World News
Natural Gas Producers Target Marine Transport
The natural gas industry is looking to marine transport as a market for increasing supplies of natural gas generated by the North American shale boom, Platts reports.
Corporate leaders discussed the relative value of various markets at the LDC Gas Forum Midcontinent Monday, with some players, like Paul Smith, senior director of infrastructure with America's Natural Gas Alliance, saying that compressed and liquefied natural gas (CNG and LNG) can often replace diesel fuel at a much lower cost.
"It's getting harder to say no to natural gas," Smith said.
On the other hand, Frank Casey, gas sales lead for ExxonMobil subsidiary XTO Energy, said power generation will be the main driver for gas demand.
Still, Casey said that while he sees only minor growth in the use of natural gas for transport overall, marine transport will be one of the stronger sub-sectors for the fuel, along with heavy-duty equipment.
Earlier this year, Citi Group commodity research head Edward Morse said that natural gas could displace 3 million barrels per day (bpd) of demand for bunkers, while Hamad Rashid Al Mohannadi, CEO of Qatar-based RasGas Company Limited, said demand for LNG fuel is secure, and producers must make sure they provide sufficient supply.
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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