Page 14 - GLNG Week 12 2021

GLNG NEWS IN BRIEF GLNG

return voyage on the respective routes, with
the settlement of the contracts based on the
Spark30S (Atlantic) and Spark25S (Pacific)
LNG freight spot price assessments.
INTERCONTINENTAL EXCHANGE, March 23,
2021

EUROPE
Clean marine fuels: Total

The agreements are designed to maximise the LNG freight futures contracts based on to supply MSC Cruises’
operational availability and ensure long-term Spark Commodities’ price assessments which
maintenance cost predictability through launched on March 22, traded on the first day. upcoming LNG-powered
the utilisation of data input to optimise all First day trading included 15 lots of
maintenance procedures. The agreements also Spark30S Atlantic and 15 lots of Spark25S cruise ships in Marseille
include Wärtsilä’s Expert Insight, a predictive Pacific LNG freight futures contracts for
maintenance product that leverages artificial the June 2021 contract expiry. These trades Total and MSC Cruises officialised today a
intelligence (AI) and advanced diagnostics to involved some of the LNG industry’s leading supply agreement for approximately 45,000
monitor equipment and systems in real-time. market participants including Total, Gunvor, tons per year of liquefied natural gas (LNG) to
Specialists at Wärtsilä Expertise Centres are Vitol, and Glencore, and were brokered by MSC Cruises’ upcoming LNG-powered cruise
thus able to support the customer proactively Clarksons, showing strong support for the ships to make calls in the port of Marseille
with advice and appropriate resolutions to new contracts. (France).
avoid potential operational disturbances “The unprecedented price volatility This agreement underlines a strong
and thus increase the vessels’ uptime and observed on the chartering market this year collaborative action across the French
availability. has underpinned the need for a derivative maritime industry and the excellence of its
The technical support provided by Wärtsilä product allowing us to hedge the shipping value chain, from shipbuilding to the supply
and the application of the company’s digital capacity of our LNG portfolio and to of cleaner marine fuels, and the involvement
technology will both enhance the reliability position ourselves to benefit from arbitrage of local port authorities to enable the vessels’
of the ships’ operations, and allow accurate opportunities arising in the market. The LNG safe operatorship.
budgeting of the long-term maintenance Freight Futures contracts on ICE provides us Pierfrancesco Vago, MSC Cruises’
costs. with the ability to more proactively manage executive chairman, said: “This agreement
“As part of our lifecycle solutions approach, our shipping exposure,” said Patrick Dugas, represents a further step in our ongoing
these agreements are designed to improve Vice President, LNG Trading in Total Gas & journey towards continuously reducing our
our customers’ business performance Power. environmental footprint, for which LNG is
and competitiveness. By including Expert “We are happy to complete the first currently a crucial component. As we prepare
Insight into our offering, we are adding Spark30S Atlantic and Spark25S Pacific LNG to launch our first of three upcoming LNG-
considerable value to the proposition since it Freight Futures trades on ICE and continue powered cruise ships in 2022, through this
takes predictive maintenance to a completely to work very hard in developing the LNG key agreement Marseille will become our hub
new level,” says Henrik Wilhelms, director, FFA market. There is a great demand to hedge in the Mediterranean for the refuelling of our
agreement sales, Wärtsilä Marine Power. LNG freight exposure and we are confident latest-generation and most environmentally
The full scope of the agreements includes that liquidity will increase over the coming advanced ships.”
all scheduled parts, workshop services, field months,” said Christian Greenop at Clarksons. Alexis Vovk, president, marketing and
services, maintenance planning, remote “We have had such a positive and services at Total, declared: “We are proud to
operational support, Expert Insight’s asset supportive response from the market since be developing the first LNG bunker supply
diagnostics and anomaly detection, and we announced these contracts together with chain in France, at the port of Marseille-Fos,
dynamic maintenance planning. Spark. The trades on the first day demonstrate together with shipping industry leaders such
WÄRTSILÄ, March 23, 2021 the key role they will play in allowing as MSC Cruises with whom we nurture a
participants to now manage freight risk long-lasting partnership worldwide in the
ICE Launches Spark30S alongside the commodity risk and therefore field of bunkering services. Total will continue
to step up investments in LNG bunkering to
optimise their global natural gas portfolios,”
Atlantic and Spark25S said Gordon Bennett, Managing Director of ultimately reach its target of serving more
than 10% of the global market. By doing so,
Utility Markets at ICE.
Pacific LNG freight futures to manage price risk in respect of round- we will continue to accompany the energy
The contracts allow market participants
transition of the shipping industry and
contracts trip voyages between the US Gulf Coast and the reduction of carbon emissions of our
North West Europe (Spark30 assessment);
customers, in line with our Climate ambition
Intercontinental Exchange, a leading operator and Australia and Japan, Korea, Taiwan and to get to Net Zero by 2050, together with
of global exchanges and clearing houses China (Spark25 assessment). The numbers society.”
and provider of mortgage technology, data in the contract names indicate the number TOTAL, March 25, 2021
and listings services, today announced that of days it takes an LNG vessel to complete a

P14 www. NEWSBASE .com Week 12 26•March•2021