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

10 months 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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Alternative Fuels

DNV: LNG headlining new alternative fuelled orders in Q3

LNG accounted for around 60% of all alternative fuelled new orders in the third quarter mainly thanks to a strong uptake in the container segment, says Jason Stefanatos of DNV.

Published

2 days ago

October 3, 2024

Admin

DNV: LNG headlining new alternative fuelled orders in Q3

Latest figures from classification society DNV’s Alternative Fuels Insight (AFI) platform saw a total of 17 new orders for alternative fuelled vessels were placed in September 2024.

DNV said LNG was the biggest driver, accounting for nine vessels, with most of these coming from the container segment. The remaining eight orders were for methanol fuelled vessels.

DNV: LNG headlining new alternative fuelled orders in Q3

Although it was a relatively slow month for alternative fuelled vessel orders, it follows the two strongest months of the year in July and August, where 81 and 95 new orders were placed.

“In both months, LNG was the main fuel of choice, accounting for 53 and 55 new orders respectively. Order uptake continues to be dominated by the container segment, which accounted for around two-thirds of all orders in the third quarter of 2024,” it said.

Overall, the steady momentum in the alternative fuelled orderbook remains. A total of 370 alternative fuelled vessels were ordered in the first three quarters of 2024, representing year-on-year growth of 24%.

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “Despite a slow month in September, a broader view confirms that the momentum in the new order market towards alternative fuelled vessels remains strong.

“LNG is clearly the headline story since the summer, accounting for around 60% of all alternative fuelled new orders in the third quarter mainly thanks to a strong uptake in the container segment.

“Although 49 new orders for methanol fuelled vessels were registered in the third quarter, only eight of these were placed in September, demonstrating a slight stagnation.”

Photo credit: DNV
Published: 3 October, 2024

Bunker Fuel

CPG Bunkering to deploy extra bunker tanker at Port of Maputo

Firm signed an extension to their bunkering operating deal with Maputo Port Development Company, agreeing to add another tanker, “CPG Alma”, in addition to existing bunker tanker “CPG Alix”.

Published

4 days ago

October 1, 2024

Admin

CPG Bunkering to deploy extra bunker tanker at Port of Maputo

CPG Bunkering on Monday (30 September) said it signed an extension to their bunkering operating agreement with Maputo Port Development Company (MPDC).

As part of this agreement, CPG Bunkering has agreed to deploy an additional bunker tanker, CPG Alma, to the Port of Maputo in addition to its existing bunker tanker CPG Alix.

“With two bunker barges operating at the port of Maputo, the expanded service will be able to cater for reliable at-berth supplies during cargo operations and an increasing volume of bunker-only calls at anchorage,” CPG Bunkering said in a social media post.

Signed on 26 September, the extension to the exclusive agreement between the parties covers all grades of marine fuels, lubricants and ship-to-ship transfer services.

Furthermore, during the extension period, CPG Bunkering has agreed to evaluate the possible supply of alternative bunker fuels such as biofuels, LNG, methanol and ammonia at the port of Maputo.

Both CPG Alma (IMO 9326677) and CPG Alix (IMO 9418406) are presently in the Port of Maputo and have commenced the provision of this service.

Photo credit: CPG Bunkering
Published: 1 October, 2024

Alternative Fuels

ENGINE on Fuel Switch Snapshot: Rotterdam LNG premium over LSMGO widens

VLSFO availability remains tight in Singapore; LNG prices soar above VLSFO and LSMGO; Dutch HBE rebates become more attractive.

Published

4 days ago

October 1, 2024

Admin

ENGINE on Fuel Switch Snapshot: Rotterdam LNG premium over LSMGO widens

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:

30 September 2024

VLSFO availability remains tight in Singapore
LNG prices soar above VLSFO and LSMGO
Dutch HBE rebates become more attractive

LNG bunker prices have risen in both Singapore and Rotterdam and moved to wider premiums over conventional fuels.

Rotterdam's LNG premium over LSMGO has shot up from $5/mt to $35/mt, and $22-28/mt with estimated EU Allowances (EUAs) included in the prices.

LNG bunker suppliers in the ARA have been seeing some switching from LNG to conventional fuels lately, especially for smaller stems.

In Singapore, LNG's premium over its LSMGO has widened by $21/mt to $88/mt without estimated EUAs, and to $81/mt with.

Rotterdam’s B24-VLSFO HBE remains at a $63/mt price discount to its B24-LSMGO HBE. In Singapore, B24-VLSFO UCOME is only $14/mt cheaper than B24-LSMGO UCOME.

VLSFO

Rotterdam’s VLSFO has been unchanged in the past week despite a $2.41/bbl ($18/mt) decline in front-month Brent futures.

Prompt availability of VLSFO is still good in Rotterdam, a trader told ENGINE. Demand for the grade has been muted, a source added. These countering factors seem to have kept prices stable without significant movements in either direction.

Singapore’s VLSFO benchmark has also remained rather steady, with only a $5/mt decline amid persistently tight availability.

Biofuels

Rotterdam’s B24-VLSFO HBE and B24-LSMGO HBE prices have declined by $8-9/mt in the past week, partly because of a $15/mt drop in the underlying PRIMA POMEME CIF ARA price.

The estimated Dutch HBE rebate for B30-VLSFO HBE has now risen to $90/mt, a level last seen in April. This makes POMEME-based biofuel blends even more attractive in Dutch ports as these blends qualify for Dutch advanced HBE rebates.

Singapore’s B24-VLSFO UCOME price has shed $9/mt and its B24-LSMGO UCOME price has declined by a greater $13/mt, amid a drop in the underlying UCOME FOB China price.

Despite a falling UCOME FOB China price, buying interest has been tepid. “The Chinese waste-based biodiesel market declined on Friday, as fresh offers indicated faltering confidence amongst sellers, especially as overseas demand remains limited lately,” PRIMA said.

LNG

Rotterdam's VLSFO-equivalent LNG bunker price has soared by $29/mt in the past week.

Europe's gas market is facing supply concerns due to planned outages in Norway and maintenance at Medgaz, a key gas pipeline between Algeria and Spain. Medgaz has a capacity of 10.16 billion cbm/year.

Singapore's LNG bunker price has increased by $10/mt. This increase has been driven by a higher NYMEX Japan/Korea Marker (JKM) price.

Asia's gas inventories are under pressure from demand for air conditioning in the region, though spot buying has been limited. Japan's power company Jera has reportedly secured spot deliveries for the upcoming winter months, Rystad Energy added.

By Konica Bhatt

Photo credit and source: ENGINE
Published: 1 October, 2024