Koch Supply & Trading (KS&T) 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 LNG STS transfer was the first one realized in Philippines and the agreement is also the first of its kind for the three companies.
According to KS&T, 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 managed by Teekay Marine Solutions. 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.”
Terms of the agreement were not announced.
