Dry freight index rebounds 20pc from 7-month low
The Baltic Dry Index (BDI) – which tracks global dry freight rates – has rebounded by 20 percent over the past week from a seven-month low. The BDI was pegged last at 1,217 points, up from 940 points a week ago – its lowest level since April. The rise was driven by a sharp upturn in rates for the 100,000-210,000 deadweight-tonne capesize vessel segment, which is employed largely for long-haul iron ore and coal shipments. The Baltic Capesize Index has nearly doubled since mid-November – when it hit a seven-month low – to 1,789 points.
Two Singapore firms to jointly develop small-scale lng bunkering
Two Singapore-based turnkey service providers and engineering, procurement and construction (EPC) companies have penned a $50 million agreement to develop small-scale LNG bunkering in Southeast Asia. SSB Cryogenic Services and Global Petro Storage (GPS) Singapore signed the collaborative deal at oil and gas industry event OSEA2018.
The two companies said they aim to promote transportation, distribution and storage of LNG in small-scale aspect, to locations with limited access of energy sources due to inadequate distribution infrastructure and poor interconnectivity of gas pipelines.
Tankers going nowhere indicate lng market becoming more like oil
Some liquefied natural gas sellers aren’t in a rush to deliver their multimillion-dollar cargoes. With uncertain demand and no signs yet of bitter cold, some traders are preferring to keep their fuel inside vessels in the hope prices will rise.
While the sight of stationary cargoes might not be unusual in the more established oil market, technology has only recently made it feasible to keep LNG at minus 162 degrees Celsius (minus 260 degrees Fahrenheit) for longer periods.
There are cargoes parked close to Singapore, apparently waiting for the right market conditions to be delivered, it is said. There are about 30 vessels currently flagged as floating storage globally, two-thirds of which are in Asia, the biggest LNG consuming region.
Japan aims to sink South Korea’s support for ailing shipbuilder
Japan is trying to resolve its shipbuilding subsidy feud with South Korea in accordance with the World Trade Organization’s dispute settlement mechanism.
Tokyo claims Seoul’s aid for struggling domestic shipbuilder Daewoo Shipbuilding & Marine Engineering is distorting the global shipbuilding market and could prolong the current glut of vessels.
South korean 380 cst bunker premium hits 10-year high on tight supply
Tight supply for November deliveries pushed the spread between South Korean delivered 380 CST bunker fuel and Mean of Platts Singapore 380 CST high sulfur fuel oil assessments to a 10-year high at $74.46/mt last Monday, according to S&P Global Platts data showed.
It was last higher at $84.27/mt on November 5, 2008. Market sources attributed the tightness to suppliers having sold most of their availabilities earlier in the month. It is tight for November as only two suppliers [are able to] offer for November delivery, a supplier quoted as saying. Supply for November has been tight as S-Oil had exported high sulfur fuel oil cargoes during the month and had limited availability left for the bunker market.
Shale boom raises specter of new glut in Gulf coast
The race to export US shale oil overseas is about to get fierce, with at least nine proposed terminals angling for a piece of a very limited pie.
Within 18 months, new pipelines opening in the nation’s most prolific shale basin promise to carry an added 2 million barrels of oil a day to the Gulf Coast. But the extra crude will arrive at a time when existing terminals in the Corpus Christi area can already offer only about 300,000 barrels a day of unused capacity.
Yamal lng vessels to make up to 160 transfers in Norwegian waters
Northern Norway’s small port of Honningsvag will host between 150 and 160 ship-to-ship transfers of liquefied natural gas (LNG) cargos from Russia’s Yamal by mid-2019, the local council that owns the port quoted as saying on Tuesday.
The first transfer in Norwegian waters took place last week as part of Yamal operator Novatek’s plan to free up its ice-breaker LNG vessels, allowing them to return sooner to the plant to pick up more cargos. From Honningsvag, shipments to global markets are made by regular LNG ships.
The port expects to earn around 10 million crowns ($1.16 million) for the service, while the local retail and hotel industry will see additional benefits, according to reports.
Iran oil shipping may fall below $100 million from $8.2 billion
Claim payouts to shipowners using the protection and indemnity insurance cover for their Iranian oil shipping may get restricted to liabilities of up to $100 million per tanker because of the US reimposed sanctions, compared with the maximum $8.2 billion earlier, For the 2018/19 policy year, individual International Group (IG) Clubs retain the first $10 million of liabilities arising from an incident. Between $10 million and $100 million, liabilities are shared between all 13 International Group Clubs, or the Pool.
Indian power utilities thermal coal imports up in October
Indian power utilities imported around 6.61 million mt of thermal coal in October, up 27 percent year on year, according to latest data from India’s Central Electricity Authority released Tuesday. Of the total, around 1.92 million mt was imported by 18 utilities for blending purposes, while 4.69 million mt was imported by eight utilities that run their thermal power stations on imported coal only.