Japan’s Astomos adds LPG-fuelled VLGC to fleet

Spanish Market: Freight, LPG
06/09/24

Japanese LPG importer Astomos Energy has commissioned a very large gas carrier (VLGC) with a dual-fuel LPG engine, adding to its existing fleet of 26.

Astomos on 4 September commissioned the 86,953m³ Liverty Pathfinder, which was built by shipbuilder Kawasaki Heavy Industries at its Sakaide shipyard in southwest Japan's Kagawa prefecture and is co-owned by shipping firm NYK. The VLGC is the fourth co-owned vessel with NYK, adding to Gas Capricorn in 2003, Gas Garnet and Gas Amethyst in 2024.

The VLGC can use LPG as a bunker fuel from a cargo tank. It is possible to reduce more than 95pc of sulphur oxide and more than 20pc of carbon dioxide emissions when the vessel uses LPG as a marine fuel compared with conventional fuel oil, Astomos said.

Japan currently imports 10mn t/yr of LPG to cover 12mn t/yr of domestic demand, according to the Japan LP Gas Association.

By Reina Maeda

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18/12/24

US Army Corps proposes new Illinois River lock

Houston, 18 December (Argus) — The US Army Corps of Engineers (Corps) has proposed a new lock to replace the LaGrange Lock and Dam (L&D) near Beardstown, Illinois, as part of the Navigation and Ecosystem Sustainability Program (NESP). The project would be the first new lock for NESP, a program that invests in infrastructure along the Mississippi and Illinois rivers. The new 1,200ft proposed LaGrange Lock would allow for passage of more barges in a single lockage, instead of having to split the tow in two with the current 600ft LaGrange Lock. At the moment, most tows trying to pass through the LaGrange lock experience multiple hour delays. The new LaGrange lock would have an estimated cost of $20mn, with a construction timeline of five years. The project area would be located on the west bank of the Illinois River near the 85-year old LaGrange L&D, encompassing 425 acres. Real estate acquisition, design plans and contractors are already in place, said the Corps. The current LaGrange lock would remain in operation and become an auxiliary chamber. The Corps opened the upcoming project to public comments on 11 December and will close on 3 January. NESP has four other projects along the Mississippi River. Another full lock construction project is anticipated for Lock and Dam 25. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Alabama lock expected to reopen late April

18/12/24

Alabama lock expected to reopen late April

Houston, 18 December (Argus) — The main chamber of the Wilson Lock in Alabama along the Tennessee River is tentatively scheduled to reopen in four months, according to the US Army Corps of Engineers (Corps). The Corps expects to finish phase two of dewatering repairs on the lock on 20 April, after which navigation can resume through the main chamber of the lock. The timeline for reopening may shift depending on final assessments, the Corps said. Delays at the lock average around 12 days through the auxiliary chamber, according to the Lock Status Report by the Corps. Delays at the lock should wane during year-end holidays but pick up as spring approaches, barge carriers said. The main chamber of the Wilson Lock will have been closed for nearly seven months by the April reopening after closing on 25 September . By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Viewpoint: European tanker rates meander into 2025

18/12/24

Viewpoint: European tanker rates meander into 2025

London, 18 December (Argus) — European Medium Range (MR) and Handysize tanker rates are set to remain subdued in 2025 as a continued shortfall in US gasoline demand and west Africa's growing independence from imports leaves MRs with little to do. Europe has become increasingly able to survive on domestic gasoline production in 2024, because of modest economic growth and frequent refinery maintenance procedures. This has kept prices high and made gasoline less competitive in export markets, which could be set to continue in 2025, potentially keeping exports in line with 2024. European gasoline exports on MRs to the US in 2024 dropped to the lowest since 2020. The average in the January-November period was just 206,000 b/d, down from 226,000 b/d in all of 2023 and almost as low as 193,000 b/d in 2020 during the Covid-19 pandemic. Exports in 2025 will probably remain close to 2024. This drop pushed MR rates to the lowest since 2021, although they have not yet moved back to the levels that were standard before the Russia-Ukraine war and associated sanctions, which led to sweeping changes in the tanker market in 2021. The 2024-average rate between the UK Continent and US Atlantic coast was $26.67/t, down from $32.63/t in 2023 and $37.94/t in 2021. But this was still significantly above the 2019 level of $19.30/t. The time charter equivalent (TCE) rate — a measure of the money a shipowner generates after fuel and other costs — on the route was around $13,250/t in 2024, which was above shipowners' typical operating cost of $5,000-7,000/d. Rates in 2025 seem likely to hew closely to 2024 levels as gasoline fundamentals in Europe and the US serve to limit the transatlantic trade. In Europe, a high amount of planned and unplanned refinery maintenance and domestic consumption served to keep European gasoline prices comparatively high and limited US demand. At the same time, US production of gasoline increased, making it less reliant on imports. This has been particularly apparent in the fourth quarter of 2024 when European gasoline exports hit a 52 month low and 2025 will probably see the same pattern. In west Africa, the second key MR market, the 650,000 b/d capacity Dangote refinery in Nigeria is now producing gasoil and gasoline, which led to a decline in spot MR demand from Europe. Dangote is yet to operate at full capacity but continues to ramp up and west Africa will become increasingly able to cover demand with domestically-produced clean products. This will mean the MR market in 2025 will be focused almost exclusively on the slowing Europe to US route, which will keep rates under significant pressure. Diesel doldrums depress LR2s Long Range 2 (LR2)-sized diesel/gasoil rates into Europe should have hit a peak in 2024 as tankers had to divert around the Cape of Good Hope to avoid attacks from Yemen-based Houthis in the Red Sea, and the Mideast Gulf remained Europe's primary diesel supplier. But instead the market slumped and this trend seems set to continue in 2025. The fourth quarter in particular has been lacklustre with rates half of what they were at the same point in 2023. European diesel imports are particularly subject to east Asian naphtha demand, as both trades compete for tankers in the Mideast Gulf. East Asian naphtha demand has been slow and is set to remain so in 2025 as downstream margins have weakened far enough that many of the region's refineries have shuttered operations temporarily. At the same time, several very large crude carrier (VLCC)-sized diesel shipments on the route in August boosted European inventories and stunted demand through the third and fourth quarters. European importers switch to US MR-sized diesel cargoes when LR2 freight rates rise, which will again create a ceiling for LR2 rates in 2025. By Erika Tsirikou Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Alabama lock to remain closed until spring

17/12/24

Alabama lock to remain closed until spring

Houston, 17 December (Argus) — The US Army Corps of Engineers (Corps) has determined that the main chamber of the Wilson Lock on the Tennessee River near Florence, Alabama, will remain closed until spring 2025 as repairs continue. The Wilson Lock, the first lock on the Tennessee River, closed on 25 September after cracks in the lock gates on both the land and river sides were discovered. The main lock was closed to prevent further damage in the main chamber, although the auxiliary chamber was kept open for navigation. The Corps had been eyeing an earlier opening date for the main chamber since the start of November. Although months of repairs have taken place, the Corps resolved to keep the main chamber closed to preserve the lock and maintain personnel safety. The Corps, in partnership with the Tennessee Valley Authority (TVA), is still assessing the root cause of the cracking. A second de-watering of the gate is scheduled for the first three months of 2025 to repairs. No official date has been set for the lock reopening, although some barge carriers have heard of a late April opening date. A regular 15 barge tow has endured 5-6 days of delay through the lock on average, according to carriers. The Corps' Lock Status Report on the Wilson Lock reported a nearly two-week delay for tows navigating through the lock. This has been costly for shippers by forcing them to pay delay fees. Wilson Lock is the second lock in Alabama to undergo a lengthy closure this year. Most lock and dams along the US river system are over 70 years old, likely resulting in more closures in the coming year. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

WLGA calls for immediate action in African LPG roadmap

17/12/24

WLGA calls for immediate action in African LPG roadmap

The roadmap identifies 11 high-opportunity markets in sub-Saharan Africa where LPG consumption could significantly increase, writes Yasmin Zaman London, 17 December (Argus) — The growth of LPG as a clean cooking fuel in sub-Saharan Africa will remain limited without immediate and considerable advancement in regulation and investment, according to a new roadmap released by the World Liquid Gas Association (WLGA). The report, commissioned by the WLGA's recently formed Cooking For Life Africa Task Force (CFLA), calls for clear, enforceable regulatory frameworks, financing and payment plans to reduce cost barriers, and investment in infrastructure including roads to better support distribution. The roadmap identifies 11 high-opportunity markets in sub-Saharan Africa where under favourable conditions per capita LPG consumption could increase to 25kg/yr by 2030 and 40kg/yr by 2050. In seven markets, including Nigeria, Kenya, Ghana and Cameroon, policies are already in place that will drive growth opportunities, leaving four that need to address this challenge, according to the roadmap. Affordability is an issue in all countries except Ghana. In Nigeria, this is considered a "major roadblock" because of the depreciation of the naira. The roadmap was released after the UN's Cop 29 climate conference, where major European oil firms pledged $500mn to energy access in sub-Saharan Africa and south and southeast Asia. The WLGA established the CFLA at the IEA's summit on clean cooking in Africa earlier this year. Its founding members include TotalEnergies, Norway's Equinor, Nigerian state-owned oil firm NNPC, LPG trading firm Petredec and regional LPG distributor Oryx Energies. "The LPG roadmap, which targets about 60pc of the continent's population without access to clean cooking solutions, will simultaneously address economic, health and environmental challenges across Africa," NNPC's managing director Huub Stokman said. TotalEnergies' vice-president of LPG Biova Agbokou added that the CFLA and the roadmap can also act "as another lever to reach more end-users". Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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