2nd LNG Tanker Transits Expanded Panama Canal
The BP-owned British Merchant is transiting the Panama Canal, as of July 26, the second laden LNG tanker to pass through since the canal's expansion was completed. Reports indicated it loaded in Trinidad and is en route for Mexico's west coast. British Merchant's cargo capacity is 138,000 m3 so can easily be accommodated by the newly expanded canal. A third LNG tanker is expected to transit in August.
These ships follows the transit on July 25 of the Shell-chartered Maran Gas Apollonia -- measuring 289 meters in length and 45 meters in beam — which had previously loaded at Cheniere's Sabine Pass LNG Terminal on the US Gulf Coast. Ship tracking sources indicate that the ship is now in the Pacific Ocean, headed for the port of Gulei in southern China's Fujian province. "The transit of the first LNG vessel through the new Panama Canal locks is a milestone in the waterway's history," said Panama Canal Administrator and CEO Jorge L. Quijano on July 25: "LNG trade will greatly benefit from the Expansion, and we look forward to welcoming even more LNG vessels through our great waterway. This transit marks the beginning of a new era that will result in cleaner and lower cost energy for the world."
PanCanal - Maran Gas Apollonia transiting the Expanded Panama Canal's Cocoli Locks, completing the historic LNG transit (Photo credit: Panama Canal Authority)
The expanded Canal can accommodate 90% of the world's LNG tankers by size, which the canal authority expects will have a major impact on global LNG flows. Trade sources say that vessels with capacity to hold 175-180,000 m3 should now be able to transit the expanded canal, larger than even Maran Gas Apollonia's 161,870 m3 capacity.
With the US poised to become one of the world's top LNG exporters in the next five years, the Canal will allow vessels departing the US East and Gulf Coast for Asia to enjoy significant reductions in voyage times (up to 22.8 days roundtrip), making US gas deliveries to major Asian importers very competitive, the authority said, while vessels departing the US Gulf for South America's west coast will similarly experience generous time savings.
LNG ships from Trinidad could head to Chile through the expanded canal, achieving savings of 6.3 days in transit time compared to the Magellan Strait.
BP's British Merchant tanker (Photo credit: BP)
Providing further advantage, the Canal has instituted a new tolls structure to offer substantial cost savings to LNG vessels conducting roundtrip voyages. The new tolls reduce ballast fees for LNG customers who use the same vessel for a roundtrip voyage as opposed to using an alternate route, so long as the transit in ballast is made within 60 days after the laden transit was completed.
Mark Smedley