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Half-year LNGC fleet update – 10 orders, 21 deliveries

Tue 20 Jun 2017 by Mike Corkhill

Half-year LNGC fleet update – 10 orders, 21 deliveries

The year to date has been busy for the development of the LNG carrier fleet, with 21 ships delivered and 10 newbuildings contracted. 

Dominating the year’s headlines are LNG bunker vessels, coastal tankers, multigas carriers, floating storage and regasification units (FSRUs) and additional tonnage for leading owners.

The delivery tally for the first six months of the year includes the first two purpose-built LNG bunker vessels and four 27,500m³ LNG/ethane multigas tankers. 

The dedicated bunker vessels are the 5,100m³ Engie Zeebrugge built by Hanjin yard for a group comprising Fluxys, NYK, Engie and Mitsubishi Corp and the 6,500m³ Cardissa that STX completed for Shell.

Both are equipped with four-stroke, dual-fuel main and auxiliary engines, and bow thrusters to make them more manoeuvrable.

Engie Zeebrugge’s home base is the Fluxys terminal in the Belgian port of Zeebrugge; Cardissa’s is at the Gate LNG terminal at Rotterdam in the Netherlands.

The availability of the two bunker vessels – and berthing arrangements built to accommodate small LNGCs – does much to support use of LNG as marine fuel in northern Europe.

 

 

 

 

LNG CARRIERS ORDERED 1 JAN-19 JUNE 2017              
Hull no shipbuilder capacity m³ delivery owner propulsion charterer cont system details
2945 Hyundai 170,000 2019 Kolin/Kalyon DFDE Kolin/Kalyon GTT Mk III Flex Turkey FSRU
2909 Hyundai 170,000 2018 Höegh LNG DFDE TBC GTT Mk III Höegh FSRU #10
2470 Daewoo 173,400 2019 Flex LNG LSDP (HP) TBC GTT No 96 TBC
2471 Daewoo 173,400 2019 Flex LNG LSDP (HP) TBC GTT No 96 TBC
2963 Hyundai 180,000 2019 Knutsen OAS LSDP(HP) Iberdrola GTT Mk III Flex Corpus Christi exports
2964 Hyundai 180,000 2019 Knutsen OAS LSDP(HP) Iberdrola GTT Mk III Flex Corpus Christi exports
TBC Samsung 7,500 2019 Korea Line TBC Kogas Type C Jeju Island deliveries
TBC Samsung 7,500 2019 Korea Line TBC Kogas Type C South Korea bunkering
TBC Keppel Singmarine Nantong 7,500 2019 Stolt-Nielsen Gas DFDE TBC Type C Coastal distribution
TBC Keppel Singmarine Nantong 7,500 2019 Stolt-Nielsen Gas DFDE TBC Type C Coastal distribution
LNG World Shipping, 19 June 2017              

Coastal orders

Four 7,500m³ coastal LNG carriers have been ordered. All four will primarily be engaged in regional distribution but will be equipped to carry out ship-to-ship (STS) LNG bunkering too.

The 7,500m³ coastal LNGC quartet comprises two for Korea Line that Samsung Heavy Industries (SHI) will build for delivery in May and December 2019 and two for Stolt-Nielsen Gas (SNG) that Keppel Singmarine will fabricate at its yard in Nantong, China for completion in the second and third quarters of 2019.

The Korea Line ships will be chartered by South Korean state-owned gas utility Kogas and employed domestically. They will feature the KC-1 membrane tank containment system, which Kogas has been developing over the past decade with the country’s three leading shipbuilders. 

This co-operation is formalised under their KC LNG Tech tank design venture. KC-1 is an alternative to the two GTT membrane tank systems. If they choose the KC-1 option, SHI, Daewoo and Hyundai will save on the royalty fees they pay on vessels that incorporate the GTT No 96 and Mark III/V cargo containment technologies.

The only other LNGCs contracted with KC-1 tanks to date are two 174,000m³ vessels that SHI will complete for South Korea’s SK Shipping later this year. 

Orders for the SNG pair were confirmed in May 2017, following approval of the proposed newbuildings by the board of parent Stolt-Nielsen Ltd. SNG is working to develop coastal LNG distribution operations in Sardinia and Scotland. It plans to employ the new ships, at least to some extent, on these schemes.

Conventional-size LNGCs

Four new conventional-size ships have been contracted so far in 2017; a 173, 400m³ duo for Flex LNG at Daewoo Shipbuilding & Marine Engineering (DSME) and a 180,000m³ pair for Knutsen OAS at Hyundai. All will be delivered in 2019.

Each of the four vessels will be powered by a pair of two-stroke, dual-fuel engines, incorporating high-pressure, gas-injection fuel gas-supply systems.

Knutsen ordered its pair against a long-term charter with Iberdrola of Spain to lift cargoes at Cheniere’s Corpus Christi terminal in Texas. The Flex contract has boosted the owner’s orderbook to six vessels. Knutsen aims to secure a mix of long-term contract and spot market employment for this fleet.  

Since the start of 2016, Greece-based Maran Gas has taken delivery of 10 LNG carriers, creating a fleet of 37 that is among the world’s largest. It still has six conventional-size LNGCs and a 173,400m³ FSRU under construction, all at DSME. The FSRU marks the company’s first foray into the floating regas sector.

Among the seven ships that DSME has completed so far in 2017 are a 174,000m³ quartet that will lift cargoes produced by the recently commissioned Train 3 plant at Sabine Pass in Louisiana under 20-year charters with Kogas. 

SM Eagle and SM Seahawk are owned by Korea Line; Hyundai LNG Shipping controls Hyundai Princepia and Hyundai Peacepia. All four are due to load their maiden cargoes at the Cheniere Energy terminal in June or July. 

DSME and Samsung Heavy Industries (SHI) are neck-and-neck in the race to become the top LNGC builder. Hyundai Peacepia, commissioned at DSME on 8 June, is the latest ship completed this year. On its entry into service both Samsung and Daewoo had built 108 LNGCs.

Samsung’s 100th LNGC was the 170,000m³ LNG Port Harcourt II, completed for Nigeria LNG in December 2015. Between them, Samsung and Daewoo have built 43 per cent of the existing LNGC fleet of 502 vessels.

Floater interest

The Maran Gas FSRU, contracted in December 2016, highlights the continued interest in these vessels as a fast-track, low-cost option for companies and governments wishing to commence or augment LNG imports. 

So far in 2017, two FSRUs have been ordered. Two more – BW Integrity and Hoegh Giant, both of 170,000m³ – have been completed. 

Both newly contracted FSRUs will be built by Hyundai and both will be 170,000m³ in capacity. One will be used by Kolin in Turkey, commencing in 2019. The second, Hull No 2909, scheduled for completion next year, will be Höegh LNG’s 10th FSRU.

As for the deliveries, BW Group is to position SHI-built BW Integrity in Karachi, to become Pakistan’s second FSRU, this summer. Hoegh Giant, completed by Hyundai for Höegh LNG, begins work as an FSRU in Ghana next summer and will carry LNG cargoes until then.

Now, Dynagas looks set to emulate fellow Greek owner Maran Gas, ordering its first FSRU. The company’s preliminary discussions last summer with Hudong-Zhonghua yard in China about building a pair of regas vessels agreed nothing definite. 

More recently, Dynagas is reportedly losing interest in an option to convert one of its existing LNGCs, Clean Energy, into an FSRU. The change of heart raises the possibility that Dynagas will finalise an order for one or two FSRUs with Hudong soon. This would be the first contract for an FSRU in China.   

Floating production

FSRUs’ ability to function as traditional LNGCs when their regas capabilities are not required provides a high degree of flexibility. 

One recently contracted floater does not meet LNG World Shipping’s definition of an LNG carrier. But we want to make special mention of the floating LNG production (FLNG) vessel that Eni ordered in June at Samsung for the Coral project off Mozambique.

Slow global economic growth and the anticipated 50 per cent expansion in LNG production capacity during the second half of this decade have temporarily dampened interest in new LNG projects. This has led several proposed FLNG projects to be delayed or cancelled. 

Eni’s is the first FLNG vessel contracted since February 2014 and only the fifth newbuilding of this type. Due for completion in 2021, the 238,700m³, US$2.5 billion floater will have four pairs of GTT Mark III membrane storage tanks and will produce up to 3.4 million tonnes per annum (mta) of LNG.

Meanwhile, 28 more LNG carriers are due to be completed by year-end. While this number is easy to pinpoint, what remains very much a mystery is the number of additional LNGC newbuildings that will be contracted by 31 December. 
 

LNG World Shipping will keep you posted.

LNG CARRIERS DELIVERED 1 JAN-19 JUNE 2017          
Vessel name delivery capacity m³ owner builder charterer containment details
Cesi Qingdao January 174,000 CESI/MOL Hudong Sinopec GTT No 96 APLNG exports
Maran Gas Roxana January 173,400 Maran Gas Daewoo Shell GTT No 96 Shell business
Maran Gas Ulysses January 174,000 Maran Gas Hyundai Samho Shell GTT Mk III Shell business
Seri Cenderawasih January 150,000 MISC Hyundai Petronas Moss Petronas projects
JS Ineos Innovation January 27,500 Evergas Sinopacific Ineos Type C Ethane service
Torben Spirit February 173,400 Teekay Daewoo Shell GTT No 96 Shell business
Maran Gas Olympias February 173,400 Maran Gas Daewoo Shell GTT No 96 Shell business
Asia Integrity February 160,000 Chevron Samsung Chevron GTT Mk III Gorgon exports
Ougarta March 170,000 Hyproc Shipping Hyundai Sonatrach GTT Mk III Algerian exports
BW Integrity March 170,000 BW Group Samsung Pakistan GasPort GTT Mk III Port Qasim FSRU
JS Ineos Intuition March 27,500 Evergas Yangzijiang Ineos Type C Ethane service
SM Eagle April 174,000 Korea Line Daewoo Kogas GTT No 96 Sabine Pass exports
Hoegh Giant April 170,000 Höegh LNG Hyundai Quantum Power GTT Mk III Tema FSRU
JS Ineos Independence April 27,500 Evergas Sinopacific Ineos Type C Ethane service
Engie Zeebrugge April 5,100 Fluxys/Gas4Sea Hanjin Engie Type C Zeebrugge bunkering
Hyundai Princepia May 174,000 Hyundai LNG Daewoo Kogas GTT No 96 Sabine Pass exports
SM Seahawk May 174,000 Korea Line Daewoo Kogas GTT No 96 Sabine Pass exports
JS Ineos Invention May 27,500 Evergas Yangzijiang Ineos Type C Ethane service
Cesi Beihai June  174,000 CESI/MOL Hudong Sinopec GTT No 96 APLNG exports
Cardissa June  6,500 Shell STX Shell Type C Rotterdam bunkering
Hyundai Peacepia June  174,000 Hyundai LNG Daewoo Kogas GTT No 96 Sabine Pass exports
LNG World Shipping, 19 June 2017