Showing posts with label Tanker. Show all posts
Showing posts with label Tanker. Show all posts

Friday, May 7, 2010

Indonesia Eyes Gas Promised to Japan

Jakarta Globe, Reva Sasistiya & Bloomberg, May 07, 2010

A tanker being loaded with LNG at Bontang in Kalimantan. Domestic gas shortage may prompt to state to revise deals with Japan. (Bloomberg Photo)

As Indonesia continues to suffer from a shortage of liquefied natural gas, the government said on Friday that an existing contract to supply LNG from Central Kalimantan to Japanese buyers would likely be revised to enable more fuel to be allocated to the domestic market.

Energy Minister Darwin Zahedy Saleh said the government may alter the contract to provide Japanese buyers LNG from the Bontang project in Central Kalimantan.

“We’re able to revise the contract supply since the gas is our resource,” Darwin said. He acknowledged the possibility of penalties from buyers if Indonesia failed to meet its agreement, but he asked for understanding from Japanese companies. “We’re still considering it.”

The LNG contract from Bontang was signed on Feb. 13, 2009 between operators PT Pertamina, Total EP Indonesia and Inpex Corporation and six Japanese buyers: Chubu Electric Power; Kansai Electric Power Co.; Kyushu Electric Power; Nippon Steel; Osaka Gas and Toho Gas.

The agreement covers a 10-year period starting in 2011. For the first five years, three million tons a year would be allocated to the Japanese buyers with two million tons a year allocated for the second five years. Currently, Japanese buyers are taking 12 million tons a year from Bontang.

Raden Priyono, head of upstream oil and gas regulator BPMigas, said as the amount of Bontang gas exported to Japan would be lower next year, there would be excess output of 2.5 million tons.

“The gas will be allocated to the domestic market, but if the infrastructure is not ready, we will have to find another buyer.”

Currently, it’s estimated Indonesia is suffering from a 2.5 billion standard cubic feet of gas a day deficit.

Meanwhile, Evita Legowo, director general of oil and gas at the Ministry of Energy, said final government approval of the Donggi-Senoro LNG plant may not take place until near the end of the year, meaning the plant would now not be finished until 2014. The facility was originally supposed to be completed this year.

The plant is 51 percent owned by Japan’s Mitsubishi. Pertamina holds 29 percent and PT Medco Energi Internasional owns the rest.

At issue is who will be allowed to purchase the gas. In January 2009, the operating consortium agreed to supply one million tons of LNG annually to Chubu Electric Power and one million tons per year to Kansai Electric over 15 years.

But last July, then-Vice President Jusuf Kalla instructed the energy minister and Pertamina’s president director to allocate the gas to domestic buyers.

The fate of the gas has been unclear since then, with the government and the consortium partners at odds over whether the gas should be sold domestically, where it would bring a lower price, or on the international market.

One Japanese buyer pulled out in August and prospective buyers from Japan and South Korea this week threatened to walk away if the government didn’t decide soon how the gas would be allocated.

The decision will be Vice President Boediono’s. Darwin said he would meet with Boediono to discuss it on Monday.

Evita said the decision could be made before the end of the month.

Sunday, February 7, 2010

BPMigas Seeks Cabotage Exemption for Some Foreign-Owned Oil and Gas Ships

Jakarta Globe, Yessar Rossendar, February 07, 2010


Upstream oil and gas regulator BPMigas is seeking to make certain high-tech foreign vessels rented by oil and gas companies exempt from restrictions on domestic shipping set to be implemented next year.


BPMigas deputy chairman Hardiono said on Friday that the regulator had asked the Ministry of Transportation for an exemption because oil and gas companies were concerned that domestic shipping companies would not be able to meet their needs for such high-tech vessels, and that this would curtail investment in the vital sector. The ships in question, rig and seismic vessels, are typically rented from foreign-owned shipping companies for six months or less.


Since 2005, the government has been gradually implementing cabotage, a ban on foreign-owned ships carrying goods between ports in Indonesia, to boost the underdeveloped domestic shipping industry.


The final phase of its implementation will come into force in January next year, requiring oil and gas companies to use only domestically owned ships.


However, Sunaryo, the Transportation Ministry’s director general of sea transportation, said the ministry was unlikely to grant any exemptions to the cabotage rules. He said there was still time for local companies to buy the high-tech vessels or for foreign shipping companies to transfer the vessels to Indonesian owners.


“I encourage the local shipping companies to buy the high-tech vessels,” Sunaryo said.


Hardiono said several oil and gas companies had expressed concern about the potential difficulties of renting high-tech vessels from domestic companies. “Two out of four investors in the Kangean oil and gas block off Madura have pulled back from their plans to invest in the block” because of their concerns, he said.


Because rig and seismic vessels are typically only used for short time periods, and are rented to companies all over the world, it would be inefficient for Indonesian shipping companies to buy them, Hardiono said. However, BPMigas supported the introduction of cabotage rules for other types of ships in the oil and gas industry, he added.


Johnson W Sutjipto the head of the Indonesian National Ship Owners Association said domestic companies did not have enough rig and seismic vessels to service the oil and gas industry.


However, he said they would invest in these vessels because of the huge potential in the oil and gas sector.


“I’m optimistic that the vessels will be available in time, so that it will not slow down investment,” he said.


Thursday, February 4, 2010

Floating Gas Terminals a Reality by End of Next Year

Jakarta Globe, Janeman Latul, February 04, 2010


A replica of a Iiquefied natural gas tanker. Three floating LNG terminals are on track to be built in Indonesian waters by the end of 2011. EPA Photo



The government’s plan to build three floating liquefied natural gas terminals is on track to be finished by the end of 2011, said the state-owned companies involved in the plan, as a joint-venture agreement for the first terminal was signed on Thursday.


The LNG terminals are aimed at helping to meet rapidly growing local demand for gas for electricity generation and the fertilizer and manufacturing industries.


However, Indonesia, the world’s third-biggest LNG producer, may still need to start importing to meet demand, with the government confirming on Thursday that Pertamina was in negotiations to start receiving shipments from Qatar.


State oil and gas producer PT Pertamina and state-owned PT Perusahaan Gas Negara signed the agreement to form a joint- venture company, to build the $200 million West Java LNG terminal, which will be able to supply 500 million cubic feet of gas per day to Greater Jakarta.


“Today [Thursday], we see an agreement between state-owned companies to develop and supply gas as the national demand is increasing rapidly,” said StateEnterprises Minister Mustafa Abubakar. “The fertilizer and electricity sectors are the sectors that need the gas supply the most.”


Pertamina will own 60 percent of the yet-to-be-named venture with PGN holding the rest. Pertamina will select the company’s president director, technical and operation directors, while PGN will choose its financial and administration directors.


PGN president director Hendi Prio Santoso said the agreement showed the commitment the two companies have to help nation cope with quickly growing needs for electricity. The West Java terminal was on track to be completed before the end of 2011, he said.


“We will eventually invest around Rp 800 billion [$85.6 million] in the West Java terminal while Pertamina will invest the rest,” Hendi said.


The other floating LNG terminals will be located near Medan in North Sumatra and East Java. The Medan terminal will be fully financed by PGN while the East Java terminal will be financed by Pertamina. Each terminal will require an investment of $150 to $200 million, Hendi said.


“The North Sumatra LNG terminal is currently at the technical preparation stage and is expected to be operation by 2011 as well,” Hendi said. It would handle around 1.5 to 2 million tons of LNG a year, he said.


The North Sumatra terminal would be 70 percent financed by loans and the rest would come from PGN’s internal cash, he said.


Pertamina is planning to form a joint venture with a shipping company that provides oil and gas services to build the East Java terminal and it will start searching for a partner before the end of February.


Pertamina president director Karen Agustiawan said the terminal should also be completed by the end of 2011. The floating terminals would help Pertamina complete its LNG supply chain, which has been in development for 30 years, she said.


The terminals will be supplied by British energy giant BP, which will supply 1.5 million tons of LNG a year from the Tangguh field in Papua, and PGN, which will provide 1.5 million tons of LNG a year from the Bontang field in East Kalimantan. The three terminals will eventually have a combined storage capacity of 3.5 million to 4 million tons of gas.


However, even after the floating terminals are operational there still won’t be enough gas to meet the rising demand in Indonesia.


“We [Indonesia] may still import two million tons a year from Qatar to meet local demand,” said Michael Baskoro, PGN’s commercial director.


Evita Legowo, director general of oil and gas at the Energy Ministry, confirmed that Pertamina was negotiating with a Qatar company for additional gas supplies.


Sunday, November 22, 2009

The 16 Ships Create As Much Pollution As All Cars in The World

Kompas, SUNDAY, 22 NOVEMBER 2009 | 7:52 AM


Waiting game: Tankers moored off Devon waiting for oil prices to rise even further

KOMPAS.com - Last week it was revealed that 54 oil tankers are anchored off the coast of Britain, refusing to unload their fuel until prices have risen.

But that is not the only scandal in the shipping world. Today award-winning science writer Fred Pearce – environmental consultant to New Scientist and author of Confessions Of An Eco Sinner – reveals that the super-ships that keep the West in everything from Christmas gifts to computers pump out killer chemicals linked to thousands of deaths because of the filthy fuel they use.

We've all noticed it. The filthy black smoke kicked out by funnels on cross-Channel ferries, cruise liners, container ships, oil tankers and even tugboats. It looks foul, and leaves a brown haze across ports and shipping lanes. But what hasn’t been clear until now is that it is also a major killer, probably causing thousands of deaths in Britain alone.

As ships get bigger, the pollution is getting worse. The most staggering statistic of all is that just 16 of the world’s largest ships can produce as much lung-clogging sulphur pollution as all the world’s cars.

Because of their colossal engines, each as heavy as a small ship, these super-vessels use as much fuel as small power stations. But, unlike power stations or cars, they can burn the cheapest, filthiest, high-sulphur fuel: the thick residues left behind in refineries after the lighter liquids have been taken. The stuff nobody on land is allowed to use.

Thanks to decisions taken in London by the body that polices world shipping, this pollution could kill as many as a million more people in the coming decade – even though a simple change in the rules could stop it. There are now an estimated 100,000 ships on the seas, and the fleet is growing fast as goods are ferried in vast quantities from Asian industrial powerhouses to consumers in Europe and North America.

The recession has barely dented the trade. This Christmas, most of our presents will have come by super-ship from the Far East; ships such as the Emma Maersk and her seven sisters Evelyn, Eugen, Estelle, Ebba, Eleonora, Elly and Edith Maersk. Each is a quarter of a mile long and can carry up to 14,000 full-size containers on their regular routes from China to Europe.

Emma – dubbed SS Santa by the media – brought Christmas presents to Europe in October and is now en route from Algeciras in Spain to Yantian in southern China, carrying containers full of our waste paper, plastic and electronics for recycling.

But it burns marine heavy fuel, or ‘bunker fuel’, which leaves behind a trail of potentially lethal chemicals: sulphur and smoke that have been linked to breathing problems, inflammation, cancer and heart disease.

James Corbett, of the University of Delaware, is an authority on ship emissions. He calculates a worldwide death toll of about 64,000 a year, of which 27,000 are in Europe. Britain is one of the worst-hit countries, with about 2,000 deaths from funnel fumes. Corbett predicts the global figure will rise to 87,000 deaths a year by 2012.

Part of the blame for this international scandal lies close to home. In London, on the south bank of the Thames looking across at the Houses of Parliament, is the International Maritime Organisation, the UN body that polices the world’s shipping.

For decades, the IMO has rebuffed calls to clean up ship pollution. As a result, while it has long since been illegal to belch black, sulphur-laden smoke from power-station chimneys or lorry exhausts, shipping has kept its licence to pollute.

For 31 years, the IMO has operated a policy agreed by the 169 governments that make up the organisation which allows most ships to burn bunker fuel.

Christian Eyde Moller, boss of the DK shipping company in Rotterdam, recently described this as ‘just waste oil, basically what is left over after all the cleaner fuels have been extracted from crude oil. It’s tar, the same as asphalt. It’s the cheapest and dirtiest fuel in the world’.

Bunker fuel is also thick with sulphur. IMO rules allow ships to burn fuel containing up to 4.5 per cent sulphur. That is 4,500 times more than is allowed in car fuel in the European Union. The sulphur comes out of ship funnels as tiny particles, and it is these that get deep into lungs.

Thanks to the IMO’s rules, the largest ships can each emit as much as 5,000 tons of sulphur in a year – the same as 50million typical cars, each emitting an average of 100 grams of sulphur a year.

With an estimated 800million cars driving around the planet, that means 16 super-ships can emit as much sulphur as the world fleet of cars.

A year ago, the IMO belatedly decided to clean up its act. It said shipping fuel should not contain more than 3.5 per cent sulphur by 2012 and eventually must come down to 0.5 per cent. This lower figure could halve the deaths, says Corbett.

It should not be hard to do. There is no reason ship engines cannot run on clean fuel, like cars. But, away from a handful of low-sulphur zones, including the English Channel and North Sea, the IMO gave shipping lines a staggering 12 years to make the switch. And, even then, it will depend on a final ‘feasibility review’ in 2018.

In the meantime, according to Corbett’s figures, nearly one million more people will die.

Smoke and sulphur are not the only threats from ships’ funnels. Every year they are also belching out almost one billion tons of carbon dioxide. Ships are as big a contributor to global warming as aircraft – but have had much less attention from environmentalists.

Both international shipping and aviation are exempt from the Kyoto Protocol rules on cutting carbon emissions. But green pressure is having its effect on airlines. Ahead of next month’s Copenhagen climate talks, airlines have promised to cut emissions by 50 per cent by 2050.

But shipping companies are keeping their heads down. A meeting of the IMO in July threw out proposals from the British Chamber of Shipping, among others, to set up a carbon-trading scheme to encourage emissions reductions.

Amazingly, they pleaded poverty. Two-thirds of the world’s ships are registered in developing countries such as Panama. These are just flags of convenience, to evade tougher rules on safety and pay for sailors.

But at the IMO, governments successfully argued that ships from developing countries should not have to cut carbon emissions. IMO secretary-general Efthimios Mitropoulos insisted: ‘We are heavily and consistently engaged in the fight to protect and preserve our environment.’ Yet without limits, carbon emissions from shipping could triple by 2050.

The failure brought calls for the IMO to be stripped of its powers to control the world’s ships. Colin Whybrow, of Greenwave, a British charity set up to campaign for cleaner shipping, says: ‘The IMO is drinking in the last-chance saloon.’

Burning low-sulphur fuel won’t cut carbon emissions from ships. But there are other ways. More efficient engines could reduce emissions by 30 per cent, according to British marine consultant Robin Meech.

Cutting speed could reduce emissions by as much again. And there are even wackier ways, such as putting up giant kites to harness the wind as in the days of sailing ships. However you look at it, the super-ships are rogues on the high seas, operating under pollution standards long since banished on land; warming the planet and killing its inhabitants. Santa’s sleigh, they are not.

Robert Pedersen, of Maersk, said: ‘The sulphur content varies according to where you get your fuel. Our average sulphur content is, I believe, 2.5 per cent. It’s rather rare you get anything close to 4.5 per cent.’ He added that ‘the sulphur issue is one for the whole industry’ and that there would be a ‘huge cost implication’ to switch to cleaner fuel.

Editor: jimbon

Source : The Daily Mail

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