Koch Supply & Trading (KS&T) completed the first ship-to-ship (STS) LNG transfer with private Chinese company JOVO and Malaysian shipowner MISC.
The agreement to perform multiple and regular ship-to-ship LNG transfers, is the first of its kind for KS&T, JOVO and MISC and the LNG STS transfer operation was the first ever in the Philippines, the joint statement reads.
“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,” KS&T said.
Such operations open new markets for exporters and provide new supply sources to those with LNG requirements.
For this operation managed by Teekay Marine Solutions, the mother vessel loaded a cargo from Australia and transferred it to a smaller daughter vessel at Subic Bay in the Philippines. The cargo was then delivered to JOVO’s Chinese terminal where it was distributed by truck to one of their many industrial or commercial customers in Southern China.
“Looking at how the LNG market is developing,” Tim Mendelssohn , LNG freight and operations manager at Koch Supply & Trading said, “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 revealed.