Koch Supply & Trading, JOVO, MISC, Teekay Marine Solutions Sign Pioneering Deal in LNG Ship-to-Ship Transfer
May 24, 2017 17:30 KST
LONDON--(Business Wire / Korea Newswire) May 24, 2017 -- Providing another example of its innovative solutions within a developing LNG market, Koch Supply & Trading (KS&T) today announced the completion of the first of multiple and regular ship-to-ship (STS) LNG transfers with private Chinese company JOVO and Malaysian ship owner MISC. The agreement is the first of its kind for KS&T, JOVO and MISC and is the first LNG STS transfer in the Philippines.
With LNG STS transfers traditionally serving more of an operational role, this project represents a key commercial milestone as a recurring STS transfer demonstrates the commercial potential of such activities. Such operations open new markets for exporters and provide new supply sources to those with LNG requirements. In this example, the mother vessel loads cargo from Australia before transferring it to a smaller daughter vessel at Subic Bay in the Philippines. The operation is carefully managed by Teekay Marine Solutions with Teekay and MISC providing their extensive LNG experience to administer a safe and successful transfer. The cargo is then delivered to JOVO’s Chinese terminal where it is distributed by truck to one of their many industrial or commercial customers in Southern China.
“This partnership between first class ship owners, industry leading STS service providers and innovative LNG consumers allows companies in developing markets to gain new access to global volumes and a wider variety of logistics and infrastructure players,” said Peter Leoni, director of trading at Koch Supply & Trading.
“Looking at how the LNG market is developing,” Tim Mendelssohn, LNG freight and operations manager at Koch Supply & Trading continued, “we are challenging the existing business model as a problem-solving, solution-oriented agent for LNG ship-to-ship transfers in emerging economies around the globe, reducing barriers to market entry.”
“This project’s complexity, along with a commitment to safe and compliant operations have created an inherently multinational agreement involving multiple ‘best in class’ stakeholders including MISC, Teekay Marine Solutions, KLAW LNG and JOVO,” said Chris Huang, international manager from JOVO.
Lu Yuan, general manager of international business for JOVO added, “We appreciate the significant role played by Koch Supply & Trading in orchestrating this historic agreement. Together, we are showing that it is possible for multinational corporations to work together to achieve mutual benefit for society. We hope this arrangement with Koch will be the first of many such innovations in the industry.”
Stephen Davidson, vice president - LNG, Teekay Marine Solutions stated, “We welcomed this opportunity to work with Koch to bring this project online, and in working with all entities to ensure the operation was conducted in a safe manner following all industry guidelines and recommendations. We hope this is the start of a new long term partnership with all parties building on the work that has already been completed to bring this first historic job to fruition. We are pleased to be involved in yet another groundbreaking project for the LNG industry.”
Terms of the agreement were not announced.
About Koch Supply & Trading
Koch Supply & Trading companies around the world trade crude oil, refined petroleum products, gas liquids, natural gas, liquefied natural gas, power, renewables and emissions, and metals. The companies have traders, originators or marketing staff in Wichita, Houston, New York, London, Geneva, Singapore and Shanghai. Learn more at www.ksandt.com.
JOVO Group Co., Ltd. Guangdong is a private Chinese company, founded in 1990 having started its business in LPG trading. Over the last 25 years, JOVO has become an industry leading energy company with a focus on clean energies, such as LPG, LNG and DEM. They are involved in the whole industrial supply chain, including international purchase, storage, processing, production, logistics and sales. At present, JOVO Group owns a fully operational receiving terminal in the Pearl River Delta, China and can store and distribute LNG, LPG, Methanol, Oil and several kinds of gas and petroleum products. Outside of the oil majors, JOVO’s LNG project is the first and only privately funded terminal in China under operation. Learn more at www.jovo.com.cn.
MISC Berhad (MISC) was incorporated in 1968 and is a world leading provider of international energy related maritime solutions and services. We take pride in our asset and service reliability, commitment to uphold the highest standards of Health, Safety and Environment (HSE), fostering a culture of excellence amongst our employees, operating responsibly and caring for the environment as well as making a positive difference to the communities in which we operate.
The principal businesses of the Group comprise energy shipping and its related activities, owning and operating offshore floating solutions, marine repair and conversion, engineering and construction works, port and terminal services as well as maritime education and training.
MISC Group’s fleet consists of more than 110 owned and in-chartered LNG, Petroleum and Product vessels; as well as 14 floating facilities. The fleet has a combined capacity of approximately 12 million dwt.
Aside from its shipping business, maritime education is a priority for the Group and its Malaysian Maritime Academy (ALAM) is ranked amongst the top 10% of the world’s Maritime Education and Training (MET) institutions.
Since 2014, we have been a proud constituent of the FTSE4Good Bursa Malaysia Index, a testament to our sustainability performance and strong Environmental, Social and Governance (ESG) practices.
About Teekay Marine Solutions
Teekay Marine Solutions (branded as LNGSTS) are 100% owned by Teekay Tankers. They are an industry leading STS service provider with a dedicated LNG department specialising in LNG transfers, project development, consultancy and management of terminals and facilities.
Teekay Marine Solutions have gained their knowledge of LNG STS Transfers and Terminal Operations through being involved with many of the world’s most innovative FSRU and FSU/FSRU projects.
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