World News
Shell Simplifying LNG Bunker Vessel Order
Energy giant Shell is downgrading the specifications of planned liquefied natural gas (LNG) bunker vessels, identifying them as "barges" rather than its previous label of "tankers," industry news site Tradewinds reports.
Shell is looking to order up to four of the vessels, three 6,500 cubic meter (cbm) ships and one 3,000 cbm unit.
The changes in specifications include switching from a twin screw to a single screw and changing the supply scope of equipment including loading arms and reliquefaction kit.
Shell is said to be seeking a price of around $55 million for the vessels, while yard offers are around $80 million.
Samsung Heavy Industries (SHI) and STX Offshore & Shipbuilding, both in South Korea, and Avic Dingheng Shipbuilding in China are said to be under consideration for the vessel construction, and Shell is believed to be looking for delivery in the first half of 2016.
Dutch shipowner Anthony Veder is said to be working with Shell, which is expected to charter the vessels.
In March, Shell announced it was slowing down LNG production plans for North America to ensure that its production of the fuel is aligned with demand.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 647.50 | 1.00 | 770.00 | 3.50 |
| Rotterdam | 601.50 | 2.50 | 754.00 | 2.00 |
| Houston | 619.00 | 11.50 | 795.50 | 3.00 |
| Fujairah | 651.50 | 1.00 | 895.00 | 2.00 |
| Global 20 Ports Average | 664.00 | 1.50 | 856.50 | 2.00 |
| Global 4 Ports Average | 630.00 | 3.00 | 803.50 | 2.50 |
| Global Average Bunker Price | 718.00 | 0.50 | 914.50 | 0.50 |
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