World News
Stolt-Nielsen Buys Stake in Sardinia LNG Terminal
Stolt-Nielsen Limited (SNL) has announced that it's subsidary, Stolt-Nielsen Gas B.V., has purchased a 10 percent share in HIGAS S.r.L. (HIGAS), which will see the construction of a liquid natural gas (LNG) terminal and distribution facility in the Italian port of Oristano, Sardinia.
The deal is said to come with an option for SNL to acquire up to 80 percent of HIGAS, a joint venture between Gas and Heat S.p.A. and CPL Concordia Soc. Coop, at a later date.
"This joint venture represents SNL's third strategic investment in the LNG segment, where our focus is on meeting what we call 'stranded demand' for LNG. Sardinia, which is not served by a gas pipeline, is a perfect example," said Andrew Pickering, President, Stolt-Nielsen LNG Holdings Ltd.
The terminal, which is reported to be set for completion by 2017, will be supplied with LNG by tankers, which will be distributed to HIGAS customers by pipeline and trucks.
"With demand for natural gas rising on Sardinia, small-scale LNG imports represent an attractive solution," added Pickering.
"Along with our partners, we believe we have a strong team to deliver reliable, cost-effective service to Sardinia."
In July, Ship & Bunker reported that lower bunker prices and an improved spot market helped Stolt-Nielsen earn an operating profit of $30.4 million for the second quarter of 2015 compared to $19.0 million during the same time period last year.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 510.00 | 2.50 | 611.00 | 4.00 |
| Rotterdam | 477.00 | 1.00 | 618.50 | 4.00 |
| Houston | 469.50 | 0.50 | 610.00 | 2.00 |
| Fujairah | 501.50 | 1.50 | 708.50 | 3.50 |
| Global 20 Ports Average | 532.00 | 2.00 | 711.50 | 0.00 |
| Global 4 Ports Average | 489.50 | 0.50 | 637.00 | 0.50 |
| Global Average Bunker Price | 571.00 | 1.00 | 759.00 | 0.50 |
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