LNG bunkering and small

Nov 03, 2023

Save to read list Published by Callum O'Reilly, Senior Editor Hydrocarbon Engineering, Friday, 12 May 2023 10:41

C. B. Fenton, part of Ultramar (Chile), and Kanfer Shipping signed a Memorandum of Understanding (MoU) in December 2022 with the purpose of establishing an LNG bunkering hub and small-scale LNG distribution in Panama.

The two parties are now moving forward and bringing onboard Melones Oil Terminal (MOTI). MOTI is among the largest and most influential marine fuel oil terminal operators in Panama, providing reliable and safe storage of marine fuels. MOTI and its affiliate company, Trader Tankers, view LNG as the transition fuel for the maritime industry and see Panama as a strategic location for LNG bunkering.

For this reason, the parties have signed an MoU with the purpose of commercialising small-scale LNG bunkering and distribution in Panama and more specifically in Balboa. MOTI is on the Pacific side of Panama where about 80% of the conventional bunkering is being done today. The parties aim to establish a small-scale LNG terminal on the Pacific side, to serve the ports along the Pacific side of Panama and carry out small scale LNG distribution along the coast.

The partners have had many discussions with various LNG sources and have identified most of the sources in the region.

The Group is now determined to bring this project to commercialisation and will be starting a feasibility study, including bringing in another solid partner from the LNG bunkering and distribution value chain. The discussions with such parties have already commenced.

"We are proud to be part of this select group of companies leading the way in the decarbonisation of the maritime industry. As leading companies in the marine product segments, we have a responsibility to look for solutions for decarbonisation in the industry. This MoU is just the first step in what promises to be a fruitful collaboration between distinct parties that each bring resources, expertise and vision to the table", said Horacio Cofer, CEO at Melones Oil Terminal.

"We are delighted to have MOTI taking part in this important project. They will be an important cornerstone in this project in many ways with their professional approach to this market, their name and reputation including the drive to make things happen and have focus on future fuels", said Stig Hagen, Managing Partner in Kanfer Shipping.

"The target remains; we would like to see the service up and running with Kanfer's state-of-the-art bunkering ships by late 2025/early 2026", the parties concluded.

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/12052023/lng-bunkering-and-small-scale-lng-distribution-in-panama-closer-to-reality/

The decision by OPEC+ to extend current production cuts, and an additional voluntary 1 million bpd reduction from Saudi Arabia in July 2023, should provide support for prices during the rest of 2023, according to Wood Mackenzie.

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