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LNG Bunkering

FUJCON 2021: LNG bunkering ‘has to be part of the solution’ for IMO 2030/2050, says FGE Chairman

‘I don’t think it’s possible without LNG to reach those goals. LNG has to be part of that package but it is obviously clear that not one solution is enough,’ states Dr Fereidun Fesharaki.

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Dr Fesharaki MT

The consumption of liquefied natural gas (LNG) as a bunker fuel, together with other solutions, can help the shipping industry meet IMO 2030/2050 targets, believes the Chairman of independent global energy consultancy Facts Global Energy (FGE).

The International Maritime Organization (IMO)’s initial GHG strategy envisages to reduce CO2 emissions per transport work, as an average across international shipping, by at least 40% by 2030 pursuing efforts towards 70% by 2050 compared to 2008; and that total annual GHG emissions from international shipping should be reduced by at least 50% by 2050 compared to 2008.

“I don't think it's possible without LNG to reach those goals. LNG has to be part of that package but it is obviously clear that not one solution is enough,” Dr Fereidun Fesharaki told delegates at the 12th Fujairah International Bunkering and Fuel Oil Virtual Forum (FUJCON 2021).

“There may be more desperate and multiple solutions to be able to get us to the target of 50% that IMO is asking for; but basically IMO’s targets are supportive of LNG bunkering and there is still a lot of potential for LNG bunkering in front of us as we go forward.”

Vessels using purely LNG as a bunker fuel, compared to traditionally fuelled ships, will be able to reduce carbon dioxide emissions and nitrogen oxide by between 20 to 25% and 85% respectively.

“This is a benefit that's very hard to forget and it's something which will be material and as we go forward this becomes more and more important,” he highlights.

“So far, we have not had the direct support from IMO for LNG bunkering but it has to be part of the solution. There is no way that we can reach the solution that IMO is looking for without LNG bunkering.”

Moving forward, Dr Fesharaki expects rapid growth in the carbon neutral LNG market within the coming years.

“One of the more topical issues today is carbon neutral LNG where it has become very fashionable. Shell has been at the forefront but now globally we see Total, Mitsui, Gazprom, and others selling carbon neutral LNG cargoes,” he shares.

“Currently, there are no international standards [for carbon neutral LNG] but we think this is a growth area and there will be a lot of carbon neutral LNG into the market.

“In the long term, it will also help change the face of the LNG business. We expect about 30 million tonnes of carbon neutral energy to be offered in the market in the next two or three years, so it is a market which is likely to grow very fast.”

A series of interviews conducted by Manifold Times as part of pre-event coverage for FUJCON 2021 can be found below:

Related: INTERVIEW: Price risk management for future marine fuels more complex, forecasts ElbOil
Related: INTERVIEW: Bunkering sector undergoing through exciting technological transformation, observes Teekay Tankers
Related: INTERVIEW: National Bank of Fujairah discusses challenges, risk management in oil and bunkering sectors
Related: INTERVIEW: IMO 2030/2050 marine fuels to be decided by most cost efficient, effective well-to-propeller solution
Related: INTERVIEW: Bunker buying is more than a relationship-based activity; it’s a science, says marine fuels broker
Related: INTERVIEW: 80-90 times YOY growth for Singapore LNG bunkering volumes in 2021, says FueLNG
Related: INTERVIEW: Major ports, including Singapore, to prepare for alternative marine fuels future, says IMO
Related: INTERVIEW: VLSFO bunker contamination could resurface on USD 80 to 90 bbl oil, warns consultant


Photo credit: Facts Global Energy

Published: 24 March, 2021

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LNG Bunkering

Gasum and Equinor ink continuation of long-term LNG bunkering agreement

Agreement builds on the success of the previous contract Gasum has had with Equinor; Gasum’s bunker vessels “Coralius”, “Kairos” and “Coral Energy” will be used for the bunkering operations.

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Gasum and Equinor ink continuation of long-term LNG bunkering agreement

Nordic liquefied natural gas (LNG) bunker supplier Gasum on Tuesday (28 May) said it signed a long-term contract with Norway-based global energy company Equinor whereby Gasum continues to supply LNG to Equinor’s dual-fuel chartered fleet of vessels. 

The agreement builds on the success of the previous contract Gasum has had with Equinor. Gasum’s bunker vessels Coralius, Kairos and Coral Energy will be used for the bunkering operations.

The agreement also includes additional support services such as cooling down and gassing up, which has also been a part of Gasum’s previous collaboration with Equinor. 

Gasum has organised three separate LNG cool down operations for Equinor in Skagen so far this year.

Both Gasum and Equinor have committed to sustainability goals to enable a cleaner energy future. Equinor’s ambition is to become a net-zero emissions energy company by 2050.

Using LNG in maritime transport means complete removal of sulfur oxides (SOx) and particles, and reduction of nitrogen oxides (NOx) emissions of up to 85 percent as well as a reduction in CO2 emissions by at least 20%. LNG is interchangeable with liquefied biogas (LBG/bio-LNG), which reduces carbon dioxide emissions by 90% compared to conventional fuel such as marine gasoil (MGO).

With LNG and bio-LNG the maritime industry can reduce emissions already today, instead of waiting for future solutions. Gasum’s strategic goal is to bring yearly seven terawatt hours (7 TWh) of renewable gas to market by 2027. Achieving this goal would mean combined carbon dioxide reduction of 1.8 million tons per year for Gasum’s customers.

Related: Equinor Energy AS extends LNG bunkering agreement with Gasum
Related: Gasum expands LNG bunkering business to ARA region through partnership with Equinor

 

Photo credit: Gasum
Published: 29 May 2024

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Bunker Fuel

ENGINE on Fuel Switch Snapshot: LNG costlier than VLSFO

Singapore’s VLSFO price is cheaper than LNG; LNG approaches parity with VLSFO in Rotterdam; price gap between biofuel and LNG shrinks.

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ENGINE on Fuel Switch Snapshot: LNG costlier than VLSFO

Once a week, bunker intelligence platform ENGINE will publish a snapshot of alternative and conventional bunker fuel prices in the world’s two biggest bunkering hubs. The following is the latest snapshot:

27 May 2024

  • Singapore’s VLSFO price is cheaper than LNG
  • LNG approaches parity with VLSFO in Rotterdam
  • Price gap between biofuel and LNG shrinks

LNG bunker benchmarks in Rotterdam and Singapore continue to rise sharply.

With estimated EU Allowance (EUA) costs included in bunker fuel costs, Singapore's LNG bunker price has surged $34-37/mt in the past week after a $29-30/mt jump the week prior.

After adjusting the price for calorific contents to become VLSFO-equivalent, Singapore's LNG price has flipped to a premium of $29-36/mt over its VLSFO in the past week, from a $30-36 discount noted a week prior.

Rotterdam's fossil LNG bunker price has closed even further on VLSFO by $33-34/mt over the past week, making it only $20-33/mt cheaper than VLSFO now.

Biofuel price premium in Singapore over fossil LNG has dropped by another $61-62/mt to $75-81/mt in the past week. In Rotterdam, the bio-bunker premium over LNG has narrowed by $11/mt to $156-168/mt.

VLSFO

Rotterdam's VLSFO price has mostly followed Brent's downward movement over the past week. Rotterdam’s VLSFO benchmark has declined by $11-18/mt in the past week, depending on whether the estimated EUA costs are included.

Availability of VLSFO is normal in Rotterdam, with lead times of 3-5 days recommended to ensure full coverage from suppliers, a trader said.

Singapore’s VLSFO benchmark has also tracked Brent’s movement, falling $32/mt over the past week.

Lead times for VLSFO in Singapore have exhibited significant fluctuations recently. Most suppliers now recommend lead times of up to 10 days for this grade, while some can accommodate stems within five days.

Biofuels

Rotterdam’s B24-VLSFO HBE bunker price has inched $5/mt higher in the past week. When we add estimated EUA costs, the price has gained $8-10/mt, depending on whether we are looking at voyages between EU ports or between EU ports and non-EU ports.

A huge gain in the price of palm oil mill effluent methyl ester (POMEME) feedstock – qualified for Dutch HBE rebates – has pushed the price higher. PRIMA-assessed POMEME price in the ARA has jumped by $70/mt to $1,368/mt in the past week.

In contrast, Singapore’s B24-VLSFO UCOME bunker price has slumped by $25-28/mt, depending on whether the price is adjusted with estimated EUA costs.

The price has declined amid a $10/mt drop in UCOME FOB China, according to PRIMA Markets. Chinese biodiesel exports to the EU are being investigated by the European Commission for "unfairly traded biodiesel". The ongoing investigation has dented Chinese biodiesel inflows into European countries.

LNG  

Rotterdam and Singapore’s LNG bunker prices have seen significant upticks in the past week.

Rotterdam’s LNG bunker benchmark has climbed $16-22/mt higher, depending on whether estimated EU ETS costs are included in the cost of fuel. This increase has been driven by the underlying front-month NYMEX Dutch TTF Natural Gas benchmark, which has seen an uptick due to heavy maintenance activities at Norwegian gas facilities.

Singapore’s LNG bunker benchmark has risen by a staggering $34-37/mt in the past week. The movement is influenced by the upward trend in the underlying Japan/Korea Marker (JKM) gas benchmark and prevailing trends in the Asian LNG market.

Analysts at ANZ Bank noted that “the rally in global gas prices continued amid ongoing buying from importers.” Importers such as Japan and South Korea are restocking gas inventories ahead of the Northern Hemisphere summer, further driving demand.

By Konica Bhatt

 

Photo credit and source: ENGINE
Published: 28 May 2024

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LNG Bunkering

JAX LNG and Seaside LNG complete SIMOPS LNG bunkering op in Savannah, Georgia

“CMA CGM SYMI”, a 15,000-TEU container ship, received 4,600 cubic metres of LNG bunker fuel from North America’s largest LNG articulated ATB “Clean Canaveral” during simultaneous operations.

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JAX LNG and Seaside LNG complete SIMOPS LNG bunkering op in Savannah, Georgia

Pivotal LNG on Tuesday (21 May) said JAX LNG and Seaside LNG conducted the inaugural liquefied natural gas (LNG) bunkering in the Port of Savannah of CMA CGM SYMI during the ship’s call at the Garden City Terminal last month. 

The CMA CGM SYMI is a 15,000-TEU container ship and received approximately 4,600 cubic metres of LNG from North America’s largest LNG articulated tug and barge (ATB), Clean Canaveral, during simultaneous operations (SIMOPS).

Roger Williams, Manager of JAX LNG and Vice President of Commercial LNG and Gas Development at BHE GT&S, the parent company of Pivotal LNG, said: “We appreciate the opportunity to work alongside CMA CGM staff in Marseille, Norfolk and Savannah in preparation for this unique bunker event that marked CMA CGM’s first LNG SIMOPS bunkering of a 15,000-TEU ship in the United States.”

The bunkering also marked Seaside LNG’s first bunkering of a dual-fuel container ship with membrane-type LNG tank technology, highlighting the efficient design of Seaside LNG’s 5,500-cubic-metre series LNG ATB. 

Tim Casey, CEO of Seaside LNG, said: “The ATB design and skillful operator, McAllister LNG Services, has proven very resourceful to bunker container ships, car carriers, cruise ships and petroleum tankers with different cargo tank technologies.”

This inaugural bunkering marked multiple collaborative milestones and continues to demonstrate the viability of LNG as a marine fuel in the U.S. 

 

Photo credit: Georgia Ports Authority
Published: 23 May 2024

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