Spain detains tanker Aldan for oil spill

Market: Freight
16/06/21

The Spanish government has detained an oil tanker for allegedly spilling a large quantity of hydrocarbons in the Atlantic off the Canary Islands. The Aldan's most recent port of call may have been in Venezuela.

Spain's transport ministry Mitma said the Liberia-flagged Aldan is being held in the port of Almeria after a spill that spread across a 55km² area.

"The ship will remain detained until its managers proceed to deposit the fixed bond," Mitma said. "Given the seriousness of the events, they could face one of the highest sanctions imposed so far."

The Aldan's ultimate owner is probably Muhit Maritime FZE, which is headquartered in the Jebel Ali Free Zone, UAE, according to IMO registration documents.

It is unclear what the tanker was carrying. Last month it loaded 150,000 bl of gasoline on behalf of Switzerland-based ES Euro Shipping from Trinidad's state-owned Paria Fuel Trading, and was bound for Aruba. But multiple shipping sources said that it instead entered Venezuelan waters. Venezeula is suffering an acute gasoline shortage. If the Aldan did call at a Venezuelan port, there is a possibility it could be carrying that country's heavy crude or fuel oil.

Oil trade with Venezuela brings acute political sensitivities, because of US sanctions that were imposed by Washington in January 2019. Most of Venezuela's crude exports end up in China's Shandong province, home to much of thatg country's independent refining sector, but even this could be shut off by Beijing's recent imposition of a new import tax.

By John Ollett

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01/11/24

US job growth slumps in October, jobless rate at 4.1pc

Houston, 1 November (Argus) — The US added only 12,000 nonfarm jobs in October, reflecting the impacts of two hurricanes, a strike at aircraft manufacturer Boeing and a slowing trend in hiring prompted by high borrowing costs. The unemployment rate remained unchanged at 4.1pc, still close to a five-decade low of 3.4pc reached in early 2023, the Labor Department reported today. Last month's gains were far fewer than the 113,000 forecast by analysts surveyed by Trading Economics. Job gains for the prior two months were revised down by a combined 112,000 jobs, leaving September with a still robust 233,000 and August with 78,000 jobs. A Labor Department report earlier this week showed job openings in September were at their lowest since January 2021. Still, job gains for the 12 months through October averaged 194,000, a little higher than the 12-month period before Covid-19 struck the US beginning in early 2020, causing millions of job losses and a sharp but short recession. Today's employment report, the last before next week's US presidential election, cements odds of a quarter point cut in the Federal Reserve's target rate next week to nearly 100pc from about 96pc Thursday, according to CME's FedWatch tool. The Fed cut its rate by half a point in late September, the first cut since 2020, as it is just beginning to loosen monetary policy after the sharpest tightening in decades to battle surging price gains. Inflation has since moved close to its 2pc target and job gains have gradually slowed, even as the economy remains robust, growing by nearly 3pc in the second and third quarters of the year. Hurricane Helene made landfall in northern Florida in late September and slammed northwards into Georgia, the Carolinas and Virginia, leaving major damage in its wake. Hurricane Milton struck Florida on 9 October, within the period of both surveys used for the job report. About 32,000 unionized workers at Boeing have been on strike since early September. Job growth trended up in government and in health care and social services, which added 40,000 and 51,000, respectively, while manufacturing declined by 46,000, partly due to strikes. Construction added 8,000 jobs. Average hourly earnings edged up to an annual 4pc from 3.9pc. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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TMX adds to ‘pulse’ of 4Q freight market: Teekay

31/10/24

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31/10/24

TMX adds to ‘pulse’ of 4Q freight market: Teekay

Houston, 31 October (Argus) — An increase in monthly Aframax crude tanker loadings in Vancouver, British Columbia, is poised to add a new dynamic to the tanker market this winter, Teekay Tankers chief executive Kenneth Hvid said. So far, tanker rates in the fourth quarter, often the strongest time of year for the market, have lagged the trajectory of fourth quarter 2023. But it is too early in the quarter to assume a rally will not happen, Hvid said. "It feels like the market has called the winter over before it started," he said. "But there is absolutely a pulse in the markets." Part of the support for tanker rates likely will come from heightened demand on Canada's Pacific coast, where exports in Vancouver are continuing to rise following the Trans Mountain Expansion (TMX). In October, 24 Aframaxes loaded in Vancouver, Hvid said. That marks a new high since TMX began operations in May, with the monthly average at around 20 loadings from June through September, according to Teekay. Nine of the 24 cargoes went directly to Asia-Pacific ports and at least four went to the Pacific Area Lightering zone (PAL), where the vessels discharged onto very large crude carriers (VLCCs) for shipment across the Pacific. An increase in direct shipments from Vancouver to Asia-Pacific can clear out available tonnage on the west coast of North America and pressure rates higher, which lifted rates in September . Teekay profits down on year Teekay reported a profit of $58.8mn in the third quarter, down from $81.4mn in the third quarter of 2023, with rates under pressure from lower Chinese crude oil imports. The tanker company expects rates to climb in the fourth quarter on seasonally higher oil demand. Teekay has a fleet of 42 tankers, including 24 Suezmaxes and 18 Aframax/long range 2 tankers, with six additional vessels on time charter. By Tray Swanson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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LPG bunker demand lags despite competitive pricing

29/10/24

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29/10/24

LPG bunker demand lags despite competitive pricing

New York, 29 October (Argus) — LPG is seen by shipowners as one of the least expensive fuels for meeting new low-carbon emission rules, but spotty safety rules, a lack of bunkering infrastructure or four-stroke engines able to use it is holding back demand. LPG has been price-competitive with LNG and at a significant discount to B30 biodiesel, bio-methanol and blue ammonia and green ammonia this year, according to Argus . ( see chart ). Taking into account the cost of CO2 traded on the EU emissions trading system (ETS), northwest Europe LPG was pegged at $577/t from 1-28 October compared with LNG at $614/t average ( see chart ). The EU's ETS for marine shipping started this year and requires ship operators pay for 40pc of their greenhouse gas (GHG) emissions generated on voyages in the EU. Next year, ship operators will have to pay for 70pc of their CO2 emissions. LPG is one of the fuels that can help ship operators comply with the FuelEU for the next ten years. Starting on 1 January 2025, the EU's FuelEU regulation will require a 2pc cut in the lifecycle greenhouse intensity for bunker fuels burned in EU territorial waters compared with 2020 base year levels. The reduction jumps to 6pc from 2030 and gradually reaches 80pc by 2050. LPG's lifecycle GHG emissions footprint varies depending on its production pathway. It is pegged at about 81.24 grams of CO2-equivalent per megajoule (gCO2e/MJ), according to technical support documentation from the California Air Resources Board. At this carbon intensity level, LPG is compliant with FuelEU's GHG limit set at 85.69 gCO2e/MJ through year 2034, similar to LNG. There are 151 operational ships with LPG-burning engines, with another 109 vessels on order by 2028, according to vessel classification society DNV. LPG bunker demand more than doubled to 242,292t in 2023 compared with 101,447t in 2022, according to the latest International Maritime Organization (IMO) data collected from vessels of 5,000 gross tonnes and over. But LPG bunker demand was dwarfed by comparison with LNG bunker demand, which was at 12.9mn t in 2023, up from 11mn t in 2022, according to the IMO. There were over 700 LNG burning vessels operational this year, with the number growing to 1,162 by 2028, according to DNV data. LPG accounted for 0.1pc and LNG for 6.1pc of global marine fuel demand from vessels with 5,000 gross tonnes and over in 2023. LNG as a marine fuel has been around longer than LPG. The World Liquid Gas Association, a trade association, began exploring the use of LPG as a marine fuel in 2012. The first LPG-fueled very large gas carrier BW Gemini was retrofitted to burn LPG in 2020. By comparison, LNG for bunkering by LNG carriers have been around since the 1960s. The first LNG-powered container ship was delivered in 2015. The bulk of the global LPG bunker demand came from LPG carriers. LPG carriers outfitted with LPG-burning engines can burn their own cargo, taking advantage of the ships' existing infrastructure and safety systems and minimizing their operating costs. But LPG demand from other major types of bunker-consuming vessels, such as container ships, dry bulk carriers and oil tankers, is lagging. One reason is only two-stroke LPG-burning marine engines are commercially available, says vessel classification society Lloyd's Register . Typically, large vessels use two-stroke engines for propulsion and four-stroke engines as auxiliaries, meaning auxiliary engines on vessels would need to be decarbonised through an additional fuel, says Lloyd's Register. LPG has a well-developed global network of import and export terminals. But LPG for bunkering port infrastructure, such as dedicated bunkering storage tanks and LPG bunkering barges, is mostly lacking. Unlike LNG for bunkering, LPG for bunkering regulatory guidelines are currently patchy. If leaked onto water, LPG rapidly vaporises and then sinks to the surface of the water given it is heavier than ambient air. If it ignites, it can create a "pool fire" that can spread and cannot be extinguished, continuing to burn until all the LPG is consumed, Lloyd's Register says. By Stefka Wechsler NW Europe selected alternative marine fuels $/t VLSFOe NW Europe, 1-28 Oct avg $/t VLSFOe Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Singapore’s AG&P to buy Australian LNG developer Venice

24/10/24

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24/10/24

Singapore’s AG&P to buy Australian LNG developer Venice

Sydney, 24 October (Argus) — Singaporean firm Atlantic Gulf & Pacific (AG&P) LNG has agreed to acquire Australian LNG import terminal developer, Venice Energy, the operator of the 2mn t/yr Outer Harbor LNG terminal in Adelaide, South Australia (SA) state. The US-based investment firm Nebula Energy, which bought a majority stake in AG&P in January this year, will fund the acquisition, AG&P LNG said in a statement. AG&P plans to convert a 145,000m³ LNG carrier to a floating storage and regasification unit (FSRU) , with a peak send-out capacity of 400mn ft³/d (4.12bn m³/yr). Describing the project as "shovel-ready" with key permits in place, AG&P chairman Peter Gibson said the Outer Harbor terminal held advantages over other LNG import plans in the southeastern Australia region, with plans to bring the terminal online over January-March 2027 — about 13 months later than Venice anticipated in late 2023 "Together, we will develop this very timely and pivotal project to bridge the accelerating decline in gas supplies and help reinforce energy security for SA and Victoria," Gibson said on 24 October. Venice had been seeking investors for its project since February , after the firm's initial agreement with domestic utility Origin Energy expired because of a lack of offtakers . Fellow LNG import developer, Fortescue-owned Squadron Energy said this week that it was targeting LNG imports into Australia's southeast in mid-2026 , when shortfalls could reach as high as 500 TJ/d (13.35mn m³/d) because of depletion at Bass strait fields offshore Victoria. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Global LNG fleet to be well supplied in 2025-27

23/10/24

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23/10/24

Global LNG fleet to be well supplied in 2025-27

London, 23 October (Argus) — The global LNG fleet looks likely to be well supplied in 2025-27, as the addition of new LNG carriers is expected to outpace loading demand from new liquefaction capacity. Some 251 newbuild carriers are due to be delivered in 2025-27, according to data from the International Maritime Organisation (IMO). But loading demand from 124mn t/yr of new liquefaction capacity over the same period may only require 171 additional carriers ( see graphs and projects table ). This scenario assumes 160,000m³ loadings and a 17 knot sailing speed ( see scenario table ) . This scenario does not include loading demand from Nigeria LNG's 8mn t/yr seventh train at the 22mn t/yr Bonny terminal, as feedgas at present is lower than loading demand from the terminal's present liquefaction capacity, or loading demand or vessel additions linked to Russia's 19.8mn t/yr Arctic LNG 2 project, which has been placed under US sanctions. This scenario also assumes no Suez or Panama canal voyages. Should deliveries from the US Gulf to northeast Asia via the Cape of Good Hope rise to 50pc of loadings from the new liquefaction capacity instead of the assumed 33pc, then loading demand could rise by a further 20 carriers. And if each carrier had an average of five days of additional idle time between round trips, then loading demand could rise by a further 23 carriers. If both of the above scenarios turned out to be the case, and all newbuild carriers were delivered on time, then newbuild additions would still be more than sufficient to cover loading demand from new liquefaction capacity. And in the past few years, new LNG terminals have faced greater delays than new LNG carrier deliveries, suggesting scope for an even better supplied fleet in the coming years should this trend continue. The projections follow a well-supplied past year for the global LNG fleet, with 53 carriers delivered over the past 12 months, compared with new liquefaction capacity over the same period requiring a loading demand of around 6-7 LNG carriers. Charter rates have fallen to record lows this month, in large part because of newbuild additions outpacing loading demand from new facilities. Running out of steam The retiring of older steam turbine LNG carriers could limit growth in the global fleet, especially if owners are unable to secure ample employment to cover costs in a market with greater two-stroke and tri-fuel diesel-electric (TFDE) carrier availability. Some 86 carriers that are at least 20 years old are in operation, according to shipping data from Equasis. Scrappage of older carriers has been in the single digits in recent years, but could rise in the coming years, market participants have said. Many older carriers have been under long-term charters that are nearing expiry, and could be up for retirement upon the end of the charters. And carriers typically have maintenance around every five years that requires drydocking, which can be costly for shipowners against a prospect of potentially lower charter returns. An increased number of emissions-based shipping policies from the IMO and the EU, such as the FuelEU regulations starting in 2025, will add to the need for more modern and efficient LNG carriers, further weighing on demand for older steam turbine carriers. But the prospect of a tighter freight market after 2027, as more liquefaction capacity is due to come on line against an expected relative slowdown in carrier deliveries, could push some owners to keep hold of older carriers in the expectation of future employment, even if they are unable to fix their carriers in the short term. By Martin Senior 2025-27 liquefaction capacity additions mn t/yr Project Capactiy First exports Loading demand* Plaquemines LNG 20.0 Dec-2024 33.8 Corpus Christi stage 3 11.4 Jan-2025 19.4 Tortue 2.3 Feb-2025 1.1 LNG Canada 14.0 Apr-2025 13.3 Golden Pass LNG 18.1 Dec-2025 30.6 Congo LNG (2nd Phase) 2.4 Dec-2025 3.5 Qatar NFE expansion 32.0 Feb-2026 34.1 Energia Costa Azul 3.2 Mar-2026 3.8 Atlamira onshore 1.4 Dec-2026 2.4 Hilli FLNG 2.4 Feb-2027 4.6 PFLNG3 2.0 Jun-2027 0.8 Port Arthur T1 6.8 Jun-2027 11.4 Rio Grande T1 5.8 Sep-2027 9.9 Woodfibre LNG 2.1 Sep-2027 1.8 Total 124.0 170.5 — Argus * Number of vessels needed to serve loading demand from the terminal Delivery scenario assumptions pc deliveries NE Asia NW India NW Europe US Gulf 33 0 67 Pacific Canada 100 0 0 Pacific Mexico 100 0 0 Qatar 60 20 20 Congo 50 0 50 Senegal/Mauritania 0 0 100 Argentina 50 0 50 Malaysia 100 0 0 — Argus *all inter-basin voyages via Cape of Good Hope LNG carriers on order Loading demand from new capacity vs newbuild additions Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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