Koch Supply & Trading (KS&T) has announced the completion of the first of multiple and regular ship-to-ship (STS) LNG transfers with private Chinese company JOVO and Malaysian ship owner MISC. The agreement is the first of its kind for KS&T, JOVO and MISC and is the first LNG STS transfer in the Philippines.
With LNG STS transfers traditionally serving more of an operational role, this project represents a key commercial milestone as a recurring STS transfer demonstrates the commercial potential of such activities. Such operations open new markets for exporters and provide new supply sources to those with LNG requirements. In this example, the mother vessel loads cargo from Australia before transferring it to a smaller daughter vessel at Subic Bay in the Philippines. The operation is carefully managed by Teekay Marine Solutions with Teekay and MISC providing their extensive LNG experience to administer a safe and successful transfer. The cargo is then delivered to JOVO’s Chinese terminal where it is distributed by truck to one of their many industrial or commercial customers in Southern China.
“This partnership between first class ship owners, industry leading STS service providers and innovative LNG consumers allows companies in developing markets to gain new access to global volumes and a wider variety of logistics and infrastructure players,” said Peter Leoni, director of trading at Koch Supply & Trading.
“Looking at how the LNG market is developing,” Tim Mendelssohn, LNG freight and operations manager at Koch Supply & Trading continued, “We are challenging the existing business model as a problem-solving, solution-oriented agent for LNG ship-to-ship transfers in emerging economies around the globe, reducing barriers to market entry.”
“This project’s complexity, along with a commitment to safe and compliant operations have created an inherently multinational agreement involving multiple 'best in class' stakeholders including MISC, Teekay Marine Solutions, KLAW LNG and JOVO,” said Chris Huang, international manager from JOVO.
Lu Yuan, general manager of international business for JOVO added, “We appreciate the significant role played by Koch Supply & Trading in orchestrating this historic agreement. Together, we are showing that it is possible for multinational corporations to work together to achieve mutual benefit for society. We hope this arrangement with Koch will be the first of many such innovations in the industry.”
Stephen Davidson, vice president – LNG, Teekay Marine Solutions stated, “We welcomed this opportunity to work with Koch to bring this project online, and in working with all entities to ensure the operation was conducted in a safe manner following all industry guidelines and recommendations. We hope this is the start of a new long term partnership with all parties building on the work that has already been completed to bring this first historic job to fruition. We are pleased to be involved in yet another groundbreaking project for the LNG industry.”
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/24052017/sts-transfer-agreements-signed/