Northern Sea Route, Panama Canal Predicted to Be Major LNG Access Routes to Asia

Northern Sea Route (NSR) LNG annual transits could reach 11.25 million tonnes by 2025

A Mitsui OSK Bulk Shipping (Asia Oceania) Singapore executive believes the Northern Sea Route (NSR) and Panama Canal Liquefied Natural Gas (LNG) annual transits to Asia could climb as high as 11.25 million tonnes and 27.5m tonnes by 2025 respectively, about 12 percent of forecasted total regional demand, and become the key trade lanes for the region ahead of the Atlantic, Seatrade Maritime reports.

However, Suryan Wirya-Simunovic, global energy, LNG and maritime shipping executive for Mitsui, warned delegates at the 2015 Gastech conference in Singapore that ships will face numerous operational and technical challenges while using these routes, including unpredictable weather, icebergs, and no ground-based surveillance on the NSR.

As for the Panama Canal, Wirya-Simunovic said LNG ships may need to modify or even redesign moorings, pilot platforms and other components, because the Canal "has limited or designated throughput for LNG vessels and any incremental capacity increase would still need to be implemented.

"We are still unsure what the final version will look like for LNG vessels."

It has been estimated that Asian buyers have so far procured about 36-37m tonnes of US Gulf and east coast LNG production and tolling capacity.

Wirya-Simunovic added that other western producers will likely use the NSR to access Far East destinations, while Trinidad & Tobago plus North American exports would go westbound through the Canal.

Big growth was predicted for the NSR back in 2013, when Mikhail Belkin, an adviser at the Russian nuclear icebreaker fleet Atomflot, said use of the route could rise to 40 million tonnes of cargo by 2021.