LNG Shipping News AN LNG JOURNAL TITLE ON LNG CARRIERS 17 September 2020 Global LNG demand to rise SHIPPING Demand for LNG is to increase steadily for several NEWS decades helped by economic growth in Asia, industry AGENDA leaders told the Gastech Virtual Summit held last week. MARKETING The current COVID-19 pandemic Most speakers agreed that was viewed as only a short-term China will be the key driving force setback. for LNG demand in the coming “While the world continues to decades. grapple with the severe impacts of China’s gas demand is expected market demand and the impact of to exceed 600 bill cu m per year Irtiza Sayyed, President COVID-19, long-term fundamentals by 2040, up from just over 300 bill ExxonMobil LNG Market Development remain strong supported by growing in 2020, according to Ming Cai, population and energy demand,” Ir- natural gas and LNG consultant at Joseph McMonigle, the Interna- Thailand to become tiza Sayyed, ExxonMobil LNG Mar- Poten & Partners. tional Energy Forum’s Secretary hub 3 ket Development President, said. General said, “The pandemic in- Taiwan purchases “LNG is and will remain a high- Resilience creases the stakes by pushing the to grow 3 growth industry based on a grow- The speakers put the spotlight on demand gap out further over the ing economy worldwide, the importance of gas in the grow- next decade. This opens a new BUSINESS particularly in Asia, with a desire ing demand for energy globally and window of opportunity that en- FIDS disappear for secure, affordable and highlighted the resilience of the in- ables the gas industry to play a 4 cleaner-burning fuels,” Douglas dustry in the face of price volatil- larger role in achieving climate, Wharton, Vice President, Cheniere ity, COVID-19 and the changes to clean air, and energy access goals.” Vitol to supply spot cargo Marketing, added. the environmental agenda. Hydrogen is also set to play a 4 LNG trade demand will grow by Gas companies are now energy key role in a clean, secure and af- Delta’s cargo an average 3.4% a year between companies, with the shared man- fordable energy future. De La Rey requests 5 2019 and 2040, with additional date to drive a low carbon energy Venter, Executive Vice President, supply required to achieve such future. Integrated Gas Ventures at Shell, FINANCE growth. Chan Chun Sing, Minister of stressed;“How important is hydro- Some executives said that Trade & Industry for Singapore, gen really in the context of our Dynagas boost 8 coronavirus had reduced invest- who opened the Summit, said; “As climate aspirations? Bluntly put, it ment in new production, resulting the LNG hub of the region, our is mission critical.” EXMAR hit in supply not recovering as fast as government and gas industry in Hydrogen will play an impor- by disputes 8 demand. Singapore have embarked on many tant role in de-carbonising the Around two thirds of the initiatives across the value chain. energy industry. Last week, the TECHNOLOGY growth in LNG demand in the next These serve to promote innovation Gastech Hydrogen Exhibition and Kongsberg in decade will come from China, in the sector and the adoption of Conference was launched, to be Shell tie-up India, Pakistan and Bangladesh, more environmentally sustainable co-located with Gastech in Singa- 9 according to Wood Mackenzie. energy strategies.” pore in September, 2021. n

NEWS livers expertise in the transfer of Australia have resumed. NUDGE LNG, LPG and oil. The giant FLNG has remained Its decision to join OSRL was offline since February, due to Floating plant STS service provider driven by a board-level commit- engineering problems. AiP 10 joins OSRL ment to reduce or remove risk This suspension of operations Ship-to-ship transfer specialist, across its operations. followed an order from Australia's LNG ORDERBOOK STS Marine Solutions (STS), has upstream regulator to perform LNG carrier orderbook joined Oil Spill Response Limited ‘Prelude’ back onstream additional work following three (OSRL). Royal Dutch Shell has recently safety incidents that took place 11 A service provider with over confirmed that operations at at the facility between September LNG small scale fleet 40 years of experience, STS de- ‘Prelude’ FLNG offshore Western last year and January, 2020. n 14 2 l NEWS LNG Shipping News 17 September 2020

Supply and demand rises NEWS Asian spot LNG prices were almost stable last week, as several buyers looked for NUDGE cargoes and the US Sabine Pass export plant resuming production after hurricane ‘Laura’. Make it another six GTT has received an order The average LNG price for October to restart cargo liftings, following These included Guangzhou Gas, from Hyundai Heavy Industries delivery into northeast Asia LNG- ‘Laura’. which bought an October cargo at (HHI) and Hyundai Samho AS was estimated at $4.55 per The first Corpus Christi cargo $4.80-4.90 per MMBtu and a Heavy Industries (HSHI) for MMBtu, $0.05 MMBtu above the was loaded on 30th August on the November cargo at $5.20 per the tank design of another six previous week’s level. 177,200 cu m capacity ’Sohshu MMBtu, a trader said. Buy tenders LNGCs. November’s delivery price was Maru’, with another cargo shipped were circulated by Thai, Mexican, Two LNGCs will be built by estimated at $4.75 per MMBtu. on the 140,645 cu m ‘Golar Arctic’ Pakistani, Kuwaiti, Indian and HSHI on behalf of a European Prices increased early in the and a third on 31st August by the Colombian interests. shipowner, while the other week supported by demand from 155,000 cu m ’Gaslog Shanghai’, In addition, PTT International four will be built by HHI, two several buyers in the region but according to shipping data. Trading, the Singapore-based trad- for an an Asian shipowner and declined later on expectations of Renewed cargo liftings helped to ing arm of Thailand’s state energy two for a European shipowner. higher production. boost Gulf Coast LNG cargo futures firm PTT, opened a tender seeking Each vessel will have a ca- Elsewhere, US natural gas fu- to their highest levels in 2020. cargoes for delivery from Decem- pacity of 174,000 cu m and tures jumped by more than 4% on However, Cameron LNG had not ber, 2020 to March, 2022 (see their deliveries are planned Monday as LNG exports continued resumed operations by the end of page 3). between second and last quar- to soar and output fell as Gulf last week. A report from consul- Pakistan LNG is seeking two ters of 2023. Coast producers shut some pro- tancy Energy Aspects said that the cargoes for delivery in November. They will be fitted with duction before Hurricane ‘Sally’ facility is expected to return by Mexican state power utility CFE GTT’s Mark III Flex membrane reaches the Louisiana coast. mid-October, adding that a ramp- opened a tender for a September containment system. The LNGC ‘Hoegh Gannet’ up in production from other US cargo and for one October cargo, berthed at Cheniere’s Sabine Pass plants will offset the halt of oper- Kuwait Petroleum Corp (KPC) Gas leak delays facility on 9th September, ship- ations at Cameron. sought a cargo for delivery in Melkoeya restart tracking data from data intelli- October and Colombia’s Calamari Equinor’s Melkoeya LNG gence firm Kpler, Refinitiv Eikon Chinese buyers project was seeking a September plant’s restart has been de- and ClipperData showed. Several buyers from China entered cargo. layed until 23rd September Its Corpus Christi LNG export the market last week seeking car- On the supply side, Angola LNG following a gas leak. plant in Texas was the first of the goes, industry sources reported to and Papua New Guinea export pro- Local police said emer- four US Gulf Coast-based facilities the newswires. jects reportedly offered cargoes gency services attended the for September and October. plant, which liquefies natural In addition, GAIL issued a ten- gas from Norway’s Arctic der for at least three cargoes to Snoehvit gas field. be loaded between May and July, “The alarm was sounded 2021 at Dominion’s Cove Point LNG during preparations to restart plant in Maryland on an FOB basis. the plant, and emergency ser- GAIL had booked 5.8 mill tonnes vices were notified. The situa- of US LNG per year on long term tion is under control,” an deals with Cheniere and Dominion Equinor spokesman said. from their respective Sabine Pass Located near Hammerfest, and Cove Point natural gas lique- northern Norway, the plant faction and export projects. has a capacity to process Earlier, the company had 18 mill cu m of gas per day. floated a tender looking to swap It had been scheduled to LNG cargoes loaded at Sabine Pass restart recently after a facility for delivery into India in short shutdown due to an ‘Höegh Gannet’ berthed at Sabine Pass last week 2022. n outage. n

No part of this publication may be LNG Shipping News Editor Subscriptions reproduced or stored in any form by any 2 Prospect Road Ian Cochran Stephan Venter mechanical, electronic, photocopying, St Albans AL1 2AX +44 (0)7748 144265 Tel: +44 (0) 20 7253 2700 recording or any other means without the prior written consent of the publisher. United Kingdom [email protected] [email protected] Whilst the information and articles in LNG www.lngjournal.com Shipping News are published in good faith and every effort is made to check accuracy, Tel: +44 (0)20 7253 2700 Ad sales enquiries Production readers should verify facts and statements Narges Jodeyri Vivian Chee direct with official sources before acting on them as the publisher can accept no Publisher +44 (0)20 7017 3406 Tel: +44 (0) 20 8995 5540 responsibility in this respect. Any opinions Stuart Fryer [email protected] [email protected] expressed in this publication should not be construed as those of the publisher.” 17 September 2020 LNG Shipping News NEWS l 3 Thailand to become an Asian LNG hub Thailand’s state oil and gas company PTT plans to become an Asian regional LNG hub.

In a speech at the Gastech Virtual PTT is working closely with the Summit last week, Supawat Thai government to enable the Tatthong, PTT’s Vice President for regional hub to become a reality, gas business development, said allowing traders to import, store that the country is strategically and export LNG out of the country, located to meet 70% of the global he said. LNG trade. Thailand “sits in the middle of Through existing and upcoming demand growth” ready to support LNG import infrastructure, as well the China and India, as well as as expansion in its gas transmis- markets in south and southeast sion pipeline system, Thailand Asia, Japan, South Korea, Taiwan aims to take advantage of the LNG and West Australia, he said, growth demand in Asia. adding, “Thailand is strategically Domestic gas accounted for located for regional connectivity 72% of the Thai gas supply last within 2,500 nautical miles of 70% year, while 16% of supply came of global trade.” from Myanmar and 12% from LNG. LNG import terminal capacity Nong Fab terminal will be located 5 km west of Mat Ta Phut. Tatthong said that however, in is to grow from the current 11.5 Photo credit - Staray International 2036, domestic gas supply will mill tonnes per annum to 29.8 mill only account for 29% of the coun- tonnes. line in 2022, and the 8-10.8 mill 300 LNG cargoes from 18 coun- try’s needs, while LNG will meet The new LNG terminal capacity tonnes Terminal 3 (MTP Phase 3) tries, he said. It holds long-term 67% of the demand. Myanmar gas will come from the building of the expected to start operations in contracts with suppliers including will hold a 4% share in the Thai 7.5 mill tonnes per annum Termi- 2026. Qatargas, but also imports under gas market. nal 2 (Nong Fab) set to come on- So far, Thailand has imported the spot market. n Taiwan LNG purchases to grow Taiwan's LNG demand continues to grow and has not been impacted by COVID-19.

In addition, its energy sector was She said companies, such as porter, which is building its own ****CTCI Corp has been focused on boosting gas-fired ca- CPC, have been busy with the gov- LNG receiving terminals and signing awarded an NT$19 bill ($647 mill) pacity under the region's long- ernment's energy policy that calls long-term LNG purchase contracts. engineering, procurement, con- term energy plan, Jane Liao, CEO for gas-fired power generation to Liao also raised concerns over struction, and commissioning of the natural gas business at account for 50% of the electricity whether enough long-term LNG (EPCC) contract to build an LNG state-run CPC Corp, said at the mix by 2025, compared with supply can be built at current regasification and receiving termi- Gastech Virtual Summit last week. around 35%-36% today. price levels. For example, the S&P nal for the Taichung Power Plant, "Our situation here in Taiwan is "In addition to power genera- Global Platts JKM for October was owned by Taiwan Power Co that the demand of LNG is still tion, all industrial sectors are assessed at $4.613 per MMBtu on (Taipower). moving up," Liao said, attributing also not allowed to use fuel oil 8th September at the time of her This will be the first Taipower the increase to stable power de- or coal but natural gas only," she talk, but the market spent much owned LNG receiving terminal and mand. "There's no major negative explained. "That's one of the rea- of the year between $2 and $3 per regasification facility and Taiwan’s impact on the energy market here sons why we've been very busy MMBtu, and most price projections first to be owned by a company because of COVID-19," she said, here, and not affected by the remain bearish. other than CPC Corp (CPC). adding that CPC still needs to pur- COVID-19." "For the future, we really won- Included in this EPCC contract chase more spot LNG cargoes and der whether some of the new LNG are detailed design, procurement, was ‘enjoying’ low spot prices. Adding capacity projects can be smoothly devel- and supply of materials, construc- "For the year 2021, there will To replace its coal and nuclear op- oped. That will affect supply and tion, and instalment, pre-commis- be more and more cargoes that we tions, and get to 50% of power demand in this market when the sioning, commissioning, and need in addition to our long-term from gas, Taiwan is adding around price goes down to $2 per MMBtu one-year operation and mainte- or mid-term contracts. There's a 10 GW of gas-fired capacity to its for LNG," she said. "For the future nance services. possibility that the spot price in current 15 GW. This will include as an LNG importer, we are still Earlier this year, the company the market will still be very low, state utility Taipower's Taichung concerned about where will the was awarded an NT$18.3 bill ($623 which is good news for the LNG power plants, totalling 2.6 GW long-term suppliers come [from] mill) EPCC contract to build CPC’s importers, but we still are looking generating capacity. to the market. We are still look- third LNG receiving terminal at forward to the [global COVID-19] Taipower is currently supplied ing. Probably this might become Guantang Industrial Area, recovery," Liao said. by CPC, Taiwan's only LNG im- an issue in the coming years." Taoyuan. n 4 l NEWS LNG Shipping News 17 September 2020 LNG investments disappear Vitol to supply No new LNG export projects could be approved this year for the first time in at least Bangladesh’s two decades, according to banking and industry sources. spot cargo

This situation is being driven by plus difficulty in securing buyers. money in 2020 to protect your bal- Bangladesh’ Cabinet Committee energy demand falling on the back Most industry sources and ana- ance sheet,” Clint said. on Public Purchase has approved of the COVID-19 pandemic, which lysts said that the only project Initially intending to take an 10 procurement proposals, in- has sent prices to all-time lows. with a chance of receiving a FID FID this year on the 16.45 mill cluding one for the import of Investment banking and energy this year was Sempra’s Costa Azul tonne per year US Lake Charles 3.490 mill MMbtu of LNG from analysts talking with Reuters, said export plant in Mexico. project, Shell has exited the ven- the international spot market. they expected no final investment Over 21 mill tonnes per year ture and written down billions of Finance Minister, AHM decisions (FIDs) this year, while of new US LNG capacity came on- dollars from its oil-linked LNG pro- Mustafa Kamal, who presided other sources said they expected stream in 2019 and more than jects in Australia. over the meeting, told the one to two at the most. 16 mill tonnes this year, which Another recent example was media last week that buying Prior to the coronavirus pan- contributed heavily to the global the Glenfarne Group and Kinder LNG from international spot demic, the volume of new export gas glut. Morgan’s request to the US federal market will cost Tk132.93 crore, capacity sanctioned in 2020 was regulators for another five years saving the government’s Tk32 expected to be similar to last Large portfolios to complete the Magnolia LNG ex- crore, compared to the price of year’s record of over 70 mill This investment delay was claimed port plant and associated gas long term suppliers. tonnes per year. to be positive for companies with pipeline expansions, according to “This has been the first time, “We do not expect any major large LNG portfolios, such as oil filings this week. the government moves to import FIDs on LNG export projects this majors, analysts said. Glenfarne, which acquired the LNG from international spot year,” Morgan Stanley’s lead com- Bernstein senior oil & gas ana- Magnolia project from Australia’s market instead of long-term modity strategist for natural gas lyst, Oswald Clint, said delays LNG Ltd in May, said “unforesee- suppliers”, he confirmed. and power, Devin McDermott, told could last for another 12 to 18 able developments in the global The spot LNG cargo will be Reuters. “With coronavirus reduc- months, thus helping create LNG market have affected Magno- supplied by Singapore-based ing oil demand and prices, majors’ higher prices by 2025. lia LNG’s ability to enter into long- Vital Asia Pte Ltd. capital spending dropped, weigh- Companies with substantial term LNG offtake contracts ... Last month, state-run Rupan- ing on their investment and push- portfolios are expected to be the critical to securing project financ- tarita Prakritik Gas Co (RPGL), ing out FIDs.” first to return with FIDs, with low ing and achieving (FID).” invited offers from 14 short- Giovanni Bruni and Alessandro prices expected to create addi- The group said it expects to listed companies. Agosta, partners at McKinsey & Co, tional demand. “If you are a big decide late next year whether RPLG sought 138,000 cu m of said they expect all pre-FID projects major you are concerned about to build the Magnolia plant and LNG for delivery from 30th to be delayed by one to two years, the commodity price, not its vol- the Texas LNG facility also under September to 8th October. due to CAPEX cuts and deferrals, ume. You have to not invest development. n Bangladesh imported 3.89 mill tonnes of LNG last year - through two long-term contracts Freeport given more time to build Train 4 with Oman and Qatar and cur- US Federal Energy Regulatory Commission (FERC) has granted Freeport LNG’s rently has two FSRUs, acting as request for a three year extension to complete the planned Train 4 at its Texas import terminals. n LNG export plant. NEWS This would result in Train 4 not coming onstream until May, 2026. NUDGE FERC approved its construction Saudi Aramco May, 2019, on the proviso that withdraws from Texas Freeport finished the facility by LNG investment May, 2023. Saudi Aramco has postponed Freeport delayed making a several large projects, including final investment decision (FID) to an LNG initiative, to save cash build the fourth train earlier this and preserve its dividend, after year after gas prices in Europe this year’s energy price crash. and Asia collapsed to record lows It was thought to be review- as energy demand plummeted due ing a decision to buy 25% of to coronavirus. Sempra Energy’s Texas LNG ter- Freeport has said that it did not minal - which would cost sev- expect to take a FID on Train 4 this eral billion dollars - and has year due to market conditions re- Freeport LNG has bought more time to build Train 4 already taken some staff off the sulting from COVID-19, adding that project, according to reports the company could be ready to start construction by mid-2021, if the market conditions improve. n from Saudi Arabia. n 17 September 2020 LNG Shipping News NEWS l 5 Delta Offshore Energy initiates long term cargo request Delta Offshore Energy (DOE) has launched a request for proposal (RFP) for 25 years of gas sales agreement for its Vietnam project.

The tender stipulates the delivery on 9th September, 2020 and will are honoured to play a key part in the semi-submersible unit ensures of 2.5 – 3.0 mill tonnes per annum close on 27th September, 2020. this important and large-scale en- high operational regularity and of cargoes over a 25 year period, For use on the same project, ergy infrastructure project in Viet- requires low operational expendi- on a delivery ex-ship (DES) or DOE has also signed a technology nam. This award demonstrates the ture as no propulsion, additional Freight on Board (FOB) basis, to license agreement with Stena trust DOE and its partners have in large machinery or manpower the Offshore LNG regasification fa- Power & LNG Solutions to use its our jetty-less LNG technology.” between loading operations is cility in Bac Lieu Province. jetty-less LNG receiving and regas Bobby Quintos, DOE’s Managing required. DOE’s 3.2 GW LNG to power technology. Director - Engineering, added: Stena explained that the SRP project is fully approved by the DOE will employ Stena’s float- “The metocean and tidal condi- solution offers a cost-effective, Vietnamese Government, is in- ing jetty-less autonomous transfer tions in Bac Lieu are very chal- flexible and robust LNG regasifica- cluded in the national Power De- system (ATS) and self-installing lenging from a traditional FSRU tion solution, capable of meeting velopment Plan revision 7 and was regas patform (SRP) solutions to deployment perspective, so we the increasing demand for small, issued with an Investment Regis- provide energy to the power plant had to collaborate with Stena to mid and conventional size LNG tration Certificate in January, to be located in the Mekong Delta. think of ‘out of the box solutions’ receiving terminals. 2020. Svein Hellesmark, Stena Power in order to make this work, thus The company also said that the The bidding was due to open & LNG Solutions CTO, said: “We the development of the jetty-less SRP solution uses robust jack-up solution for our project." platform technology combined Stena's ATS unit is with an industry-proven and claimed to contain all trusted LNG regasification system. the required equipment, With the legs rooted to the seabed systems and safety fea- and the platform situated well tures normally installed above the waterline, the SRP is on a jetty. It can be not exposed to wave loads and adapted for all LNGCs motions as is common with tradi- from small distribu- tional LNG regasification barges tion/bunker vessels to and FSRU’s. the largest gas carriers. This ensures optimum regasifi- Designed to cope cation and gas delivery regularity, Stena's SRP and ATS systems are to be used in the Mekong Delta with wave conditions, Stena claimed. n NLNG’s Train 7 progressing With a total proven natural gas resource estimated to be about 600 trill cu ft, the opportunities for natural gas in Africa are enormous, an online seminar was told.

Participating on an online ADIPEC we are today and where we desire Falade believed that while and companies started operating Energy Dialogue, Leye Falade, Gen- to be. This is the role that gas is COVID-19 had the potential to in crisis mode, this has enabled us eral Manager of production at Nige- expected to play in the medium to limit some of the project activi- to have more control of our costs ria LNG (NLNG) said that natural long term." ties, he did not expect this to af- and make prudent calls to keep gas projects in Africa were key to Speaking about NLNG's latest fect the overall cost of the project the business afloat," he explained. the energy transition and economic expansion project – Train 7 - significantly. He also said that the "Ultimately, no-one in the in- development in the region and can which will increase the company's project’s engineering, procure- dustry can run away from the im- be used to power industrialisation production capacity by 35% from a ment, and construction (EPC) con- pact of COVID-19. Now is the time while reducing the emissions re- current 22 mill tonnes per annum tract was progressing well under for companies to showcase leased into the atmosphere. to 30 mill tonnes, Falade said that the approved COVID-19 restricted whether they have the ability to "While the quick switch to re- it is expected to increase foreign contractor's decision strategy. stay in the game during the 'lower- newable and other cleaner energy direct investment (FDI) into Nige- In addition, various stakeholder for-longer' cycle in the industry by sources are desirable, current ria by over $7 bill over the next talks have started to ensure that remaining profitable while not data indicate that the transition five years. any possible unforeseen risks are compromising their ability for sus- cannot be achieved on the global With the addition of Train 7 mitigated. tained existence," he added. scale as quickly as many parties and the increase in production ca- Falade also said that he be- The ADIPEC Energy Dialogue is are pushing for," Falade said. pacity, NLNG will probably main- lieved that with lower oil prices, a series of weekly online thought "Therefore, we have to find a way tain its position as the world’s there are also opportunities. "As leadership events created by DMG to bridge the gap between where sixth major LNG supplier. 2020 has become a year of survival events. n 6 l NEWS LNG Shipping News 17 September 2020 Contracts for 15 Arc7s confirmed Sovcomflot (SCF) and NOVATEK have confirmed an order for another 10 Arc7s from Zvezda Shipyard to be financed by VEB.RF.

The two companies joint venture, Arc7s at Zvezda. SMART LNG, has also agreed with They will be the prime vessels VEB.RF and Zvezda to construct of the project’s Arctic fleet that and lease the 10 Arc7s. will allow the year round LNG In total, contracts for 15 LNGCs shipments along the Northern Sea have now been signed, which in- Route to the Asia/Pacific region, cludes the building, financing, and will provide an important lease, and timecharter agree- stimulus to develop the Russian ments for the vessels. shipbuilding industry, NOVATEK The contract for the lead ship in said. the series - a pilot project - was Igor Tonkovidov, SCF President signed by SCF in October, 2019, and CEO, commented: “Shipbuild- As well as ordering 10 Arc7s, SCF has taken delivery of the Atlanticmax 'SCF Barents' while the other four were signed ing and timecharter contracts for by SMART LNG in January, 2020. 15 Arc7 LNGCs, signed between of safely operating vessels in ice LNGCs ordered by SCF Group in With 10 long-term timecharters 2019/2020, enable the Russian conditions. 2018 at Hyundai. The first, ’SCF La added to this portfolio, SCF Group shipping community to play a role “Equally significant is the fact Perouse’, was delivered in Febru- has $20 bill in contracted future in transporting cargoes of strate- that the co-operation between ary, 2020. earning and receivables, the com- gic importance for the Russian SCF, NOVATEK, VEB.RF Group and The third and final vessel, ‘SCF pany explained. economy, which are generated by Russian shipbuilders paves the way Timmerman’, is due to be deliv- The vessels will be operated large-scale energy projects in the for establishing the domestic pro- ered early next year. under the Russian flag, while the Russian Arctic. duction of LNGCs, which entails Each Atlanticmax is equipped Russian Maritime Register of Ship- “These contracts will also help adopting advanced technologies with a GTT Mark III Flex cargo con- ping (RS) will provide supervision to further develop our national ex- and engineering solutions,” he tainment system, slow-speed dual- during their construction. pertise in ice navigation and cre- concluded. fuel X-DF engine, and a system At the same time, NOVATEK ate over 850 new jobs for Russian that reduces nitrogen oxide emis- confirmed that its joint venture, seafarers, as all the 15 vessels will Atlanticmax sions while the vessel sails in liq- Arctic LNG 2, had agreed long- have Russian crews. In addition, on 14th September, uid fuel mode. term charter agreements for 14 “We are pleased to see that SCF took delivery of ’SCF Barents’. In addition, all vessels of the Arc7s with SMART LNG. this new generation of Arctic The following day, the vessel em- series are among the first globally Earlier, the Arctic LNG 2 part- LNGCs, which will contribute sig- barked upon her maiden voyage to feature a boil-off gas partial re- ners - NOVATEK, TOTAL, CNPC, nificantly to growing the cargo under a long-term timecharter liquefaction system, which signifi- CNOOC, and a consortium involv- traffic along the Northern Sea agreement with a Shell subsidiary. cantly reduces cargo losses while ing Mitsui and JOGMEC - had ap- Route, was designed based on ‘SCF Barents’ is the second of on long voyages or awaiting cargo proved the construction of the 15 SCF’s long-standing experience three 174,000 cu m Atlanticmax operations. n

NEWS quarter of this year and the sis- Built by Samsung Heavy Indus- the vessel in the USGC by the end NUDGE terships ’Energy Intelligence’ and tries, she is a 174,000 cu m ca- of November. ‘Wilpride’ is under ’Energy Integrity’ in the second pacity X-DF LNGC fitted with a charter to IOC for around 100-120 Ship deliveries quarter of 2021. GTT Mk III Flex Plus cargo con- days from the end of September, and charters Flex LNG has taken delivery of tainment system giving a low boil according to shipbrokers. Alpha Gas has taken delivery of the 173,400 cu m ’Flex Resolute’, off rate of 0.07%, combined with IOC also issued a tender at the the first of four newbuilding also from DSME. a sub cooler. beginning of September to sub-let LNGCs. She features ME-GI engines Upon her delivery, ‘GasLog the 174,000 cu m ‘Bonito’ that was The 173,400 cu m ’Energy Pa- and is Flex LNG’s second vessel Georgetown’ will be operated due to load a cargo from Cameron cific’ was delivered by Daewoo fitted with a full reliquifaction under a seven-year charterer to between 23rd-27th August. Shipbuilding and Marine Engineer- system (FRS) bringing boil-off Cheniere. Gunvor’s trading arm Clear- ing (DSME), following the comple- rate down to 0.035% per day. India’s IOC is offering the lake has reportedly chartered tion of gas trials. ‘Flex Resolute’ is to enter into 160,000 cu m ’Wilpride’ for a Celsius’ newbuilding 180,000 cu She is the second to join Alpha an 11 month timecharter, plus an sub-charter on a prompt basis, m ‘Celsius Copenhagen’. Gas' fleet, following the 160,000 option to extend by an additional after securing the vessel under The first of four sisters, she is cu m ‘Energy Atlantic’ delivered three months, to an undisclosed short-term charter to load a due to be delivered from Sam- in 2015. operator. 25th-29th September cargo from sung at the end of next month Alpha Gas is also due to take GasLog’s latest LNGC, ‘GasLog the still closed Cameron LNG ter- and is fitted with X-DF engines delivery of the 173,400 cu m ‘En- Georgetown’, has commenced minal at Hackberry, Louisiana. and a GTT Mk III Flex contain- ergy Endeavour’ in the fourth sea trials off South Korea. IOC has specified redelivery of ment system. n LNG Solutions for the Marine Industry

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www.ChartLNG.com [email protected] 8 l NEWS LNG Shipping News 17 September 2020 Voyage revenues boosts Dynagas results Dynagas LNG Partners reported a second quarter 2020 net income of $6.4 mill, compared to $0.9 mill in the corresponding period of 2019.

This represents an increase of $5.5 2019, which represents an in- remaining contract term of 8.1 credit facility expires in 2024. mill, or 611.1%. crease of $3.1 mill. This increase years. “The swap provides for a fixed This increase was mainly due was mainly down to the higher “The earliest contracted re- three-month LIBOR rate of 0.41% to a rise in voyage revenues, as revenues earned on the ’Lena delivery date for our six LNGCs is and an effective interest rate cost well as a decrease in interest River’ following her delivery to a in the third quarter of 2021 (‘Arc- of 3.41% (including margin) appli- and finance costs, compared to multi-year contract with Yamal tic Aurora’), with the next carrier cable for notional amounts match- the same period of 2019. This Trade Pte in July, 2019. (‘Clean Energy’) becoming avail- ing the full amount and period of was partially offset by a $3.4 Dynagas reported average daily able for re-chartering in the first our outstanding debt. mill unrealised loss on the Part- hire gross of commissions of about quarter of 2026 at the earliest. “Additionally, in August 2020, nership’s interest rate swap $62,200 per day per vessel in “Despite the ongoing opera- we entered into an ‘at the mar- transaction recognised in this 2Q20, compared to around tional challenges the industry is ket’ offering programme, pur- quarter. $55,100 per day per vessel in facing as a result of the COVID-19 suant to which the Partnership Adjusted net income, which 2Q19, compared with a daily opex outbreak, we are pleased to re- may offer and sell up to $30 mill excluded non-cash flow items for of $12,630 per vessel. port 100% utilisation for our fleet of its common units. Going for- 2Q20 was $9.9 mill, compared to Adjusted EBITDA for 2Q20 was for the second quarter of 2020. ward, we intend to continue our $0.8 mill in the 2019 correspond- $24.1 mill, compared to $20.9 mill “Pursuant to our general ob- strategy of using our cash flow ing period, representing a net in- for the corresponding period of jective to manage the cost of generation to deleverage our bal- crease of $9.1 mill or 1,137.5%. 2019. debt, we made use of the histori- ance sheet, reinforce our liquidity CEO Tony Lauritzen, said; “All cally low interest rate environ- and generate cash so as to build Higher revenues six LNGCs in our fleet are operat- ment and entered into a floating equity over time. This, we be- Voyage revenues for 2Q20 were ing under their respective long- to fixed interest rate swap trans- lieve, will enhance our ability to $33.9 mill, compared to $30.8 mill term charters with international action effective from 29th June, pursue future growth initiatives,” for the corresponding period of gas producers with an average 2020 until the existing $675 mill he concluded. n EXMAR makes provision for ‘TANGO’ dispute LNG and LPG owner, EXMAR has reported an EBIT of $19.2 mill for the first half of this year, compared with $16.4 mill for 1H19.

This included a provision for the one LNGC, ‘Excalibur’, in its fleet, YPF contract for ‘TANGO’ FLNG evolved positively mainly due to uncollected revenue from YPF which is on charter to Excelerate kicking in during the last quarter the release on 26th February, 2020 on ‘TANGO’ FLNG valued at until end 2021/beginning 2022 at of 2019. by the Bank of China of $40 mill $17.7 mill. rewarding levels. The FLNG has delivered five from the debt service reserve ac- EXMAR had received written The EBIT for EMAR’s Business shipments or 624,000 cu m of LNG count in respect of the financing notification of force majeure from Unit Infrastructure was $6.1 mill to date with an availability of 99%. of ‘TANGO’ FLNG.