Golar: LNG Boom Fuels Recovery In Shipping Market

Bermuda-based Golar LNG has declared that the shipping market recovery has begun.

Noting that demand has exceeded supply growth for the first time since 2013, Golar said natural gas liquefaction trains that started operations in 2016 continue to ramp up with more on the way, the comapny said in its third-quarter report released at the end of November.

Six trains with a collective capacity of 28 million tons commenced operations in the U.S., Australia and Russia in 2017 alone, with the 5-million-ton capacity Cove Point, Md., facility expected to start by year-end. From January through September, U.S. LNG volumes in ton-miles were up 10% compared to the same period in 2016, Golar said.

Strong demand from China and South Korea has pushed LNG prices up in the region, with spot rates that reached two-year highs in October rising to three-year highs by the end of November. China’s imports through the end of October were up 48% compared to the same period in 2016.

Golar noted that about 45 vessels are scheduled for delivery in 2018, or an increase in the current fleet of about 10%. Production growth is expected to hit 12% in the coming year, and an expected growth in ton-miles is anticipated to create a significant increase in term charters.

First Oil And Contract Startup For Libra FPSO Unit

FPSO Pioneiro de Libra (Libra) has achieved first oil in the Santos Basin, the first FPSO unit to do so on the giant Libra block, Teekay Offshore Partners LP announced in late November.

Libra has commenced a 12-year charter contract with a group of oil companies that include Petrobras, Total, Shell, CNPC and CNOOC Ltd. It is performing early well tests in the field, which covers more than 1,500 sq km (579 sq miles).

Teekay owns Libra as part of a 50:50 joint venture (JV) with Odebrecht Oil and Gas. The FPSO unit was converted from one of the JV’s shuttle tankers at Sembcorp Marine’s Jurong shipyard in Singapore and can operate in depths of up to 2,400 m (7,874 ft). Its capacity is 50,000 bbl/d of oil and 4 MMcm (141 MMcf) of natural gas.

“Today marks another significant milestone for Teekay Offshore and its growing presence in the Brazilian market,” Ingvild Sæther, president and CEO of Teekay Offshore Group Ltd., said in a statement. “This successful Libra FPSO conversion project demonstrates that we can confidently deliver highly complex FPSO solutions for Brazil’s massive presalt play and is expected to provide significant future cash flow growth to the partnership.”

Work On Pace With FPSO Unit For Catcher Field

BW Offshore continues to make progress with the BW Catcher FPSO unit at the Catcher Field in the U.K. North Sea, where first oil remains on schedule for December, the company said.

With commissioning activities underway, BW Offshore have already checked off hook up of the submerged turret production mooring system, completing a rotation test and final pull-in of risers and umbilicals from its list of tasks to complete.

The project is expected to add about $200 million in annual EBITA to the FPSO firm’s results when it comes onstream in December, according to BW Offshore CEO Carl Arnet.

Boskalis Adds Two Ex-Harkand DSVs

Netherlands-based Royal Boskalis Westminster said in early December that it had added two large diving support vessels (DSVs) to its fleet.

In a statement, Boskalis said the purchase of DSV Atlantis for $60 million and three-year charter of Da Vinci from Harkand moves forward with its 2017-2019 corporate business plan that focuses on expanding its subsea services. This move, the company said, strengthens its inspection, repair and maintenance of subsea offshore installation, pipelines and cables offerings.

The two DSVs create the opportunity for the company to expand its subsea contracting, installation and SURF activities and grow this segment in northwest Europe, Africa and the Middle East.

The sister ships were built by Hanjin Heavy Industries in Pusan, South Korea and went into service in 2011. They feature eight-man, Twinbell saturation diving systems and displace about 12,600 tons. Bells can operate to 300 m (984 ft) and the ships can accommodate crews of 120.

Maersk Takes Delivery Of Involver

The second in a quartet of Stingray-class subsea support vessels, Maersk Involver, has been delivered to Maersk Supply Service.

The versatile Stingray-class vessels are built by COSCO Dalian Shipyard in China. They can accommodate crews of 120 and are designed for a range of operations in deep and shallow waters and boast energy-efficient propulsion, class 3 dynamic positioning, a 400-tonne active heave-compensated crane and two work-class ROVs that can operate in depths of up to 3,000 m (9,843 ft).

—Joseph Markman

Offshore