World’s largest LNG fleet owner reports increased profits

It said the results reflected its “strategic development, the success of its joint ventures, and the company’s resilience in the challenging economic climate.”

The Nakilat board said that Nakilat is in an enviable position as its ships are on long-term charter hire contracts that are not impacted by temporary fluctuations in oil prices. The board also affirmed its continued commitment to Nakilat’s growth and development strategy, in line with Qatar’s National Vision 2030.

“Nakilat continues to show robust profits and growth,” said Managing Director Eng. Abdullah Al Sulaiti. “Despite regional challenges, our policy of making prudent investments for achieving higher economic benefit in the short and long-term, and seeking sustainable growth opportunities continues to work in our favor. We have also lowered our operating costs, and our financing costs are decreasing as we have repaid a suitable amount of our loans.”

Mr. Al Sulaiti added: “We have also seen increased profits from our joint ventures, particularly since the launch of new two vessels during the year, along with an additional five vessels that became fully operational. Nakilat’s place as the lynchpin in the Qatari marine services sector will continue to grow unabated.”

Credit rating agency Standard & Poor’s (S&P) has reaffirmed Nakilat’s senior debt credit rating at “AA-” with a stable outlook, which Nakilat says is indicative of its strong capability to meet its financial commitments.

In addition to owning  63 LNG vessels  Nakilat also manages and operates four large LPG carriers via two strategic joint ventures: N-KOM and NDSQ.  It also operates the ship repair and construction facilities at Erhama Bin Jaber Al Jalahma Shipyard in Ras Laffan Industrial City and offers a full range of marine support services to vessels operating in Qatari waters.

Carnival and Chinese partners formalize cruise joint venture

OCTOBER 21, 2015 — Carnival Corporation & plc’s China cruising plans got some high level endorsement today when both British Prime Minister David Cameron and Chinese President Xi Jinping were on hand

OceanSaver wins LNG carrier BWTS retrofit order

Owned by French energy utility Energie and operated by Gazocean, the ship will be fitted with an OceanSaver Mk II BWT system with a treatment capacity of 2 x 3,000 cu. m per hour. OceanSaver will deliver the equipment in 2016.

“We see the contract award as an acknowledgment of our experience with retrofits to LNG carriers, and look forward to delivering this project at the highest industry standards,” says Alan Linderoth, Vice President Sales & Marketing at OceanSaver.

OceanSaver’s Mark II ballast water treatment system delivers high performance filtration in combination with disinfection through patented electrodialysis and has a flexible system installation.

“Our streamlined retrofit concept for efficient system installation receives positive feedback from customers. The Mark II system has a small footprint through its modular nature, which makes it perfect for retrofit,” says OceanSaver Sales Manager Benjamin Pettersson.

OceanSaver’s Mark II system is fully compliant with key regulations, standards and certificates, including IMO and US Coast Guard AMS.

NTSB issues new update on El Faro investigation

On February 13, 2015, El Faro successfully completed the American Bureau of Shipping (ABS) class and statutory surveys, meeting all rules and regulations as applicable. All deficiencies identified were rectified prior to completion of the surveys. None of the deficiencies were associated with El Faro’s main propulsion systems.

The annual inspection of El Faro, required by the United States Coast Guard (USCG), was completed by qualified USCG inspectors in San Juan, Puerto Rico, on March 6, 2015.

In June 2015, a qualified ABS surveyor examined and tested the main, auxiliary and emergency systems as part of the continuous machinery survey program and found them to be satisfactory.

TOTE told investigators that El Faro was scheduled to be removed from the route between Jacksonville and San Juan and redeployed to the U.S. West Coast where it would operate between Washington State and Alaska. In August, in order to prepare for this operational change, TOTE began to make modifications to the vessel while underway under the supervision of an additional chief engineer. Work on these modifications was performed by welders and machinists over many voyages, including during the accident voyage.

On September 11, 2015, TOTE received permission from the Coast Guard to shut down one of the ship’s two boilers so it could be inspected by an independent boiler service company during a voyage between San Juan and Jacksonville. As a result of the inspection, the boiler service company recommended service to both boilers during an upcoming drydock period that had already been scheduled for November 6, 2015. The boiler was returned to service following the inspection.
Interviews of relief crew and company management indicated that onboard safety drills were consistently conducted on a weekly basis. These included lifeboat drills for all crewmembers to ensure that all on board understood their responsibilities in an emergency.

Investigators interviewed two pilots that had guided El Faro in and out of the Port of Jacksonville; both reported that the vessel handled similarly to other vessels of its size and type.

The vessel’s terminal manager reported that El Faro met stability criteria when it left Jacksonville.The company’s procedures called for some cargo on the ship to be “double lashed” regardless of the weather expected to be encountered during the voyage. The vessel stevedores reported that prior to El Faro’s departure on the accident voyage, the cargo was secured in accordance with those procedures.

Before El Faro departed Jacksonville, Tropical Storm Joaquin was predicted to become a hurricane and a marine hurricane warning was issued by the National Hurricane Center’s Advisory #8 at 5:00 pm EDT on Sept. 29.

At about 8:15 pm EDT on Sept. 29, El Faro departed Jacksonville, Fla., for San Juan, Puerto Rico.

At 1:12 pm EDT on Sept. 30, the captain emailed a company safety official that he intended to take a route south of the predicted path of the hurricane and would pass about 65 miles from its center.

In an advisory issued at 2:00 am EDT on Oct. 1, the National Hurricane Center predicted seas of 30 feet with sustained winds of 64 knots (74 mph), increasing to 105 knots (121 mph) as the El Faro approached the wall of the eye of the hurricane.

In a recorded satellite phone call to the company’s emergency call center at 7:00 am EDT, the captain told the call center operator that he had a marine emergency. He reported that there was a hull breach, a scuttle had blown open, and that there was water in hold number 3. He also said that the ship had lost its main propulsion unit and the engineers could not get it going. The operator then connected the captain with the Designated Person Ashore (DPA). The DPA told investigators that the captain had communicated similar information to him that was provided to the call center operator, and also that the captain had estimated the height of the seas that El Faro was encountering to be 10 to 12 feet.

The USCG received electronic distress alerts from three separate sources on El Faro: the Ship’s Security Alert System (SSAS), the Inmarsat-C Alert, and the Emergency Position Indicating Radio Beacon (EPIRB).

According to electronic alert system data sent by the vessel at 7:17 am EDT on Oct. 1, its last reported position was about 20 miles from the edge of the eye of the hurricane.

The USCG did not have direct voice communications with El Faro, only electronic distress alerts.

The NTSB investigators that traveled to Florida have returned to continue work on the investigation from NTSB headquarters in Washington.

The NTSB contracted with the U.S. Navy to locate the ship, document the wreckage on the sea floor and recover the voyage data recorder.

The USNS Apache, a fleet ocean tug, was outfitted with specialized equipment for this mission, and departed Little Creek, Virginia, at about 4:30 pm EDT on October 19. In addition to the Navy crew, the NTSB investigator-in-Charge, Tom Roth-Roffy, is on Apache with representatives from the USCG, TOTE and ABS, all parties to the NTSB investigation.

The Apache is estimated to arrive at the last known position of El Faro on Saturday, October 24, to begin the search for the ship and to recover the voyage data recorder. Once the search operation begins, it is expected to take at least two weeks.

The length of the operation will depend on the circumstances encountered.Updates on the search for the vessel and the accident investigation will be issued as circumstances warrant.

Project aims to develop LNG fueled bulkers of the future

Called “Project Forward,” it aims to to develop a commercially feasible LNG-fueled dry bulk carrier design capable of complying with IMO’s Energy Efficiency Design Index 2025 standards, NOx Tier III and Marpol Annex VI SOx emission levels.

The project, which is led by Athens-based bulk carrier owner Arista Shipping, began officially in May this year.

“Project Forward aims to become a milestone for the shipping industry and in particular for owners and operators of cargo ships,” says Arista Shipping Principal Alexander P. Panagopulos. “Owners must decide within the next 5-10 years whether gas as fuel is a practical means of compliance with lower emissions standards and this project will enable all of us to understand its feasibility.”

The concept design will be based on the highly-optimized Deltamarin B.Delta design suitable for ships between 82,000 and 210,000 dwt. It will employ GTT’s membrane-type LNG tanks for fuel containment.

“Compliance with stricter environmental regulations has led owners to consider the potential of using LNG as fuel for cargo vessel newbuildings,” states Deltamarin Managing Director Mika Laurilehto. “There is a clear need to turn this potential into a proven solution for the dry bulk carriers that make up such a large proportion of the world fleet.”

The project will also address the existing dry bulk fleet by developing a modularized LNG fuel retrofit solution for bulk carriers of various sizes.

ABS will conduct concept and detail design approvals according to its rules for bulk carriers and gas-powered ships.

“ABS has gained valuable insights from real-world experience classing the world’s first deepsea ships powered by LNG,” says ABS Vice President of Global Gas Solutions Patrick Janssens. “Our work with owners, designers and shipyards on LNG as fuel and LNG-ready projects brings unique value to Project Forward in enabling the safe adoption of this new fuel type.”

Project Forward will include a number of stages, with a first time horizon of two years’ applied research and development work.

Initial research indicates that the expected emission reductions from Project Forward could be 40% for CO2, 80% for NOx and 98% for SOx.

“It is time for the shipping industry to move forward and embrace the potential of gas-fueled merchant ships,” says GTT Vice President LNG as Fuel division Jacques Danton. “At this time, we can recognize market leaders launching LNG projects now in order to be the first on the learning curve. During the ramp up phase of LNG as fuel, autonomy will be a key feature for integrated solutions as provided by membrane technology.”

Darley named LR’s Americas Regional Marine Manager

OCTOBER 19, 2015—Classification society Lloyd’s Register has named Mark Darley as its new Americas Regional Marine Manager and President of Lloyd’s Register North America (LRNA). He assumed the position from Tim Protheroe,

Alfa Laval EGR economizer is a fuel saver

For many shipowners, it could make EGR —rather than SCR (selective catalytic reduction) — the optimum means of meeting the NOX reduction requirements set by EPA Tier 4 and IMO Tier III requirements.

Developed by Alfa Laval in close cooperation with MAN Diesel & Turbo, the Aalborg EGR-HPE is a revolutionary new economizer enclosed in a pressure casing. Placed in-line ahead of the pre-scrubber sprayers in the EGR circuit, it can be used to gain a number of advantages. If connected to a conventional waste heat recovery system, for example, waste heat recovery becomes substantially more efficient – and is possible at significantly lower engine loads.

“EGR provides Tier III NOx compliance with a very compact footprint, but compliance itself is only part of the full potential,” says John Pedersen, Business Manager, Boilers, Combustion & Heaters at Alfa Laval. “Working closely with MAN Diesel & Turbo to optimize the EGR technology, we saw additional opportunities through our expertise in marine boilers. The result is the Alfa Laval Aalborg EGR-HPE economizer, which paves the way for extraordinary energy and fuel savings.”

“By moving the break point for waste heat recovery from a medium engine load down to a low load, the Aalborg EGR-HPE enables even slower steaming,” says Mr. Pedersen. “That means fuel savings that quickly pay back the economizer, offset the EGR investment and lower CO2 emissions on top of the NOx reduction.”

The source of all these benefits: the heat that would otherwise be lost during EGR. In the EGR process, around 30% of the exhaust gas is directed back into the engine, reducing the combustion temperature and thus the production of NOx. However, as only the 70% of the gas now reaches the traditional exhaust gas boiler after the turbocharger, waste heat recovery is reduced by 30%.

However, the Aalborg EGR-HPE is placed in-line before the EGR pre-scrubber spray jets that cool the exhaust gas. The economizer  thus has access to much higher temperatures than traditional exhaust gas boilers. So, while the installation is light, compact and self-cleaning due to the high speed of gas flow, its application potential is enormous. This can be seen in the way it increases the efficiency of a conventional waste heat recovery system.

The Aalborg EGR-HPE is integrated with conventional waste heat recovery after the turbocharger by means of its steam drum, which is shared by the traditional exhaust gas boiler. With the output of the traditional economizer feeding into the shared drum, the Aalborg EGR-HPE produces extremely high-quality steam with a temperature of just above 400°C, bringing the waste heat recovery system to a much higher level of efficiency.

“The difference in steam quality has a direct effect on the performance of the steam turbine,” says Mr. Pedersen. “Installation factors play a role, but a substantial increase in power generation can be expected.”

Fuel savings through even slower steaming

Even more importantly, using the Aalborg EGR-HPE in an integrated system allows waste heat recovery to occur at lower main engine loads than possible with a traditional waste heat recovery system in Tier III operation. In other words, it creates the possibility for even slower steaming.

“The EGR economizer makes waste heat recovery beneficial at far lower engine loads, down to around 30%” says Mr. Pedersen. “This means that vessels can steam even slower, with huge fuel savings as a result. A vessel performing EGR and using the Aalborg EGR-HPE will be not only compliant with Tier III, but also substantially more fuel efficient.”

Proven results at sea

The savings with the Aalborg EGR-HPE are not merely theoretical.

In a project supported by the Danish Energy-Technological Development and Demonstration Program (EUDP) and developed in cooperation with Aalborg University, the EGR boiler has been rigorously tested aboard the Maersk Cardiff, a 4,500 TEU containership delivered to Maersk Line in 2013.

“As a front-runner in the pursuit of green technologies, we were keen to see what the Aalborg EGR-HPE could do,” says Ole Christensen, Senior Machinery Specialist at A.P. Moller-Maersk. “But while we were enthusiastic about the boiler’s potential, we were also somewhat uncertain as how it would handle the physical realities of EGR. The temperatures are twice as high as those of traditional waste heat recovery, and the gas pressures are far greater.”

Those concerns disappeared when the boiler was brought online with the Maersk Cardiff’s two-stroke MAN B&W 6S80ME-C9 engine in November 2014. “Not only did the boiler survive,” says Mr. Christensen, “the results we have seen during testing are very promising.”

“By introducing the EGR boiler into the NOx equation, we’ve truly changed the balance,” says Alfa Laval’s Pedersen. “Suddenly EGR is not only a means of Tier III compliance, but also a means of radically improving the vessel’s energy efficiency. And that makes it a very different sort of investment.”

BW Marine’s product tanker company plans Oslo IPO

The IPO is expected to be launched during the fourth quarter of 2015., with pre-marketing starting this month.

The purpose of the IPO is to finance the company’s newbuilding program and to position it for future acquisitions and to take part in market consolidation.

BW Pacific currently owns a fleet of 33 vessels (17 owned LR1s and 16 owned MRs) and has a newbuilding orderbook of six LR1s and six MRs. The gross value of the fleet (including newbuildings) based on shipbroker valuations was US$ 1.6 billion at the end of third quarter 2015

Harvey Gulf takes delivery of second LNG fueled OSV

The vessel is already in service under a five year contract working for Shell Upstream America’s deep water operations in the Gulf of Mexico.

Like her sistership Harvey Energy, Harvey Power is capable of operating on LNG or diesel fuel and also meets the criteria of the ABS Enviro+, Green Passport notation.

When operating on 99% LNG, the dual fuel vessels exceed the requirements of the new EPA Tier IV for reductions of SOX and NOX emissions within the North American ECA can operate in excess of 19 days in normal GOM rig supply mode between refuelings.

Harvey Power will refuel with LNG at Harvey Gulf’s new LNG bunkering facility at Port Fourchon in southern Louisiana, which allows easy access to more than 600 oil and gas rigs and platforms within a 40-mile radius.

Harvey Power is a 310′ x 64′ x 24.5′ platform supply vessel powered by three Wärtsilä 6L34DF dual fuel gensets, providing 7.5 MW of power and fueled by a Wartsila provided LNGPac system.

With 5,219 metric tons of deadweight the vessel is capable of carrying 253,000 USG of fuel oil, 18,000 bbls of liquid mud, 1,600 bbls of methanol, 10,250 cu.ft of dry cement and 73,000 USG of LNG fuel.

When operating on LNG the Harvey Power can operate in excess of 19 days in normal GOM rig supply mode between refueling.

The acquisition of Gulf Coast Shipyard Group by a new Harvey Gulf International Marine affiliate, Harvey Shipyard Group, was announced back in June.

The shipbuilder’s new COO, Marvin Serna, says that new protocols and operational improvements he has put in place are yielding results, such as a 45 day reduction in the commissioning time of the second vessel in comparison with the first.

Harvey Gulf has four more vessels under construction with Gulf Coast Shipyard Group and is confident the shipyard can maintain the high quality of construction while continuing to improve on construction techniques resulting in shorter delivery times.

Mr. Shane Guidry, Chairman and CEO of Harvey Gulf, says: “This is our second vessel capable of operating on LNG and is a testimony of Harvey Gulf’s commitment to its customers and the environment to provide the most affordable, innovative, environmentally-friendly technical solutions to meet their business demands.”

Great Lakes Dredge eyes “strategic alternatives”

After markets closed Friday, Great Lakes Dredge & Dock Corporation (NASDAQ:GLDD) announced it has “initiated a process to review potential strategic alternatives to enhance stockholder value.” This phrase is generally accepted as being corporate gobbledygook meaning “we’re for sale, if the price is right?”

 

The company also withdrew its previously announced adjusted EBITDA guidance for the year ending December 31, 2015 “due to unanticipated project losses, delays and lower than expected new business in the environmental and remediation segment during the third quarter, and continued uncertainties in the segment.”

When the company reported its second quarter results on August 4, CEO Jonathan W. Berger said, “looking forward to the rest of the year, we expect robust revenue and earnings in the dredging segment as fleet utilization will continue to be at an elevated level. We expect the environmental and remediation segment’s performance to improve in the second half of the year, likely peaking in the third quarter, and thus we continue to expect to achieve total company adjusted EBITDA in the range of $97 million to $107 million for the year.”

On Friday, though Great Lakes said it now “does not intend to provide adjusted EBITDA guidance going forward for the year ending December 31, 2015. Greater detail on the third quarter results will be provided in the upcoming earnings release and investor call.”

Mr. Berger has notified the board of his intention to retire, “effective as of the earlier of April 13, 2017 or a date chosen by the board.” The company is “in the process of identifying a successor to fill the vacancy that will be created by Mr. Berger’s retirement.”

In changes to the board, Nathan D. Leight, director and chairman of the board and Denise E. Dickins, director and chair of the audit committee, have both handed in their resignations effective as of October 13, 2015.

Current director Major General (Ret.) Michael J. Walsh has been appointed as chairman, effective immediately.

Joining the board is Robert Uhler. He is president and owner of a privately held strategy and marketing firm that assists companies with successful execution of strategic objectives.

Previously, Mr. Uhler spent 36 years in the engineering and construction field, most recently at MWH Global Inc., a water and natural resources firm that provides technical engineering, construction services, and consulting services.

While at MWH, says Great Lakes Dredge and Dock, “Mr. Uhler acted as the company’s chief business strategist for over 20 years through a variety of corporate leadership positions, including chief strategy officer, president, chief executive officer and chairman. In addition, he led the international expansion of MWH through a disciplined sequential approach of geographical and client set expansion, widening the service offering and automating the delivery system.”

LOAD MORE