NTS delivers sixth LNG dual-fuel bulker to Himalaya Shipping
NTS delivers sixth LNG dual-fuel bulker to Himalaya Shipping - Offshore Energy
NTS delivers sixth LNG dual-fuel bulker to Himalaya Shipping
Bermuda-based bulk carrier company Himalaya Shipping has welcomed its sixth of twelve 210,000 dwt Newcastlemax LNG dual-fuel newbuildings from New Times Shipyard in China.
The delivery of the vessel named Mount Neblina was announced on 29 August. According to the shipowner, Mount Neblina will now commence a minimum 24-month time charter with an evergreen structure thereafter and will earn an index-linked rate, reflecting a significant premium to a standard Capesize vessel.
The time charter also includes a profit sharing of any economic benefit derived from operating the vesse’s scrubber or running on LNG, as well as certain rights to convert the time charter to a fixed rate based on the prevailing forward freight agreement (FFA) curve from time to time.
“We are excited to take delivery of the sixth vessel, which is chartered to a leading commodity trading house. The shipyard has again delivered a high-quality vessel slightly ahead of schedule. Mount Neblina will add another state-of-the-art vessel to the youngest dry bulk fleet on the water today. It is encouraging that three vessels of the Himalaya fleet have bunkered with LNG in Singapore over the last month, which makes us confident in our choice to invest in dual fuel engines. Less than 2% of the Capesize fleet can run on LNG which brings the company in the pole position to benefit from the environmental regulations being introduced,” said Herman Billung, contracted CEO of Himalaya Shipping.
To remind, Himalaya Shipping has a total of twelve LNG dual-fuel 210,000 dwt Newcastlemax ships on order at Chinese NTS. The first two vessels, Mount Norefjell and Mount Ita, were delivered in March this year. Mount Etna, Mount Blanc and Mount Matterhorn followed suit in April, May and July, respectively.
The ships will be fitted with scrubbers allowing them to run on high-sulfur fuel oil as well as LNG and low-sulfur fuel oil with the design that will also allow for future conversion to next-generation fuels.
They will also feature ABB’s shaft generators with a power-take-off (PTO) solution, comprising new drive systems and permanent magnet technology.
The ships will run on MAN ME-GI high-pressure LNG dual-fuel engine, which in combination with in-line shaft generator the concept offers low methane slip.
Related Knowledge Center: Liquefied natural gas
Driven by plentiful natural gas produced from shale plays, the United States began exporting liquefied natural gas in 2016 when the Sabine Pass terminal in Louisiana opened and shipped its first cargo. Since then, additional capacity, or trains, have been added to Sabine Pass, and terminals have become operational in Cameron Parish, La.; Hackberry, La.; Cove Point, Md.; and Corpus Christi, Texas. The Energy Information Administration projects that U.S. LNG export capacity will reach 8.9 billion cubic feet per day (Bcf/d) by the end of 2019, making it the third largest in the world, behind Australia and Qatar. The tariff war with China has the potential to impact some final investment decisions for additional terminals in the coming months.