• 2019 July 12 17:03

    SEA\LNG releases study showing benefits of LNG

    SEA\LNG has today released an independent study showing that LNG as a marine fuel delivers the best return on investment and is a competitive option for newbuild Pure Car and Truck Carriers (PCTC) on Pacific and Atlantic trade lanes.

    Peter Keller, Chairman, SEA\LNG, stated: “This is the second in a series of studies commissioned from independent simulation and analytics expert Opsiana. Similarly to the results of the liner investment case, this study shows that shipowners ordering PCTC newbuildings should take advantage of the environmental, operational and commercial benefits of LNG.”

    The study considered two PCTC trading scenarios using a 6,500 Car Equivalent Unit (CEU) vessel on the Atlantic Trade and an 8,000 CEU vessel on the Pacific Trade. The study indicated that LNG as a marine fuel delivers the best return on investment on a net present value (NPV) basis over a conservative 10-year horizon, with fast payback periods ranging from one to three years on the Atlantic Trade and from less-than-one year to two years on the Pacific Trade.

    These two routes were chosen based on trading scale, with approximately 3.2M vehicles shipped on the Pacific Trade and 1.7M on the Atlantic Trade every year. LNG proved to be the best investment across both trading zones. This higher investment return was achieved without including the significant additional benefits and branding value gained[1] by choosing LNG as a more environmentally friendly marine fuel. When corporate sustainability and environmental goals are included, including potential future charges on CO2 production, choosing LNG as a marine fuel brings additional benefits.

    The study provides greater clarity for those investing in LNG and highlights six key findings: LNG has a better return on investment, the CAPEX hurdle is diminishing, it delivers competitive energy costs, has higher environmental performance, and is the most financially effective long-term method for complying with the 2020 sulphur cap. It also underlines the fact that scrubber operation is significantly more expensive than widely reported, and that the cost of LNG is stable.

    The financial results are more compelling given that this higher traditional investment return was achieved by choosing LNG, the only commercially viable marine fuel alternative available at scale today which is successfully able to achieve corporate sustainability and environmental goals.

    To ensure the best possible data was available to Opsiana, SEA\LNG members contributed their maritime expertise and current corporate information and data from across the LNG value chain, to guarantee a high level of creditability in the study and results. All cost data was accurate in accordance with the latest estimations from industry experts, derived from their experiences in operation.

    While this study focuses specifically on the PCTC investment case for LNG within a specific trade route, the coalition continues to collaborate with third parties on further independent research which will analyse the investment case for a dry bulk vessel and a very large crude carrier (VLCC).

    About SEA\LNG

    SEA\LNG is a UK-registered not for profit collaborative industry foundation serving the needs of its member organisations committed to furthering the use of LNG as an important, environmentally superior maritime fuel.

    SEA\LNG has members across the entire LNG value chain including providers of the product, users, engine and asset suppliers, and class societies. SEA\LNG is already recognised as an International leader in LNG matters. Each member organisation commits mutually agreed human resources, data analysis and knowledge sharing in support of SEA\LNG initiatives and activities and financially contributes via a membership fee. SEA\LNG is guided by a board, which is led by chairman Peter Keller, who was elected as Founding Chairman in 2016.

    SEA\LNG’s members include: ABS, Carnival Corporation & plc, Clean Marine Energy, DNV GL, Eagle LNG Partners, ÉNESTAS, Exeno Yamamizu, Fearnleys AS, Gasum, GE, GTT, JAX LNG, Keppel Gas Technology, “K” LINE Group, Lloyd’s Register, MAN Energy Solutions, Maritime and Port Authority of Singapore (MPA), Marubeni Corporation, Mitsubishi Corporation, Mitsui & Co., Ltd., Naturgy, Novatek Gas & Power, NYK Line, Pivotal LNG, Port of Rotterdam, Port of Virginia, Qatargas, Shell, Société Générale, Sumitomo Corporation, Total, TOTE Inc., Toyota Tsusho, Uyeno Group of Companies, Vancouver Fraser Port Authority, Wärtsilä, and Yokohama-Kawasaki International Port Corporation (YKIP).

    About Opsiana

    Opsiana is a Scandinavian consultancy providing innovative solutions to the most complex business problems. Opsiana’s consultants are recognized optimization, simulation, and analytics experts with deep knowledge of the shipping and marine fuels segments. Opsiana has developed proprietary algorithms for the optimization of liner networks, strategic and tactical fuel procurement, and marine pilotage.




2019 November 17

14:47 Aker Solutions and leading operators join forces to qualify subsea gas separation
14:12 Wight Shipyard Co to build an innovative hybrid CTV for CWind
12:42 PSA Marine and Wartsila join hands to tackle climate emergency
11:38 A.P. Moller-Maersk improves operational profitability
10:15 ABS and Arista launch smart shipping journey

2019 November 16

16:42 Team Tankers International Ltd. announces Q3 2019 results
15:02 GasLog places NOK 900M of senior unsecured bonds due 2024
14:23 BTG and GoodFuels preparing for major investment in bio-refinery to support shipping’s low carbon fuels demands
13:41 Third L-class delivered in China
12:32 Seaspan to purchase a fleet of six containerships on long-term charter for $380 million
11:28 Mammoet inks agreement with Port of Coeymans Marine Terminal to strengthen presence along East Coast
10:18 Metal Sharks delivers pilot boat duo to BCMT

2019 November 15

18:09 Coast Guard medevacs cruise ship Aida Perla passenger just off Ponce, Puerto Rico
17:48 Sovcomflot reports its results for third quarter and nine months of 2019
17:23 Wärtsilä and PSA Marine collaborate to achieve clean energy shipping
17:15 Bollinger Shipyards contracted to build ocean transport barge
17:00 Composit supports 7th International Forum of Dredging Companies as its Sponsor
16:57 Ulstein unveils its concept of the first hydrogen powered offshore vessel
16:36 RF Government separates positions of Deputy Transport Minister and head of Rosmorrechflot
16:14 IMO holds training on impacts of anti-fouling systems and ships’ biofouling on marine environment
15:39 Norway boosts IMO's GreenVoyage-2050 GHG project
15:11 New Wärtsilä Expertise Centre provides value-adding lifecycle support
14:57 LUKOIL commissions phase three facilities at Filanovsky field
14:30 NSR cargo traffic totaled 26 million tonnes year-to-date, up 63.5% YoY
14:13 Georgia Ports Authority up 3.5 percent to 428,400 TEU in October 2019
13:13 Diana Shipping announces direct continuation of time charter contract for m/v Medusa with Cargill
12:51 Multipurpose Reloading Complex reports 4-fold increase of allocations for environment protection to RUB 11.5 million
12:32 ABI Research: Commercial fleets looking to tech to accelerate ROI in the face of rising costs, competition, and uncertainty
12:13 Port of Oakland names Danny Wan Executive Director
11:28 ESL Shipping participates in Intelligence Hunt
11:00 CMA CGM to apply GRI from Canada West Coast to worldwide destinations (Excluding EU, Russia & USA)
10:41 Delft Dynamics, Next Ocean and Damen perform qualification test in North Sea
10:40 Gremyashii corvette of RF Navy’s Nothern Fleet to be tested in White Sea
10:16 Training ship Perekop of RF Navy's Baltic Fleet arrives in Republic of Myanmar
09:54 Bunker prices go down at the port of Saint-Petersburg, Russia (graph)
09:39 MABUX: Bunker market this morning, Nov 15
09:32 Brent Crude futures price is up 0.45% to $62.56, Light Sweet Crude – up 0.51% to $57.06
09:13 Baltic Dry Index is up to 1,364 points

2019 November 14

18:19 French Prime Minister Edouard Philippe inaugurates CEVA Logistics’ new headquarters in Marseille
18:00 Boosting handling of cargo bound for Arctic considered as strategic development vector of Murmansk Commercial Seaport
17:41 Port of Liepaja (Latvia) handled 5.92 million tonnes of cargo in 10M'2019, down 5.1% Y-o-Y
17:20 Gasunie, EBN, Port of Amsterdam and Tata Steel work together on the development of a CCUS project in the North Sea Canal area
16:49 Hung Hua Construction of Taiwan orders third Fast Crew Supplier this year to support offshore wind ambitions
16:36 Main engines loaded onto second serial ship of PV22 project at Nevsky Shipyard
16:15 Hapag-Lloyd announces rates from East Asia to North Europe and Mediterranean
15:59 Yevgeny Savkin appointed as General Director of Novyie Kommunalnyie Tehnologii in Ust-Luga port
15:15 The ICS and ECSA call for immediate and effective intervention after yet another attack in the Gulf of Guinea
15:12 Restoration of 90 year old Amsterdam bridge by Niron Staal
14:43 Expert forecasts scrubbers to consume some 600,000 barrels of heavy fuel per day in 2020
14:14 Norway boosts IMO's GreenVoyage-2050 GHG project
13:32 Sea Port of Saint-Petersburg invested RUB 630 million in development in 9M’19, up 53% YoY
13:11 MOL earns AIP for design of bow wind-shield, ultra-large containership
12:30 Bunker prices are flat at the Far East ports of Russia (graph)
12:04 CMA CGM announces FAK rates from Asia to the Middle East Gulf
11:23 Aleksey Rykovanov appointed as General Director of Murmansk Commercial Seaport
11:01 Arista Shipping starts the path to smart shipping operations with an ocean data agreement with ABS
10:39 RF Government supports expansion of Murmansk Transport Hub capacity to 65 million tonnes by 2035
10:16 MABUX: Bunker market this morning, Nov 14
10:02 WesCom Signal and Rescue goes green at METSTRADE 2019
09:38 Three new Damen FCS Patrol vessels for SR Platforms achieve major milestones in a single week