Page 13 - GLNG Week 47

GLNG
NEWS IN BRIEF
GLNG
on product enhancement and differentiation strategies. In addition, the participants are focusing on developing novel materials for higher efficiency and lower operational costs. Also, the players are pooling their technology and resources together in order to serve the rising demand.
North America and Europe are anticipated to dominate the market on account of the rising offshore gas production in order
to cater the rising demand from various application industries. In addition, the rising LNG/LPG transportation across the regions is further likely to propel the market growth. GRAND VIEW RESEARCH, November 27, 2019
ASIA
China explores small-scale LNG imports
China is exploring LNG break-bulk opportunities at facilities in neighbouring countries including South Korea and Japan. The move, which involves breaking up larger cargoes into ISO tank containers comes as the country’s demand for small-scale LNG grows.
South Korea’s Kogas and Japan’s Shizuoka Gas have been identified as potential suppliers. Chinese buyers have already started importing reloaded LNG from Japan’s Shimizu terminal and South Korea’s Gwangyang terminal, significantly cutting down on logistics costs and delivery times. China is reported to have received its first cargo of containerised LNG from Kogas on November 15.
China is planning to expand its small-scale LNG import infrastructure as it continues to pursue energy security and diversity of supply. The country has also reportedly tested options for importing small-scale LNG from major LNG exporters such as Australia and the US, but such options would prove to be more
costly. However, importing ISO container- sized LNG cargoes remains expensive even when supply comes from China’s neighbours given the lack of economies of scale involved.
NYK agrees to MoU with Pertamina Group on partnership for energy transportation
On November 20, NYK and PT Pertamina International Shipping (PIS), a wholly owned subsidiary of Pertamina, an Indonesian state-owned oil and gas company, agreed to a memorandum of understanding (MoU) for energy transportation.
The demand for energy transportation, especially liquefied natural gas (LNG),
is expected to increase in Indonesia. To address this demand, Pertamina, the largest oil and natural gas corporation in the state, and NYK, a shipping company having considerable experience with the ownership and shipmanagement of vessels, have agreed to collaborate.
This agreement positions the two companies as strategic partners in energy transportation and covers ownership and management. The companies have already started discussions concerning a detailed joint business, particularly involving the ownership and management of LNG carriers as exclusive partners.
In accordance with its new medium-term management plan “Staying Ahead 2022 with Digitalization and Green,” NYK will continue its efforts to secure stable-freight-rate businesses and contribute to reliable energy supplies through safe transportation.
NYK LINE, November 25, 2019
Samsung Heavy Industries wins LNG carrier contract
Samsung Heavy Industries said this week that it had won a $1.5bn deal from a Eurasian ship owner to build LNG carriers. The company did not disclose contract details such as the name of the client and the number of vessels. However, UK-based marine industry tracker Clarkson Research Services estimates that the average price of an LNG carrier is $186mn, on which basis Samsung could build 7-8 vessels.
The latest deal accounts for 33.9% of the company’s total sales of 5.3 trillion won over the past year. Samsung is expected to start delivering the vessels in September 2022.
Including the latest deal, Samsung has received $4bn worth of LNG carrier orders so far this year, surpassing last year’s total of $3.3bn for 18 vessels.
Last month, the shipbuilder won an order from Malaysia International Shipping Corp. (MISC) to build two LNG carriers, each with a capacity of 174,000 cubic metres.
Meanwhile, another South Korean shipbuilder, Hyundai Heavy Industries, has reportedly joined the race to win a contract to build LNG vessels from Royal Dutch Shell. Hyundai is reportedly considered a strong candidate for the 1.7 trillion won contract to build up to eight vessels.
GS Energy to build power
plant supplied by LNG in
Vietnam
GS Energy, a unit of energy and retail conglomerate GS Group, said on November 28 that it had partnered with a Vietnamese asset management firm, VinaCapital Investment, to build a power plant that will be supplied with LNG.
Under the initial agreement, the partners will build a 3-GW LNG-fired combined cycle power plant, selling electricity generated at the plant to the state-run Vietnam Electricity Group.
GS Energy and VinaCapital have not yet disclosed further details, such as the cost of the project.
Week 47 28•November•2019
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