The LNG carrier CESI Qingdao, which is owned by Cosco’s China Shipping LNG, Sinopec, and Mitsui OSK Lines, experienced a propulsion failure at the Curtis Island terminal, disrupting exports for Australia Pacific LNG (APLNG).
The facility’s yearly capacity of 9 million tonnes has been impacted by the suspension of shipments due to the 174,300-dwt vessel, which has been loaded and immobile for the last six days.
Two cargoes have been delayed due to the breakdown, and more are anticipated because the stranded ship prevents other ships from docking at the eastern Australian terminal.
The $189 million CESI Qingdao was scheduled to leave for Wenzhou, China. The ship’s manager, China Energy Ship Management, stated that repairs are still being made, and the underlying cause is unknown.
The fact that the APLNG facility can only hold one ship at a time, which interferes with the loading process, raises concerns about a possible increase in LNG prices globally.
Two cargoes have already been delayed due to the disruption, and more shipments will probably be affected as well, according to statements from Sinopec and Origin Energy Ltd., co-owners of APLNG. The impacted LNG prices in North Asia are approximately $16 per million British thermal units.
The circumstance makes it necessary to think about supply management through APLNG to address the problem. Origin, which owns a 27.5% share in APLNG, plans to increase its domestic gas sales.
The company board is considering an updated takeover offer from a consortium headed by Brookfield Asset Management Ltd., which calls for EIG Global Energy Partners to buy Origin’s share of APLNG.
Reference- Trade Winds, Energy Voice
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