Newbuilding

DNV: New tanker and bulker expert team in China supports global newbuild projects

Emergence of new bunker fuels along with new efficiency-enhancing technologies and new rules and regulations have led to new levels of sophistication, according Jing Yang Sunny Li of DNV China.

Published

2 months ago

August 22, 2024

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DNV: New tanker and bulker expert team in China supports global newbuild projects

Classification society DNV on Monday (19 August) published a Maritime Impact article on its Shanghai team that was set up to support the local shipbuilding industry as well as owners placing newbuild orders in China, particularly bulk carriers and tankers:

DNV has established a team of experts in China to provide efficient, timely and proactive support to the local shipbuilding industry as well as owners placing newbuild orders in China. The focus is on bulk carriers and tankers, the two ship types anticipated to see the most vigorous growth in the coming years.

China has been experiencing an exceptional shipbuilding boom since the global economy began recovering from the pandemic. While containerships have been dominating newbuild orders in recent years, the demand for new tankers and bulk carriers is soaring, driven by many new requirements older tonnage cannot meet, especially in the context of decarbonization and digitalization. In response, DNV has created a team of experts to provide fast and efficient information to Chinese designers, yards, cargo owners and shipowners, helping them understand and implement new requirements and technologies while assuring highest quality.

Supporting the transformation of the global fleet

“Based on our market forecast, we estimate that more than 1,700 tankers and 2,900 bulk carriers will need to be replaced in the coming 5 years,” explains Jing Yang Sunny Li, Ship Type Expert for tankers at DNV China. China is the most important country for bulk and tanker newbuild projects, he adds. “According to Clarksons, 66% of bulk carrier and 63% of oil tanker newbuild orders, measured in gross tonnage, are placed in China, while in 2023 close to 80% of the bulker orders were awarded to Chinese yards.”

The transformation of the global fleet in this age of change brings both challenges and opportunities to the shipping industry, the expert points out. “The emergence of new fuels, in particular LNG, methanol and ammonia, along with new efficiency-enhancing technologies and new rules and regulations have led to new levels of sophistication. This calls for closer cooperation among all stakeholders to ensure quality, improved efficiency and innovation. We also want DNV to be the trusted voice in China in tackling this global transformation.”

New shipyards in great need of experienced support

Eastern Asian shipyards are busier than ever. Even the established yards in China are finding it difficult to keep up with incoming tanker and bulker orders, says Li. “Current delivery dates for new orders start at the end of 2027 or the beginning of 2028. Therefore, we are seeing new shipyards entering the bulker and tanker newbuild market. This year they have taken many orders from Greek tanker owners. The question for DNV has been: how can we support our customers to assure quality, so the vessels delivered are up to the owners’ expectations?”

The Chinese shipbuilding industry has many players, and the logistics of providing the know-how they need can be complex. In line with its customer-centric approach, DNV decided to make access to DNV expertise much easier for all these stakeholders. “At the same time we never compromise on quality,” Li points out. “So we have to utilize our expertise to focus on where we foresee potential risk and manage it from the beginning. The key is to cover all steps of the process, from pre-contract services to newbuild class approval, including technical workshops.”

Supporting ambitious newbuild projects from the beginning

Recent ambitious tanker newbuild projects supported by Li and his team include shuttle tankers for Knutsen NYK Offshore Tankers being built at Zhoushan, and a high-standard shuttle tanker for North Sea Shipping at Dalian yard. Both vessel types are intended for operation in Brazilian waters and therefore need to be specified according to the Petrobras standard. The contract for the latter was signed in 2021, says Li, but DNV support to the yard began in 2017. DNV’s global experts organized workshops for the customer, and the ship was delivered in 2023. Furthermore, Xiangyu shipyard is building ten chemical tankers to DNV class; several very large crude carriers are on order at DSIC and NTS; and Stena is having several methanol-fuelled medium-range chemical tankers built at GSI yard. On the bulker front, numerous Ultramax and Kamsarmax orders were placed in 2023, while in 2024 a run for Newcastlemax and very large ore carriers (VLOCs) can be seen. Sophisticated dual-fuel VLOCs with wind-assisted propulsion systems ordered by Shangdong Shipping on charter to Vale marks one of the highlights, together with the unique VLOCs for Winning International Group that will transport bauxite and iron ore from the new mining project in Simandou, West Africa.

Note: The full DNV Maritime Impact article can be found here.

Photo credit: DNV
Published: 22 August 2024

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Alternative Fuels

SIBCON 2024: Vitol anticipates securing LNG bunker licence in Singapore

‘It would be unthinkable not to deploy at least one of the three barges Vitol has on order in Singapore,’ says Vitol’s Head of Asia Mike Muller during a panel discussion.

Published

2 days ago

October 11, 2024

Admin

SIBCON 2024: Vitol anticipates securing LNG bunker licence in Singapore

Energy trader Vitol’s Head of Asia Mike Muller on Wednesday (9 October) said the company is anticipating being granted a LNG bunker licence in Singapore soon.

“It would be unthinkable not to deploy at least one of the three barges Vitol has on order in Singapore,” he said.

Mike Muller made the announcement during the Viewing the Energy Transition Through the Lens panel discussion at the 23rd Singapore International Bunkering Conference (SIBCON).

“We expect to see growth in LNG use as a bunker fuel for at least another decade, and probably longer,” he added.

On the increasing uptake of biofuels, he said Vitol is seeing demand for biofuel blended bunkers in Singapore roughly doubling every year at the moment, heading for around 1 million mt this year and maybe 2 million mt next year.

“Demand for 100% biofuel from shipping customers is also starting to pick up as of this year and we have led the way in commissioning new IMO type 2 barges to fulfil this demand - indeed an important Asian customer of ours has taken three deliveries of B100 UCOME biofuel just in recent weeks here in Singapore,” Muller explained.

Manifold Times previously reported Vitol securing three LNG Bunkering Vessels (LNGBV) through its shipping company, Vitol International Shipping Pte Ltd (VIS).

The vessels were secured via a seven to ten year time charter agreement with Avenir LNG Limited (Avenir) and an order for two vessels at the CIMC Sinopacific Offshore & Engineering Co. Ltd shipyard in Nantong, China.

The time charter agreement with Avenir is for one newbuild 20,000m3 LNGBV. The time charter will commence at delivery from the shipyard in China in Q4 2026 and will serve a period of seven years with options to extend up to ten years in total

Vitol also ordered one 12,500 m3 and one 20,000 m3 LNGBV at the CIMC SOE shipyard in China. The vessels will be delivered in Q4 2026 and Q3 2027 respectively.

Photo credit: Vitol
Published: 11 October, 2024

Methanol

Methanol Institute: Expanding global capacity and strategic developments (Week 40, 30 Sep to 6 Oct 2024)

This week was dominated by the outcome of the IMO MEPC which considered proposals for mid-term policy measures capable of driving an energy transition in international shipping down to just three options.

Published

2 days ago

October 11, 2024

Admin

The Methanol Institute, provides an exclusive weekly commentary on developments related to the adoption of methanol as a bunker fuel, including significant related events recorded during the week, for the readers of bunkering publication Manifold Times:

The news agenda this week was dominated by the outcome of the IMO Marine Environment Protection Committee (MEPC) which considered proposals for mid-term policy measures capable of driving an energy transition in international shipping down to just three options, with a likely greenhouse gas (GHG) reduction pathway selected next year.

A majority of IMO member states are now understood to be in favour of a levy on carbon emissions but the lack of urgency remains an issue. Observers recognised that support for such a mechanism should be optimistic based on the meeting’s outcome though no action should be expected before 2025.

Methanol marine fuel related developments for Week 39 of 2024:

CPG Bunkering Expands Mozambique Operations with New Tanker and Capacity Upgrade

Date: September 30, 2024

Key Points:

CPG Bunkering has expanded its capacity at the Port of Maputo in Mozambique by adding a new delivery vessel, the CPG Alma, under an extended agreement with the Maputo Port Development Company. The expansion allows for reliable at-berth supplies and more efficient service for increased bunker-only calls. Additionally, the company will evaluate the potential supply of alternative bunker fuels, such as biofuels, LNG, methanol, and ammonia, during the extension period to support future green fuel adoption.

ESL Shipping Emphasizes Urgency for New Fuels to Meet Decarbonization Goals

Date: October 1, 2024

Key Points:

ESL Shipping’s Managing Director, Matti-Mikael Koskinen, highlighted the urgent need for new fuel options to meet decarbonization targets, as discussed at the IMO MEPC82 meeting. ESL is committed to achieving net-zero emissions by 2040 and is exploring a range of alternative fuels including LNG, bio-gas, and methanol. The company’s approach varies based on vessel types and operational conditions, particularly in challenging ice-class routes off Finland. Koskinen stressed the importance of overcoming fuel availability and cost barriers to successfully transition to greener shipping solutions.

Vioneo to Use Green Methanol for Sustainable Plastics Production

Date: October 2, 2024

Key Points:

Vioneo, a new sister company to Maersk under AP Moller Holding, is set to produce sustainable chemicals and plastics using green methanol as a feedstock. The company will construct a 300,000 mt/year plant in Antwerp to manufacture polypropylene and polyethylene. This project marks a strategic expansion beyond methanol's use as a bunker fuel, leveraging green methanol for large-scale, fossil-free production of essential materials, reflecting Maersk's broader commitment to sustainability and innovation.

193 Alternative Fuel Ship Orders Placed in Q3, Led by LNG and Methanol

Date: October 3, 2024

Key Points:

According to the Ship & Bunker News Team, 193 new vessel orders including alternative propulsion were registered in the third quarter of 2024, with a majority focused on LNG and methanol. The container segment accounted for most of the orders, including 86 LNG-fueled and 39 methanol-fueled vessels. This growth, driven by the container and car carrier segments, highlights the industry's continued investment in alternative fuels to meet environmental regulations and future-proof fleet operations.

Peninsula to Boost Methanol Bunkering with Three New Tanker Charters from HTM

Date: October 4, 2024

Key Points:

Peninsula has entered into an agreement with Hercules Tanker Management (HTM) to charter three newly ordered 7,700 DWT methanol-capable chemical tankers, currently being built at the Jiangmen Hangtong Shipyard in China. The vessels, set for delivery in Q2 2025, will support the company's strategy to expand its alternative fuel bunkering services. This partnership enhances Peninsula’s capability to deliver biofuel blends and methanol, ensuring readiness for future green fuel demand.

IMO MEPC 82: DNV Highlights Progress on Net-Zero Framework Negotiations and Emission Control Areas

Date: October 7, 2024

Key Points:

The 82nd session of the IMO Marine Environment Protection Committee (MEPC 82) focused on advancing the development of a net-zero framework for the maritime industry. Delegates discussed strategies to achieve net-zero GHG emissions by 2050, including establishing a GHG fuel intensity standard, which would set clear emission reduction targets for vessels. The committee also considered a new GHG pricing mechanism to incentivize low-carbon fuel adoption.

Additionally, amendments to MARPOL Annex VI were adopted, designating new Emission Control Areas (ECAs) in the Norwegian Sea and Canadian Arctic, which will implement stricter emission regulations starting in 2026-2027. The session also addressed technical and operational measures to improve energy efficiency, reflecting the IMO's commitment to enhancing sustainability in shipping operations globally. DNV emphasized that while progress has been made, negotiations will continue to refine and finalize the proposed net-zero framework in upcoming sessions.

For more details, visit the full article here.

Photo credit: Methanol Institute
Published: 11 October, 2024

LNG Bunkering

Seaspan Energy takes delivery of first LNG bunkering vessel

“Seaspan Garibaldi” will take first cargo and finalise commissioning in Vancouver before its first ship-to-ship bunkering in Long Beach, where Seaspan will bunker a series of vessels.

Published

4 days ago

October 9, 2024

Admin

Seaspan Energy takes delivery of first LNG bunkering vessel “Seaspan Garibaldi”

Seaspan Energy on Monday (7 October) said it took delivery of its first LNG bunkering vessel, the Seaspan Garibaldi and is currently sailing to Vancouver.

Manifold Times previously reported that the vessel is the first of three 7,600m3 LNG bunkering vessels and it is named after Mount Garibaldi, or “Nch'ḵay̓”.

The Garibaldi will take first cargo and finalise commissioning in Vancouver before its first ship-to-ship bunkering in Long Beach, where Seaspan will provide Simultaneous Operations to bunker a series of vessels.

Following its first bunkering, the Seaspan Garibaldi will continue to provide low-carbon solutions to vessels on the West Coast of North America and will soon be joined by Seaspan Energy’s second LNG bunkering vessel, the Seaspan Lions (Ch’ich’iyúy Elxwíkn).

The Seaspan Garibaldi is 112.8 metres in length, 18.6 metres in width, 5 metres in draft, with a design speed of 13 knots.

CIMC Sinopacific Offshore & Engineering (CIMC SOE), a small-scale gas carrier shipyard in the world, was appointed to build all three LNG bunkering vessels.

Photo credit: Seaspan
Published: 9 October, 2024