, in March 2017, a government directive will come into effect, forcing refiners to further boost efficiency, whilst enhancing output of higher value clean products such as diesel and jet fuel.
LNG America Selects Topside Designer for LNG Bunker Barge
LNG America has selected Taylor-Wharton to commence the front-end engineering and design work for the cryogenic topside of the company’s 3,000 cubic meter Gemini Class LNG bunker barge scheduled for delivery at the end of 2015. “Taylor-Wharton has been actively engaged in the development process and instrumental in helping to develop the critical path time line for a late 2015 in-service date,” said Keith Meyer, CEO of LNG America. The LNG bunker vessels will provide a critical building block in the bridge between the natural gas industry and the global marine industry…
World Oil Demand Growth Highest in 16 Years
In its May Oil Market Report the International Energy Agency (IEA) raised its forecast for 2004 world oil demand by 0.27 mbd. Altogether oil demand growth in 2004 amounts to 1.9 mbd or a change over 2003 of 2.5% resulting in a total demand of 80.6 mbd. In absolute terms the 2004 demand increase represents the single largest annual gain since 1988. Previous upward revisions to oil demand growth had centred on China but this time increased growth is estimated for North America and Europe. North America will in 2004 have increased oil demand by 1.6%, Europe by 1.5%, China by 13.6%, other Asia by 5.1%, Middle East by 4.9% Africa and Latin America by 1.7%. Oil demand is set to decline by 2% in the Former Soviet Union and by 1.6% in OECD Pacific.
Joint Venture Advances Canadian LNG Market
Ferus Natural Gas Fuels and ENN Canada Corporation announced a Joint Venture to construct, own and operate two LNG liquefaction plants in Canada. The plants will be strategically located in Vancouver, British Columbia and Edmonton, Alberta to service the on-road trucking market as well as other high-horsepower applications including marine, rail, mining and oil and gas exploration. “The benefits of fueling with natural gas are significant”, said Henry Cai, CEO of ENN Canada. "These projects will help build the market for clean burning natural gas as a transportation fuel,” said Ken Hughes, Alberta’s Energy Minister. The partnership brings together two major players in the North American natural gas fueling market.
Pivotal LNG, WesPac to Fuel TOTE’s LNG Containerships
Pivotal LNG, Inc., a wholly owned subsidiary of AGL Resources, and WesPac Midstream LLC announced they have been selected by TOTE, Inc. to provide liquefied natural gas (LNG) to fuel TOTE’s two new state-of-the-art container ships in Jacksonville, Fla. TOTE’s new dual fuel LNG container ships are expected to be delivered to the port in Jacksonville in late 2015 and early 2016. To move forward on this project, Pivotal LNG, Inc., WesPac and TOTE have signed a letter of intent and are working toward definitive agreements. While there is still work to be done, Pivotal LNG, Inc.
Strike In France: Implications for Tanker Demand
After the oil industry suffered from a severe drought in Venezuela, forest fires in Canada and rebel attacks on oil installations in Nigeria, it is now facing the consequences of a national strike in France, where members of the trade union CGT have organized strikes at the country’s refineries and blocked oil terminals and fuel depots, says the Tanker Research & Consulting department at Poten & Partners. The situation seems to be worsening as more unions join the CGT and clashes break out between protestors and the police.
SNAME’s Annual Meeting Paper Names & Abstracts
The Society of Naval Architects and Marine Engineers will hold its 2010 Annual Meeting in Bellevue/Seattle Washington, November 3-5. A core part of the SNAME Annual Meeting continues to be the Technical Program. Technical papers to be presented, authors, and abstracts recently announced by SNAME. • Operational Evaluation of the USCGC Bertholf Stern Boat Deployment System, Rubin Sheinberg and Frank W. • Concept Development, Detailed Design and Construction of the THREE FORTY THREE – North America's Most Powerful Fireboat, Robert G. • Implications of Performing Tugboat Stability Analysis with Fixed Trim Assumptions, Bill Foster and T. Abstracts are available online (http://www.sname.org/SNAME/AM/AMAuthorsAbstracts).
Chevron - First Gas from Bangladesh Bibiyana Project
Chevron Corporation today announced that its Bangladesh subsidiary has commenced natural gas production from the Bibiyana Expansion Project in the northeastern part of the country. The project included an expansion of the existing gas plant to process increased natural gas volumes from the Bibiyana Field, additional development wells and an enhanced gas liquids recovery unit. The project is expected to boost Chevron-operated natural gas production capacity in Bangladesh by more than 300 million cubic feet per day to 1.4 billion cubic feet per day. In addition, the project is expected to increase the company-operated natural gas liquids production capacity by 4,000 barrels per day to 9,000 barrels per day. Chevron’s Bangladesh subsidiary has a 99 percent working interest in Bibiyana.
LPG Shipping Faces Rough Weather
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.
Corpus Christi Ship Channel Reopened
The Corpus Christi Ship Channel is open to restricted operations following a record six-day closure caused by Hurricane Harvey. Harvey has left many Gulf Coast petroleum refining centers either completely shut down or with operations significantly scaled back. An estimated 25 percent of the region’s refining capacity is operational, positioning Corpus Christi as the largest refining center on the Texas Coast that is fully operational. The ship channel’s restricted opening, authorized by the U.S. Coast Guard Captain of the Port, will allow the seven local refineries to startup operations in an effort to serve the already short transportation fuels markets in the region and the nation.
Chevron Starts LNG Output at Wheatstone Project
Chevron Corporation announced it has started producing liquefied natural gas (LNG) at the Wheatstone Project in Western Australia. The first cargo is on track to be shipped in the coming weeks. “First LNG production is a significant milestone and is a credit to our partners, contractors and the many thousands of people who collaborated to deliver this legacy asset,” said Chevron Chairman and CEO John Watson. At full capacity, the Wheatstone Project’s two train LNG facility will supply 8.9 million metric tons per year of LNG for export to customers in Asia.