Japan’s Mol orders dual-fuel LPG, ammonia VLGCs

  • : Fertilizers, LPG
  • 24/05/16

Japanese shipping firm Mitsui OSK Lines (Mol) has ordered two dual-fuel very large gas carriers (VLGCs) to deliver LPG and ammonia, with commissioning expected in 2026.

Mol has reached a deal with TotalEnergies' shipping arm CSSA Chartering and Shipping Services to charter two 88,000m³ VLGCs to deliver LPG and ammonia, although the specific time period is undisclosed. The vessel will be built by South Korean shipbuilder Hyundai Samho Heavy Industries, which has developed an engine that can use LPG and fuel oil.

Japan's LPG consumption totalled 11.8mn t in the 2023-24 fiscal year ending 31 March, down by 3.2pc from a year earlier, according to the Japan LP Gas Association. Japan's trade and industry ministry expects the downwards trend will be driven further by technology innovation of high efficiency equipment. But its expects ammonia demand as a fuel to increase to 3mn t/yr by 2030 and to 30mn t/yr by 2050.

Japan has set a goal of a 20pc ammonia co-firing at domestic coal-fired power plants by 2030 and above 50pc by 2050 to achieve the country's 2050 decarbonisation goal.


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24/06/12

US Fed signals one rate cut this year

US Fed signals one rate cut this year

Houston, 12 June (Argus) — The US Federal Reserve kept its target interest rate unchanged at a 23-year high today while officials signaled they expect to make only one quarter-point rate cut later this year. The Fed board and policymakers, in their latest economic projections, expect the target rate range will end 2024 near a midpoint of 5.1pc, compared with the 4.6pc midpoint projected in March. That implies one quarter-point cut, down from three possible cuts penciled-in previously. "We do not expect it will be appropriate to reduce the target range for the federal funds rate until we have gained greater confidence that inflation is moving sustainably" towards the Fed goal of 2pc, Fed chairman Jerome Powell said after the meeting. "As the economy evolves, appropriate assessments of the policy path will adjust in order to best promote our maximum employment and price stability goals." The Fed's Federal Open Market Committee (FOMC) held the federal funds target rate unchanged at 5.25-5.5pc. It was the sixth consecutive meeting in which the Fed held rates steady following 11 increases from March 2022 through July last year in the most aggressive hiking campaign in four decades. The decision to keep rates steady was widely expected. CME's FedWatch tool, which tracks fed funds futures trading, had assigned a 99pc probability to the Fed holding rates steady today. The FedWatch tool had earlier signaled two rate cuts later this year, but following a better-than-expected inflation report this morning, FedWatch is now indicating three possible rate cuts, beginning in September. The Fed's economic projections see core Personal Consumption Expenditures inflation, the Fed's favorite measure of inflation, ending 2024 at a median forecast of 2.8pc from a prior forecast for 2.6pc. Policymakers see inflation falling to a median 2.3pc next year. The outlook for the unemployment rate for the end of 2024 remained unchanged at 4pc. Policymakers expect gross domestic product (GDP) growth to end the year at 2.1pc, unchanged from prior projections. The latest policy meeting comes as the Consumer Price Index (CPI) eased to an annual 3.3pc in May , down from 3.4pc in April, the Labor Department reported earlier today. Inflation had ticked up to 3.5pc in March from 3.1pc in January, prompting the Fed to turn more cautious about beginning its rate cuts. US job growth has surprised to the upside and continues to top pre-Covid levels. GDP growth slowed to a 1.3pc annual rate in the first quarter, from 3.4pc in the fourth quarter of 2023. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US inflation eases to 3.3pc in May as Fed meets


24/06/12
24/06/12

US inflation eases to 3.3pc in May as Fed meets

Houston, 12 June (Argus) — US consumer inflation eased slightly in May for a second month, a sign Federal Reserve rate hikes are having some success in reining in inflation pressures after a spurt of gains earlier this year. The consumer price index (CPI) slowed to an annual 3.3pc in May from 3.4pc in April, the Bureau of Labor Statistics reported today. So-called core inflation, which strips out volatile food and energy prices, increased by 3.4pc over the past year, the lowest reading in three years, from 3.6pc through April. The energy index rose by an annual 3.7pc, compared to a 2.6pc rise in April, while the gasoline index rose by 2.2pc versus 1.2pc in April. Energy services rose by an annual 4.7pc. Headline inflation had ticked up from 3.1pc in January amid stronger than expected economic data, prompting the Federal Reserve to delay widely expected rate cuts as it pledged it needed to see more evidence of a "sustained" slowing in inflation. The inflation report, which came in slightly under economists' median forecasts, comes hours ahead of a Federal Reserve policy announcement today expected to reveal projections on whether Fed members still expect to begin cutting the target rate this year and by how much. Fed policymakers today are widely expected to keep their target rate unchanged. The Fed hiked its target rate to a 23-year high of 5.25-5.5pc in July 2023 and has kept it there since as it has battled to bring down inflation that hit a high of 9.1pc in June 2022. After the report, the CME's FedWatch tool signaled a 73pc probability that the Fed will cut its target rate in September from near 53pc odds Tuesday. CPI was unchanged from the prior month, the first flat monthly reading in two years, following a 0.3pc monthly gain in April and 0.4pc gains in the prior two months. Core CPI was up by 0.2pc for the month after a monthly gain of 0.3pc in April. The energy index fell 2pc in May on the month after rising 1.1pc the prior month. The food index rose by 0.1pc in May after being unchanged the prior month. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

AW Shipping’s VLACs join newbuild order book


24/06/12
24/06/12

AW Shipping’s VLACs join newbuild order book

Singapore, 12 June (Argus) — AW Shipping, a joint venture between Abu Dhabi's state-owned Adnoc and Chinese petrochemical producer Wanhua Chemical, has ordered up to four Very Large Ammonia Carrier (VLAC) newbuilds. AW Shipping ordered up to four 93,000m³ VLACs from China's Jiangnan Shipyard in Shanghai. The deal was for two firm and two optional VLACs, with prices estimated at around $120mn each, according to sales and purchase and newbuild vessel sources. AW Shipping has yet to respond to Argus to confirm the prices. It added five very large gas carriers to its fleet at the end of last year. The 86,000m³ newbuilds — Al Ain , Zakher , Rabdan , Al Salam and Baynounah — were built by Jiangnan and are equipped with dual-fuel engines that can run on LPG, which will be used as the primary fuel, as well as standard bunker fuels, the company said. Ammonia carrier demand is increasing as it gains traction in the energy and agricultural sectors and plays a part in decarbonisation efforts. It is becoming more popular because of its low-carbon qualities, which make it a desirable option for use in power plants and as an alternative fuel in the maritime sector. Ammonia is also extensively used in the production of fertilizer. But development of a VLAC market could be delayed by a lack of terminal infrastructure to allow discharge of 40,000-60,000t cargoes, said Steem1960 ammonia shipbroker Lisa Maria Assmann at the Argus Clean Ammonia conference in Tokyo in May. Around 40 VLACs are scheduled to hit the water between 2026-28, when an uptake in clean ammonia trade is likely to be pushed by public tenders from South Korea and Japan. "VLACs cannot discharge these large volumes using the existing infrastructure," Assmann said. "We have storages that are much smaller than that, terminals with draft issues, LOA (length overall) issues. With all these problems, I do not see these large volumes being discharged in a speedy manner in the short term, not before 2035-40 at least." By Sean Zhuang Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Canada makes 3 additions to critical minerals list


24/06/10
24/06/10

Canada makes 3 additions to critical minerals list

Houston, 10 June (Argus) — High-purity iron, phosphorus, and silicon metal were added by the Canadian government to the country's critical minerals list. In an analysis of the 2021 list and possible additions, the update kept all 31 minerals from the original list and added high-purity iron, phosphorous, and silicon metal. High-purity iron ore is used in "green" or low-carbon steel. Phosphorus is a fertilizer and can also be used in Lithium Iron Phosphate (LFP) batteries. Silicon metal is used to manufacture chips and semiconductors. Canada reviews minerals recognized as critical every three years with its first list published in 2021. The list is intended to guide public policy and signal government priorities, according to the government. By Alise Pruitt Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

India’s SECI seeks long-term green ammonia supply


24/06/10
24/06/10

India’s SECI seeks long-term green ammonia supply

Singapore, 10 June (Argus) — State-owned Solar Energy Corporation of India (SECI) has issued a tender on 7 June to select eligible suppliers to supply 539,000 t/yr of green ammonia. The ammonia will be supplied to 11 fertilizer facilities in India, owned by eight different fertilizer producers. Offers are to be submitted online by 29 July and in hard copy by 31 July. SECI will then hold a reverse auction to select the successful suppliers. SECI will sign a Green Ammonia Producers Agreement (Gapa) with the successful suppliers for a period of 10 years based on the terms and conditions of the tender. Participants are to submit a fixed price which shall remain valid for the duration of the Gapa. Successful suppliers under this tender are required to set up green ammonia production facilities in India to produce and supply green ammonia to the phosphate fertilizer producers listed in the table below, including building storage and transporting product to the producers. Successful suppliers will have access to the following government subsidies: 8.82 rupees/kg ($105.62/t) of green ammonia in the first year of production and supply Rs7.06/kg during the second year of production and supply, Rs5.30/kg during the third year of production and supply They will also be eligible for carbon credits, which will be issued by a separate entity and not discussed in this tender. This tender was initially announced in January . It is part of SECI's efforts as an agency under India's Ministry of New and Renewable Energy (MNRE) and the implementing agency for the Implementation of Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme under India's National Green Hydrogen Mission aimed at enabling rapid scale-up, technology development and cost reduction of green hydrogen production. By Huijun Yao Tendered capacity for green ammonia supply unit Fertilizer Producer Location Green ammonia requirement (t/yr) Shipment schedule Indian Farmers Fertilizer Cooperative Limited (IFFCO) Kandla, Gujarat 100,000 25,000 t/quarter IFFCO Paradeep, Odisha 100,000 25,000 t/quarter Madras Fertilizers Limited (MFL) Manali, Chennai, Tamil Nadu 4,000 350 t/month Gujarat Narmada Valley Fertilizers & Chemicals Limited (GNFC) Bharuch, Gujarat 50,000 12,500 t/quarter Paradeep Phosphates Limited (PPL) Paradeep, Odisha 75,000 23,500 t/quarter PPL Zuarinagar, Goa 25,000 4,500t every other month Indorama India Private Limited (IIPL) Haldia, West Bengal 20,000 1,100-1,200 t/month Mangalore Chemicals & Fertilizers Limited (MCFL) Panambur, Mangalore, Karnataka 15,000 3,000 t/quarter Coromandel International Limited (CIL) Vishakhapatnam, Andhra Pradesh 50,000 - CIL Kakinada, Andhra Pradesh 85,000 - CIL Ennore, Tamil Nadu 15,000 - Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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