Indian LNG shipping market set to expand

Transcription

1 LNG Shipping News An LNG JOURNAL TITLE ON LNG TANKERS 9 July 2013 Indian LNG shipping market set to expand India s largest gas company, GAIL, and largest shipping company, SCI, will be floating a tender for foreign companies to enter in consortiums on 8-10 LNG vessels shipping from Sabine pass, said SCI s Captain Sunil Thapar, who is in charge of the division. The companies signed an MOU to ship US shale gas from Sabine Pass and Cove Point terminals to India in anticipation of rising demand. Thapar said, The Indian requirement will mainly be for commercial utilization for fertilizer and power for the Indian national oil majors. There are lot of private (shipping) companies that are now in the game: HBC are now getting into LNG imports. Likely new imports could be from Mozambique: The US and Australia are already there, said Thapar. SHIPPING AGENDA BUSINESS LR and China Classification Society (CCS) to co-class six Chinese LNG vessels to ship LNG to China 2 Indian tender offered The tender is still being finalised and SCI will have step-in rights on vessel ownership. SCI, the only Indian shipping company with experience manning LNG ships, is planning to develop a separate branch within the company to manage vessels as its LNG fleet interests look to more than double. SCI presently has 29 percent ownership, full management and operation of two out of three LNG vessels on long term charter with Petronet. It shares ownership of the Petronet-chartered LNG carriers with Japanese operators Mitsui OSK Lines, NYK Line and K-Line. New import terminals are under construction in India: Katupalli import terminal at the port of Ennore is scheduled for completion by 2016 and GSPC- Adani plans to add a terminal at Mundra. Regasification units are also planned at Kakinada and Gangavaram, to open in The Indian government s recent proposal of a price hike on natural gas is unlikely to affect demand for Sovcomflot plans 13 more ice-class vessels like 170,200 cubic metre Velikiy Novgorod (pictured) Source: Sovcomflot imports as the cost will be passed on to consumers, Thapar said. First Russian LNG carrier 13 on the way Under an MOU signed by the companies for vessels chartered by Gaprom Marketing and Trading (GM&T), 13 new LNG tankers will be built at Russian state-owned United Shipbuilding Corporation (USC) facilities and those of a partner shipyard, possibly the unnamed South Korean shipyard with which USC signed a simultaneous technology transfer agreement. The tankers will serve Gazprom LNG projects, which include Vladivostok and Sakhalin. The companies plan to build the first gas carrier ever manufactured in Russia as early as 2020, at a USC shipyard under construction, Zvezda in Bolshoy Kamen. USC was established in 2007 by presidential decree with the intention of potentially building LNG carriers along with other vessels. Rosneft signs deals with Marubeni, SODECO, Vitol for supply to Asian markets Rosneft, the Russian state-owned oil company and Japanese conglomerate Marubeni Group sealed a Heads of Agreement (HoA) outlining future long-term supply 1.25 million tons of LNG to Marubeni in Japan from Marubeni is a likely candidate to do the shipping for its cargo on the project, which could require ice-class vessels, Our goals is to do LNG, a Marubeni spokesperson confirmed, although it does not yet have any contract. Rosneft signed parallel supply agreements with Japanese LNG buyer SODECO and dutch-owned Vitol, which intends to supply clients across the Asia-Pacific region possibly from projects such as Sakhalin-1. ARBITRATION Nigeria LNG carriers detained amid power struggle between state bodies for revenue 3 MARKETS GTT, supplier of most of the word s LNG cargo tanks, predicted to receive bid for Asian ownership 4 PRODUCTS MAN offers cheaper TCR Turbochargers in China and TGE Marine announces order 5

2 2 LNG Shipping News 9 July 2013 LR and China Classification Society (CCS) to coclass six Chinese LNG vessels to ship LNG to China Lloyd s Register will class its first LNG tankers built in China, and the first dual-fuel LNG tankers ever built in the country. Loyd s Register announced last week it would co-class the six 174,000 cubic metre LNG carriers under construction for a joint venture consisting of Chinese and Japanese shippers. The shipping companies that announced the vessel construction in April are Chinese Sinopec Kantons, China Shipping Development, and Japanese Mitsui OSK Lines (MOL). The ships will be loading LNG in Gladstone, Australia for offake at a number of import terminals on China s Coast. The vessels are being built at Hudong Zhonghua Shipbuilding s Jiangnan Changxing Production Line No.1, after the shipyard s parent company China State Shipbuilding Corporation s (CSSC) reorganized its production facilities. LR s LNG tanker services in China buoy owner confidence Expanding the services Lloyd s Register s Shanghai Technical Support Office (STSO) provides to shipyards to include LNG tankers for the first Russia s second-largest natural gas producer behind Gazprom, Novatek, announced last week that it had signed a cooperation agreement with shipping company Sovcomflot. It looks to build 2 LNG carriers to work on the company s Yamal LNG project on the Yamal Peninsula, Russia. Novatek s 20 percent interest Hudong Zonghua Shipbuilding helps LR gain LNG toehold in China. time, the classification body has approved an LNG tanker design in principle for Hudong Zonghua Shipbuilding. Lloyds Register s design guidance is also aimed at giving more confidence to the owners of future LNG tankers ordered at Chinese shipyards. Lloyds Register s Shanghai office is serving the project by providing technical advice and services to ship designers, clarifying design and guidance requirements. The classification society sent hull, cargo containment system, Sovcomflot partners on two ships for Yamal Shipping company Sovcomflot of Russia has signalled its interest in operating two Russian carriers shipping on the arctic coast as bare-boat charterer and a technical manager. on the Yamal LNG project, which is majority owened by French oil major Total, was recently bought by state-owned China National Petroleum Corporation (CNPC) which will receive LNG produced by the project, MarketWatch reported. Novotek is currently required to sell 100 percent of its natural gas to clients Russian Federation Norway first to sign IMO ship recycling treaty The Kingdom of Norway last- PSPC, electrical, and statutory surveyors to the owner's office to review the specification and discuss technical issues with the owner's project team. month became the first state to sign the IMO s Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships, It also provided training courses to the engineers on the hull structure design of LNG carriers. All six LNG carriers will feature a design that inclues MAN s B&W dual fuel diesel engine and GTT s NO96 containment systems. As part of a pre-contract service to the ship-owner (CSLNG), it reviewed the Technical Specification Russian Maritime Register signs classification deal with Sovcomflot Gazprom Marketing & Trading (GM&T), Russian Maritime Register of Shipping (RS), JSC United Shipbuilding Corporation and ОАО Sovcomflot (SCF) agreed to for Bidding. promote Russian content in LNG carrier construction projects. including regional gas distributors and wholesale gas traders. All of its stable gas condensate is sold abroad, but LPG, crude oil and oil related products, are sold domestically and internationally. It was reported that shipyard DSME has won a tender to build up to 16 Arctic 7 ice-class LNG carriers to work on the Yamal LNG project. NUDGE New York - new import terminal possible Long Island's gas-fired power plants and commercial gas consumers are expected to receive much-needed shipments of natural gas if a new pipeline is approved from Port Ambrose a deepwater LNG port import facility off New York's coast. BP report says LNG tanker volume down The Report, BP Statistical Review of World Energy 2013, shows that LNG trade growth was stagnant in 2012, decreasing by a fraction of a percent, rather than swelling. Globally, 239 million tonnes of LNG were shipped in 2012, just below the 242m tonnes shipped in This stands in contrast to the forty percent growth in trade during 2009 and LNG Shipping News 2nd floor, 8 Baltic Street East London, EC1Y 0UP United Kingdom Tel: +44 (0) Publisher Stuart Fryer Editor Cristina Brooks +44 (0) general@lngjournal.com Advertising Anneli Kallman +44 (0) anneli@lngjournal.com Events Natasha Wedlock Tel: +44 (0) natasha@lngjournal.com Subscriptions Elena Fuertes Tel: +44 (0) elena@lngjournal.com Subscription included with LNG Journal Production Vivian Chee Tel: +44 (0) chee@btconnect.com No part of this publication may be reproduced or stored in any form by any mechanical, electronic, photocopying, recording or any other means without the prior written consent of the publisher. Whilst the information and articles in LNG Shipping News are published in good faith and every effort is made to check accuracy, readers should verify facts and statements direct with official sources before acting on them as the publisher can accept no responsibility in this respect. Any opinions expressed in this publication should not be construed as those of the publisher.

3 9 July 2013 LNG Shipping News 3 Italian LNG terminal FSRU plans Malta stopover The FSRU Toscana, the vessel that will be Europe's latest LNG import facility, will be deployed offshore Italy in mid-july after a stop-over in Malta during its current voyage from the conversion yard in Dubai. "FSRU Toscana, before arriving in Italy, will make a planned stop in Malta, not only to change the crew and embark supplies, but also to conduct some mechanical operations," said Italian gas operator Snam Rete Gas. "Afterwards, the terminal will sail to Italian waters for some testing and it will then be positioned exactly 22 kilometres offshore the coast between Livorno and Pisa," Snam said. "Upon its arrival, the vessel, whose regasification capacity will amount to 3.75 billion cubic metres a year, will be initially connected to six anchors that have been installed 'in situ' already, and then, to a subsea pipe for gas transportation - which has been put in place by Snam Rete Gas. "The first gas supply within the national distribution network is planned for the end of August, upon completion of the start-up phase and the tests, whereas in the beginning of the commercial activity under standard arrangements is scheduled for the fourth quarter of the year," Snam stated. Nigeria LNG carriers struggle may lead to gas cargo shortages if not resolved soon Nigeria LNG said a stand-off between the company and the Nigerian Maritime Administration and Safety Agency over levies that has led to the detention of three LNG carriers and restrictions on another could have "enormous" implications for the exporter and its customers. The action came after two NIMASA patrol boats with 15 naval officers on board ordered one NLNG vessel and one chartered tanker to remain at NLNG's loading bay, and another NLNG tanker to remain in the Bonny Channel, NLNG said. NIMASA subsequently issued Ship Detention Orders on June 22, specifically detaining three NLNG vessels, the "LNG Enugu", the "LNG Oyo" and the "LNG Imo" and barring them from accessing or leaving the company's loading bay at the Bonny Island plant. "These developments are in flagrant disregard of the court injunction issued by the Federal High Court in Lagos," said Kudo Eresia-Eke a General Manager at NLNG. Stakeholder concern over developments NLNG is majority controlled by Nigeria National Petroleum Corp. and Royal Dutch Shell. It sells into Asia, Europe and the Americas. Stakes are also held by France's Total and Italian energy company Eni. Stakeholders are concerned about developments. The court injunction was issued in June against the Attorney General of the west region of the Nigeria Federation "and any other parties including Nigerian Maritime and Safety Agency, from imposing any charges or taking any steps to block, detain or prevent access by the company's owned or chartered vessels, whether inbound or outbound from Bonny channel or elsewhere in Nigeria," said Eresia-Eke. Federal government claims levies Nigeria LNG said that the latest flare-up of the regional power struggle over revenues from the LNG exporter follow a blockade on May 3 by NIMASA ships that prevented NLNG carriers from entering or leaving the Bonny Channel. This led to a series of meetings ordered by the Federal Government which eventually told NLNG to pay NIMASA its purported levies. "In deference to the Government, NLNG made a payment, under protest, of US$20 million into NIMASA's designated account and subsequently approached the court to seek proper judicial clarity and a lasting resolution to the conflict between NLNG and NI- MASA," Eresia-Eke explained. Production losses discovered to be owing to sabotage In addition to internal political battles over its revenues NLNG has also suffered security threats and acts of sabotage against pipeline infrastructure that has led to losses in production and the declaration of two "force majeures" in Bonny Island plant operator Royal Dutch Shell formally lifted its latest "force majeure" on June 11 caused by sabotage to facilities that in the last few years has cost the country more than 10 percent of its LNG output. Shell was forced to shut down its Soku and Gbaran Ubie gas exports via the eastern pipeline. A subsequent investigation found that the pipeline breach was caused by saboteurs. The company only lifted a previous two-month-long "force majeure" on its gas supplies to the LNG plant in mid-april, after another breach caused by criminal sabotage. Because of shutdowns in production caused by such acts NLNG produced just 19.5 million tonnes in 2012 compared with its nameplate capacity of 22.5MT, a reduction of 13 percent. An LNG vessel docked at a Bonny Island loading bay. Source: Shell

4 4 LNG Unlimited 9 July 2013 Monaco-based LNG fleet operator GasLog promotes recent Teekay recruit Westgarth GasLog, the Monaco-based LNG fleet operator, has appointed recent Teekay Shipping recruit Graham Westgarth as Chief Operating Officer. Westgarth joined GasLog in January 2013 as Executive Vice President for Operations and Strategy. He is also the current Chairman of Intertanko, an industry organisation representing 80 percent of the world's independent tanker owners and operators. GasLog's fleet consists of 12 wholly-owned LNG carriers, including two ships delivered in 2010, three ships delivered in 2013 and seven LNG carriers on order. In addition, GasLog currently has about a dozen LNG carriers 155,000 cubic metre Gaslog Savannah is one of 14 LNG tankers under GasLog management. operating under its technical management, mostly for BG Group. Teekay history Westgarth joined GasLog from Teekay Shipping where he was a member of the Teekay executive team since February "Graham has done an excellent job as Executive Vice President, Operations and Strategy during the last five months," said GasLog Executive Chairman Peter G. Livanos. "In order to make best use of Graham Westgarth's extensive experience and broad knowledge, the board felt that this was the right time to extend his role to that of Chief Operating Officer and that in this position Graham Westgarth will be able to provide strong support to the Chief Executive Paul Wogan," Livanos explained. From 2001 to 2010 Westgarth served as President of Teekay Marine Services with responsibility for 5,000 sea and shore staff and the technical management of 200 vessels. During this period he also spent a year as Chief Executive of Teekay Petrojarl following its acquisition. Prior to Teekay, he was at Mærsk Company Limited from 1987 to 1999, the last five years of which were as General Manager of the Maersk UK flag fleet. GTT, supplier of most of the word s LNG cargo tanks, predicted to receive bid for Asian ownership China State Shipbuilding Corporation (CSSC), the state-run shipbuilder in China that owns several shipyards, is widely presumed to be a bidder, ShinoShip News reported. French energy company Total and private equity firm Hellman & Friedman plan to sell their 30 percent stakes in GTT, the world's largest maker of storage tanks for LNG carriers. The companies plan an initial public offering that could value GTT at up to $2.5 billion, more than $1Bln more than in October 26, 2011, when details of a similar plan emerged. However, the earlier sale plan came to nothing. GTT was formed in 1994 from the merger of two major French players in the field of LNG membrane containment systems, Gaztransport and SN Technigaz. South Korean and Chinese shipbuilders pay GTT up to $10 million in royalties per ship for membrane tanks. GTT is best known and associated with the GT. No. 96 LNG tanks that are on many of the world's LNG carriers and enable the vessels to store LNG safely during a voyage. Current ownership Gaztransport & Technigaz (GTT) is 40 percent owned by LNG player GDF-Suez, now has the majority of the market for membrane tanks. GDF-Suez and Total in particular no longer see GTT as a strategic fit in their businesses and would pursue an IPO as a way monetizing the business. Norway s Moss Maritime is the other maker of carrier storage tanks. The Moss tanks are easily reognizeable on LNG vessels as spherical domes. The shareholders of GTT were last considering selling the company for $1.4Bln in Buy-out fund Hellman & Friedman purchased its stake in GTT in early 2008 from Italian engineering company Saipem for 310 million euros.

5 9 July 2013 LNG Unlimited 5 MAN builds more Chinese turbochargers The company is localizing production of its small, radio TCR12 turbocharger in Changzhou, China to make prices cheaper for Chinese shipowners and shipyards building small vessels. Demand for turbochargers has grown and so now we can save logistical costs and our customers can benefit, said Joerg Albrecht, senior manager, and head of marketing at MAN Diesel & Turbo, Turbochargers. Turbochargers are mounted on vessel s engines, primarily on auxiliary engines. Up until now, MAN Diesel & Turbo in China only produced the large turbocharger which has applications primarily for two stroke engines. MAN s small TCR12 turbochargers is mainly used on smaller merchant vessels on the auxiliary Genset engine. Now the smaller turbochargers are completely assembled at its Changzhou factory to enhance availability and cost efficiency for clients. MAN has been producing in China since 2002 at its own factory, and over the years it added component production. In the past it built small turbo chargers only in Europe but now the company will have parallel production operation in China and in Europe. The company has licensee production, for example of engines, with shipbuilders in Japan and Korea. MAN has consolidated its two plants concentrating them both in Changzhou to allow for the turbocharger production expansion: Previously, the Shanghai facility built turbochargers and Changzhou facility built gas turbines. TGE marine announces second cargo tank material package for Chinese market It is supplying the package for a 28,000 cubic metre LNG carrier being used to deliver LNG from the CNPC Dalian terminal to Hainan island. The vessel is China s second LNG-carrier based on type C cargo tanks. Last week TGE Marine Gas Engineering announced it had in recent months signed a contract to build a gas handling system and cargo tank package for a 28,000 cubic metre LNG carrier being built at Dalian shipyard for Dalian Inteh Group. TGE Marine developed the LNG-carrier design with input from MAN Diesel and Turbo unveils the first TCR12 turbocharger assembled at MAN Turbocharger Changzhou. Chinese design firm, Bestway. A ship-investment and logistics company with chemicals interests, Dalian Inteh Group, was reported to have contract with Shanghai Bestway Marine Engineering & Design to engineer 28,000-cbm ship to be built at Cosco Dalian. TGE Marine s second contract TGE marine drawing showing a small-capacity vessel design. NUDGE Woodside Rogers delivered to Maran Gas The new 159,800 cubic metre vessel completed sea trials in late April and was handed over to Maran Gas on July 1 to begin commercial operations this month. The DSMEbuilt vessel features electric propulsion supplied by GE. Chevron Shipping carrier ships first cargo to African Angola The first cargo delivery voyage for an Angolan produciton project was undertaken by chevron-operated SS Sonangol Sambizanga, one of seven 160,000 cubic metre LNG vessels on long-term charter to the 30-year Angola LNG project. Sonangol, Chevron, BP, ENI and Total, are production partners operating as Angola LNG company to deliver LNG to the African country. Chinese shipbuilders have full order book, but projects not completed On its website, China Association of National Shipbuilding was signed around the same time Industry said that Chinese as its contract to supply cargorelated parts in May for a 30,000 more orders from January to shipbuilders had 44 percent cubic metre LNG announced for May year-on-year, but orders China National Offshore Oil Corporation (CNOOC), being built and year on year dropped by which were completed had Jiangnan shipyard percent. State-owned China Ocean Shipping Company (COSCO) s Dalian MAN extends ME-Gi Shipyard will build the ship for dual fuel engine to delivery in run on methanol Manfred Küver, TGE Marine s The engine maker has extended its dual-fuel engine CEO, said, We are very proud to have again been selected as engineering contractor for China s unit that can run on more al- programme with an ME-LGI second small LNG-carrier based on ternatives to HFO including type C tank technology. As pointed methanol, LPG, dimethyl out in the May announcement we ether (DME), and (bio-) expect this niche market to grow ethanol as well as other, low further considerably over the flash point fuels. next years.