Sea Technology

JUN 2018

The industry's recognized authority for design, engineering and application of equipment and services in the global ocean community

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www.sea-technology.com June 2018 | ST 7 SEA TECHNOLOGY® I N C L U D I N G U N D E RS EA TEC H N O L O G Y The Industry's Recognized Authority for Design, Engineering and Application of Equipment and Services in the Global Ocean Community Charles H. Bussmann Founder and Publisher 1924-1999 publisher C. Amos Bussmann managing editor Aileen Torres-Bennett assistant editor/ Amelia Jaycen online news producer production manager Russell S. Conward assistant design/ Joshua Ortega website manager advertising Susan M. Ingle Owen service manager ADVERTISING REPRESENTATIVES: HEADQUARTERS C. Amos Bussmann 4600 N. Fairfax Dr., Suite 304 Arlington, VA 22203-1553 Tel: (703) 524-3136 • FAX: (703) 841-0852 e-mail: seatechads@sea-technology.com NORTH AMERICA, EAST COAST MJ McDuffee Director of Business Development Tel: 772-485-0333 mobile e-mail: m-j@comcast.net NORTH AMERICA, WEST COAST John Sabo Barbara Sabo Gregory Sabo John Sabo Associates 447 Herondo St. #305 Hermosa Beach, CA 90254 Tel: (310) 374-2301 e-mail: bsabo@jsaboassoc.com EUROPE John Gold John F. Gold & Associates "Highview" 18a Aultone Way Sutton, Surrey, SM1 3LE, England Phone/FAX Nat'l: 020-8641-7717 Int'l: +44-20-8641-7717 e-mail: johnfgold@gmail.com Sea Technology back issues available on microform. Contact: NA Publishing, Inc. P.O. Box 998, Ann Arbor, MI 48106-0998 1-800-420-6272 COMPASS PUBLICATIONS, INC. 4600 N. Fairfax Dr., Suite 304 Arlington, VA 22203-1553 Tel: (703) 524-3136 FAX: (703) 841-0852 oceanbiz@sea-technology.com www.sea-technology.com publishers of: Sea Technology Commercial Fisheries News Fish Farming News Commercial Marine Directory Fish Farmers Phone Book/Directory Sea Technology Buyers Guide/Directory Sea Tech e-News Celebrating more than 54 years of serving the global ocean community - Since 1963 - editorial Peter Keller, Chairman, SEA\LNG, Executive Vice President, TOTE Funding the Maritime Fuel Of the Future A s the use of liquefied natural gas (LNG) as a marine fuel gradually be- comes a global reality, the industry must continue to collaborate to ensure a sustainable long-term financial framework. Clearly, financial institutions will have a key role to play, and the recent news by SCF Group that it has secured $252 million in financing with a consortium of six leading international banks for six LNG-powered Aframax tankers is a step in the right direction. For SEA\LNG, the multisector industry coalition aiming to accelerate the widespread adoption of LNG as a marine fuel, LNG presents an ideal solution to the ongoing emissions debate. LNG emits zero sulfur oxides (SOx) and virtually zero particulate matter (PM) emissions, and reduces nitrogen oxides (NOx) emissions by 90 percent compared to conventional heavy fuel oils. It is currently the only viable and commercially available compliant solution to combat emissions at their source: the fuel itself. Throughout 2017 and the beginning of 2018, the uptake of LNG as a ma- rine fuel has dramatically increased in momentum as more of the industry's top influencers invest in the fuel—culminating in CMA CGM's decision to power its nine ultralarge container ship newbuilds with LNG. We are also seeing orders for deep-sea shipping extending beyond Emission Control Areas (ECAs); Sovcomflot has ordered six Aframax tankers, Siem has two transat- lantic car carriers on order for charter to Volkswagen, and Polaris Shipping confirmed orders for 10 LNG-ready, very-large ore carriers (VLOCs). Meanwhile, the supply side is gearing up significantly alongside the boom in demand for LNG-powered vessels, with investments in the next tier of bun- ker vessels. Shell and Gas4Sea commissioned state-of-the-art LNG bunker vessels in 2017, which are both now conducting ship-to-ship bunkering op- erations in their respective home ports of Rotterdam and Zeebrugge. Going forward, ENN Group's plans for an LNG-bunkering hub at Zhoushan, near Shanghai, includes an 8,000-m³ LNG bunker-supply ship, and the Wärt- silä-built Tornio Manga LNG terminal project in northern Finland plans to pro- vide bunkering for LNG-fueled ships visiting the northern Baltic Sea waters. Investment and funding from financial institutions is essential in facilitating the boost in LNG projects and bunkering infrastructure. Innovative financing is a core component to breaking down barriers to LNG adoption, and the addition of Société Générale to the SEA\LNG coalition in January this year further strengthens the ability to leverage knowledge, networks and real-life examples in the financial sector. Société Générale recognizes the benefits of LNG in lowering local pollution and greenhouse gas emissions when com- pared with traditional marine fuels. The bank is a pioneer for its involvement in the first transaction for the EU's recently instituted Green Shipping Guaran- tee program. Société Générale also acted as the sole mandated lead arrang- er, lease investor, facility and security agent, hedge provider and lender in a €142.6 million French lease financing of Honfleur, the first LNG-powered fer- ry commissioned by Brittany Ferries, with a funded guarantee from the Euro- pean Investment Bank, one of the six financial institutions to provide funding for SCF Group's six LNG-fueled Aframax tanker newbuilds. The collective goal is to develop a long-term financial framework that will contribute to, and supplement, the work of industry leaders to deliver a com- petitive global LNG value chain for cleaner maritime shipping. We would be pleased to see other banks engage in the conversation on how LNG will continue to become a commercial and conventional reality for vessels and their owners. ST

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