Norwegian LNG bunker vessel company Kanfer Shipping, Leth Suez Transit and producer Egyptian Natural Gas Holding Co (EGAS) are seeking companies to partner with them on an LNG bunkering hub for the Suez Canal and wider region.
The trio are in discussions with potential commodity or bunkering trading companies who would be interested in forming a joint venture to progress the project, Leth head of commercial Christian Hellerud told TradeWinds.
This follows a memorandum of understanding on the planned jv signed between the three companies on 3 February.
Under their plan, EGAS would supply the LNG volumes for the bunkering. These would come from either of Egypt’s two land-based liquefaction plants — Idku LNG and Damietta LNG — or from the country’s lone floating storage and regasification unit at Ain Sukhna.
The jv would charter and operate an LNG bunker vessel (LNGBVs) newbuilding ordered by Kanfer Shipping to move volumes from the supply sources to vessels in the Egypt Mediterranean region, the Suez Canal and the Red Sea.
In 2021 Kanfer confirmed an order for two speculative, 6,000-cbm LNGBVs with China’s Taizhou Wuzhou Shipbuilding Industry for delivery in the second half of 2023.
The companies are targeting a start-up date in 2025 for the bunkering project.
Kanfer managing director Stig Hagen said: “We are confident that the jv can provide competitive prices towards the key ports and hubs such as Singapore and ARA [Amsterdam Rotterdam Antwerp]. We believe that this will attract shipowners and influence their decision-making on where they will replenish LNG.”
The partners said Egypt is a strategic location for international shipping and will be an important location for LNG bunkering calls between Europe and Asia.
They said the Suez Canal waiting convoy waiting time could be used at either Port Said or Suez for bunkering.
The partners quoted Himalaya Shipping chief executive Herman Billung in apparent support of their plan.
“Himalaya Shipping, with its 12 dual fuel Newastlemaxes under construction, is pleased to see such an initiative to establish an LNG bunkering hub in the Suez Canal. To make LNG available in strategic important areas is imperative for our company in our efforts to meet our target to transport dry bulk commodities with lower emissions at a competitive price for our customers,” Billung said.
EGAS has made it clear that they are able to allocate a substantial volume of LNG to this growing segment in order to make the shipping industry, Suez Canal and Egypt greener, Kanfer, Leth and EGAS said.
Suez Canal Authority chairman and managing director Admiral Osama Mounier Mohamed Rabie said: “This will be an important step for Egypt and attract more business to the Suez Canal.”
