Demand for liquefied natural gas (LNG) is booming worldwide, driving investment in field developments, import and export terminals, and supporting tugboat fleets
Russia’s invasion of Ukraine and Europe’s response in cutting the continent’s independence on Russian gas has led to a surge in LNG imports and swift construction of import terminals, a trend that is unlikely to abate any time soon.
European nations are opening new LNG import centres using floating structures at a rapid pace, due to a lack of space and time for building onshore terminals, providing considerable opportunities for tug owners to expand and modernise their fleets.
Countries rich in gas resources are building LNG export hubs to generate enough supply to meet the rising global demand.
To ship LNG across the oceans, new gas carriers are required. BRL Shipping Consultants’ data shows there are 419 LNG carriers in the global shipyard orderbook, of which 54 were ordered this year.
Each LNG terminal, whether on land or offshore, requires at least four tugboats, probably five for redundancy and safety, to manoeuvre gas carriers to quaysides or dedicated moorings. With so many terminals opening or under construction, new towage services and tugs are required, fuelling newbuilding construction across the sector.
Several of the latest marine services and towage contracts are to support new LNG terminals in the long term, enabling owners to innovate and commit resources.
Some tug owners have used these concessions to enter new markets. Svitzer opened operations in Greece and ordered a fleet of newbuildings this year to support Gastrade’s Alexandroupolis Independent Natural Gas System LNG terminal. In Germany, Fairplay Towage and Boluda Towage are adding new tugs to support LNG import terminals.
In the US, there has been a renaissance in tug construction with many newbuildings being prepared to support LNG export terminals, while there has been a surge in innovative tugs built for British Columbia ports.
HaiSea Marine used a long-term contract to support LNG Canada’s new export facility in Kitimat, British Columbia, to innovate in tugboat power and fuel. Three new tugs, built by Sanmar Shipyards to Robert Allan Ltd’s ElectRA design, will be powered by batteries and two escort tugs will use LNG.
This is a combination others can and will use to reduce emissions when supporting gas carriers. This is not the first time tugs are being fuelled by LNG from the export terminal they service – three Østensjø tugs at Equinor’s Hammerfest LNG export facility have dual-fuel engines, while two PSA Marine tugs can use LNG fuel in Singapore.
More LNG export projects will follow, and new terminals will be opened as the world becomes more reliant on shipping gas globally. Specialised escort and terminal tugs will be needed worldwide, generating considerable business for tug owners willing to invest in their fleets.
LNG is for the current and next generation of projects. But in the future, it could be importing and exporting zero-carbon fuels and gases such as ammonia and hydrogen, which provides new opportunities to adventurous owners.
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