World News
LNG Shipping To See Consolidation, Survivors Seen In "Prime Position" In Market
Experts across the liquefied natural gas (LNG) sector say that a coming wave of consolidation and other business deals will yield opportunities for some players in the industry, reports Reuters.
"I see more mergers and acquisitions, more consolidation and a lot more joint ventures as things get tougher," said Andrew Bridson, business development manager at maritime consultancy BMT Asia Pacific.
Bridson added that such a move toward consolidation in LNG would be positive because it would "force out failing companies and cull a lot of the older tonnage."
Reuters noted this could put surviving firms in a "prime position" to benefit from shipping contracts for new LNG projects starting to come online by the end of 2016.
It was also said that the current downturn in LNG shipping may prompt other sorts of business arrangements, with an unnamed LNG ship broker noting, "I expect to see another LNG ship owners pool emerge."
Such a deal could be along the lines of the Cool Pool vessel marketing venture formed in October by Golar LNG, Dynagas and GasLog Ltd, to reduce operating costs and support spot charter rates for 14 gas carrier vessels, Reuters noted.
Sources quoted by the news service were upbeat about the future for LNG shipping, with Peter Evensen, chief executive at shipper Teekay GP, saying that a slate of new LNG projects globally will "bring out more LNG onto the market and that is going to need more ships."
In November 2015, Ship & Bunker reported that it has begun publishing LNG bunker prices for the port of Vancouver.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 502.00 | 4.50 | 617.00 | 5.50 |
| Rotterdam | 457.50 | 2.50 | 623.50 | 6.50 |
| Houston | 469.00 | 3.50 | 623.00 | 2.00 |
| Fujairah | 494.50 | 6.50 | 715.50 | 5.50 |
| Global 20 Ports Average | 526.00 | 3.00 | 712.50 | 11.50 |
| Global 4 Ports Average | 481.00 | 4.00 | 645.00 | 4.50 |
| Global Average Bunker Price | 569.00 | 2.00 | 750.00 | 5.50 |
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