C. B. Fenton and Kanfer Shipping are facilitating for LNG bunkering and small-scale LNG distribution in Panama
CB Fenton, part of Ultramar (Chile), and Kanfer have signed an MoU with the clear purpose of establishing an attractive hub for LNG bunkering and small-scale LNG distribution in/out of Panama. The parties have joined forces and are now seeking a partner in the LNG trading space. The purpose would be that the parties define a joint venture (JV) structure where the JV will be chartering ship(s) from Kanfer, buy LNG and trade them to the maritime industry as well as gas to power clients in the region.
Panama is among the most important water ways on earth and a strategic location for bunkering. Every year there are more than 13,000 ships passing through the locks of the Panama Canal and a significant number of those ships have waiting time before entering the locks. About 80% of the conventional bunkering is done on the Pacific side (Balboa). For this reason, the parties have agreed to perform a feasibility study for a floating storage unit (FSU) of LNG on the Pacific side. This FSU will then be a source for smaller ships to supply the growing fleet of dual fueled ships with the cleanest fuel available, but also distribute the energy to power intensive industries, power stations, etc., in Central America and West Coast South America. “We are delighted to partner with Kanfer for such an innovative service. More than 90% of the world trade is moved across the oceans and we believe that it requires cleaner fuel options. An LNG Bunkering and distribution hub in Panama is in line with our sustainability strategy and will add value to the trade lanes using the Panama Canal. Our purpose is to contribute to the quality of life in our region of influence, through facilitating the foreign trade.” Says CB Fenton’s CEO, Marco A. Guerra.
There is an increasing number of dual-fuel ships in order and there are currently 857 confirmed LNG fueled ships. These ships and shipping lines would like to see a growing number of LNG bunkering stations and bunkering ships at strategic locations around the world. Even in today’s volatile energy market where oil products are favorably priced to LNG, more dual-fuel ships are being ordered and more LNG bunkering ships are required. The path towards more environmentally friendly fuels is crystal clear. More LNG is coming to the market in months and years to come and authorities are adding taxes on dirty fuels. We are confident that today’s price gap between dirty fuels and LNG will vanish.
As of today, the only LNG bunkering ships available in the broader region are on USEC and USGulf. A ship cannot wait for supply of fuel and finding alternatives to bunkering in USA will be important for the industry. Before the ships enter the locks, it could efficiently use the time for LNG bunkering on the Pacific side. “SEA-LNG is pleased to see continued development of new LNG bunkering infrastructure in strategic maritime locations. In addition to the previously announced bunkering services in Egypt/ Mediterranean, the Suez Canal and the Red Sea, Kanfer Shipping is now teaming up with partners to offer much-needed LNG bunkering services in Panama. This will bolster LNG bunkering capabilities in the region to support the rise in newbuild orders for LNG Fueled ships and continue to lay the foundation for the network of bunkering locations to support the future transition As of today, the only LNG bunkering ships available in the broader region are on USEC and USGulf. A ship cannot wait for supply of fuel and finding alternatives to bunkering in USA will be important for the industry. Before the ships enter the locks, it could efficiently use the time for LNG bunkering on the Pacific side. “SEA-LNG is pleased to see continued development of new LNG bunkering infrastructure in strategic maritime locations. In addition to the previously announced bunkering services in Egypt/ Mediterranean, the Suez Canal and the Red Sea, Kanfer Shipping is now teaming up with partners to offer much-needed LNG bunkering services in Panama. This will bolster LNG bunkering capabilities in the region to support the rise in newbuild orders for LNG Fueled ships and continue to lay the foundation for the network of bunkering locations to support the future transition
Facilitating for LNG bunkering to the ships passing or calling Panama is good for the Panamanians as LNG is not only far more environmentally friendly than the conventional fuels, but it could also have impact on another important source of income for Panama, namely the tourist and cruise industry. In addition to that, an LNG Bunkering hub will add value to the shipping trade lanes across the Panama Canal.
The clear ambition of the cooperation is to provide cost efficient and environmentally friendly energy to the maritime industry as well as to power projects in the region. “We cannot do anything about the LNG prices, but together we can reduce the infrastructure cost considerably. We are confident that Panama will be an important LNG bunkering hub and even though LNG is said to be a transition fuel, we will see more of bio-LNG and synthetic LNG in years to come. We should even start researching for bio-LNG in Panama.”, says Managing Partner in Kanfer, Stig Hagen.
CB Fenton and Kanfer are now seeking partnersto make the business proposition even more appealing to the industry. We believe the right partners shall have experience with bunker trading and/or commodity trading and know how about LNG or natural gas. We will actively be seeking such partner and structure the project for having LNG bunkering and distribution services available in 2025/26. Kanfer last year signed a ship building contract for two ships plus options. They also have a unique design for both sea transportation and floating storage at a time. Both solutions could fit the project in Panama.
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