Posted - December 27, 2013 - Maritime Professional
Nearly 90% of the LNG fleet will be able to transit the
expanded Panam canal after it comes on line towards the end of 2015,
compared to just 7% today, according to Poten's recent monthly report
'LNG in World Markets'.
Although the timing fits perfectly with the liquefaction projects
under construction or proposed on the US Gulf Coast and along the
eastern seaboard, the idea that LNG vessels would be transiting the
canal was not on any radar screen when the expansion was first
conceived. Imports of LNG into the US actually peaked in 2007 at 16 MMt,
largely sourced from exporters in the Atlantic basin with no need for
the canal.
The major impetus behind the expansion was to attract larger
container vessels, allowing Panama to compete with rival offerings from
the Suez Canal. Now, however, the 48-mile artery connecting the Atlantic
and Pacific oceans promises to become an inter-basin route for US
export projects.
The new locks will be 55 meters wide, representing a significant
increase from the existing dimensions of 32.4 meters. This aspect of the
expansion is what has gained the most attention from the LNG industry,
as the canal’s current beam restrictions prevent all but a handful of
older 18,000- 50,000 m3 vessels from transiting the waterway. Once
complete, the expansion will allow ships with a length overall of 366
meters, a beam of 49 meters and a draft of 15.2 meters. Only the Qclass
vessels in Qatar’s fleet will still be too wide to transit the canal
after it is expanded, explains Poten.
Benefits to Gas Carriers of using Panama Canal
While tolling fees are expected to be finalized in the first half of
next year, under the current structure a 173,000 m3 membrane vessel
would pay $382,440 for the laden voyage while the ballast leg would cost
$301,500. This equates to a charge of around 18 cent/MMBtu for
transiting the canal. It is also nearly 20% less than the roundtrip
through Suez, which costs some $830,000 for a similar sized vessel.
The trip from the US Gulf Coast to Japan and back through Panama
will take around 49 days, shaving 26 days off the roundtrip voyage
compared to going through Suez. A special ballast rate will be offered
for shippers that decide to do a roundtrip, although this will require
use of the same vessel on both legs and the ballast transit must be
completed within 60 days of the laden passage.
Some Moss LNG carriers still too big
However, a number of existing Moss ships will be too wide to transit
the Panama Canal even after expansion. Many of the 145,000 m3 to
148,000 m3 Moss vessels have beams just over 49 meters. Forward
visibility could also be a problem for some Moss ships. Although it is
unlikely that any vessel that fits the LOA, beam and draft
specifications will be refused passage, extra costs may be incurred for
additional escort tugs and pilots if visibility is an issue.
Poten's Monthly LNG Report adds that the authority has not
concluded if liquid petroleum gas ships will be in the same category as
LNG. Only a half dozen or so Very Large Gas Carriers can transit the
canal now, but this will change with the expansion. With LPG production
rising in the US, exports are expected to ramp up sharply, and citing
expert sources, Poten's add that once the canal is expanded, there will
be a lot more LPG exports going out of the US Gulf Coast to the Far
East.
The report in greater detail can be found at:
http://www.poten.com/Document.aspx?id=25340&filename=Panama%20Canal%20Prepares%20For%20Expansion%20In%202015.pdf
Post to be found at:
http://www.maritimeprofessional.com/News/362400.aspx
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