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Gulf Stream Tanker Chartering LLC.
Knut A. Scharning
828 Heights Blvd., Houston, Texas 77007 • Phone 713 869 4657 • Cell 713 291 0044
Methanol Conference
Houston, Texas - June 10, 2015
What effect will the
New & Expanded Panama Canal
have on the
Methanol Market
True or False
The expansion of the Panama Canal is now scheduled for
completion - Q2 , 2016
Will this be a game changer for the MEOH Market ?
.
Knut A. Scharning
828 Heights Blvd., Houston, Texas 77007 • Phone 713 869 4657 • Cell 713 291 0044
World Stability
Methanol World,
Conversions
One Metric Ton (2,204.62 lbs)
= 333 U.S. gallons of MEOH
10,000 bbls Barge = 1,254 MTon
1 ship = 32+ barges > 317,200 bbls > 40,000 MTon
Methanol Specific Gravity / SG = 0.7920
MEOH => is a cubic cargo, not a weight cargo in respect to
ships and transportation
Meter/Ft LB/GAL LB/BBL BBL’s/MTon
3.28 6.62 278.06 7.93
World Fleet :
Total Number Of Ships, By Type And Size
The world merchant fleet in 2013
Source : Equasis (1) GT<500 - (2) 500≤GT<25.000 - (3) 25.000≤GT<60.000 - (4) GT≥60.000
Typical Chemical Carrier- A CPP Carrier - A Dirty Tanker
Vessel Size and Cargo Type
MR – about 40.000 Mton MEOH
Cargo Max – old Panama Max
LR 1 or Post P-Max about 66,000
Mton MEOH max
60 % will be Post P-Max
85 % will be Post P-Max
Typical Large MEOH Ship MR or LR1:
M/T Fjellanger
• Main Dimensions:
– LOA 183.22 m / 586.3 feet
– Beam 32.24 m
– Air draft SDWT condition 42.62 m
• Load-lines Draft Deadweight Displacement
• Summer 12.32 m /40.05 feet 46,287 mt 56,661 mt
• Cargo tanks / pumping arrangements
– Number of cargo tanks / slop tanks 20 / 2
– Cubic capacity at 100% 53,457.50 m3
– MEOH Max Capacity about = 40,000 mt or 317,143 Bbls = > 13,320,000 Gallons
– How many tanks over 3,000 m3 0
– Identify tank coating Inorganic Zinc - Jotun Resist GTI
– Number / capacity cargo pumps 22 Submerged, Centrifugal
– Number of pumps able to run simultaneously 6
– Number of natural segregations (2 valve) 12
– Number and capacity of N2 generators 1 / 4500 m3/hr
•
© 2008 Waterfront Shipping
Typical LR 1 vessel :
M/T JO PROVEL - 75 022 DWT
• Tanker for Oil Flag: NIS
• Summer DWT: 75,022
• Year: 2013
• No. of tanks: 14
• Tank Average Size: 7,111 m3
• Hull: Double
• Shipyard:
• STX Offshore & Shipbuilding Co.
• Total capacity: 84,500 m3
• Pure Epoxy: 84,500 m3
• IMO no.: 9592692
• Class: DnV
•
• DIMENSIONS/DISTANCES: Meters / Feet
• Length overall 228.00
• Breadth moulded 32.24
• Depth moulded to main deck 20.65
• Draft on summer load line 14.30 / 46.48
• Bow to centre manifold 114.40
• Stern to centre manifold 113.60
• Rail to manifold connection 4.60
• Keel to top of mast 49.20
• Parallel body 140.30
• Max MEOH cargo 64,500 mt
511,393 Bbls
21,478,500 Gallons
Restrictions
• Cargo Restrictions
• Last Cargo – Cleanliness – hydrocarbon residue - Chlorides
• IMPCA Methanol Reference Specifications
• Inert tanks - cargo class IMO I, II, III - 3000 m3
• Carriage of chemicals in bulk is covered by regulations in SOLAS Chapter VII
– Carriage of dangerous goods and MARPOL Annex II - Regulations for the Control of Pollution by Noxious
Liquid Substances in Bulk.
• International Maritime Organization (IMO): MEOH Class 3(6.1), UN1230, P.G. II, Flash Point = 12 oC
• Port & Terminal Restrictions
• Draft deep and air - Traffic /waiting – weather / season
• Terminal capacity - ships and tanks
• Hurricane or local weather / Cargo in tank
• Trade Restrictions
• Trading backhaul cargoes
• Ships in rotation - timing
• Customers receiving capacity
• Trading second port
• Time Spent in rotation
• Size - ship, cargo, finance
• Port Easiness – Congestion, Local Corruption
• Cost – bank, port, Canal Fees and Bunker cost
• Government Stability – new laws – efficiency – Tax
Channel Depth USG & USEC Ports
2012
MEOH_2015_Presentation_June10
Port Requirements
• Ports have to be flexible enough to cope with volatile
economic cycles, and adjust their respective capacities
accordingly. Dry Cargo’s has more room to jump.
• An upcoming trend ‘smart ports’.
• Connection to & from the Hinterland is vital.
• Integration of the global supply
• Rival Ports. This highly dynamic environment requires
port authorities and terminal operators to be more
adaptable to the changing needs of its customers,
• Houston, Rotterdam and Singapore are the Largest,
most dynamic and efficient Liquide Ports in the world.
Texas – Clear Lake
Celanese
Louisiana – Geismar
Methanex I & II
Louisiana - Port of South
LS MEOH
Louisiana – St Charles
Refinery - Valero
Texas – Beaumont
OCI P LP
Louisiana – L Charles
G2X Energy
LS - LCh, LCh
Clean Energy
Washington – Colombia River, Kalama
N West Innovation Works – BP China
Oregon - Colombia River, Kalama
N West Innovation Works – BP China
In addition you have LyondellBasell expansion and
Discussion on TX City MEOH
METHANOL
Louisiana - Yuhuang Chemical
– St James Parish
Shipping Economics
Spring 2015
• Freight - USG to EC China
– 10,000 mt US $ 68.00 pmt - as part cargo
– 20,000 mt US $ 63.00 pmt - as part cargo
– 40,000 mt US $ 69.00 pmt - empty home
– 65,000 mt US $ 55.00 pmt - empty home
• Numbers of Vessels needed to handle 1 MM/y
– 80 % export to China + 80 days R/T
• 10,000 mt > 80 sailings > load every 4.5 days 17.7 ships
• 20,000 mt > 40 sailings > load every 9.1 days 8.7 ships
• 40,000 mt > 20 sailings > load every 18.25 days 4.3 ships
• 65,000 mt > 12.3 Sailings > load every 30.1 days 2.6 ships
MEOH_2015_Presentation_June10
MEOH_2015_Presentation_June10
estimated cost —
US$40 billion
MEOH_2015_Presentation_June10
New Canal Locks
Water Reservoirs
exceed $7 billion from
estimated 5.2 billion
Panama Canal Construction
MEOH_2015_Presentation_June10
MEOH_2015_Presentation_June10
Cape Good Hope
NY to Ningbo > 10,564 nm
@13 knots > 33.86 days
LA to Ningbo > 5,729 nm
@13 knots 18.36 days
to Ningbo > 5,098 nm
@13 knots 16.34 days
to Ningbo via > 10,117 nm
@13 knots > 32.43 days
Houston TX to Ningbo via SUEZ Canal is > 13,749 nm
@13 knots 44.07 days
China’s Internal Distribution
• In 2012, China’s total logistics volume had grown by 10% (compared
to the previous year), to a value of about 177 trillion RMB.
• Efficient distribution of goods remains a crucial element for China
to sustain current economic growth levels.
• The major challenge China is facing is that it’s total logistics costs
account for almost 18% of its GDP, while this figure averages around
10% in most OECD countries. Additionally, compared to more
developed countries (e.g. United States, Japan), China’s logistics
sector scores relatively low on some relevant quality indicators.
• The Chinese government, has committed itself to invest 250 billion
USD by the year 2035 to improve the country’s infrastructure level.
China Ports
• Chinas upcoming ports
• There are many more, but these
are especially the ones to watch
in the near future.
• Tangshan - Hebei Province
• Yingkou - Liaoning Province
• Yantai - Shandong Province
• Qinhuangdao - Hebei Province
• Huanghua - Hebei Province
• Qinzhou - Guangxi Province
• Dalian - Liaoning Province
• Lianyungang - Jiangsu Province
• Xiamen - Fujian Province
• Currently, Dalian Port operates one of the
largest crude oil terminals in China, annual
capacity of 80 million tons, it is the most
important distribution centre for oil products
and liquid chemicals in northeast China.
• A world-class petrochemical industrial park now
under construction on Changxing Island, north
of Dalian.
• Lianyungang is an important transportation hub
in Jiangsu it is dubbed as the bridgehead of the
New Asian-European Continent Corridor.
• It has an excellent location for transit point,
which offers the shortest distance in connection
with the east and west coasts of Pacific Ocean
• Xiamen Southeast International Shipping
Center, is the 4th international shipping center
approved by the state council after Shanghai,
Tianjin, Ningbo and Dalian.
What to Look out for
• Commodity prices
• Coal vs. Oil & NGL
• Ability to take advantage of
market changes / be flexible
• MEOH intro to new usage
• India GDP expansion
• Overcapacity
• Flexibility in ships tradability
• Iran Nuclear agreement
• Iran MEOH production
• Loss of Iran discounts
• Changes in Tax laws /
dumping policies
• OPEC members comeback
• ISIS, Russia and other geo-
political issues
Disclaimer
• This presentation has been prepared for the Air Liquide, MEOH Conference - June 2015 in Houston
Texas by Gulf Stream Tanker Chartering LLC – GSTC.
• The presentation is intended for the benefit of attendees and its contents and conclusions are not
confidential and may be disclosed to any other persons or companies with or without our
permission.
• We will be honored if you share this with your industry peers.
• Please contact Gulf Stream Tanker Chartering for any questions.
• The information upon which this presentation comes from our sources and available internet
information, own experience, knowledge and databases. The opinions and comments expressed in
this report are those of GSTC’s. They have been arrived at following careful consideration and
enquiry but we do not guarantee their fairness, completeness or accuracy. The opinions, as of this
date, are subject to change. We do not accept any liability for your reliance upon them.
• Thank you for your time
Gulf Stream Tanker Chartering LLC., - Knut A. Scharning
828 Heights Blvd., Houston, Texas 77007 • Phone 713 869 4657 • Cell 713 291 0044

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MEOH_2015_Presentation_June10

  • 1. Gulf Stream Tanker Chartering LLC. Knut A. Scharning 828 Heights Blvd., Houston, Texas 77007 • Phone 713 869 4657 • Cell 713 291 0044 Methanol Conference Houston, Texas - June 10, 2015 What effect will the New & Expanded Panama Canal have on the Methanol Market
  • 2. True or False The expansion of the Panama Canal is now scheduled for completion - Q2 , 2016 Will this be a game changer for the MEOH Market ? . Knut A. Scharning 828 Heights Blvd., Houston, Texas 77007 • Phone 713 869 4657 • Cell 713 291 0044
  • 4. Methanol World, Conversions One Metric Ton (2,204.62 lbs) = 333 U.S. gallons of MEOH 10,000 bbls Barge = 1,254 MTon 1 ship = 32+ barges > 317,200 bbls > 40,000 MTon Methanol Specific Gravity / SG = 0.7920 MEOH => is a cubic cargo, not a weight cargo in respect to ships and transportation Meter/Ft LB/GAL LB/BBL BBL’s/MTon 3.28 6.62 278.06 7.93
  • 5. World Fleet : Total Number Of Ships, By Type And Size The world merchant fleet in 2013 Source : Equasis (1) GT<500 - (2) 500≤GT<25.000 - (3) 25.000≤GT<60.000 - (4) GT≥60.000
  • 6. Typical Chemical Carrier- A CPP Carrier - A Dirty Tanker
  • 7. Vessel Size and Cargo Type MR – about 40.000 Mton MEOH Cargo Max – old Panama Max LR 1 or Post P-Max about 66,000 Mton MEOH max 60 % will be Post P-Max 85 % will be Post P-Max
  • 8. Typical Large MEOH Ship MR or LR1: M/T Fjellanger • Main Dimensions: – LOA 183.22 m / 586.3 feet – Beam 32.24 m – Air draft SDWT condition 42.62 m • Load-lines Draft Deadweight Displacement • Summer 12.32 m /40.05 feet 46,287 mt 56,661 mt • Cargo tanks / pumping arrangements – Number of cargo tanks / slop tanks 20 / 2 – Cubic capacity at 100% 53,457.50 m3 – MEOH Max Capacity about = 40,000 mt or 317,143 Bbls = > 13,320,000 Gallons – How many tanks over 3,000 m3 0 – Identify tank coating Inorganic Zinc - Jotun Resist GTI – Number / capacity cargo pumps 22 Submerged, Centrifugal – Number of pumps able to run simultaneously 6 – Number of natural segregations (2 valve) 12 – Number and capacity of N2 generators 1 / 4500 m3/hr • © 2008 Waterfront Shipping
  • 9. Typical LR 1 vessel : M/T JO PROVEL - 75 022 DWT • Tanker for Oil Flag: NIS • Summer DWT: 75,022 • Year: 2013 • No. of tanks: 14 • Tank Average Size: 7,111 m3 • Hull: Double • Shipyard: • STX Offshore & Shipbuilding Co. • Total capacity: 84,500 m3 • Pure Epoxy: 84,500 m3 • IMO no.: 9592692 • Class: DnV • • DIMENSIONS/DISTANCES: Meters / Feet • Length overall 228.00 • Breadth moulded 32.24 • Depth moulded to main deck 20.65 • Draft on summer load line 14.30 / 46.48 • Bow to centre manifold 114.40 • Stern to centre manifold 113.60 • Rail to manifold connection 4.60 • Keel to top of mast 49.20 • Parallel body 140.30 • Max MEOH cargo 64,500 mt 511,393 Bbls 21,478,500 Gallons
  • 10. Restrictions • Cargo Restrictions • Last Cargo – Cleanliness – hydrocarbon residue - Chlorides • IMPCA Methanol Reference Specifications • Inert tanks - cargo class IMO I, II, III - 3000 m3 • Carriage of chemicals in bulk is covered by regulations in SOLAS Chapter VII – Carriage of dangerous goods and MARPOL Annex II - Regulations for the Control of Pollution by Noxious Liquid Substances in Bulk. • International Maritime Organization (IMO): MEOH Class 3(6.1), UN1230, P.G. II, Flash Point = 12 oC • Port & Terminal Restrictions • Draft deep and air - Traffic /waiting – weather / season • Terminal capacity - ships and tanks • Hurricane or local weather / Cargo in tank • Trade Restrictions • Trading backhaul cargoes • Ships in rotation - timing • Customers receiving capacity • Trading second port • Time Spent in rotation • Size - ship, cargo, finance • Port Easiness – Congestion, Local Corruption • Cost – bank, port, Canal Fees and Bunker cost • Government Stability – new laws – efficiency – Tax
  • 11. Channel Depth USG & USEC Ports 2012
  • 13. Port Requirements • Ports have to be flexible enough to cope with volatile economic cycles, and adjust their respective capacities accordingly. Dry Cargo’s has more room to jump. • An upcoming trend ‘smart ports’. • Connection to & from the Hinterland is vital. • Integration of the global supply • Rival Ports. This highly dynamic environment requires port authorities and terminal operators to be more adaptable to the changing needs of its customers, • Houston, Rotterdam and Singapore are the Largest, most dynamic and efficient Liquide Ports in the world.
  • 14. Texas – Clear Lake Celanese Louisiana – Geismar Methanex I & II Louisiana - Port of South LS MEOH Louisiana – St Charles Refinery - Valero Texas – Beaumont OCI P LP Louisiana – L Charles G2X Energy LS - LCh, LCh Clean Energy Washington – Colombia River, Kalama N West Innovation Works – BP China Oregon - Colombia River, Kalama N West Innovation Works – BP China In addition you have LyondellBasell expansion and Discussion on TX City MEOH METHANOL Louisiana - Yuhuang Chemical – St James Parish
  • 15. Shipping Economics Spring 2015 • Freight - USG to EC China – 10,000 mt US $ 68.00 pmt - as part cargo – 20,000 mt US $ 63.00 pmt - as part cargo – 40,000 mt US $ 69.00 pmt - empty home – 65,000 mt US $ 55.00 pmt - empty home • Numbers of Vessels needed to handle 1 MM/y – 80 % export to China + 80 days R/T • 10,000 mt > 80 sailings > load every 4.5 days 17.7 ships • 20,000 mt > 40 sailings > load every 9.1 days 8.7 ships • 40,000 mt > 20 sailings > load every 18.25 days 4.3 ships • 65,000 mt > 12.3 Sailings > load every 30.1 days 2.6 ships
  • 20. New Canal Locks Water Reservoirs exceed $7 billion from estimated 5.2 billion
  • 25. NY to Ningbo > 10,564 nm @13 knots > 33.86 days LA to Ningbo > 5,729 nm @13 knots 18.36 days to Ningbo > 5,098 nm @13 knots 16.34 days to Ningbo via > 10,117 nm @13 knots > 32.43 days Houston TX to Ningbo via SUEZ Canal is > 13,749 nm @13 knots 44.07 days
  • 26. China’s Internal Distribution • In 2012, China’s total logistics volume had grown by 10% (compared to the previous year), to a value of about 177 trillion RMB. • Efficient distribution of goods remains a crucial element for China to sustain current economic growth levels. • The major challenge China is facing is that it’s total logistics costs account for almost 18% of its GDP, while this figure averages around 10% in most OECD countries. Additionally, compared to more developed countries (e.g. United States, Japan), China’s logistics sector scores relatively low on some relevant quality indicators. • The Chinese government, has committed itself to invest 250 billion USD by the year 2035 to improve the country’s infrastructure level.
  • 27. China Ports • Chinas upcoming ports • There are many more, but these are especially the ones to watch in the near future. • Tangshan - Hebei Province • Yingkou - Liaoning Province • Yantai - Shandong Province • Qinhuangdao - Hebei Province • Huanghua - Hebei Province • Qinzhou - Guangxi Province • Dalian - Liaoning Province • Lianyungang - Jiangsu Province • Xiamen - Fujian Province • Currently, Dalian Port operates one of the largest crude oil terminals in China, annual capacity of 80 million tons, it is the most important distribution centre for oil products and liquid chemicals in northeast China. • A world-class petrochemical industrial park now under construction on Changxing Island, north of Dalian. • Lianyungang is an important transportation hub in Jiangsu it is dubbed as the bridgehead of the New Asian-European Continent Corridor. • It has an excellent location for transit point, which offers the shortest distance in connection with the east and west coasts of Pacific Ocean • Xiamen Southeast International Shipping Center, is the 4th international shipping center approved by the state council after Shanghai, Tianjin, Ningbo and Dalian.
  • 28. What to Look out for • Commodity prices • Coal vs. Oil & NGL • Ability to take advantage of market changes / be flexible • MEOH intro to new usage • India GDP expansion • Overcapacity • Flexibility in ships tradability • Iran Nuclear agreement • Iran MEOH production • Loss of Iran discounts • Changes in Tax laws / dumping policies • OPEC members comeback • ISIS, Russia and other geo- political issues
  • 29. Disclaimer • This presentation has been prepared for the Air Liquide, MEOH Conference - June 2015 in Houston Texas by Gulf Stream Tanker Chartering LLC – GSTC. • The presentation is intended for the benefit of attendees and its contents and conclusions are not confidential and may be disclosed to any other persons or companies with or without our permission. • We will be honored if you share this with your industry peers. • Please contact Gulf Stream Tanker Chartering for any questions. • The information upon which this presentation comes from our sources and available internet information, own experience, knowledge and databases. The opinions and comments expressed in this report are those of GSTC’s. They have been arrived at following careful consideration and enquiry but we do not guarantee their fairness, completeness or accuracy. The opinions, as of this date, are subject to change. We do not accept any liability for your reliance upon them. • Thank you for your time Gulf Stream Tanker Chartering LLC., - Knut A. Scharning 828 Heights Blvd., Houston, Texas 77007 • Phone 713 869 4657 • Cell 713 291 0044