Page 7 - EurOil Week 18 2021

EurOil COMMENTARY EurOil

The Krk LNG terminal
in Croatia entered
service in January.

adapted to allow the provision of LNG loading However, in the long term, there are worries that
to LNG bunkering vessels.” the energy transition could force a move away
Total is in the process of building a sister from LNG sooner than producers of the fuel
vessel to the Gas Agility, which will also have would want.
a capacity of 18,600 cubic metres, and will be Bloomberg reported this week that some
deployed in the Mediterranean region by 2022. European utilities are seeking to repurpose
The company has been talking up the envi- planned LNG capacity into other types of facil-
ronmental benefits of LNG as a marine fuel for ities amid waning investor appetite and height-
some time, and intends to expand its position in ened uncertainty. The news service cited Uniper,
this growing market further still. which decided last month to convert a proposed
Meanwhile, other developments in the Euro- LNG terminal into a hydrogen hub.
pean LNG bunkering space have also been “Most European utilities don’t want to touch
announced recently. Among these is a new pro- gas-related projects with a barge pole as compa-
posal to build a new small-scale LNG terminal nies seek to improve their ESG [environmental,
with bunkering infrastructure at Slovakia’s Port social and governance] metrics, improve valua-
of Bratislava, on the River Danube. tion and avoid stranded asset risks,” a Bloomb-
The €40mn ($48mn) proposal has been erg Intelligence analyst, Elchin Mammadov, was
approved by the state-owned Public Ports, and quoted by the news service as saying. Some European
subject to approval of the environmental impact This does not bode well for all of the LNG
assessment (EIA) for the project, construction import proposals under development in Europe, utilities are
would start next year. The terminal would then estimated at €2.6bn ($3.1bn) worth of capacity seeking to
come online in 2026. already under construction and a further €13bn
No LNG-fuelled ships are currently operating ($15.7bn) in pre-construction, according to repurpose
on the Danube, so if this project goes ahead, it Global Energy Monitor. Indeed, it is generally
would mark a further opening up of routes for not surprising when a flurry of new proposals planned LNG
vessels running on LNG. for a growing industry is whittled down as the
The accessibility of LNG as a marine fuel in field becomes increasingly crowded. capacity into
the Port of Zeebrugge and in the English Chan- The outlook for not-yet-sanctioned capacity other types of
nel ports also stands to be expanded, after Titan is thus increasingly uncertain. However, for
LNG launched a tender this week for the devel- existing terminals it is a different story, espe- facilities.
opment of a new LNG bunkering barge, the cially given that numerous European buyers
Titan Krios. The vessel is anticipated to enter have long-term contracts with suppliers. And
service in 2023. some of these contracts are yet to come into
force as new liquefaction capacity starts up in
What next? other parts of the world.
In the short and medium term, all of these devel- Thus some buyers will be importing LNG
opments bode well for LNG – both in terms of for years to come. But this does not necessarily
helping meet European countries’ gas demand translate into good prospects for new proposals
and expanding the use of the fuel in bunkering. for European import capacity.™

Week 18 06•May•2021 www. NEWSBASE .com P7