ALTERNATIVE FUELS

Belgium and Namibia to Develop Africa’s First Hydrogen Ship, Infrastructure

His Majesty King Philippe of the Belgians and H.E. Dr. Nangolo Mbumba - President of the Republic of Namibia during the ceremonial filing at the hydrogen station (Cleanergy)

PUBLISHED MAY 2, 2024 6:43 PM BY THE MARITIME EXECUTIVE

 

Partners from Belgium and the African nation of Namibia mapped out a plan to develop the continent’s hydrogen infrastructure for the production and export of the energy source as well as launching Africa’s first hydrogen-fueled vessel. It is part of an ambitious plan to make Namibia a frontrunner in the global green hydrogen economy and supply the alternative energy source both to passing ships and industrial users in Belgium, Germany, and other industrial clusters in Europe.

The plan was unveiled during an event at Walvis Bay, Namibia that included His Majesty King Philippe of the Belgians and Dr. Nangolo Mbumba, President of the Republic of Namibia. During the event, they officiated at the ceremonial first filling of a dual-fuel truck at the hydrogen refueling station, which is expected to be operational in the fourth quarter of 2024 as part of the Cleanenergy Green Hydrogen site. 

Cleanergy Solutions Namibia is a joint venture between CMB.TECH and the Ohlthaver & List (O&L) Group, a privately held group of companies with interests ranging from food to technology, steel, marine engineering, and real estate. The Port of Antwerp Bruges and the Namibian Ports Authority are also participating.

 

H.E. Dr. Nangolo Mbumba - President of the Republic of Namibia, His Majesty King Philippe of the Belgians, Sven Thieme - Executive Chairman Ohlthaver & List, Marc Saverys - Chairman of the CMB Board of Directors, Alexander Saverys - CEO of CMB.TECH during the launch ceremony

 

The Cleanenergy Green Hydrogen facility uses only solar energy for the on-site production of green hydrogen. Among the first projects will be the hydrogen refueling station used for hydrogen-powered trucks, port equipment, railway applications, and small ships. 

The Port of Antwerp Bruges plans to invest approximately $265 million for the development of a hydrogen and ammonia storage and export facility at Walvis Bay which will be jointly run with the Namibian Ports Authority. They expect to develop the site within three to five years adjacent to the existing port both for the bunkering operations and the export to Europe.

“The port of Walvis Bay will also be in a unique position in Africa: our project will enable them to offer low-carbon logistics supply chains to their customers. This will pave the way for attracting additional logistics flows and investors,” said Alexander Saverys, CEO of CMB.TECH.

They look to leverage the experience of developing Hydrotug, the world’s first hydrogen-fueled tug supported by a fueling operation in Antwerp to develop Africa’s first hydrogen-powered vessel. Cleanenergy, together with CMB.TECH, the Port of Antwerp Bruges, and Namport will launch the vessel. It will be a Multifunctional Port Utility Vessel (MPHUV) powered by dual-fuel hydrogen engines. According to the partnership, the MPHUV's versatile design will enable the integration of different equipment needed for a range of port operations, significantly reducing greenhouse gas emissions during operations.

 

Partnership will launch Africa's first hydrogen-fueled vessel (CMB.TECH)

 

Given the ability of ports to act as hubs for hydrogen technology implementation and efforts to reduce carbon emissions, the partners said the Port of Walvis Bay and Namport emerge as an ideal partner to operate Africa's first hydrogen vessel. The port's involvement will provide invaluable insights into the vessel's specifications during development and refine the concept based on operational experience and feedback from users once it is commissioned.

Other elements of the project include a green hydrogen academy. Working with European universities as well as suppliers and customers they will educate a Namibian workforce for hydrogen operations. The partners said this is part of a 5-year plan that includes projects at different locations for ammonia bunkering, pipelines, and large-scale hydrogen and ammonia production.

Holland America’s Cruise Ship Rotterdam Begins Sustained Biofuel Pilot Test

Holland America's flagship Rotterdam will be testing 100 percent biofuel while sailing in the Norwegian fjords (Holland America Line)

PUBLISHED MAY 2, 2024 8:45 PM BY THE MARITIME EXECUTIVE

 

 

Holland America Line’s flagship cruise ship, Rotterdam (99,935 gross tons) started a long-term test using 100 percent low carbon intensity biofuel while cruising the Norwegian fjord this season. It marks the next advancement in a series of tests by Carnival Corporation using cruise ships from Holland America and AIDA and moving from biofuel blends to 100 percent certified biofuel mirroring similar tests in other parts of the commercial maritime industry.

The cruise ship bunkered with the biofuel derived from feedstocks by GoodFuels and supplied by FincoEneries before leaving the Port of Rotterdam in the Netherlands on April 27. Built by Fincantieri and delivered on July 30, 2021, she is the newest ship operated by the line and one of the newest in the industry. Past experience has confirmed that the Holland America cruise ship can operate on biofuels without modifications to the engine or the fuel structure.

During the initial phase of this test, the Rotterdam will operate one of her four engines during cruises this month using the biofuel which is expected to yield an estimated 86 percent reduction in life-cycle greenhouse gas emissions. The fuel will be used while cruising in Norway’s fjords including Geirangerfjord and Naeroyfjord. The cruise line said there is a potential to expand to multiple engines during the summer as the test progresses. 

Carnival Corporation began its tests with biofuels in 2022. AIDA Cruises tested the use of regenerated biofuels in marine diesel engines together with research partners at the University of Rostock. Based on those tests, the cruise line proceeded to bunker a biofuel blend on July 21, 2022, aboard the AIDAPrima ( 125,572 gross tons), becoming the first larger-scale cruise ship to take on a blend of marine biofuel. Tests were conducted while the ship was cruising in Northern Europe between Rotterdam, Hamburg, and Norway. 

The cruise ship entered service in 2016 and was one of the first two cruise ships outfitted with dual-fuel engines that could also burn LNG supplied by trucks while alongside in the port. The AIDAPrima loaded a second delivery of biofuel in December 2022 receiving that time 140 metric tons of 100 percent biofuel. 

Holland America also conducted the first sustained trial of biofuel aboard its cruise ship Volendam (61,214 gross tons) in August and September 2022 while the vessel was docked in Rotterdam on a temporary charter to house Ukrainian refugees. For the first five days of that test, they used a 70-30 mix of biofuel and marine gas oil in one of the ship’s main auxiliary engines. For the next 15 days, they used 100 percent sustainable biofuel. They reported achieving a minimum 78 percent decrease in lifecycle CO2 emissions compared to marine gas oil emissions.

The cruise sector is catching up to other parts of the commercial shipping industry that have also tested biofuels. Royal Caribbean Group also began tests in 2022 and in the summer of 2023 tested sustainable biofuel blends on Royal Caribbean International’s Symphony of the Seas (228,000 gross tons) sailing from Barcelona and Celebrity Cruises’ Celebrity Apex (129,500 gross tons) sailing from Rotterdam. The company completed 12 consecutive weeks of biofuel testing in Europe calling it a “pivotal moment for Royal Caribbean Group’s alternative fuel journey.”

The tests of biofuels have been successful. The broad shipping industry however reports it is limited by the availability of biofuel.

Trafigura Joins Pioneers Ordering Ammonia-Fueled Vessels from HD Hyundai

Belgium's Exmar placed the first order with Hyundai Mipo for ammonia-fueled tankers now followed by Trafigura as pioneers in the segment (Exmar)

PUBLISHED MAY 2, 2024 4:22 PM BY THE MARITIME EXECUTIVE

 

 

Global commodities trader Trafigura group is joining the growing list of pioneers committing to ammonia-fueled vessels. The company has ordered four dual-fueled product tankers for LPG or ammonia transport as part of the group’s growing efforts to decarbonization. With the vessels scheduled for delivery in 2027, Trafigura will be at the forefront of ammonia-fueled propulsion.

The company provided only a few basic details reporting that it ordered four medium gas carriers capable of using ammonia for propulsion when they are delivered. The vessels, which will be used to transport ammonia or LPG, will be built at HD Hyundai Mipo Dockyard in Ulsan, South Korea. Hyundai reported the order is valued at $286 million.

In placing the order, they join a select group of shipping companies that have already moved forward on ammonia while the engine technology is still being perfected and the infrastructure for bunkering is just being explored. Earlier this year Fortescue and Singapore’s Maritime and Port Authority reported the first-ever ammonia bunkering and tests on the Fortescue’s converted offshore supply vessel renamed Fortescue Green Pioneer. Worldwide, DNV calculates that there are just 19 vessels on order for ammonia-fueled propulsion with most of the orders for bulkers and only two gas carriers, so far. Only two shipyards, Hyundai Mipo and Qingdao Beihai Shipbuilding in China have received orders for ammonia vessels.

“We are excited to embark together with HD Hyundai Mipo on this ambitious project which supports our commitments to decarbonizing shipping and will help us to develop the global low-carbon ammonia bunkering infrastructure needed for zero-carbon shipping to become a reality,” said Andrea Olivi, Head of Wet Freight for Trafigura.

Trafigura is one of the world’s largest charterers of vessels, responsible for more than 5,000 voyages a year with around 400 ships currently under management. The company highlights its commitment to helping to develop low-carbon fuels and vessels while highlighting the range of programs it is testing. They purport to be one of the few operators to have tested a full range of alternative shipping fuels including LNG, methanol, LPG, and biofuels on its owned and chartered vessels. 

Investments are also being made by Trafigura in wider efficiency measures such as silicone hull coating, wake equalizing ducts, ultrasonic propeller antifouling technology, and continuous underwater hull cleaning and propeller polishing. It has also co-sponsored the development of a two-stroke engine by MAN Energy Solutions that can run on green ammonia and is investing in onboard carbon capture technology.

Trafigura looks to lead the industry by example. They are committed to reducing the carbon intensity of its shipping fleet by 25 percent by 2030.

Energy Insetting is the Key to Unlock the Potential of Future Fuels

Illustration courtesy BV

PUBLISHED MAY 1, 2024 2:19 PM BY PAUL DELOUCHE

 

The maritime industry is facing an ever-tightening regulatory environment in its efforts to achieve its ambitious net-zero target by the middle of this century. For meaningful progress to be achieved, the industry needs two things: practical solutions, together with a detailed understanding of the actual impact of various long and short-term measures on the industry’s future decarbonization pathway.

This extends beyond purely technical considerations, encompassing the entire value chain, and accounting for the broader economic context in which the transition is taking place. It also requires approaching the question using the right lens, by considering shipping’s “greenhouse gas (GHG) budget” to 2050, rather than solely focusing on the emissions levels at the end of the journey. To limit global temperature increases to 1.5 degrees Celsius, in line with the Paris Agreement, we need to account for all emissions released into the atmosphere until the point of carbon neutrality is reached. 

Putting those principles into practice, Bureau Veritas (BV) has recently published a report outlining potential decarbonization trajectories for the maritime industry through five distinct scenarios, each considering several parameters such as socio-economic forecasts for the evolution of demand for maritime transport, the possible speed for the uptake of green fuels, and technical efficiency improvements in shipping.

Our study reveals that for shipping to keep within its carbon budget, all available levers will need to be actioned at different points in time over the next three decades.

A central role for energy efficiency

In practice, our study demonstrated two clear findings. The first is that operational and technical efficiency measures and energy-saving technologies need to be actioned in the short term, when emissions are at their highest. This will involve embracing practical solutions such as reducing speed, voyage optimization, weather routing, energy-saving devices, and wind-assisted propulsion, which will all help to drive decarbonization.

Our modeling confirmed the potential hefty cumulative impact of operational and technical efficiency measures in keeping shipping within its “GHG budget” to 2050. BV’s simulations show that without action to reduce speed or waiting time - while ocean transportation volumes grow - GHG emissions would be 92% higher by midcentury, with 44% more emissions over the period than if these levers had been actioned.

Although future fuels are widely acknowledged as the preeminent solution, the limited availability of biofuels and e-fuels generated from wind and solar sources to replace fossil fuels reflects the monumental investment required for adoption at scale. The industry cannot afford to wait for innovative fuel and propulsion technologies to achieve commercial viability before taking action.

A supply chain challenge

Moving the needle on fuel production requires pragmatic solutions to unlock the necessary investments to reach the required scale. As such, the second clear finding from our research established the importance of embracing energy insetting as a means of stimulating the at-scale production of renewable and low-carbon fuels, connecting fuel buyers and sellers across the value chain, while also addressing the cost disparity between conventional and very-low-carbon fuels.

The widespread adoption of low-carbon fuels by the shipping industry will entail significant costs to shipowners and operators compared to fossil fuels. However, energy insetting provides a solution that can help bridge the price gap, whilst making a tangible impact on Scope 3 emissions across value chains.

Digital certificates, known as insets, are issued according to the level of emissions savings achieved using renewable and low-carbon fuels, compared to conventional fossil fuels. These emissions are evaluated using a proof of sustainability (PoS) delivered by an independent body to attest to the sustainability credentials of a given fuel. These insets can then be exchanged using a book-and-claim methodology, which allows the certificates to be verified and exchanged digitally, on a dedicated registry.

Unlike offsets, insets are internationally recognized as concrete reductions realized within the supply chain. So, rather than engaging in compensation through external schemes such as reforestation, insets improve the net environmental performance of the industry as a whole, based on reliable assurance verification. This involves practical measures to monetize the estimated GHG emission savings enabled by using renewable or low-carbon marine fuels and will enable end consumers concerned with sustainable sourcing and supply to exercise their purchasing power to guide upstream decisions.

Ultimately, the development of different iterations of energy insetting could be a vital tool the industry needs to send clear market signals to stimulate the production of renewable and low-carbon fuels at scale.

Furthermore, the use of digitalization to record and validate these emissions savings has the dual benefit of connecting a variety of stakeholders throughout the supply chain. It removes the geographical barriers that arise from sourcing through physical supply chains, bringing the supply and demand sides of low-carbon fuel development together, uniting energy providers, carriers, forwarders and cargo owners, as well as the end consumer. The long-term emergence and efficiency of markets rely on trust and the circulation of information.

It is widely acknowledged that immediate and impactful action needs to be taken to achieve the maritime sector’s decarbonization targets, but these goals will not be achieved without unprecedented levels of collaboration and consensus between different stakeholders across the entire value chain.

While this level of cooperation may strike many within the industry as counterintuitive, it is only by embracing benefit-sharing models – such as energy insetting methodologies – that the industry will achieve its net-zero ambition.

Paul Delouche is the Strategy, Acquisitions, and Advanced Services Director at Bureau Veritas Marine & Offshore.

The opinions expressed herein are the author's and not necessarily those of The Maritime Executive.

 

US increased LNG exports

2 May 2024 21:41 (UTC+04:00)

By Alimat Aliyeva

The United States exported 358.9 billion cubic feet (about 10.16 billion cubic meters) of liquefied natural gas (LNG), which is 10% higher than in the same month last year, Azernews reports.

In February 2024, exports of liquefied natural gas (LNG) decreased by 9.4% compared to January of the same year, but increased by 10% compared to February 2023. The total number of LNG tankers shipped was 116.

The main recipient countries were France (49.4 billion cubic feet, or 1.4 billion cubic meters), the Netherlands (45.5 billion cubic feet, or 1.29 billion cubic meters), the United Kingdom (34.1 billion cubic feet, or 0.97 billion cubic meters), Japan (22.8 billion cubic feet, or 0.65 billion cubic meters) and Turkey (20.5 billion cubic feet, or 0.58 billion cubic meters). These countries have acquired a total of 48% of all LNG supplies from the United States.

At the same time, the share of supplies to Asia in the total volume of U.S. LNG exports in February increased to 28.1% compared with 19.2% in January, according to the report. The share of shipments to Europe decreased - 65.3% in February. The remaining volumes were sent to Latin American countries.

In total, in January - February 2023, the United States exported about 755 billion cubic feet of LNG (21.37 billion cubic meters). Since the beginning of the year, the United States has exported 14.66 billion cubic meters of LNG to Europe (68.6% of the total volume), to Asia - about 5 billion cubic meters (23.5% of the total volume).

The Four Key Reasons Why The U.S. Will Never Stop Targeting Russia’s LNG Sector

• 
  
• By Simon Watkins - Apr 29, 2024
• 
  
• LNG has become the most important swing energy source in an increasingly insecure world.
• 
  
• Energy exports remain the foundation stone of Russia’s essentially petro-economy.
• 
  
• Russia's LNG industry is closely associated in Russia with President Vladimir Putin personally.

Perhaps even more than its targeting of Russian oil exports, the U.S. has been laser-focused on its liquefied natural gas (LNG) sector as they key area it wants to effectively destroy over the long term. Last week’s suspension of Russia’s flagship Arctic LNG-2 project by lead operator Novatek is the latest of Washington’s trophies in this regard, but it is very unlikely to be the last. As U.S. Assistant Secretary of State for Energy Resources Geoffrey Pyatt said on 24 April: “[Novatek] has recently had to suspend production at its Arctic LNG-2 liquefaction facility, in part because of sanctions that the Biden administration has led.” He added: “We’re going to keep tightening the screws […]  We’re going to continue to designate a broad range of entities involved in development of other key energy projects, future energy projects as well, and associated infrastructure including the Vostok Oil Project, the Ust Luga LNG Terminal, and the Yakutia Gas Project.” So, why is the U.S. so concerned about Russia’s LNG sector?

The first of four key reasons is that LNG has become the most important swing energy source in an increasingly insecure world. Unlike oil or gas that is transported through pipelines, LNG does not require years and vast expenses to build out a complex infrastructure before it is ready to transport anywhere. Once gas has been converted to LNG, it can be shipped and moved anywhere within a matter of days and bought reliably either through short- or long-term contracts or immediately in the spot market. Around a year before the Kremlin ordered the first Russian troops into Ukraine on February 24, 2022, China foresaw the critical significance of global energy dependency, as extensively discussed in my new book on the evolving dynamics of the global oil market. So, beginning in March 2021, a 10-year purchase and sales agreement was signed by the China Petroleum & Chemical Corp (Sinopec) and Qatar Petroleum (QP) for 2 million tonnes per annum (mtpa) of LNG. This was followed by several other major LNG deals prior to Russia invading Ukraine.

In the zero-sum game of emergency global energy supplies, China’s hoarding of LNG prior to the 2022 invasion meant that Europe – critically dependent on Russian gas and oil – would be even more exposed if these supplies suddenly stopped. Russia had been banking on this to produce the same response from Europe to its 2022 invasion of Ukraine as had occurred after its 2008 invasion of Georgia and its 2014 invasion of Ukraine and subsequent annexation of Crimea. That is, Russia expected Europe to do absolutely nothing meaningful to sanction its aggression. The Kremlin was nearly right in its calculations, with the effective leader of the European Union (E.U.) – Germany – only concerned about ensuring its own continuity of gas and oil supplies from Russia in 2022 at all costs, as also analysed in detail in my new book on the new global oil market order. Its acquiescence to Russian hostility yet again was only stopped when the U.S. with U.K. support in Europe and the Middle East worked to establish new emergency supplies of LNG from elsewhere. This determination to never again allow the European Union states to just roll over in the face of Russian aggression due to their over-reliance on Russian energy is the second key reason why the U.S. continues to mercilessly target its LNG sector.

The third reason is that energy exports remain the foundation stone of Russia’s essentially petro-economy and that it was intending to counterbalance the reduction of income from pipelined oil and gas with rises in LNG supplies. Indeed, according to comments from its Deputy Prime Minister Alexander Novak on 22 November last year, Russia intended its LNG market share to rise to 20 percent (at least 100 million tons per year) by 2030, from the current 8 percent (around 33 tons in 2023). As also analysed in my new book on the new global oil market order, Russia earned nearly US$100 billion from oil and gas exports during the first 100 days of the war in Ukraine. Overall, revenues from the higher post-invasion oil and gas prices were much greater than the cost for Russia of continuing to fight the war. However, as prices started to weaken again and sanctions increasingly hit Russia, its finances and ability to secure an outright military victory have been significantly reduced. So desperate has the situation become for President Vladimir Putin that he risked arrest in December to visit Saudi Arabia’s Mohammed bin Salman, and the UAE’s Mohamed bin Zayed al Nahyan, to plead for greater cuts in OPEC oil production in order to push prices up. Again, in the zero-sum game of the global energy market, Russia’s LNG losses from sanctions will be a gain for the U.S. and those LNG suppliers it regards as allies, which now includes Qatar. As it stands now, the Emirate will account for about 40 percent of all new LNG supplies across the globe by 2029, according to comments from its government. The U.S. has seen its LNG exports go from zero before 2016 to around 124 billion cubic metres (bcm) this year, and it is expecting another 124 bcm to come online by 2030. Meanwhile, according to the International Energy Agency, Russia’s share of internationally traded natural gas is forecast to fall from just around 30 percent in the year before it invaded Ukraine to about 15 percent by 2030. Its revenue from natural gas sales is projected to drop from around US$100 billion in 2021 to less than US$40 billion by 2030.

The fourth and final reason why Washington is so determined to effectively destroy Russia’s LNG sector over the long term is that it is an industry so closely associated in Russia with President Vladimir Putin personally. He has long seen LNG – particularly from the country’s huge gas resources in the Arctic – as the key to Russia’s next major phase of energy growth, rather as shale oil and gas was for the U.S., as also detailed in my new book on the new global oil market order. The Russian Arctic sector comprises over 35,700 billion cubic metres of natural gas and over 2,300 million metric tons of oil and condensate, the majority of which are in the Yamal and Gydan peninsulas, lying on the south side of the Kara Sea. According to comments by Putin, the next few years will witness a dramatic expansion in the extraction of these Arctic resources, and a corollary build-out of the Northern Sea Route (NSR) – the coastal route of which crosses the Kara Sea - as the primary transport route to monetise these resources in the global oil and gas markets, especially to its key geopolitical and financial ally, China. Such was Putin’s determination to move ahead with Russia’s Arctic LNG projects that various heavyweight Russian entities were inveigled around the time the U.S. imposed its 2014 sanctions to finance key parts of them. The Russian Direct Investment Fund, for example, established a joint investment fund with the state-run Japan Bank for International Cooperation with each contributing half of a total of about JPY100 billion (then US$890 million) to it. The Russian government itself bankrolled Arctic LNG 1 from the beginning with money from the state budget. It then supported it again when sanctions were introduced by selling bonds in Yamal LNG (the first part of the Arctic LNG programs), and then by providing another RUB150 billion of backstop funding from the National Welfare Fund.

By Simon Watkins for Oilprice.com

 

U.S. Sees New Egyptian Gas Fields As Key To Its New Middle Eastern Strategy

• By Simon Watkins - Apr 30, 2024
• 
  
• Egypt was chosen as the launching pad for the U.S.’s reassertion of power into the region because historically it holds a unique position in the Middle East and in the Arabic world.
• 
  
• Aside from its unique geopolitical significance, Egypt is uniquely positioned too in the global oil market.
• 
  
• Besides its important geo-strategic location, Egypt is the new potential gas hotspot in the potentially huge Eastern Mediterranean gas hub.

Arguably the two greatest military errors of the 100 years have been Japan’s attack on the U.S. naval base of Pearl Harbour on 7 December 1941 and Russia’s invasion of Ukraine on 24 February 2022. In both cases, they snapped the U.S. out of prolonged moments of introspection, and into the broader focused force for good that it and its key allies represent to many people around the world. In the Middle East, then-President Donald Trump’s comments encapsulated in his ‘Endless Wars’ commencement address to the United States Military Academy at West Point on 13 June 2020, had found resonance in the U.S.’s withdrawal from Syria (in 2019), Afghanistan (2021), and Iraq (2021), as analysed in depth in my new book on the new global oil market order. This allowed its key geopolitical rivals China and Russia to dramatically boost their presence across the region, as they had been itching to do for years without too much on-the-ground interference from Washington. Once President Vladimir Putin ordered his troops into Ukraine, though, it was obvious to the U.S. and other NATO members that this was just the first step in a bigger move westwards aimed at bringing all of Europe under Russian control. To stop this, not only did Ukraine need to be supplied with weapons from the U.S. and its European allies, but several of these countries needed to be provided with long-term sources of energy supplies to make up for those lost from Russia. As China and Russia at that point had significantly strengthened their alliances with the key Middle Eastern states - including Saudi Arabia, Iraq, Iran, Syria, and the UAE - the U.S. needed a new point of entry back into the heart of the Middle East. Egypt was the choice, and new developments in the past few weeks underline that the U.S.’s new Middle East strategy is proceeding apace.

Egypt was chosen as the launching pad for the U.S.’s reassertion of power into the region because historically it holds a unique position in the Middle East and in the Arabic world. For decades, Egypt has been seen by the Arab world as the leading proponent of the ‘Pan-Arab’ ideology that believes enduring strength can only be found in the political, cultural, and socioeconomic unity of Arabs across the different countries that emerged after the two World Wars. The philosophy’s most powerful recent proponent was Egypt’s president from 1954 to 1970, Gamal Nasser. Among the most palpable signs of this movement at the time was the formation of the United Arab Republic union formed between Egypt and Syria from 1958 to 1961, the formation of OPEC in 1960, the series of conflicts with neighbouring Israel over the period, and then the 1973/74 oil embargo, as also detailed in my new book on the new global oil market order. By bringing this leader of the Arab world on side, the U.S. hoped to offset the negative geopolitical impact of long-term ally Saudi Arabia having been lost to the China-Russia bloc. Politically and historically, Egypt is at least as much of a leader in the Arab world as Saudi Arabia has ever been.

Aside from its unique geopolitical significance, Egypt is uniquely positioned too in the global oil market. Over and above its official conservative estimate of around 1.8 trillion cubic metres of gas reserves, Egypt controls the major global shipping chokepoint of the Suez Canal, through which around 10 percent of the world’s oil and LNG is moved. It also controls the vital Suez-Mediterranean Pipeline, which runs from the Ain Sokhna terminal in the Gulf of Suez, near the Red Sea, to Sidi Kerir port, west of Alexandria in the Mediterranean Sea. This is a crucial alternative to the Suez Canal for transporting oil from the Persian Gulf to the Mediterranean. The Suez Canal is one of the very few major transit points that is not controlled by China. Specifically, China already has effective control over the Strait of Hormuz through the all-encompassing ‘Iran-China 25-Year Comprehensive Cooperation Agreement’, as first revealed anywhere in the world in my 3 September 2019 article on the subject and also analysed in full in my new book. The same deal also gives China a hold over the Bab al-Mandab Strait, through which commodities are shipped upwards through the Red Sea towards the Suez Canal before moving into the Mediterranean and then westwards. This has been achieved as it lies between Yemen (the Houthis having long been supported by Iran) and Djibouti (over which China has also established a stranglehold through debts connected to its multi-generational power-grab project - the ‘Belt and Road Initiative’).

Crucially as well, Egypt had earlier been identified as a new potential gas hotspot in the potentially huge Eastern Mediterranean gas hub. The key for the U.S. was to get its own big oil and gas firms in there quickly, with similar firms from its key allies to follow shortly afterwards. Chevron was the key U.S. operator from the start, with an announcement in December 2022 that it had hit at least 99 billion cubic metres of gas with its Nargis-1 exploration well in the eastern Nile Delta, about 60 kilometres north of the Sinai Peninsula. Following that, an announcement came of the discovery with Italy’s Eni of a potentially huge offshore gas field in its concession area in the Red Sea focused on the Nargis-1 well. This augmented its already significant presence in the broader Eastern Mediterranean through its operation of the massive Leviathan and Tamar fields in Israel and the Aphrodite project in offshore Cyprus.

The U.S.’s beachhead has since been used by several other of its allies’ major international oil companies, most notably Great Britain’s Shell and BP.  The latter said recently that it will invest US$3.5 billion in the exploration and development of Egypt’s gas fields in the coming three years. This amount could be doubled if the exploration activity yields new discoveries. Meanwhile, Shell began that development of the tenth phase of Egypt’s Nile Delta offshore West Delta Deep Marine (WDDM) concession in the Mediterranean Sea. This came after the British firm and its partner had developed the previous nine development phases of the WDDM concession that comprises 17 gas fields, located at water depths ranging from 300 metres to 1,200 metres and spanning approximately 90-120 kilometres from the shore. News emerged last week, that the same Shell-led consortium have agreed to begin the 11^th phase of the WDDM.

The next phase of the U.S.’s new Middle Eastern strategy appears to be to tie-in big operators from those countries that it considered to have been lost in large part to China and Russia. A key case is the UAE, which had been identified by Donald Trump’s administration as a potential key ally for the roll-out of several ‘relationship normalisation’ deals with Israel across the Middle East during his tenure as President. Indeed, the UAE’s own deal with Israel was ratified by its parliament on 19 October 2020. Several developments after Trump left office – not least the extraordinary refusal of UAE leader Sheikh Mohammed bin Zayed al Nahyan to even take a telephone call from U.S. President Joe Biden as oil prices spiked after February 2022 – indicated to Washington that the Emirate was no friend. However, last week saw BP announce a new joint venture (JV) with the UAE’s flagship oil and gas firm – the Abu Dhabi National Oil Company (ADNOC) – to be centred in Egypt. The concessions included in the new Concessions included in the JV are Shorouk (which contains the producing Zohr field), North Damietta (containing the producing Atoll field), North El Burg (containing the undeveloped Satis field), and further exploration agreements for North El Tabya, Bellatrix-Seti East and North El Fayrouz.

By Simon Watkins for Oilprice.com

 

Bibby Marine Orders First Battery and Methanol Powered eCSOV

Bibby has ordered a CSOV that will use batteries and methanol fuel to be zero emissions in UK demonstration project (Bibby)

PUBLISHED APR 30, 2024 6:04 PM BY THE MARITIME EXECUTIVE

 

 

A shipbuilding contract has been completed for what is being called the “world’s first truly zero-emission, electric Commission Service Operation Vessel,” which is being built as part of UK sponsored demonstration project. The ship is expected to enter service in the UK in 2026 using a combination of a powerful battery system along with dual-fuel methanol engines.

A coalition of leading maritime companies led by Bibby Marine proposed the project as part of the UK’s Zero Emission Vessels and Infrastructure (ZEVI) project staged by the UK Department of Transportation. A total of £80 million was awarded to 10 projects in the 2022 round with the Bibby effort being awarded $25 million. They estimated the cost of the project for the vessel at $37.5 million total.

Bibby Marine reports that it completed a tender process and has selected Gondan to build the vessel. The Asturias shipyard in Spain won out of a variety of yards in the UK and internationally. Bibby cites the timeline, budget, and quality reputation as the deciding factors in the tender.

In the project proposal, the team called for a 295-foot vessel that would be primarily powered by electricity and batteries and have dual-fuel methanol-powered engines as backup. The ship will be ready for offshore charging and can recharge its batteries at night.

“The delivery of this vessel has the potential to be a game changer for our industry by accelerating our path to net zero, as well as showcasing marine innovation at its finest,” said Nigel Quinn, CEO of Bibby Marine. “This project will demonstrate that clean ships can be built at the same total cost of ownership as a conventional fossil burning vessel, coupled with significantly reduced operating costs.” 

The eCSOV, which has been designed in collaboration with UK-based ship designers Longitude. To facilitate zero-emission operations, the eCSOV will feature high-voltage offshore charging facilities for rapid recharging. The vessel will have the capability to operate solely on battery power for over 16 hours between charging cycles.

Describing the project in their application for the funding grant, the team said they expect that it will be possible to operate the vessel with a two-week cycle onsite at an offshore wind farm emissions-free. Near shore and onsite the vessel will operate solely on battery power. For the longer transits between the shore homeports and the wind farms, the vessel will use its methanol fuel engines.

One of the challenges that ZEVI also looks to address is the need for offshore charging capabilities. In the application, the group said the CSOV would still achieve a 50 percent reduction in emissions compared to a conventional SOV, if offshore charging is not available

France’s TOWT Expands Sail Cargo Plans Ordering Six Additional Ships

TOWT's first two vessels are nearing completion to enter service in the coming months (TOWT)

PUBLISHED APR 29, 2024 5:13 PM BY THE MARITIME EXECUTIVE

 

French sail shipping company TOWT (TransOceanic Wind Transport) announced ambitious growth plans for its vision of carbon-free cargo shipping. Even before the company launches its first two dedicated vessels in the coming months, they report strong demand and supported by leading investors ordered six additional vessels. They also shared a grand vision of 500 ships by 2050.

The concept is to transport niche cargoes in dedicated vessels that will be large enough to be economically viable. They point out that while current sail cargo operations are 35-ton vessels, the two ships now under construction in Vietnam at the Piriou shipyard will each be 1,000 tons. Each vessel is 260 feet in length with two mats and will be able to carry 1,100 tons of cargo. TOWT forecasts that the vessel will carry up to 20,000 tons of goods per year.

Today they are reporting the order of six additional vessels also to be built by the Piriou group. Three vessels should be ready for service in 2026 and the others in 2027. By 2028, the company forecasts it could have annual revenues of €60 million and the capacity to transport 200,000 tonnes annually.

 

First two sail cargo ships will launch in June and July 2024 (TOWT)

 

"After two intense years of work, we are extremely happy and proud to take this significant step in the history of TOWT. With the construction of these 6 additional cargo sailboats, we are consolidating our position as a pioneer in the transport of goods by sail by increasing our fleet to 8 ships,” said Diana Mesa, co-founder and director general, and Guillaume Le Grand, co-founder and President of TOWT.

TOWT says each vessel will be moved by a set of sails with over 23,000 sq. feet of sail area providing speeds of approximately 10 knots. Operations will reduce carbon emissions by 95 percent compared to conventional cargo ships and they report strong interest from shippers.

The first two vessels, ordered in late 2021, are nearing completion with the masts having recently been raised on both ships. The company’s published schedule calls for Artemis to enter service in late June and Anemos in early July. The service will be primarily between Le Havre, France and New York as well as sailings to Colombia, Brazil, and Guadeloupe. 

Atlantic crossings between Le Havre, France and New York are expected to take about two weeks. In addition to the cargo, the vessels will be able to carry up to 12 passengers and operate with a crew of seven.

 

 

The company has been operating chartered sailing ships for 13 years and reports it has already transported more than two million products. They report having chartered 20 vessels and operating 70 trips. Recently they completed a new round of funding from well-known investors including Révolution Environnementale et Solidaire fund, Atlante Gestion, the Caisse des Deposits and Consignments, CIC, and Bpifrance. The general public also contributed €5 million coming from around 2,000 individuals.

The company reports the additional vessels will permit it to increase capacity and accelerate the frequency of departures. Their target is weekly sailings. They also look to open new routes with dedicated additional ships to Asia, Africa, and additional countries in South America.
 

Qatar Orders 18 World’s Largest LNG Carries in $6B Deal with China's CSSC

Rendering of the new QC-Max which will be the largest LNG carriers (CSSC)

PUBLISHED APR 29, 2024 3:18 PM BY THE MARITIME EXECUTIVE

 

Qatar Energy and China State Shipbuilding Corporation are heralding an order for 18 of the world’s largest LNG carriers as the next phase in their relationship and support of the expansion of Qatar’s LNG operations. With the order valued at nearly $6 billion, it is being cited as possibly the largest single LNG order and one of the largest ever placed in the industry.

The new vessels will be part of an expanded QC-MAX size LNG carrier with a capacity of 271,000 cubic meters in five tanks. The current Q-Max vessels operating for Qatar have a capacity between 263,000 and 266,000 cubic meters of LNG. Qatar recently highlighted the bulk of the shipbuilding orders, which reached a total of 104 vessels, are the conventional size with a capacity of 174,000 cubic meters. Qatar Energy has also called the program the largest shipbuilding and leasing program in the history of the industry.

The order expands on the earlier reports in January 2024 that Qatar was building eight of the QC-Max class vessels in China. The order signed today calls for the first eight vessels to be delivered in 2028 and 2029, The other 10 vessels added to the order will be delivered in 2030 and 2031. All of them will be built by China’s Hudong-Zhonghua Shipyard. They also highlighted that the yard is already building 12 conventional-size LNG carriers with the first of the vessels due for delivery to Qatar in the third quarter of this year.

Each of the vessels will measure 1,128 feet (344 meters) with a design draft of just over 39 feet (12 meters). CSSC has previously highlighted that these dimensions mean the vessels will still be able to dock at 70 percent of the world’s LNG terminals.

They will use dual-fuel low-speed engines and they are highlighting a range of technological features. While they will increase the carry capacity by 57 percent. The design is optimized with a double skeg line and a lower evaporation rate, which means the vessels’ energy consumption of cargo transportation per ton per nautical mile is 9.9 percent lower than the conventional ships. They are also employing technology with a real-time sloshing monitoring system and a hull configuration stress monitoring system. CSSC says the carbon intensity index (CII) will be 23 lower than the conventional LNG carriers.

The countries highlighted that Qatar Energy is already a large supplier of LNG, crude oil, and other products to China. In 2023, Qatar shipped China 17 million tons of LNG. Sinopec. The Chinese energy company, last year acquired a small stake (less than 2 percent) in two sections of Qatar’s North Field Expansion.

Qatar Energy has also moved to expand relations with other majors including Total, Shell, Eni, and Petronet in advance of the launch of the North Field Expansion. Qatar which has been competing with the United States to be the largest exporter of LNG reports it will expand production by 85 percent by 2030 to a total of 142 million tonnes per annum (mtpa). Earlier this year Qatar Energy announced further expansion plans for the North Field reporting it holds 10 percent of the world’s LNG reserves.

 

Fisherman Floating in Java Sea Saved by Viken Tanker Managed by Wallem

Massive tanker spotted a man floating in the sea 12 nm for shore (photo courtesy of Wallem)

PUBLISHED APR 29, 2024 5:54 PM BY THE MARITIME EXECUTIVE

 

 

Wallem is recounting the heroics of the crew aboard one of the newest tankers it manages. The 110,000 dwt Angleviken, a newly built LNG-fueled crude oil tanker, came across a fisherman floating in the Java Sea for two days in a life ring. 

They miraculously found the man in the water 12 nautical miles from land. The reports are that he told them he jumped from the fishing boat he was working on because he had been working without pay. He was brought aboard safely and both conscious and uninjured.

The master of the Avgleviken, Captain Bhanu Kundi, reportedly sighted an object floating in the water approximately 2.5 nautical miles ahead of the tanker while they were sailing in the Java Sea. He maneuvered the massive 820-foot (250-meter) tanker and sounded the general alarm with a man overboard announcement when they realized it was a person floating in the water.

The crew of Indian, Ukrainian, and Filipino seafarers started the rescue operation. They successfully recovered the man in just 45 minutes from when the alarm was sounded. 

“The crew of Angleviken acted with exemplary speed and discipline to rescue a fellow seafarer in distress within an hour of the first sighting,” said Alexander Ostrovskiy, Senior Marine & Safety Manager, Wallem Group. “We thank them for their professionalism throughout this incident, and for once more demonstrating their over-riding commitment to the protection of life at sea.”

Wallem has been managing the tanker which is registered in Liberia since it entered service in 2023. As an LNG-fueled crude oil tanker it is one of the newest and most advanced vessels in the fleet.