Marine Link
Saturday, October 20, 2018

Transportation Fuel News

White House Honors Chiarello for LNG Efforts

TOTE President and CEO Anthony Chiarello (left) with U.S. Secretary of Transportation Anthony Foxx

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.

Seaborne LPG Trade Rebounds: Dorian LPG

Photo:  Dorian LPG Ltd

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…

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).

Dorian LPG Post 3Q 2016 Profit

Courtesy Dorian-LPG

Dorian LPG Ltd. a leading owner and operator of modern very large gas carriers, today reported its financial results for the three months ended December 31, 2015. John Hadjipateras, Chairman, President and Chief Executive Officer, commented, "The third quarter was an extremely busy period for Dorian as we took the delivery of seven new Eco-design VLGCs. Our cash flow generated from operations has allowed us to repurchase an additional 480,231 shares of our common stock for $5.8…

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.

The Decks Are Clear for Congress to Act

This is a year to get things done in Washington. After a relatively unproductive congressional session last year and a slow start to the 106th Congress due to the focus on impeachment, the congressional leadership is promising an active year focused on "the people's business." That activism is good news for America's tugboat, towboat and barge industry, as there are two items - the deficit reduction tax and the use of strict criminal liability statutes - that ought to be addressed by this Congress. First, while the budget surplus debate considers options ranging from saving social security to paying down the national debt, we're told that public opinion polls do not generally favor spending the surplus in the form of a tax cut.

Washington State Ferries Explores LNG

Renderings of LNG tanks on an Issaquah class ferry

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.

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…

Legal Briefs

Avondale Industries, Inc. has agreed to pay $357,750 in penalties for safety and health violations at its shipyard in Avondale, La., and implement a revised safety and health program as part of a settlement agreement announced by the Occupational Safety and Health Administration (OSHA). "We are pleased Avondale has agreed to resolve this matter," said Secretary of Labor Alexis M. Herman. "Avondale's new management has shown they are serious about eliminating safety hazards. OSHA originally inspected the shipyard in October 1998 following union complaints of possible imminent danger from falls, and other health issues. Based on that inspection, OSHA issued 60 citations against the shipbuilder last April and proposed fines of $537,000.

Transport via Northern European ports more sustainable

Scatter plot of CO2 emission per TEU per day for vessels according to size and year of build.

On the European continent, the Alps form a natural barrier for international transport. Containers can be transported to Southern Germany, the Czech Republic or Poland cheaper as well as more sustainably via North European ports than via Southern European ports. This is despite the fact that the container ships between Asia and Europe always take the Suez Canal with the ensuing shorter sailing route to southern ports such as Koper, Constanta and Genoa. Research by Panteia into the environmental footprint logistics chains in Europe proves this.

LNG America Selects Topside Designer for LNG Bunker Barge

Image: LNG America

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…

LNG Capital Expenditure

Michelle Gomez joined DW’s Singapore Office as a researcher, undertaking research and analysis for publications and projects. As the lead author of the ‘The World LNG Market Forecast 2013-2017’, Michelle has drawn on her project experience covering the international gas markets and LNG Capex trend analysis.

A strong continuation in the recovery of LNG expenditure is underway worldwide, driven by a growing demand for natural gas. The new eighth edition of Douglas-Westwood’s (DW) World LNG Market Forecast expects that global capital expenditure (Capex) will total nearly $228B during the 2013-2017 period. The surge includes capital expenditure on base-load onshore and offshore fixed LNG liquefaction, LNG carriers and LNG regasification, via both onshore and offshore fixed import terminals.

LPG Shipping Faces Rough Weather

Photo: Dorian LPG Ltd

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.

First US Big Ship LNG Bunkering Terminal Proposed

LNG liquefaction plant: Photo credit CLNG

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…

'Fantasy Fuel': Novozymes Looks to the Future

When Denmark's Novozymes first wondered in 2000 how its mass-produced enzymes could be used to make advanced biofuel, the industry did not exist and only now is the fruit of its labour emerging after years of being lampooned as a "fantasy fuel". But as commercial production of transportation fuel made from plant waste rather than valuable corn finally starts in the United States, Brazil and Europe, Novozymes has already turned its gaze towards bioplastics and even diapers. With the biofuels sector waging a drawn-out regulatory battle with 'Big Oil' over potentially damaging cuts to biofuel targets in the United States, Novozymes says it has contingency plans.

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.

Adoption of LNG as Marine Fuel Significantly Accelerated in 2017

Graph: Titan LNG

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.

Pivotal LNG, WesPac to Fuel TOTE’s LNG Containerships

Image courtesy of TOTE

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.

As Interest in LNG Surges, Regulators Struggle to Keep Pace

Joan M. Bondareff

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.

Maritime Reporter Magazine Cover Oct 2018 - Marine Design Annual

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Subscribe
Maritime Reporter E-News subscription

Maritime Reporter E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News