LR Approves New LNG-Fueled VLCC Design
The UK-based maritime classification society Lloyd’s Register (LR) has granted approval in principle (AiP) to a quartet for an LNG-fueled VLCC design that uses a prismatic GTT Mark III membrane LNG tank.The AiP was granted to China Merchants Energy Shipping (CMES), CNOOC Gas and Power Group, Dalian Shipbuilding Industry (DSIC), and Gaztransport and Technigaz(GTT).The main objectives of the AiP include developing a specification for a dual fuel VLCC that meets the IMO’s GHG 2030 emission limitations and preparing the relevant design drawings.CMES and CNOOC G&P…
Sovcomflot Profits Up on Stronger Tanker Market
Russia's state-owned tanker carrier Sovcomflot (SCF Group) reported improvements on both the top and bottom line in the third quarter benefiting from a stronger tanker market.The energy shipping company posted a net profit of $26m as revenue increased in the third quarter.Sergey Frank, Chairman of the Board of Directors of PAO Sovcomflot, said: “We are satisfied with the Group’s performance over the third quarter. Sovcomflot steadily follows through on its strategy of increasing the share of large-scale industrial shipping projects in its portfolio."He added: "During the reporting period…
Wärtsilä, PSA Marine Collaborate on Clean Energy Shipping
Wärtsilä and Singapore-based PSA Marine have agreed to collaborate in the co-creation of smart technologies for the marine sector. The focus will be on solutions that are human-centric and deployable. The Letter of Intent was signed on November 14 as part of the events celebrating the anniversary of the opening of the Wärtsilä Acceleration Center in Singapore.Specific collaboration areas envisioned include the use of electric or hybrid technologies that further the use of low-emissions energy and propulsion systems…
Sovcomflot Elects New Chairman and New CEO
On September 24, 2019, the Board of Directors of PAO Sovcomflot elected Sergey Frank as its new Chairman. Igor Tonkovidov was appointed as the company's new Chief Executive Officer. Both appointments are with immediate effect.The meeting was attended by Maxim Akimov, Deputy Prime Minister of Russia, who noted in his address: "Through consistent implementation of Sovcomflot's Strategies 2005-2011 and 2012-2018, the company has transformed itself into a global leader in energy shipping and offshore services. Over the past 15 years, Sovcomflot fleet has grown more than threefold.
Revenues Soar at Russia’s PAO Sovcomflot
PAO Sovcomflot (SCF Group), which serves the energy shipping and offshore services to the oil and gas industries, reported in the first half of 2019 revenues rose 16.6% ($828m vs. $710.1m), TCE revenue rose 19.1% ($609m vs. $511.3m) and EBITDA rose 42.4% ($381.2m vs. $267.7m) as compared to the first half of 2018.Highlights from the first half included:• Korolev Prospect, Vernadsky Prospect and Samuel Prospect LNG-fuelled 114,000 DWT Aframax tankers added to the fleet.•In March 2019, the Group celebrated the 10th anniversary of the start of LNG shipments from the Sakhalin-2 project.
ABB Enhances Safety of Sovcomflot’s Arctic Fleet
ABB has won a contract to supply ABB Ability Remote Diagnostic Systems for Marine to eleven Sovcomflot vessels operating in the Arctic and Russia’s Far East, helping optimize safety and performance through 24/7 remote support.Sovcomflot’s vessels will be among over 1,000 ships connected to ABB Ability Collaborative Operation Centers worldwide. From here, ABB experts monitor operational shipboard systems, coordinate remote equipment diagnostics and offer predictive maintenance services – 24/7. This can be especially crucial for vessels operating in remote areas.
Sovcomflot Selects Orange for Maritime VSAT
Russian maritime shipping company specializing in petroleum and LNG shipping Sovcomflot has chosen Orange Business Services to deploy an advanced Maritime VSAT solution on eight vessels.According to a press release from the the business services arm of Orange S.A., this initial rollout will keep the ships connected even when operating on the high seas, improving safety and optimizing navigation in challenging conditions.In addition, this solution will make it easier for crews to stay in touch with friends and family…
Sovcomflot completes USD 900 mln in Foreign Investment
Russia’s maritime shipping company Sovcomflot has announced that it has entered into a new USD 264 million six-year revolving credit facility with a consortium of five leading international banks.The completion of this credit facility marks the successful finalisation of SCF’s 2018 financing plan, with total new debt capital raised this year amounting to circa USD 900 million, said Nikolay Kolesnikov, Senior Executive Vice-President, Chief Financial Officer of PAO Sovcomflot."The fund allows us to fully address the Group’s mid-term financing requirements…
Shanghai Waigaoqiao Shipyard Delivers World's First iVLOC
The world’s first intelligent very large ore carrier (iVLOC), the DNV GL-classed Pacific Vision, was delivered by Shanghai Waigaoqiao Shipyard to China Merchants Energy Shipping Company.Norway-headquartered international accredited registrar and classification society said in a statement that the vessel is the world’s first VLOC to implement DNV GL’s SmartShip descriptive notation.To qualify for the notation, Pacific Vision has been outfitted with an integration platform, a smart navigation decision support system…
Milestone LNG Bunkering for Shell and Sovcomflot in Rotterdam
Shell delivered its first ship-to-ship bunkering of liquefied natural gas (LNG) from specialized LNG bunker vessel Cardissa in the Port of Rotterdam on Tuesday, marking a number of key milestones as the maritime sector increasingly turns toward cleaner burning LNG fuel.The bunkering of the Sovcomflot's Aframax tanker Gagarin Prospect with LNG is the first operation under a fuel supply agreement between Shell and Sovcomflot signed in 2017, which helped pioneer the expansion of LNG fuel into the tanker industry and…
US Crude Oil Shipments to China Halt Amid Trade War
U.S. crude oil shipments to China have "totally stopped", the President of China Merchants Energy Shipping Co (CMES) said on Wednesday, as the trade war between the world's two biggest economies takes its toll on what was a fast growing businesses.Washington and Beijing have slapped steep import tariffs on hundreds of goods in the past months. And although U.S. crude oil exports to China, which only started in 2016, have not yet been included, Chinese oil importers have shied away from new orders recently."We are one of the major carriers for crude oil from the U.S. to China.
LNG Shipping Rates Spike with No Respite Seen Through 2019
The price of shipping liquefied natural gas (LNG) has spiked in September and is likely to remain high next year, buoyed by rising production from new plants and concerns that demand for LNG vessels will outpace supply.The rate for vessels shipping LNG from the Atlantic Basin to Asia has jumped to $90,000 to $95,000 a day this week from $75,000 a day at the end of August, brokers and traders said.Rates, which broadly hovered around $30,000 to $40,000 a day from 2015 to 2017, have risen due to longer distances covered to transport LNG from new terminals in the United States and Arctic Russia…
The Swedish Club Appoints Five New Board Members
The Swedish Club announced at its AGM last week that it has appointed five new Board members.The following new Board members were elected, bringing with them a wealth of experience from many sectors of the shipping industry:• Dr. Zou Yingying, Deputy General Legal Counsel and General Manager of the Legal Department of China Merchants Energy Shipping Ltd.• Gu Zhongdong, Deputy Managing Director of Cosco Shipping Lines Ltd.• Capt. Thanasis C. Beis, Managing Director of Costamare Shipping Co. S.A.• Mikael Livijn.
CMES Fleet Adds Bulk Carriers
The delivery and naming ceremony of PACIFIC MERIT, an energy-saving and environment-friendly bulk carrier with 64 thousand DWT, tailor-made by China Merchants Energy Shipping (CMES), was held in Chengxi Shipyard on 4 January 2018. Capt. Zhao Yaoming, Vice President of CMES and President of Hong Kong Ming Wah Shipping, and Lu Ziyou, the President of Chengxi Shipyard, attended and witnessed the ceremony. On the same day, CMES held the naming and delivery ceremony for the 44th VLCC NEW PRIME in Dalian COSCO KHI Ship Engineering…
Statoil, AET Expand Shuttle Tankers Contract
Statoil ASA and petroleum and chemical tanker owners and operator AET are extending their partnership in the North Sea shuttle tanker sector. Statoil has, awarded a long-term contract to AET, a subsidiary of Malaysian energy shipping group, MISC Berhad, to operate two specialist DP2 offshore loading shuttle tankers (OLSTs) on long-term charter. These new vessels will be in addition to the two AET DP2 ships currently on charter, in the same area, for Statoil. These new vessels are in addition to the two AET DP2 ships currently on charter in the same area for Statoil.
Sovcomflot, ABB to set-up Center at Admiral Nevelskoy MSU
PAO Sovcomflot, Asea Brown Boveri Ltd. (ABB) Company and the Admiral Nevelskoy Maritime State University (MSU) have signed an agreement for research, technological and educational partnership. The document provides for the establishment of the Marine Propulsion Simulation Centre at MSU in Vladivostok. The operations of this centre which will be focused on preparing staff for work on vessels equipped with Azipod propulsion units. The agreement was signed by Sergey Frank, President and CEO of Sovcomflot, Sergey Ogay, Rector of MSU, and Anatoly Popov, Managing Director of ABB in Russia.
COSCO Launches World's Largest Oil Tanker Fleet
China's largest shipping company by fleet size China COSCO Shipping Co has officially launched COSCO Shipping Energy Transportation Co in Shanghai on Monday, creating the world's largest oil tanker fleet in terms of both ship numbers and deadweight tonnage, says a report in China.org.cn. With a total of 105 oil tankers, including nine liquefied natural gas carriers and a deadweight tonnage of 17.04 million, the new company has the world's biggest fleet of oil tankers and the largest transport capacity of its kind.
China VLCC Sells Two VLCCs
China Energy Transport Co., Ltd. (China VLCC) has sold two secondhand VLCCs to an unrelated third party for a total price of $117.5mln. China VLCC is 51 percent owned by China Merchants Energy Shipping (CMES) and 49 percent owned by Sinotrans & CSC Group. It has signed agreements with two Marshall Island-registered companies, Coral Shipowning and Medal Shipowing, under which China VLCC will sell a 297,600 dwt VLCC of six to seven years old to each of the two companies. The entry…
CMES Orders Six VLCCs at Dalian Shipbuilding
China Merchants Energy Shipping Co Ltd (CMES) has firmed up orders to build six very large crude carriers (VLCCs) at Dalian Dalian Shipbuilding Industry Corp for $522 million, reports Reuters. The deliveries of 308,000dwt VLCCs are scheduled between August 2018 and October 2019. Order for six more VLCCs brings Chinese tanker operator’s total orders to ten. A week ago, CMES has placed an order for four newbuilding VLCCs, with two each at Nantong Cosco KHI Ship Engineering (Nacks) and Dalian Cosco KHI Ship Engineering (Dacks).
CMES Confirms Order for 10 VLCCs
The board members of China Merchants Energy Shipping (CMES) has approved of a plan to order an additional 10 eco-friendly VLCCs. These vessels will be operated by CMES’ Hong Kong-based subsidiary, China VLCC Company Limited, a tanker JV between CMES and Sinotrans & CSC Group. China VLCC was set up in early September, will be in charge of vessel operation. CMES added that it would disclose more details on the announcement once the contracts on construction of the energy saving tankers are signed. Potential value of the deal is expected to reach around USD 920 million.
Shipping Consolidation in Asian Shores
The global shipping industry consolidation appears to be picking up, with much of the activity centering on Asia, reports Nikkei. The overcapacity and weaker global trade have fueled talk of a shakeout in the industry. CMA CGM is in “exclusive” talks with Neptune Orient Lines’ (NOL) largest shareholder, Temask, for the purchase of its APL container liner business. Over in China, the top two state-owned operators are in the final stages of merger talks. NOL announced that CMA CGM had been granted exclusive negotiating rights, through Dec.
China Shipping and Cosco Near Mega Merger Deal
State-owned shipping giants China Ocean Shipping Co. (Cosco Group) and China Shipping Group (CSG) are in advanced negotations on combining their container shipping businesses, reports WSJ. Rumors of a merger deal between the two have been floating for half a year. Both companies suspended trading their shares at the start of August. Discussions are complex and would require government and regulatory approval that has proved difficult to predict. If successful, the deal would create the world’s fourth largest container operator by capacity.
Sinotrans to Build Five Arctic LNG Carriers
Sinotrans Shipping, one of China’s largest shipping companies, is in negotiations to take part in a joint venture to commission the building of five Arctic LNG carriers, says the company's stock market announcement. Sinotrans Shipping said it expects to take 25.5 percent of the shares in the joint venture without revealing any further information. Meanwhile, a report in Reuters said that China Merchants Energy Shipping, Sinotrans Shipping and Greek shipping firm Dynagas are in talks to form a joint venture to build five vessels to ship liquefied natural gas (LNG) from the Arctic.
China Merchants Group, Sinotrans Deny Merger
China Merchants Energy Shipping Co., Ltd, a subsidiary of China Merchants Group, on Friday denied media reports that China Merchants Group would merge with Sinotrans & CSC Holdings Co., Ltd. CMES, an ocean transporter of crude oil and other energy sources, filed a statement with the Shanghai Stock Exchange (SSE) on late Friday, saying that the company and its parent have not yet received any notice from authorities about the merger. Sinotrans Air Transportation Development Co.
CMES Establishes Subsidiary for Valemax
China Merchants Energy Shipping Co., Ltd (CMES), the dry and wet bulk arm of state conglomerate China Merchants Holdings (International) Company Limited, has set up a wholly owned subsidiary China VLOC Company Limited to operate 400,000 dwt ore carriers in Hong Kong. The new Hong Kong-based subsidiary will own the four Very Large Ore Carriers (VLOC) or "Valemax" vessels, purchased at a total price of $448m by CMES. The 400,000-deadweight-tonne ships are some of the largest ships ever built and were sold under accords between Vale and China Merchants.
Mega Valemax Enteres China for First Time in Two Years
Mega-ore carrier Valemax Yuan Zhuo Hai, which is owned by China Ore Shipping, has arrived Dongjiakou Port in Qingdao for unloading iron ore. This is the first entry of such a bulk carrier tonnage in the sea port of China for the past two years. Yuan Zhuo Hai is one of four 400,000dwt VLOCs acquired by China Ore Shipping from Brazilian ore giant Vale. The 400,000 dwt Valemax is expected to be part-laden, having called at Vale's Subic Bay iron ore transhipment terminal in Philippines after loading its initial cargo at the miner's Brazilian Itaqui port…