LNG NEWS WEEKLY DATE 23rd APRIL 2021

CELSIUS COURTS SHIPBUILDERS FOR LNG CARRIER QUARTET

Jeppe Jensen-led company makes discreet enquiries but is holding its cards close on latest interest in tonnage. Danish
shipowner Celsius Shipping has been making fresh enquiries at yards in South Korea on LNG carrier newbuildings. The
company is understood to be scouting for up to four berths but is said to be “very tight-lipped” about its intentions for the
vessels and how it plans to deploy them. “We still have growth ambitions within LNG and constantly monitor opportunities,
short and long term,” Celsius chairman Jeppe Jensen told TradeWinds when asked about the company’s latest interest in LNG
newbuildings. In December, shortly after the delivery of the first of its four speculatively ordered LNG carriers, Jensen hinted
at more. “It has never been the intention that we would just have these four vessels and that’s it,” he said. He added that
Celsius had built up a team to handle its LNG interests and is committed to ordering more newbuildings when it feels the time
and economics are right. Earlier this month, brokers linked Celsius to the fourth, 174,000-cbm X-DF berth reserved by Sinokor
Merchant Marine at South Korea’s Samsung Heavy Industries in 2019. Sinokor is understood to have paid its deposit on the

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(Sale and Purchase) (Gas projects)
first of these ships. But market talk has been swirling as to whether all four berths are now being marketed to other companies,
with Sinokor offering out the later-delivering trio of berths and SHI marketing the first slot. But Jensen denied that Celsius was
looking at these newbuilding slots. Celsius broke into LNG in 2018, contracting four 180,000-cbm X-DF vessels at SHI during
a wave of speculative ordering in the sector. In August, the company locked away a first ship to trader Gunvor’s Clearlake
Shipping on private terms. Brokers later said the period hire on the vessel was 12 to 14 months at a rate of about $60,000
per day. In December, the company announced that it had fixed the remaining three vessels to US-based LNG producer
Cheniere Energy on charters of up to 13.5 years. To date, two of the ultra-eco design vessels, the Celsius Copenhagen (built
2020) and Celsius Canberra (built 2021), have been delivered. A third, the Celsius Charlotte, is scheduled for hand-over in
May, with the fourth due to be delivered to Cheniere in August. Speaking in December shortly after the fixtures were announced,
the Celsius chairman said that ordering uncommitted vessels had not earned the company any particular credit from charterers.
He added that while Celsius would not rule out repeating this move it would be more careful in what it does next time. source :
www.tradewindsnews.com

OWNERS RECEIVE YARD OFFERS ON ARC4 UNITS

Shipowners bidding on a clutch of LNG carrier newbuildings for charter to Russian gas company Novatek have received
technical and commercial offers from shipyards. TradeWinds understands that owners now have to submit their indications on
charter rates for up to six ice-class 1A Arc4 LNG carrier newbuildings — four firm vessels and two optional ships — to Novatek
in May. Novatek is understood to have invited at least 15 companies to participate but it is unclear how many will eventually
take part. Russian owner Sovcomflot (SCF Group) is believed to be a contender, along with other companies that have
previously either worked with Novatek directly on LNG carriers for Arctic business or negotiated on vessels for the work. These
include Mitsui OSK Lines, NYK Line and Dynagas. Other potential names in the frame are understood to be China Cosco
Shipping, Stena LNG and Knutsen OAS Shipping. Also said to be vying is Teekay LNG, which has Arc7 LNG carriers on
charter to Novatek. But those following the process said companies with little or no experience of Arctic shipping may be
reluctant to line up against those already involved in these trades. In addition, bank financing for vessels chartered to a Russian
entity may prove another complication, particularly with the US introducing fresh sanctions against it and fresh political tensions
ramping up with Western countries. Novatek, which is looking for 2023 delivery dates on the newbuildings, has indicated it
will make a decision on shipowner selection within August. The Russian LNG producer is seeking additional newbuildings as
it pushes ahead with its next Arctic-based liquefaction developments. Novatek’s 16.5 million tonnes per annum Yamal LNG
project is already in operation and the company has turned its attention to the shipping it requires for its under-construction,
19.8-mtpa Arctic LNG 2 development. The company has already signed charter contracts on 21 Arc7 LNG newbuildings for
this project, 15 of which will be the first full-size LNG carriers to be built in Russia. The remaining six are on order in South
Korea. But Novatek also wants lower notation ice-class ships to take on transshipped cargoes from these higher ice-class
newbuildings. source : www.tradewindsnews.com

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(Sale and Purchase) (Gas projects)
1
NEW FORTRESS SET ON FIRST FLNG UNIT AND BRAZIL TERMINALS
New Fortress Energy is prioritising a search for a gas source for its first fast-tracked floating LNG unit and the build-out of
planned terminals in Brazil. The plans come in the wake of its completion of a $5.1bn buyout of Hygo Energy Transition and
Golar LNG Partners last week. On a call, New Fortress chairman and chief executive Wes Edens told analysts the company
took a final investment decision on its FLNG project on 8 March. He said it will take 16 months to complete and will be ready
to install by the fourth quarter of 2022. Edens, who revealed he has a daily 8am call on the company’s FLNG plans, said
securing gas for the unit is his “highest priority” and reiterated his call to anyone who would like to get in touch on this. “My
goal is to have a gas source identified in the next 90 days or so,” he said. “That’s the big one.” Edens called the Hygo-Golar
LNG Partners buyouts a “transformative event” for New Fortress.
Building out terminals
He said the company now needs to focus on building out the four new terminals in Brazil, converting commercial LNG volumes
under discussion to committed ones, and getting a gas contract in place for the FLNG unit. Aside from the seven floating
storage and regasification units and six LNG carriers acquired under the buyouts, he revealed that the company is also taking
on “one leased ship” in Indonesia. This is believed to be the 125,000-cbm FSRU Nusantara Regas Satu (built 1977). New
Fortress has four LNG terminals in operation — two in Jamaica, one in Puerto Rico and the large FSRU-based facility for the
Sergipe power plant in Brazil Edens said the company expects to complete its La Paz terminal in Mexico at the end of May
and its Nicaragua facility a month later. He said the Barcarena terminal in the north of Brazil should be online by January,
with a facility at Suape operational in the first quarter of 2022. The Santa Catarina terminal in the south will follow in the
second quarter. All three will use FSRUs. In addition, the company expects to bring a first terminal onstream in Ireland in the
second half of 2022. source : www.tradewindsnews.com

KN INVITES BIDS FOR LITHUANIAN LNG CAPACITY

Lithuania's Klaipedos Nafta (KN) has launched its annual booking procedure for the capacity of the Klaipeda LNG terminal, the
company said on April 22. The new gas year commences on October 1, 2021. The total amount of regasification capacity on
offer at Klaipeda is 3.75bn m3.In the current gas year that runs until September 30, 2021, the terminal has already received
41 LNG carriers versus 42 for the whole of the previous 12-month period, and nine more tankers are expected before the new
year starts. Some 1.73mn m3 of LNG has been delivered to the facility this gas year, of which 82% came from the US.KN will
accept applications from capacity users until May 24, 2021. Six companies from Lithuania and Estonia have been using the
terminal this year. source : www.naturalgasworld.com

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(Sale and Purchase) (Gas projects)
2
NEW AWILCO LNG CHARTER EXPECTED TO BOOST EBITDA
The 12-month deal is expected to provide $18m in Ebitda, or as much as Awilco had in all of 2020. Awilco LNG has inked a
lucrative new charter for one of its two gas carriers. The Oslo-listed company said on Friday that it had fixed the 156,000-
cbm WilForce (built 2013) to an unnamed counterparty for "about 12 months". The company did not disclose the rate, but said
the charter would provide $18m in Ebitda to its balance sheet. In 2020, Awilco LNG reported $18.1m in Ebitda for the entire
year. "The contract is expected to commence at the end of April 2021 in direct continuation from the present charter party,"
Awilco said. The WilForce — half of the company's fleet alongside the 156,000-cbm WilPride (built 2013) — had been trading
in the spot market according to Awilco's fourth quarter 2020 report. The WilPride had been on a two- to three-month time
charter contract following delivery in February. The WilForce's new contract will begin at the end of the month. LNG rates have
firmed since the winter rally cooled off in February. Brokers said a 160,000-cbm, tri-fuel diesel electric carrier heading west
was earning an average of $81,313 per day this year, while the same ship heading east would earn $74,375 per day. Both
the WilFoce and the WilPride have TFDE propulsion systems. Last week, John Fredriksen-backed Flex LNG pushed into the
period market, fixing four ships to Cheniere Energy for as long as three and a half years, with an option for a fifth. Expanding
on the rationale for the move, Flex chief executive Oystein Kalleklev said low inventories in Europe were supporting rates,
while Chineses customers looked to secure cargoes early for winter. www.tradewindsnews.com

AIR LUBRICATION YIELDS 6.6% FUEL SAVINGS FOR DECADE-OLD LNG

CARRIER
A Shell-chartered LNG carrier that is more than a decade old has been fitted with an air lubrication system, yielding significant
fuel and emissions savings during testing, says the supplier. Silverstream Technologies reported its Silverstream system was
fitted on 2010-built, 170,000-m3 LNG carrier Methane Patricia Camila during its October 2020 planned drydocking at the
Sembcorp Marine Admiralty Shipyard in Singapore. From design through to installation, the system was reviewed and approved
by ABS in accordance with their guidance note for air lubrication technology. Following operational testing of the retrofitted
technology, Silverstream and Shell engineers demonstrated 6.6% net savings generated by the Silverstream system. The
technology was tested at various vessel speeds during Methane Patricia Camila’s normal operations to calculate fuel and
emissions savings. To improve fuel efficiency and reduce greenhouse gas emissions, the Silverstream system produces a thin
layer of microbubbles along the full flat bottom of the vessel, reducing frictional resistance between the water and the hull. Air
lubrication systems are becoming increasingly important to help improve energy efficiency in newbuilds and in existing vessels,
underpinning shipping’s decarbonization goals. Built in 2010 by South Korea’s Samsung Heavy Industries, Methane Patricia
Camila has a length overall of 291.1 m, beam of 45 m, and draught of 12.5m, with GTT Mark III cargo containment system
and a boil-off rate of 0.15% per day, according to UK-based ship valuation firm Vessels Value (VV). Commercially controlled
by Shell Trading and Shipping Co, Methane Patricia Camila has a fair market value of US$112.57M, according to VV. source :
www.rivieramm.com

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(Sale and Purchase) (Gas projects)
3
JAPAN AND FRENCH BANKS DOMINATE LNG FINANCING
LNG project finance funds doubled year-on-year to almost $24bn in 2020 from a total of 74 lenders in 20 countries. Japanese
and French banks dominated LNG project finance last year.Mizuho, Sumitomo Mitsui Banking Corp (SMBC) and Bank of Tokyo
Mitsubishi (MUFG) occupied the top three places in Poten’s latest rankings. Mizuho moved up to the top spot from second last
year lending a total of $1.82bn, SMBC which was in first place last year lent $1.81bn. Report said MUFG had “come up through
the ranks” after slipping to 22nd in the LNG financing league table last year, from its second place in 2019. Three French
banks – Societe Generale, Credit Agricole and BNP Paribas – occupied fourth, fifth and sixth place. Rounding out the top 10
were Industrial and Commercial Bank of China, Italy’s Cassa Depositi e Prestiti (CDP) and Dutch bank ING tied for 8th place,
with Spain’s Santander in tenth. Report said most of the top places in the ranking were taken by banks that supplied large
quantities of funding for the Mozambique LNG project and refinancing deals for Australia’s Ichthys LNG and for Cheniere
Energy and Freeport LNG Train 3 in the US, which attracted a combined $6.1bn in funds.
Mozambique LNG
“All the top places, with the exception of CDP, are taken up by lenders which typically have a big presence in LNG project
finance”.. CDP’s high position in the rankings is understood to have been due to a big contribution to Mozambique LNG for
the tranche covered by Italian export credit (ECA) agency Sace. “Some of the top ten banks supplied ‘tickets’ of over $500m
to the two biggest deals which were concluded for Mozambique which attracted at total of $15.4bn of debt from banks and
ECAs and for Ichthys LNG which attracted $8.2bn for its refinancing of both ECA-covered and uncovered debt,”. Other deals
influencing the 2021 rankings were said to include Nigeria LNG’s Train 7 – which is a corporate-project finance hybrid, Indian
regasification projects and LNG ships structured as limited recourse project finance. “Import projects and LNG ships tend to
have a smaller impact on the rankings because capital expenditure is lower than for liquefaction projects,”. “Also, import and
LNG-to-power projects are typically supported by development banks and ECAs. They usually attract only small amounts of
commercial bank funding, if they can get it at all.” Last year a total of 74 lenders from 20 countries provided the LNG project
finance funds of almost $24bn, which was double the previous years’ totals. source : www.tradewindsnews.com

KNUD E. HANSEN’S PROJECT INTO SUSTAINABLE LNG BUNKERING

The X-gas project is a series of innovative and unconventional, medium-capacity LNG bunkering tankers designed by KNUD
E. HANSEN. The flagship design of the project is a 126.5 m vessel with a total cargo capacity of 9000 m3, split between two
Type C tanks. The platform, however, is highly customizable and can be tailored to accommodate a range of tank capacities,
as well as various containment systems including membrane tanks. The most unique feature of the X-gas platform is a low-
profile, forward deck house. This enables the vessel to safely approach and pull alongside cruise ships with low hanging
lifeboats. This also minimises the need for ballast during cargo transfer, thereby lowering operational costs. Lastly, the forward
deck house allows for larger cargo tanks without impeding bridge visibility. For improved manoeuvring and safety, the design
features two propulsion thrusters aft and two bow thrusters, as well as an autodocking system for alongside mooring. The
design features a novel and extremely fuel-efficient diesel electric power and propulsion plant consisting of one of the most

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4
fuel efficient dual-fuel 4-stroke engines available. Integrated with the propulsion plant is an Energy Storage System (ESS)
with a lithium-ion battery bank that allows for engine load optimisation with reduced methane slip. The batteries also provide
all of the power required during cargo transfer, resulting in no emissions or exhaust in way of the ship being bunkered, an
especially important feature for passenger vessels. Boil-off gas from the cargo tanks is captured and consumed in the dual-
fuel engines and the energy surplus generated can be stored in the batteries. Waste heat from the engine cooling water is
converted to electric and thermal power through a number of Organic Rankine Cycle (ORC) waste heat units. As a novel
approach, wasted energy captured during operation can be stored in accumulators and released as required to drive absorption
chiller and reduce the electrical load onboard. This approach boosts energy efficiency to a very high level. Another unique
feature of the design is an aft ‘energy bay’ that allows the vessel to provide containers loaded with fuel or stored electrical
power to a receiving vessel. It also allows the vessel to provide fully charged battery banks to remote locations ashore, where
current infrastructure does not allow sufficient power to be provided. source : www.lngindustry.com

LACK OF FLNG INCOME HITS EXMAR’S FIRST-QUARTER RESULTS

Belgian gas player is still looking for employment opportunities for Tango FLNG. Belgian shipowner Exmar saw its bottom line
hit by the absence of charter income from its lone floating liquefaction vessel in the first quarter. The Euronext Brussels-listed
company reported Ebitda of $3.4m between January and March, compared with $16.1m in the same period of 2020. Revenue
fell to $33.5m during the period, down from $44.6m a year earlier. Argentina’s YPF declared force majeure on Exmar’s barge-
based Tango FLNG (built 2017) last June, claiming the Covid-19 pandemic had hindered its ability to perform its obligations
under the charter agreement. Both sides eventually settled for an early termination fee of $150m, which was fully recognised
in Exmar’s 2020 results. The vessel, which can produce 500,000 tonnes per annum of LNG, is now at a sheltered location
in Uruguay and available for other projects.“Marketing of the liquefaction barge is in full swing and Exmar’s infrastructure team
is actively working on several specific prospects for re-employment,” the shipowner said. Arctic Securities said the weaker
first-quarter results should be “expected by the market” and “neutral for the credit”. Following the earnings release, Exmar’s
share price fell nearly 6% to €3.31 ($3.99) in early trading on Friday.
Good shipping business
The company’s profitability was cushioned by healthy earnings of its LPG carriers. Its shipping operations achieved earnings
before interest and tax of $7.7m in the first quarter, up from $5.2m in Ebit during the same period of last year. Exmar revealed
a 79% coverage for its mid-sized gas carrier fleet and 76% for pressurised LPG fleet for the remainder of the year. “The [mid-
sized] market has remained stable during the first quarter and well into April,” the company said. ”Market forecasts point to
stable or improving market conditions for the balance of the year.” “It is expected that freight markets [for pressurised LPG
carriers] will gradually recover with economic activity improving.” Its only VLGC in operation, the 83,300-cbm BW Tokyo (built
2009), will be employed until the fourth quarter. Exmar is due to take delivery of two LPG-fuelled, 88,000-cbm VLGCs from
Jiangnan Shipyard in June and August. The Flanders Innovation and the Flanders Pioneer will be on long-term charters to
Norway’s Equinor. source : www.tradewindsnews.com

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(Sale and Purchase) (Gas projects)
5
CONTINUING EVOLUTION: THE LNG CARRIER OF 2030
The design of LNG carriers has responded to market changes; next it will need to reflect dramatic increases in efficiency,
details Peter Fitzpatrick, VP, Strategy and Development, ABS. While LNG carriers have a relatively short history, they have
been subject to a continuous evolution in their design and operational parameters over the last decade. Many of the design
changes reflect the natural maturity of the industry, others have come in response to technical, operational and regulatory
changes. With vessel sizes having standardised to serve installed terminal infrastructure and with a choice of containment and
propulsion systems, it could be that the sector is set for a period of smaller, incremental changes. In fact, the LNG carrier of
2030 will need to evolve further, reflecting prevailing industry trends around the adoption of new technologies and more efficient
operations to drive lower carbon emissions. Using LNG as fuel puts gas carriers on a clean fuel pathway but by 2030, in
anticipation of required improvements in EEDI that whole marine industry will have to address, we may see some ideas coming
to the fore. So, will the LNG ship of 2030 still have the design speed we see today? For an answer, it is necessary to look
first at what we can expect from the key areas of the LNG vessel design and operation.
Emerging technologies
The first of these key areas concerns the cargo containment system, as the continued need to reduce boil-off gas (BOG) will
be ever present as new ideas make the propulsion plant more efficient. Many owners have already adopted some sort of
reliquefaction capability but this concept will be essential in the LNG carrier of 2030, as dramatic improvements in insulation
materials are not expected.Although slow speed engines may still be the most efficient option available we can expect to see
increased adoption of shaft generators, batteries and even fuel cells that all look to reduce the overall energy demand. Electric
propulsion may again come back into favour on certain routes as the ability to plug and play batteries, fuel cells, gas turbines
into the ships power system will provide additional flexibility, mitigating obsolescence risks, having the ability to upgrade a
component without major changes to the ships power train.Though hull forms may not change radically in the next decade,
new ships will have to demonstrate compliance with the Energy Efficiency Design Index (EEDI). While improvements in the
traditional areas of naval architecture may be limited we will see ideas such as air lubrication, advanced antifouling and even
wind propulsion becoming more common. As with other vessel types, future gas carriers will be more connected, with increased
use of smart technologies to collect and process data. This will enable a more efficient operation of ‘just in time shipping’ from
loading to discharge that looks to maximise cargo delivery with the least amount of fuel consumed across the whole operation.
With further growth in spot trading, ships will need to be better connected and make greater use of operational data, voyage
and fleet management technology. Connectivity of operational technology will also increase to provide more inputs to optimise
performance and maintenance schedules. A future gas carrier is also likely to experience reduced methane slip as engine-
makers increase mitigation measures. A more radical approach to efficiency could be active reduction of boil off gas with
proactive insulation or sub-cooling of cargo.

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(Sale and Purchase) (Gas projects)
6
Regulatory drivers
While there is little need for efficiency improvements on new LNG orders before 2030, a large improvement – perhaps as
much 30% – will be needed to comply with tightened EEDI requirements after 2030. To meet IMO emissions reduction targets
requires a downwards trajectory arriving to 70% reduction by 2050, though some parts of the industry will go further.This
implies that in 2030 CO2 emissions will need to be reduced by 21% compared with today. This might be achieved using an
advanced waste heat recovery system, a power take-off system, and a 10% reduction of the power requirement. This suggests
that designers will have no option but to reduce design speed to meet the expected EEDI requirements, but other alternative
technologies are emerging. Interpreting these changes in terms of LNG carrier design, if we believe that the minimum practical
BOR rate of 0.07 - 6% per day has been reached, LNG carriers will generate more BOG than is required by the engines. The
result may be that a full reliquefaction system or a sub-cooling unit could be fitted as standard in future vessels. Another
option could be to store the BOG energy in batteries and use it during the ballast journey. Either way, it is possible that BOG
handling will be fully decoupled from the propulsion process. Even if the pace of change in LNG vessel design is slower in the
next 10 years than it was in the previous decade, the pace at which technology is changing, combined with the increasing
number of options becoming available over coming years means owners must still be prepared to evaluate and incorporate
new techniques and technologies into future designs. These need to be managed with the same focus on safety that has
defined the LNG carrier market until now. By doing so, it should be possible to unleash a new wave of innovation that supports
the industry’s trajectory towards further increases in efficiency and more sustainable operations. source : www.lngindustry.com

AFRY TO COMPLETE STUDY FOR KN’S LITHUANIAN LNG TERMINAL

KN (AB Klaipedos Nafta), the operator of Lithuanian LNG terminal, and the Swedish company AFRY have signed an agreement
on the long-term capacity allocation and pricing model study of the Lithuanian LNG terminal. The study shall provide the
answer on the best long-term capacity allocation mechanism as well as on tariffication model applicable for Klaipeda LNG
terminal activities. The results of the study should be presented in 2H21. AFRY is an international engineering, design, and
consulting company with a history of more than 120 years, and around 16 000 experts in the fields of infrastructure, industry,
and energy, operating worldwide and contributing to the development of sustainable solutions.KN has previously announced
that with the help of external experts it is planned to perform market analysis and evaluate the long-term and short-term
capacity allocation and pricing mechanisms of European LNG terminals and identify which model would be the most suitable
for Klaipeda LNG terminal. The aim is to ensure maximum actual long-term capacity utilisation and efficient operation of the
LNG terminal based on a cost-reflective tariff model.

“The utilisation of Klaipeda LNG terminal correlates with the development of natural gas transmission systems in the region
and increases the interest of market participants. Therefore, we aim to ensure equal conditions to use LNG terminal services
for all current and potential clients. The Baltic connector, natural gas transmission connection between Estonia and Finland,
which started operating last year, and the GIPL connection between Lithuania and Poland, which will start operating next year,

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(Sale and Purchase) (Gas projects)
7
encourage us to evaluate how to make the most efficient use of LNG terminal capacity and review current pricing model. We
also seek to assess the scope for methodological changes that could contribute to further reduction of the security supplement
for gas consumers. In parallel with the study, KN will present this project to stakeholders, current and potential LNG terminal
users. We strive for close cooperation with the market participants, transparent methodology and later on – the process of
changing tariffs,” emphasises Mindaugas Navikas, KN’s Chief Sales Officer. “AFRY is delighted to have been awarded this
contract to help develop the long-term capacity allocation mechanism for the Klaipeda LNG terminal. Working alongside KN
and other stakeholders, we will be able to utilise our expertise on natural gas markets, global and European LNG trends, and
the regional market design to formulate the most efficient capacity allocation and tariff design. This will be an important
development in the evolution of the Lithuanian and the wider regional market,” says Matt Brown, Vice President of AFRY
Management Consulting. Based on the study results, the rules of the LNG terminal will be amended accordingly, they will be
co-ordinated with the National Energy Regulatory Council (VERT) and market participants during a public consultation. Changes
to the LNG terminal rules will be presented to LNG terminal users and other stakeholders. This year, the LNG terminal capacity
allocation procedure for the new 2022 gas year, scheduled for April, will follow the current methodology and pricing. source :
www.lngindustry.com

SEASPANLNG SECURES AIP FOR LNG BUNKER VESSEL

SeaspanLNG is pleased to announce that it has secured an Approval in Principle (AiP) with Bureau Veritas, for the design of
a 7600 m3 LNG bunker vessel. The LNG bunker vessel is state-of-the-art and has been designed for ship-to-ship LNG
transfer as well as well as coastal/short sea shipping operations by Seaspan Ferries’ partner Vard Marine Inc. Seaspan Ferries’
leading-edge class of dual fuel hybrid electric ferries were developed by Vard in 2014 and included a new method of bunkering
the vessels. This close and successful working relationship led to the creation of a new line of Vard 9 series LNG bunker
vessels, focused on safe, efficient and economical refuelling of multiple ship types as well as an ability to transfer to and from
a wide range of terminals. Major emphasis has been placed on the ability to incorporate emerging technologies, increase
electric storage system (ESS) capacity, and further operational emissions and greenhouse gas (GHG) reductions while
maintaining operability and flexibility. It is fitted with two azimuthing thrusters and two bow thrusters for exceptional manoeuvring
and station-keeping capabilities.
The principle characteristics of the vessel include:
Length overall (LOA) 112.8 m.
Breadth 18.6 m.
Design draft 5 m.
Design speed of 13 knots.
The AiP validates the advanced and future proof LNG bunker vessel design and confirms that the proposed concepts comply
with the intent of the most applicable rules, guides, required industry codes and standards. SeaspanLNG will now advance
efforts for vessel construction and engage with major stakeholders in current and emerging markets, including port authorities

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(Sale and Purchase) (Gas projects)
8
and flag states. “Seaspan is proud to collaborate and partner with Vard and Bureau Veritas for the Approval in Principle of this
advanced and highly manoeuvrable 7600 m3 LNG bunker vessel which is designed specifically for our business areas,” says
Harly Penner, Director of Fleet Engineering and Vessel Development. “Seaspan is committed to bringing clean LNG bunkers
to the West Coast of North America through our LNG bunkering business, in order to assist ship owners in meeting their
IMO2030 targets,” says Gord Miller, Vice President. “Vard Marine is pleased to once again be partnering with Seaspan on
environmental innovation in ship design with the Vard 9 511 LNG Bunker Vessel. Environmental stewardship is one of Vard’s
core values, pursued in facilities management, internal process, and product development. With this AIP, the Vard 9 511 is the
ideal solution to solve the gap in LNG bunkering infrastructure in the Asia Pacific Gateway. We look forward to working again
with the Seaspan Ferries team,” says Wade Carson, CEO, Vard Marine Inc. “This comprehensive AIP now enables a detailed
design to be developed addressing classification, statutory and operational requirements. The development of LNG bunkering
vessels is still relatively new, and Bureau Veritas has built considerable experience through multiple projects with different
containment and gas handling systems - from the smallest to the very largest LNG bunkering vessels. Bureau Veritas is
delighted to support the vision and leadership of Seaspan and Vard towards decarbonisation of the marine industry on the
West Coast of North America,” says Tim Protheroe, Regional Chief Executive for North America, Bureau Veritas. source :
www.lngindustry.com

NEXTDECADE AND PROJECT CANARY ANNOUNCE GREENHOUSE GAS

MEASUREMENT PROJECT
NextDecade Corporation and Project Canary have announced the formation of a joint pilot project for monitoring, reporting,
and independent third-party measurement and certification of the greenhouse gas (GHG) intensity of LNG to be sold from
NextDecade’s Rio Grande LNG export facility in the Port of Brownsville, Texas, US. Project Canary is focused on delivering
independent, trusted, continuous emissions monitoring data and related technologies to assess environmental performance
across the energy value chain. In its pilot project with NextDecade, the first in the global LNG industry, Project Canary will
deploy its TrustWell™ certification process to confirm each element of the natural gas value chain – from the wellhead to the
ship at Rio Grande LNG – has achieved low emissions targets and utilised the highest standards of environmental performance
and social responsibility. This partnership will enable the development of a responsibly sourced natural gas supply chain from
leading producers in the Permian Basin and Eagle Ford Shale and independent, third-party certification of the GHG intensity
of LNG. “NextDecade is committed to working with sustainable producers seeking to supply responsibly sourced natural gas
to Rio Grande LNG,” said Matt Schatzman, NextDecade’s Chairman and Chief Executive Officer. “Project Canary’s independent
measurement and certification platform will provide transparency and give confidence to our customers who are increasingly
focused on securing low GHG-intensive LNG. Reliable, competitively priced LNG and responsible environmental stewardship
are not mutually exclusive, and we are pleased to work with Project Canary to establish a new and higher standard for the
supply of low-GHG LNG to markets around the world.”

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Last month, NextDecade announced its wholly owned subsidiary, NEXT Carbon Solutions, is developing one of the largest
carbon capture and storage (CCS) projects in North America at Rio Grande LNG. NEXT Carbon Solutions’ CCS project at Rio
Grande LNG is expected to enable the capture and permanent geologic storage of more than 5 million tpy of carbon dioxide
(CO2). Combining responsibly sourced gas with the anticipated CO2 emissions reduction associated with NEXT Carbon
Solutions’ CCS project is expected to enable Rio Grande LNG to produce the lowest lifecycle GHG LNG on a free-on-board
basis and to be the greenest LNG project in the world.“The differentiated market for responsibly sourced gas is expanding
rapidly on a global scale as customers, investors and regulators seek, push for, and reward energy produced with the highest
environmental standards,” said Chris Romer, Project Canary Co-Founder and Chief Executive Officer. “We’re proud of the
important and growing role we’re playing in putting our independent technologies to work to help our customers and look
forward to supporting NextDecade and the companies involved in its natural gas value chain in enhancing environmental
performance, ensuring compliance with regulatory standards, and delivering on commercial commitments.” A Denver-based B-
Corp, Project Canary provides emissions monitoring data and related technologies across the energy value chain – from the
production, transmission, and marketing of responsibly sourced natural gas. Project Canary’s TrustWell certification is the
premium standard for responsibly sourced gas. Trustwell certification, which scores across four primary categories of
responsibility – air, water, land, and community – assigns ratings based on independent review and rigorous data analysis and
has been involved in over 85% of responsibly sourced gas transactions in the US to date. Project Canary has completed more
than 5500 TrustWell certifications, with over 1000 in process, and by mid-year 2021 will have approximately 400 real-time
emissions monitoring units deployed. source : www.lngindustry.com

QUEBEC LNG BACKERS PROMISE MORE IMPROVEMENTS

More than a month after Quebec’s provincial regulatory authority submitted a report into the 11mn mt/yr Energie Saguenay
LNG project, its proponent promised April 21 more improvements in an effort to win government approval. The Bureau
d’audiences publiques sur l’environnement (BAPE) submitted its report to Benoit Charette on March 10 but made no
recommendations as to whether the C$9bn (US$7.1bn) project should be approved or rejected, GNL Quebec said in a French-
language blog post on its web site. “The BAPE raises about 50 opinions and, since last fall’s hearings, the GNL Quebec team
continues to work to raise industry standards from a technical, social and environmental point of view,” it said. “Moreover, the
global energy situation has changed since the conclusion of the BAPE hearings with, for example, the addition of natural gas
to the European green recovery.” The filing of the report, which was publicly released on March 24, represents an opportunity
to maximise the benefits of the project, GNL Quebec said. That will be the focus of its efforts over the next few months, ahead
of an expected late-summer decision from the provincial government. Since BAPE published its report, GNL Quebec said,
several municipalities in the region have adopted resolutions in support of the project, including the City of Saguenay, the
municipalities of Saint-Honore and Saint-David-de-Falardeau and the regional municipality of Fjord-du-Saguenay. “These
resolutions, as well as those to come, demonstrate in a very tangible way significant support within the municipal authorities

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and the population of the region,” it said. “They are added to the mobilisation of more than 37,000 citizens who support the
project in the Sag-Lac LNG group on Facebook.”GNL Quebec said it intends to announce other commitments addressing the
BAPE’s concerns, concluding that “in light of recent developments and ongoing negotiations with potential customers” it is
“more than convinced” that its project has a role to play in the global natural gas market and in global efforts to reduce
greenhouse gas emissions. “Natural gas is and will be a key energy source in the global energy transition, especially as
policies around the world are pushing the industry to be increasingly efficient at the environmental level, with Canada leading
through its regulatory standards,” it said. source : www.naturalgasworld.com

LNG MARKET SIGNALS ENCOURAGE THE MIDSTREAM

As the market emerges from winter, global LNG demand is looking robust, buoyed by the relaxation of Covid-19 restrictions,
coal to gas switching and significant falls in domestic production seen in some importing countries. Meanwhile, the price
volatility of recent months could put buyers off reliance on spot supply and give a boost to longer term deals, which may help
new LNG liquefaction plants get off the ground. Gas prices in competitive markets – beyond the generally stable and low North
American Henry Hub – have been on a roller-coaster ride over recent months. After dipping to record lows in the wake of the
Covid-19 pandemic outbreak last spring/summer, a gradual recovery in gas demand and disruption at several liquefaction
plants helped spot prices recover in the second half of 2020 – rising above 2019 levels in Europe and Asia by October. From
then on, cold weather in northeast Asia saw LNG demand rise well above seasonal norms, driving up prices in both Asia and
Europe. Low nuclear availability also contributed to demand in Japan, as did coal-to-gas switching in China and South Korea.
China hiked pipeline imports from Russia, but restricted supplies from central Asia meant overall pipeline deliveries were below
normal. Limited LNG supply in the Asian region led buyers to look further afield, which pushed up freight costs and mopped
up cargoes around the world – restricting the amount of LNG supplied to Europe. At the peak of the cold weather, in the week
ending January 8, S&P Global Platts spot LNG benchmark prices (known as JKM and covering month-ahead cargoes delivered
to Japan, Korea, China and Taiwan) for February delivery hit a record high of $32.50/mn Btu (with rumours of cargoes traded
as high as $40/mn Btu), although it quickly dropped back to $8.90/mn Btu two weeks later as temperatures recovered, and
the delivery month switched to March (see chart 1). Many buyers in Asia sat out the gas price spike, unable or unwilling to
buy at such high levels – causing power shortages and the use of more polluting alternative fuels. Last year, the same JKM
benchmark had dipped to an all-time low of $1.83/mn Btu in May during the first pandemic lockdown, which followed a lengthy
period of low prices owing to oversupply related to new liquefaction capacity and relatively slow demand growth outside China.
Japan also saw record high power prices in January.

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The spike in Asian LNG prices caused a rise in European gas benchmarks, highlighting the growing influence of global LNG
prices on European gas markets, which will only grow as domestic European output declines over coming years and LNG
import capacity rises. Then, in late January and into February, Europe had a similar dose of low temperatures and high
demand. But a rise in LNG deliveries as Asian demand eased, along with record stock levels, steady pipeline flows and high
wind power generation prevented European gas and power prices spiking to the same extent as they had in Asia. Prices
nevertheless were well supported, after record lows last summer. The situation led European stocks to fall sharply from the
record highs seen through much of last year. By mid-February, stock levels had dropped to around 37% full compared to 60%
full at the same time last year (see chart 2). By March 1 they were 406 TWh (close to the lows seen at the end of winter
2018), down from 667 TWh a year earlier and 457 TWh on March 1, 2019. This large gap will require filling, helping to support
prices this summer as gas is bought up to replenish the depleted stocks before the 2021/2022 winter season.

Extensive deferred maintenance from last year due to Covid-19 restrictions, and the delay to finishing the Nord Stream 2
pipeline from Russia to Europe, should also help provide support for European prices and LNG demand this summer. But
LNG supply will have to compete with pipeline supplies to secure space in European storage, particularly early in the

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summer – when oil-linked pipeline supplies are likely to be cheaper given crude’s recent rise and the three- to six-month
lag in term pricing.

South American, Asian demand on the rise

Low hydro reserves in Brazil and declining gas production
from both Bolivia and the Vaca Muerta in Argentina look
set to drive LNG demand growth, which could provide
competition for Atlantic basin cargoes over coming months.
Brazil already has new import facilities and Argentina is
seeking to expand imports too, after hoping to switch to a
net exporter. The state producer YPF has paid in order to
terminate its contract with Exmar for the floating Tango
LNG tanker. And in China, gas switching, new import
facilities and strong economic growth are likely to push LNG imports sharply higher again, after a big rise last year when they
hit 67.4mn mt – up about 11% compared with 2019. Since late 2020, an additional 7.85mn mt/yr of import capacity has been
added, lifting China’s total import capacity to 78.4mn mt/yr. This is expected to rise further to 107.9mn mt/yr by the end of
this year. However, LNG imports will have to compete with a planned rise in Russian gas supply from the Power of Siberia
pipeline, along with increased domestic output. LNG demand was also up sharply in India in 2020, and will be further boosted
this year by delays in domestic upstream gas projects and declining output from mature fields. Indian production fell to 78mn
m³/d in 2020, down from 88mn m³/d in 2019. In northeast Asia, demand from both Japan and South Korea is expected to
fall this year as they rely more on nuclear and coal-fired generation. For example, nuclear generation in South Korea is
expected to rise by 8-16 TWh to 168-176 TWh.
Supply delays
Overall, the increasing demand is likely to outpace LNG supply additions this year and next, with less than 30mn mt/yr of
new liquefaction capacity expected onstream in 2021-22. Plants started up so far this year include the 5mn mt/yr third
liquefaction train at Corpus Christi in the US; and Petronas’ 1.5mn mt/yr PFLNG2 in Malaysia. Further ahead there could be
even more of a squeeze, with only 3mn mt/yr of new LNG capacity approved in 2020 thanks to the pandemic and or low
prices, compared with up to 60mn mt/yr that had been expected, according to Shell. Following the tight winter market and
supply delays, long-term European gas prices have strengthened from record lows last year, helped along by rising oil, coal,
and carbon prices. In the UK, winter 21/22 gas reached 54 pence/therm (about $7.6/mn Btu) in early February, the highest
level seen since early January 2020, with power for the same period trading at £61.80/MWh – although prices have eased
back a little since then to £59.50/MWh at the beginning of March. Prices at the Dutch Title Transfer Facility (TTF) which is

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now Europe’s most liquid hub have also risen sharply since the lows of the summer. Forward quarters, which start the month
following the month of assessment, have risen steadily since September 2019 (see Table 1). EU carbon prices rose above
€42/metric ton in early March – their highest ever – with gains attributed to continued bullish sentiment in energy and equity
markets, as well as tightening EU environmental policies. This sharp increase is supporting gas as well as power prices, as it
encourages the switch from coal to gas for power generation. The gas price outlook is generally firm, with some analysts
pointing to the beginning of a commodities ‘super-cycle’ fuelled by strong economic growth. Shell predicts global LNG demand
will reach 700mn mt by 2040, as demand continues to grow strongly in Asia and gas extends its use into hard-to-electrify
sectors. This anticipated growth means there is room for much more liquefaction capacity and could result in several quick
final investment decisions if the pandemic loses its potency this spring/summer.
Spot price volatility sees buyers turn to term.
The recent spot gas price volatility has made many buyers and sellers much more wary of relying heavily on the spot market
and could threaten the move toward more spot trade (which expanded to about one-third of the total LNG traded in Asia last
year), and away from the traditional model of long-term, crude-linked LNG contracts. As they seek to avoid price risk, buyers
could be more inclined to sign up to the longer-term deals required to get LNG liquefaction plants off the ground. Some
importers have already reacted to the spot volatility and changes in crude prices by increasing the volume taken under term
deals – for example, China maximised term flow from Russia this winter as LNG prices spiked, while oil-linked Algerian
deliveries to Italy reached 8.81bn m³ in October-February, compared with 9.32bn m³ for the full 2019-20 gas year. Alternatively,
the market may seek a compromise in shorter, more flexible term deals, which could be priced against a variety of benchmarks.

AUSTRALIA EXPORTS RECORD LNG IN MARCH

Australia exported a record 7.2mn metric tons (mt) of LNG in March, energy consultancy EnergyQuest said on April 16. This
was significantly higher than 6mn mt exported in February. Australian projects delivered 37 cargoes to China in March, after
delivering 29 in February and 29 in March 2020. The previous record was 7.1mn mt in December 2019. West coast shipments
increased to 5.3mn mt in March from 4.1mn mt in February. East coast LNG shipments remained steady at 2mn mt,
EnergyQuest said. source : www.naturalgasworld.com

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and do not necessarily reflect the views of any other associated company. NEWS AND SOURCE: LNGWORLDNEWS, LNG INDUSTRY, THE HINDU BUSINESS, ARGUS MEDIA, PETROWATCH, REUTERS, IGU LNG REPORT 2018, TRADEWINDS, MONEYCONTROL

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