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Congress Passes Key Harbors and Waterways Bill

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This year's edition of the Water Resources Development Act (WRDA) has passed the U.S. House and Senate as part of a larger package, and now awaits the president's signature. The final version of the America's Water Infrastructure Act (AWIA) of 2018 authorizes investments in the nation’s ports, waterways, dams, and public drinking water systems. It passed the Senate by 99-1, with Senator Mike Lee of Utah providing the lone dissenting vote. 

“We commend the Senate for helping ensure that crucial water resources legislation is addressed and passed by Congress on an every-two-year basis,” said American Association of Port Authorities (AAPA) president and CEO Kurt Nagle. “Today’s AWIA passage continues the trend of streamlining maritime infrastructure improvements by expediting evaluations, enabling timely decisions and providing greater funding flexibilities, as well as authorizing new projects.”

According to the AAPA, AWIA authorizes the construction of three navigation projects at the ports of Seattle, Galveston and San Juan, Puerto Rico. It also approves modifications to previously-authorized projects in Savannah, Norfolk, and Sault St. Marie/Soo Locks. It also expedites planning for projects at the Port of Tacoma, the Port of New York and New Jersey, the port of Nome, Alaska, and ports in Houma, Baptiste Collette and Bayou LaFourche, Louisiana.

The bill also directs the Corps of Engineers to assist sponsor-led navigation channel improvement studies for Port Canaveral, Florida, Wilmington, North Carolina, Savannah, Georgia, and Port Fourchon, Houma, Baptiste Collette and Bayou LaFourche, Louisiana. 

AWIA also contains a raft of licensing policy modifications for dams, which will shorten the approval timeline for dam projects and "provide regulatory incentives for investments at existing hydropower facilities," according to the American Hydropower Association. It also provides additional resources for drinking water projects – motivated in part by Flint, Michigan's lead contamination problem – and doubles the size of a state loan assistance program for water utilities. 

Source:maritime-executive

Despite Trade War, Oil Traffic Rises at Corpus Christi

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Despite fears of rising crude tanker rates and the escalating trade war with China, the busy petroleum port of Corpus Christi, Texas reports that it has set a new tonnage record for the first nine months of the year. 

Corpus Christi handled nearly 80 million tons of cargo in the first three quarters, up about five percent year-over-year. The growth was driven by an 11 percent increase in crude oil shipments and an 8 percent increase in other petroleum products. 

“This tonnage record is one of many set by the Port of Corpus Christi in 2018, and it is indicative of the continued growth we have been experiencing in the energy sector,” said Sean Strawbridge, the port's CEO. “Our bullish outlook of success is reinforced by this achievement and we look forward to continuing our investments alongside those of our customers as Texas and the United States continues its trend as a strategic global provider of energy.”

Challenges ahead

Some commodity analysts predict that oil shipments to key Asian export markets will decline in the coming months due to a spike in crude tanker day rates. VLCC ton-mile demand and spot rates have both been driven higher as buyers look further afield to replace Iranian oil, which will be hit by renewed American sanctions on November 4. In turn, these higher tanker rates make it less cost-effective to ship American crude over long distances: Reuters reports that the price of sending a VLCC from the Gulf of Mexico to Asia has gone up by $1-2 million over the past week. 

In addition, Chinese refiners have sharply curtailed purchases of American oil in response to the escalating trade war between Beijing and Washington. China is the world's largest oil importer, and until recently, it was the second-largest foreign buyer of U.S. oil, accounting for a 20 percent share of the American export market. In a reversal, Chinese refineries did not import any U.S. crude at all in August, according to rencent U.S. Census Bureau data.

In contrast, China's state-owned oil companies have continued to purchase Iranian crude, despite the threat of American sanctions. Beijing is not expected to comply with the U.S.-imposed ban on Iranian oil once it takes effect.

Source:maritime-executive

Njord Offshore secures Taiwan charter

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Njord Offshore to manage a new Service Accommodation & Transfer Vessel for Siemens Gamesa at Formosa 1 Offshore Wind Power Plant in Taiwan.

Njord Offshore Ltd, a leading offshore wind crew transfer vessel operator will be managing a new purpose built 35-metre Service Accommodation and Transfer Vessel (“SATV”) on long term charter to Siemens Gamesa Renewable Energy A/S (“Siemens Gamesa”) for Formosa 1 offshore wind power plant in Taiwan. Siemens Gamesa will have 22 of its offshore wind turbines installed in the Formosa 1 offshore wind power plant when completed: two units of the SWT-4.0-130 wind turbine, and 20 units of the SWT-6.0-154 wind turbine. The wind park is located about six kilometres off the west coast of Miaoli County. The SATV will be operated from the port of Taichung for the operations and maintenance phase of the wind power plant commencing in the fourth quarter of 2019. The vessel is capable of staying offshore for at least seven days and offers 12 single cabins for the industrial personnel. The vessel will be registered under the Taiwan Flag and manned by Taiwanese crew that are trained by Njord Offshore’s experienced masters.

Tom Mehew, Managing Director of Njord Offshore commented, “The award of the SATV contract marks a significant milestone in expanding our footprint in the offshore wind market. The SATV offers a new logistical model which will enable technicians to be accommodated offshore and also transfer directly onto the turbines like our existing crew transfer vessels without the need for an expensive gangway system which will ultimately save time and money for our client. This charter is an exciting opportunity to leverage our existing offshore wind experience and combine it with our Asian partner’s locality, workforce and language skills. We are looking forward to working alongside Siemens Gamesa and will be supporting localisation in Taiwan.”

“With the SATV, we’re offering a new offshore wind service solution which demonstrates our commitment to meeting our customers’ needs and reducing the cost of energy from offshore wind power. The vessel concept fits the bill perfectly for projects like Formosa 1: a full 40-person Service Operation Vessel would be oversized, and standard Crew Transfer Vessels which must sail in to port every night would be undersized. The SATV also allows us to safely and efficiently make the most of the challenging tidal conditions that are found in the Taiwan Strait,” states Rene Wigmans, Head of Maritime and Aviation Solutions, from the Siemens Gamesa Service Business Unit.

Source:njordoffshore

Port of Long Beach receives grant for energy resiliency project

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The Port of Long Beach will build and demonstrate a $7.1 million “microgrid” to show the promising new technology’s effectiveness in providing a clean, reliable supply of electricity for critical operations at US second-busiest seaport, the company said in its press release.

With the help of a $5 million grant from the California Energy Commission, the Port will install a solar carport, power storage systems and advanced controls at its security headquarters, the Joint Command and Control Center.

“Ensuring a stable supply of energy is crucial to the zero-emissions future the Harbor Commission envisions for the Port of Long Beach,” said Long Beach Board of Harbor Commissioners President Tracy Egoscue. “We welcome this microgrid technology demonstration in Long Beach.”

“Our terminals are increasingly using electric equipment to move cargo and we will need to build more energy resiliency into these operations,” said Port of Long Beach Executive Director Mario Cordero. “This project will help us learn more about how to keep the power, and cargo, flowing.”

As part of the project, the Port will compile and analyze 12 months of performance data, and make that information available to other California seaports. The goal of the California Energy Commission’s grant is to accelerate development of microgrids, which are seen as important tools for improving effectiveness of renewable energy. And, because they offer a means of isolating from the grid, microgrids can improve participation in utilities’ demand response programs, where users agree to limit energy use during peak periods.

The project also includes a workforce development component that will offer training opportunities through Long Beach City College and the International Brotherhood of Electrical Workers.

Schneider Electric, an international leader in energy management projects, will design, construct and commission the Joint Command and Control Center microgrid. The project includes a solar carport at the Port’s security center, a stationary storage system and a mobile storage system that can be dispatched around the Port in lieu of diesel generators in case of outage.

Source:portnews

Touchdown for BorWin Gamma topside

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Transmission system operator TenneT has installed the 900MW BorWin Gamma topside on its jacket foundation in the German North Sea.

The float-over installation procedure was completed around noon today, the TSO said.

Heavy lift vessel Xiang He Kou transported the 18,000-tonne platform to the installation site some 130km off the German coast from Dubai shipyard Drydocks World.

The vessel arrived on site last weekend, having set off from the Middle East in early September.

BorWin Gamma will be the grid hub of the BorWin3 HVDC connection scheduled to go online in 2019.

Source:renews

Three Balearia Ferries to Convert to LNG

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Spain's Baleària will convert three ferries from diesel to LNG dual fuel using Caterpillar and MaK solutions.

Incorporating the MaK DF engines will virtually eliminate the sulfur and particulate matter in the exhaust gases, while also cutting down NOx, resulting in even lower CO2 emissions. The three ferries to be converted are Abel Matutes, Bahama Mama, and Martin i Soler, each currently equipped with a pair of MaK 9 M 43 C main engines. After the conversion, the vessels will operate on two MaK 9 M 46 DF engines, which has a rated engine output of 8685kW. The MaK engines are used in a control pitch propeller application with a gearbox. The conversion will allow the engines to be powered by gas.

Caterpillar will provide DF-Engine conversion kits and all the required engine modules including an ignition fuel oil module, engine ventilation modules, an exhaust gas ventilation module, GVU ventilation modules, and gas valve units with housing.
Included in its planning to expand and renew its fleet, Baleària will also replace the existing main engines on board their high-speed ferry ‘Jaume III’ with four new Caterpillar 16-cylinder C280 propulsion engines; each engine delivers 5650 kW at 1000 rpm. A similar repower was done back in 2017 on board the sister vessel ‘Jaume II’ resulting in a notable increase in efficiency and service, with the ship being able to reach high transit speed.

Source:marinelink

Scrubber numbers surge to 1,850 – ‘decision to invest should be made yesterday’

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The popularity of scrubbers as a way to comply with the IMO’s 2020 sulphur cap has grown rapidly over the last six months with over 1,000 systems ordered in that period, according to classification society DNV GL.

In a webinar on Wednesday DNV GL said that 1,850 vessels had either been fitted with scrubbers or had installations confirmed a steep rise from numbers in the region of 1,300 being quoted just a month ago. In the last six months over 1,000 systems have been ordered primarily for retrofits.

The biggest three manufacturers – Wartsila, Alfa Laval and Yara Marine – hold over a 50% share of the market, but as the orderbook grows and lead times get longer some of the smaller manufacturers have started to receive major orders the classification society noted. By ship type bulkers make 38% of orders, tankers 20% and containerships 14%. With concerns over possible restrictions on open-loop scrubber use the majority are opting for hybrid systems that can operate in both open and closed modes.

While scrubbers can make a good choice for owners to comply with the sulphur cap, with improved reliability and designs of scrubbers, DNV GL highlighted a number of areas owners need to be aware of and consider in the decision making process.

The driving force behind scrubber uptake has been the expected fuel price spread between high sulphur fuel oil (HFSO) and low sulphur compliant fuels come 2020. The bigger the spread the higher the cost savings and the shorter the payback period.

Based on a 20MW scrubber with a price spread of $175 per tonne between HFO and low sulphur fuel DNV GL said the payback period would be 1.3 years for an open loop scrubber and 1.7 years for a hybrid unit. Should the fuel spread drop to just $40 per tonne there would be no business case for a 20MW scrubber, while a $100 spread would see a payback period of less than two years.

It is worth noting a scrubber system would increase a vessel’s fuel consumption by around 2%. There will also be increased maintenance costs one of the biggest challenges scrubbers coming from corrosion with the low pH wash water highly corrosive. For closed loop systems there will also be the costs of sludge disposal.

Despite these additional costs a 40MW scrubber could see accumulated cost savings of $13.3m over five years versus using compliant fuel and $5.1m in cost savings for the same period for a 20MW scrubber.

Another factor DNV GL highlighted was the complexity of managing the large scale retrofitting of fleet of ships saying, “Installing one scrubber in 1.5 years is easy, installing 32 in 1.5 years is difficult”. The latter example of 32 ships in four sister series could see the owner dealing with 11 different stakeholder across the manufacturer, design house, class and shipyard.

As to whether scrubbers were a long-term solution this remains an unknown, but over the next five – 10 years DNV GL they could significantly reduce cost of compliance with the sulphur cap and were a safe solution.

For owners still sitting on the fence on whether to install scrubbers the classification society said “the decision to invest should be made yesterday”.

Source:seatrade-maritime

Yangzijiang and Mitsui in China joint venture shipbuilding yard

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China's largest private shipbuilder Yangzijiang Shipbuilding has formed a new joint major Japanese shipbuilders Mitsui E&S Shipbuilding (MES-SC) and Mitsui & Co based at one of the Chinese company's existing yards.

Yangzijiang will hold a 51% stake in the joint venture which will have a share capital of $99.9m and is expected to have total capital employed of $299m. The joint venture will focus on building a wide variety of commercial ships and has set its sights on the LNG market where Mitsui brings extensive experience.

"The new joint venture is expected to consolidate MES-SC’s advanced shipbuilding technology and our cost-effective shipbuilding capability. We are optimistic on China’s demand for LNG import and LNG carriers,” said Ren Yuanlin, executive chairman of Yangzijiang Shipbuilding.

The joint venture yard will be located in Yangzijiang's existing facility in Taicang, China.

MES-SC said the joint venture would also benefit from Mitsui's extensive sales capabilities. “Taking advantage of its technology that has been accumulated in the 101 years since its founding, MES-SC will continue to provide new value as a manufacturing company that meets the demands of a range of customers in the ship and marine industry,” the Japanese shipbuilder said.

Chinese shipbuilding has been particularly hard hit by the slump in shipping markets and the resulting sharp drop in newbuilding orders, while Japanese yards have struggled against lower cost shipbuilders in China and Korea.

Source:seatrade-maritime

Novatek Discoveries New Gas Field At Ob Bay

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Pao Novatek, a Russian natural gas-focused independent, said on Oct. 11 that its subsidiary OOO Arctic LNG 3 has confirmed a new natural gas and gas condensate field in the North-Obskiy license area in shallow-water Ob Bay offshore northern Russia.

News of the North-Obskoye Field discovery was announced after testing of the first exploration well in the license area. Novatek said the field has estimated reserves of more than 320 billion cubic meters (Bcm) of natural gas under Russian reserve classification, and its total resources at the drilled well area are estimated at more than 900 Bcm of natural gas.

“The discovery of significant hydrocarbon reserves at the North-Obskoye Field is an important starting point for one of our future LNG projects in the Arctic region,” according to Leonid Mikhelson, chairman of Novatek’s management board. “Under the Russian reserve classification, the North-Obskoye Field will be included into the ‘unique’ category in terms of reserves size. The favorable geographical location of the field, its huge resource base and our accumulated LNG experience are important prerequisites to successfully implement this new LNG project.”

Estimates will be submitted to the Russian State Reserves commission for confirmation in November, Novatek said in the release.

Source:epmag

The US Navy’s New Tugs To Be Designed By Robert Allan Ltd.

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Robert Allan Ltd. has been awarded a contract to design a new version of the successful Z-Tech® 4500 tugs for the United States Navy (USN). The USN already has six vessels of this design, known as the YT 802 Class, in service. This first group were delivered between 2009-2012 and are in use in the Pacific Northwest and Japanese waters.

Four new tugs (with an option for two more) will be built in Anacortes, WA by Dakota Creek Industries Inc. The hull form for the new vessels will be essentially identical to previous versions of this Class of vessels, but with deckhouse, changes to suit new EPA Tier IV engines, which require significantly larger exhaust emission systems. Changes to the fendering system will incorporate feedback from operators on the existing vessels.

The US Navy tugs will perform ship-handling duties for the full range of US Navy surface warships, barges, and submarines. For the latter duties, the tugs are equipped with an extensive array of underwater fendering, as well as the typical fenders for surface ships. At least one of the new vessels will be assigned to a US East Coast Naval base which is the first use of this design with the Atlantic Fleet.

The new tugs will have the following particulars, as illustrated in the accompanying preliminary arrangement drawing:

  • Length Overall: 27.42 m (90′-0″)
  • Beam, Moulded: 11.65 m (38′-3″)
  • Depth, Moulded: 5.00 m (16′-5″)
  • Maximum Draft (overall): 4.88 m (16′-0″)
  • Machinery: CAT 3512E Main engines and Schottel model 1012 Z-Drives
  • Power: 2 x 1810 BHP at 1,600 rpm
  • Bollard Pull: 40 Short tons minimum
  • Free Running Speed: 12 knots minimum
  • Endurance: 7 days underway at 10 knots

The tugs are configured essentially as “day-boats” but also provide accommodation for a crew of up to six persons. One of the unique features of the layout is the complete separation of the accommodation deckhouse from the machinery casing, a configuration designed to both provide a reasonably dry access to the accommodation spaces in the notoriously damp north-west climate, as well as provide a significant degree of noise attenuation in the crew spaces.

These tugs are equipped with a telescoping gangway, or brow, stowed across the aft end of the deckhouse. This is used to transfer personnel to other ships alongside or down to submarines.

Construction of the first of this new series of tugs is expected to commence early in 2019.

Source:marineinsight

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