Volkswagen Group continues to endorse liquefied natural gas as a fuel and has chartered two more LNG-powered vehicle carriers as part of its efforts to decarbonize its operations.

The company is already using two LNG-powered car carriers hired from Siem on the trans-Atlantic route known as the America Round Tour, which connects Germany’s Emden with Mexico.

When SFL Corporation Ltd released its preliminary financial results for the first quarter in late March, one of the highlights was an agreement to build two 7,000 CEU LNG dual-fuel car carriers in conjunction with 10-year charters to the Volkswagen Group.

Volkswagen will add two additional LNG-powered car freighters beginning in 2023 as part of a 10-year charter agreement inked with SFL Corporation.

For the first time across the world, it was the German conglomerate Volkswagen Group who transported automobiles from Europe to North and Central America aboard on a car freighter fueled by liquefied natural gas (LNG). SIEM CONFUCIUS carried over 4,800 vehicles to North America, making it the world’s first LNG-powered car transporter of this magnitude.

To recall, billionaire John Fredriksen’s shipping business announced on April 28 that it will charter two newbuild LNG-powered car carriers to a major European vehicle manufacturer without disclosing any additional details.

Volkswagen has officially been confirmed as the charterer of the 7,000 CEU vehicle carriers that will be constructed in Guangzhou Shipyard International (GSI) based in Nansha, China.

Volkswagen will charter SFL’s two current car carriers, SFL COMPOSER and SFL CONDUCTOR, before the arrival of the newbuilds. The two vessels will be propelled by biofuel, which SFL and the Volkswagen Group emphasize utilizing in their collaboration.

SFL had stated that the purchase will add more than $200 million to its fixed-rate charter backlog.

The Volkswagen Group’s LNG drive is significant as it decreases CO2 emissions by up to 25%, nitrogen oxide emissions by up to 30%, soot particles by up to 60%, and sulfur oxide emissions by up to 100%.

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Mumbai Port Trust has inked a license agreement with the SP Armada Clean Energy Ventures Private Limited (SPACEVPL) to design, build and operate a Floating Storage and Regasification Unit (FSRU) in Mumbai Harbor. The company will be operating and maintaining the FSRU infrastructure in Mumbai harbor for the next 30 years.

Shapoorji Pallonji Oil and Gas Private Limited owns 51% of the SP Armada Clean Energy Ventures whereas the wholly-owned subsidiary of Malaysia’s Bumi Armada Berhad, Bumi Armada Netherlands owns the rest of the stakes.

Getting in line with the Government of India’s policy of increasing the LNG share in the energy mix of the economy, the port authorities in India are working on the development of new LNG terminals. There are five LNG terminals on the west coast of India, namely Hazira, Dahej, Dabhol, Kochi, and Jaigarh. The proposed Mumbai terminal will be the sixth LNG terminal on the west coast of India.

Mumbai Port Trust is keen on tapping the growth opportunities associated with the increased market demand for natural gas on the west coast of India. SP Armada Clean Energy Ventures will be developing the new LNG terminal in Mumbai Harbor on a Design, Build, Finance, Operate and Transfer (DBFOT) model taking the public-private-partnership route. In this partnership, the land license model will be followed wherein the water area charges are set based on the land policy of the given port. As per the Ministry guidelines, the total license rental for the license period has to be paid upfront.

An official with the Ministry of Ports, Shipping, and Waterway said that LNG imports will be rising in the future as the growing domestic demand for LNG cannot be met with limited LNG resources in the country. He further added that to support the import, infrastructure development will be required and FSRUs within the port limit offer fast track, flexible, and low-risk options in comparison to traditional onshore LNG terminals.

Want to know more about LNG in maritime shipping? Find a cost-benefit analysis of LNG as an alternative fuel on our blog

SOURCE READ THE FULL ARTICLE https://www.fleetmon.com/maritime-news/2021/33897/mumbai-port-signs-deal-build-new-lng-terminal/

Product tanker ULSAN PIONEER collided with ro-ro ship BYAKKO at around 2355 Tokyo time May 27 in Inner Japan sea northwest of Imabari, Shikoku island. BYAKKO sank some 3 hours later, after reportedly, capsizing – obviously, stability loss after cargo deck flooding. Of 12 crew on board, 9 were rescued, 3 are missing, including Captain, Chief Engineer and Second Engineer. SAR is underway for missing crew as of 1400 Tokyo time Nay 28, tanker ULSAN PIONEER is anchored nearby. BYAKKO was en route from Kobe to Kanda in Fukuoka Prefecture, ULSAN PIONEER is en route from China to Osaka. Tanker suffered heavy damages in starboard side bow area.

New FleetMon Vessel Safety Risk Reports Available: https://www.fleetmon.com/services/vessel-risk-rating/

SOURCE READ THE FULL ARTICLE https://www.fleetmon.com/maritime-news/2021/33893/ro-ro-sank-after-collision-tanker-3-crew-including/

UPDATE: The ship with cargo of ceramic tiles was en route from Iran to Oman, she sank at 2250 LT May 26. All crew thankfully, were rescued, all are safe.

General cargo ship MATIN 1 reportedly sank in Strait of Hormuz on May 16 or early in the morning May 17, no other information available at the moment. The ship left Bandar Abbas on May 26, port of destination unknown, last AIS position dated 1800 UTC May 26. Information isn’t yet confirmed, awaiting updates.

New FleetMon Vessel Safety Risk Reports Available: https://www.fleetmon.com/services/vessel-risk-rating/

SOURCE READ THE FULL ARTICLE https://www.fleetmon.com/maritime-news/2021/33889/iranian-freighter-sank-strait-hormuz/

Bulk carrier KAVKAZ V suffered engine failure early in the morning May 27 in Dardanelles south of Canakkale, while transiting Straits in northern direction. The ship was towed by SAR tugs to Karanlik anchorage, and anchoed. As of 0830 UTC, she remained in the same position. The ship’s en route fro Haifa to Kavkaz Russia.

New FleetMon Vessel Safety Risk Reports Available: https://www.fleetmon.com/services/vessel-risk-rating/

https://www.fleetmon.com/maritime-news/2021/33885/russian-bulk-carrier-troubled-dardanelles-anchored/

Cyclone Tauktae has left a trail of destruction on the west coast of India. The impact of the cyclone was severe in the Indian state of Gujarat. The Port of Pipavav has suspended operations till 1st June 2021 to make up for the damages caused by cyclone Tauktae. The infrastructure of the port appears intact and no loss of life has been reported at the port but the port is suffering from a power disruption.

The transmission lines supplying power to the port are likely to be restored by the end of May 2021 therefore it is expected that operations at Port of Pipavav will resume from 1st June 2021. Port of Pipavav has announced that it will keep the stakeholders updated with the restoration progress so that vessel calls could be planned accordingly at the Pipavav terminals. The APM terminal has advised that till the port resumes operation, all domestic, coastal, road, and rail operations will be suspended so alternate arrangements for cargo and vessels should be made by involved parties.

Cyclone Tauktae caused severe damage on the Mumbai coast where two barges working on oil exploration projects went adrift in the Arabian sea. Indian Navy and the Coast Guard performed rescue operations, evacuating all 314 people on board.

As a precaution, 21 ports in the state of Gujarat had suspended operations before the cyclone hit the shore. The high-rise structures at ports such as marine unloading arms were fastened or removed. The Deendayal Port Trust at Kandla evacuated all the workforce from the area as a safety measure.

Off the coast of Mumbai, Barge P305 sank near the Heera Oil Field in which 66 people lost their lives. Ships servicing Oil and Natural Gas Corporation (India) suffered hugely in cyclone Tauktae. It was reported that an oil rig, a freight ship, and four other vessels drifted or ran aground because of high wind force.

There were no reports of any infrastructural damage at any of the ports on the cyclone that hit the west coast.

SOURCE READ THE FULL ARTICLE https://www.fleetmon.com/maritime-news/2021/33881/post-cyclone-tauktae-pipavav-port-suspends-operati/

Last week, The China National Offshore Oil Company (CNOOC) officially declared to their investors that they have completed the task of installing the proposed Lufeng 14-4 platform in the South China Sea.

It is one of the largest solely designed and planned offshore constructed oil platforms in China as per CNOOC. The boundaries of the Lufeng 14-4 is bound within China’s EEZ, with exact coordinates of 110 nautical miles offshore, in the southeast of Hong Kong. Installation of the 15,000-tonne jacket was completed way back in March, and recently, with the help of a heavy lift barge, installation of the topside was completed.

The development in this field was foreseen long back, which has now been accomplished. The presence of oil in the Lufeng 14-4 was identified back in 2014. The oil was spotted at a depth of 13,500 feet, at a water level of 475 feet. The first drop of oil from the Lufeng 14-4 field can be anticipated to be obtained by the end of this year. Simultaneously, the construction of the Lufeng 14-8 field adjacent to the prior, in the new platform will also be seen.

“Once operational, the platform would explore the Lufeng 14-4 and Lufeng 14-8 oilfields, and provide more natural gas and oil resources for the Guangdong-Hong Kong-Macau Greater Bay Area,” said Gao Shuang (GD, CNOOC’s Lufeng oil complex project).

The Paleogene resource, located in the Pearl River Mouth basin, is enriched with low-permeability reservoirs. CNOOC, in a statement, marked these reservoirs as challenging in terms of development. It is also believed that nearly half of the known reserves of China are considered low-permeability reserves.

Last year in December, the administration under Trump banned any investment made by the U.S. on CNOOC. They also declared the CNOOC firm as an alliance “owned or controlled” by China’s People’s Liberation Army.

By the annual reports of CNOOC, they will be investing an approximated US $15.5 billion this year, which will aid in 19 more such projects.

SOURCE READ THE FULL ARTICLE https://www.fleetmon.com/maritime-news/2021/33877/chinas-largest-oil-production-rig-developed-south-/

Northern Scotland is advancing with plans to develop a transshipment port and a hydrogen hub. Port of Cromarty Firth and Gen2 Energy, a Norwegian firm, has signed an MOU aimed at establishing an underground commercial pathway transporting green hydrogen from Norway to the UK. Becoming a hydrogen hub will also allow Scotland to lead the renewable energy market.

Bob Buskie (CE, Port of Cromarty Firth) said, “Through this Memorandum of Understanding, we have the potential to not only distribute green hydrogen but develop our substantial production infrastructure, allowing Scotland to retain its position as a global frontrunner in clean energy.”

Previously, the Scottish government also declared plans to become a leading hydrogen-generating nation, aiming to achieve a production level goal of 5GW of low-carbon hydrogen by 2030. The generation of clean energy will be enough to power 1.8 million homes with hydrogen, as per government estimates.

Scottish Hydrogen and Fuel Cell Association (FCA) in March, proclaimed the idea of building an electrolyzer facility in the port area, a study for the feasibility of which has already started beforehand. The plan also calls for 15 offshore wind farms to become a feeder for the plant with designated storage and distribution capabilities in place. Initially, hydrogen would be supplied to the local distilleries and then to other industries like shipping, rail, as well as aviation.

This agreement is in terms of securing a smooth supply of hydrogen, as Norway has the potential to supply hydrogen surplus to local needs. Also switching to hydrogen will attain decarbonization quicker, which is believed to aid the local business in earning additional profits.

Gen2 Energy will turn the Scottish port into the UK’s transshipment hub for hydrogen. The surplus hydrogen by Norway will then travel across the North Sea, being distributed all across the UK through road, rail, and sea.

SOURCE READ THE FULL ARTICLE https://www.fleetmon.com/maritime-news/2021/33873/scottish-port-aims-be-hydrogen-hub-uk/

May 26 UPDATE: It seems like container ship X PRESS PEARL will be a total loss, if photos are of any judgment. Fire engulfed about all of cargo deck and containers stacked on it, with containers continuing to fall overboard, according to Sri Lankan Navy May 26 update. Photos Indian CG.
Initial story: https://www.fleetmon.com/maritime-news/2021/33797/brand-new-container-ship-fire-colombo/

SOURCE READ THE FULL ARTICLE https://www.fleetmon.com/maritime-news/2021/33869/container-ship-x-press-pearl-may-26-update-total-l/

European Union has given its green nod to the new Northern Container Terminal of Port of Valencia. Responding to the petitions, the European Parliament committee declared that the upcoming infrastructure of Port of Valencia complies with the environmental legislation of the European Union. In its report, the European Union committee has specifically stated that the committee did not find any sign of possible infringement of EU environmental legislation. The report concluded with the statement that the EU commission will not be following up the case any further thus putting the allegations made by a citizen regarding the infrastructure at rest.

Recently the Puertos del Estado and the Ministry for Ecological Transition and Demographic Challenge have acknowledged the legality of the new North Terminal of Port of Valencia. The report of Puertos del Estado states that the infrastructure in the subject of Port of Valencia does not require a new Environmental Impact Statement (EIS) as the project has a favorable existing EIS and also the work had started within a year of the publication of EIS.

This new container terminal at Port of Valencia is a beautiful example of an infrastructure combining growth with sustainability. Along with generating wealth and employment, this container terminal will be one of the most environmentally advanced port infrastructures in the world. The project presented by TIL/MSC states that 98% of the installations at the terminal will be electric driven and the electricity will be sourced from 100% renewable sources. TIL has also offered to develop a railway container for the movement of containers. This railway terminal will have a capacity to move 305,000 TEUs/year.

Talking about the employment perspective of the new terminal at Port of Valencia, it is expected that the new infrastructure will be creating 32,000 new jobs by 2026. Based upon the traffic forecast it has been calculated that by the year 2025, the port’s activity will be exceeding 1.8 billion euros.

SOURCE READ THE FULL ARTICLE https://www.fleetmon.com/maritime-news/2021/33865/new-terminal-port-valencia-gets-eus-green-nod/