LNG Bunkering

RINA and partners to develop LNG production and bunkering concept in Port Hedland

PCF, Oceania and RINA have agreed to collaborate to develop an ‘end-to-end’ low-carbon profile LNG production and marine vessel bunkering capability concept for the port of Port Hedland.

Published

1 year ago

November 30, 2023

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RINA and partners to develop LNG production and bunkering concept in Port Hedland

Classification society RINA on Wednesday (29 November) said it entered into a Memorandum of Understanding (MoU) with Pilbara Clean Fuels Pty Ltd (PCF) and Oceania Marine Energy.

Under the terms of the MoU, PCF, Oceania and RINA have agreed to collaborate to develop an ‘end-to-end’ low-carbon profile LNG production and marine vessel bunkering capability concept for the port of Port Hedland.

RINA said Pilbara Clean Fuels Pty Ltd is progressing a development concept for a new, mid-scale, low carbon footprint LNG plant to be located at Port Hedland in Western Australia, the world’s largest iron ore export port.

The project will provide an Australian LNG fuel supply capability through a new facility for the conversion of pipeline natural gas to LNG, responding to market demand for cleaner marine bunker fuel for dry-bulk iron ore carriers operating ‘round-trip’ voyages between the Pilbara and Asia.

Market studies show increasing worldwide adoption of LNG as a marine fuel, with supply availability one of the key drivers. The base-case plant capacity is 0.5 Mtpa, with market analysis for Port Hedland alone (not counting other major Pilbara ports) indicating potential demand of 1.0 Mtpa by 2030.

A key feature of the project is an electrified plant with outsourced power supplied predominantly from renewable sources. The design intent is to significantly reduce Scope 1 and Scope 2 emissions compared to conventional LNG plants. Thereby providing an ability for round-trip voyages bunkering in Port Hedland to achieve substantially lower overall GHG life-cycle emissions than other options.

The LNG re-fuelling concept is based on ship-to-ship bunkering of vessels while at anchor off Port Hedland.

Oceania Marine Energy is developing a LNG marine fuel bunkering service capability based on the charter, ship management and operation of purpose-designed LNG bunker vessels. The vessels are to be provided by Norwegian ship-owner Kanfer Shipping.

RINA also said it was developing a concept for a new 209,000 DWT ‘Newcastlemax’ dry-bulk ship design with an innovative LNG marine fuel system involving pre-combustion carbon removal and hydrogen production, with the objective of meeting and exceeding IMO 2050 emissions reduction marine vessel Carbon Intensity Index (CII) objectives.

The RINA fuel system concept involves the capture, onboard storage and offloading of liquefied carbon dioxide or solid carbon at loading or discharge ports for onshore handling, monetisation or disposal. The concept provides a credible line-of-sight pathway to ‘zero emissions’ for the application of LNG as a marine fuel.

“By solving the historic criticism of LNG as being only a ‘transition fuel’, rather than having a long-term future as a ‘zero emissions’ fuel, this solution is likely to be welcomed by the marine engineering community due to the extensive maritime operational experience of LNG and its known safe handling characteristics,” it said.

The trio noted that the Pilbara to Asia dry-bulk trade route is particularly suited for early adoption of the pre-combustion carbon removal and hydrogen production onboard concept due to proposed availability of low carbon intensity LNG bunkering at Port Hedland, along with an ability for offloading carbon dioxide or solid carbon and a variety of monetisation or disposal options.

PCF Managing Director, Robert Malabar, said: “Along with our existing partners Oceania, we are delighted to have formed the new collaborative relationship with RINA. The partnership has the ability to demonstrate an attractive commercial development strategy to meet not only the immediate needs of IMO 2030 emissions compliance, but the engineering step-change needed to create a practical path to IMO 2050 net-zero emissions objectives. We know the maritime community is happy with LNG as a marine fuel. We believe the outcome of the studies should provide compelling argument in support of the Western Australian Government’s May 2020 announcement to “Create an International LNG Fuelling Hub in the Pilbara”.

Oceania Managing Director, Nick Bentley, said: “Oceania, PCF, and now collaboration with RINA, heralds the beginning of a new decarbonisation initiative in Western Australia, enabling a much-needed lower-carbon fuel source for shipping. The Oceania and PCF collaboration is aimed at providing a supply capability for low-carbon footprint LNG, for the first time available on-route to the Australia - Asia iron ore shipping fleets. RINA adds to that with new ship and fuel system design enabling LNG to be viewed as a potential future zero-emissions marine fuel.”

“Together we are excited to participate in developing Australia’s primary green corridor for shipping, supporting significant emission reductions in the short term, and in the future, for a maritime trade route critically important to Western Australia’s economy."

RINA Marine Consulting Executive Vice President, Massimo Volta, said: “The combined knowledge and expertise of PCF, Oceania and RINA will allow a comprehensive approach to the project, rather than to the single phases, that will actually maximise the emissions reduction effort.”

“The shipping industry is living a time of uncertainty that still requires immediate investments. Port Hedland is the world's biggest iron ore export point and providing such system with a solution that allows a more flexible transition while achieving IMO 2050 targets with an existing fuel will be a massive contribution to the path to West Australia green corridor.”

Manifold Times previously reported Oceania Marine Energy signed an exclusive MoU with PCF on 19 December 2022 to facilitate collaboration to provide a ’low-carbon footprint’ LNG production and marine bunkering capability at Port Hedland.

Photo credit: RINA
Published: 30 November, 2023

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LNG Bunkering

China: Ningbo Zhoushan Port completes first LNG bunkering operation for 2025

Bunkering vessel “Hai Yang Shi You 302” supplied more than 10,000 cubic metres of LNG bunker fuel to containership “MSC Adya” at the Ningbo-Zhoushan Port port on 5 January.

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January 10, 2025

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China: Ningbo Zhoushan Port completes first LNG bunkering operation for 2025

Zhejiang Pilot Free Trade Zone Zhoushan Area on Wednesday (8 January) said Ningbo-Zhoushan Port successfully completed its first LNG bunkering operation for the year.

Bunkering vessel Hai Yang Shi You 302 supplied more than 10,000 cubic metres (m3) of LNG bunker fuel to containership MSC Adya at the port on 5 January.

Zhejiang Seaport International Trading, the bunker supplier for the operation, successfully obtained the Zhoushan Anchorage LNG bunkering licence in June 2024, extending refuelling services from dock to sea.

The company’s services cover Meishan, Chuanshan, Daxie and other port areas.

As China's first river-sea LNG transport and bunkering ship, Hai Yang Shi You is currently placed permanently at Ningbo Zhoushan Port, providing a variety of bunkering methods such as ship-to-ship and ship-to-shore.

Zhejiang Seaport International Trading will continue to expand the scope of bonded LNG bunkering operations and new alternative fuels such as green methanol, ammonia and biofuels in the Zhoushan Area.

Photo credit: Zhejiang Pilot Free Trade Zone Zhoushan Area
Published: 10 January, 2025

LNG Bunkering

Monjasa achieves milestone with first LNG bunkering operation in UAE

Monjasa-operated LNG bunker vessel “Green Zeebrugge” successfully delivered around 3,000 cubic meters of LNG marine fuel to Costa Cruises’ cruise ship “Costa Smeralda” on 4 January.

Published

4 days ago

January 9, 2025

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Monjasa achieves milestone with first LNG bunkering operation in UAE

Marine fuel supplier Monjasa on Wednesday (8 January) announced the United Arab Emirates’ (UAE) and the Middle East region’s first LNG bunkering operation, which took place on 4 January at Dubai Harbour Cruise Terminal B together with Costa Cruises, part of Carnival Corporation.

On this occasion, the Monjasa-operated LNG bunker vessel Green Zeebrugge went alongside the cruise ship Costa Smeralda and successfully delivered around 3,000 cubic meters of LNG.

On 18 December 2024, Monjasa announced the charter of the 5,000 m3 vessel Green Zeebrugge for operations in the UAE.

About a week later, on 26 December, Green Zeebrugge arrived in Dubai waters following the departure from Amsterdam in November.

The vessel was inspected by the authorities in Port Rashid on 27 December 2024, and the official bunkering permits were issued to Monjasa by the Dubai Maritime Authority and Dubai Ports Authority.

Monjasa Group CEO, Anders Østergaard, said: “We are excited about this first successful supply operation and to pioneer LNG as a new marine fuel option in the UAE.”

“However, reaching this milestone was only possible through the close collaboration of our forward-thinking partners at Carnival and Costa Cruises, ADNOC L&S and the UAE’s federal and local authorities, who are constantly embracing maritime innovation.”

“Together, we are all striving to position the UAE as a leading shipping hub in alternative fuels too.”

Photo credit: Monjasa
Published: 9 January, 2025

Bunker Fuel

Revitalising JCT Oil Bank will be key to unlock Sri Lanka potential in bunkering

Dr. Prabath Weerasinghe, a Senior Lecturer at University of Ruhuna, says analysts predict the country can generate about USD 5 billion annually from bunker fuel operations by 2030 if improvements are made to JCT Oil Bank.

Published

4 days ago

January 9, 2025

Admin

Dr. Prabath Weerasinghe, a Senior Lecturer of the Department of Electrical and Information Engineering Faculty of Engineering at University of Ruhuna, shared that analysts predict the country can generate about USD 5 billion annually from bunker fuel operations by 2030 with a focused investment and improvements to Jaya Container Oil Bank Terminal (JCT Oil Bank):

Sri Lanka, strategically positioned on one of the busiest maritime routes in the world, holds immense potential to become a leading regional bunkering hub. Experts suggest that with targeted infrastructure upgrades and strategic policy initiatives, the country can generate nearly USD 5 billion annually from bunker fuel operations by 2030. The key lies in revitalising the Jaya Container Oil Bank Terminal (JCT Oil Bank) to match regional standards and meet the growing global demand for efficient bunkering services.

The Jaya Container Oil Bank Terminal, once seen as a critical asset for Sri Lanka’s maritime economy, has faced years of neglect, underutilisation, and inadequate capacity expansion. Despite its strategic location adjacent to the busy Port of Colombo, the terminal operates well below its potential. Competitors like Singapore, Fujairah, and Indian ports have surged ahead, offering large-scale fuel storage facilities, efficient refuelling systems, and world-class operational infrastructure.

The lack of consistent investment, outdated technology, and limited storage capacity at JCT Oil Bank has deterred major shipping lines and bunker operators from considering Sri Lanka as their preferred choice for refuelling.

The USD 5 Billion Vision

With global shipping volumes projected to grow steadily, the demand for bunker fuel is expected to rise exponentially. Analysts predict that with focused investment in the JCT Oil Bank Terminal, Sri Lanka could capture a significant share of the Indian Ocean bunkering market, generating approximately USD 5 billion annually by 2030.

Key improvements required to achieve this goal include:

Increased Storage Capacity: Expanding storage facilities to accommodate both conventional and sustainable fuels like LNG and biofuels.
Enhanced Distribution Networks: Modernising fuel delivery systems to reduce refuelling times and increase efficiency.
Policy and Regulatory Clarity: A transparent and investor-friendly policy framework to attract global players.
Technological Upgrades: Adoption of digital systems to streamline inventory management and improve transaction transparency.

Regional Competition: The Need for Urgency

Regional competitors like Singapore have set benchmarks in bunker fuel supply, handling nearly 50 million metric tons of bunker fuel annually. Ports in India, UAE, and Malaysia are also scaling up their bunkering capacities with substantial government backing. If Sri Lanka delays infrastructure upgrades, it risks losing market share to these emerging competitors.

Government and Private Sector Collaboration

Achieving this ambitious target requires strong collaboration between the government and private sector stakeholders. Private investment in storage infrastructure, technology integration, and distribution systems will play a crucial role. Simultaneously, the Sri Lanka Ports Authority (SLPA) must ensure that red tape is minimised, and strategic policies are implemented effectively.

The International Maritime Organisation (IMO) has set strict emission targets for the shipping industry. As a result, the demand for clean fuels like LNG, biofuels, and green ammonia is expected to rise significantly. If Sri Lanka can position the JCT Oil Bank Terminal as a hub for sustainable fuel distribution, it will secure a long-term competitive advantage in the global bunkering market.

The Roadmap to 2030

Short-term (2024-2026): Immediate expansion of storage capacity and improvement of refuelling facilities.
Medium-term (2026-2028): Adoption of advanced technologies and digital systems for seamless operations.
Long-term (2028-2030): Integration of sustainable fuel infrastructure and establishment of global partnerships.

Sri Lanka stands at a critical juncture. The Jaya Container Oil Bank Terminal is not just a piece of infrastructure—it represents a multi-billion-dollar economic opportunity. With the right mix of policy direction, strategic investment, and sustainable practices, Sri Lanka can re-establish itself as a leading bunkering hub in the Indian Ocean.

If the government prioritises the revival and expansion of the terminal, the country could unlock an annual revenue stream of USD 5 billion by 2030, boosting foreign exchange reserves, creating employment opportunities, and driving long-term economic stability. The time to act is now—delays will only allow regional competitors to widen the gap further.

Photo credit: Chathura Anuradha Subasinghe on Unsplash
Published: 9 January, 2025