China Builds LNG Icebreaker

[Marina Schwarz + 1,576]

China's built the world's first LNG carrier/icebreaker. I wonder why.

[Rasmus Jorgensen + 1,169]

I think really simple economics. China wants to learn how to build LNG & icebreaking ships and want to keep their shipyards busy, so they offered the greek owner an artificially low price and good finance deal. The Greek Owner chose the best deal for them. China had a loss leader. Simple market decision. 

[Tomasz + 1,608]

Imho for Novatek Yamal and Arctic-2 LNG hubs- simple another stage of growing sino-russian energy alliance. 

[ronwagn + 6,290]

Russia leads in icebreakers and is in cooperative ventures with China. Whoever has the best icebreaking capability will control the future of Arctic oil, natural gas, and other shipping. Here is a great graphic of nations icebreakers https://www.dco.uscg.mil/Portals/9/DCO Documents/Office of Waterways and Ocean Policy/20170501 major icebreaker chart.pdf?ver=2017-06-08-091723-907

 

Edited December 9, 2018 by ronwagn

[Marina Schwarz + 1,576]

I was being ironic, guys.

[ronwagn + 6,290]

I am very literal. It is a good issue to watch though. 

[Tom Kirkman + 8,860]

23 minutes ago, Marina Schwarz said:

I was being ironic, guys.

⸮ ⸮ ⸮

Irony punctuation is any proposed form of notation used to denote irony or sarcasm in text. Written English lacks a standard way to mark irony, and several forms of punctuation have been proposed. Among the oldest and most frequently attested is the percontation point proposed by English printer Henry Denham in the 1580s, and the irony mark, used by Marcellin Jobard and French poet Alcanter de Brahm during the 19th century. Both marks take the form of a reversed question mark, "⸮".

 

[Marina Schwarz + 1,576]

I'll use *percontation mark* because I like the sound of it and because I don't see an inverted question mark in your comment but a rectangle. 

[Tom Kirkman + 8,860]

[Rasmus Jorgensen + 1,169]

Hate to be the one to burst the bubble, but there is no China-Russia conspiracy here. This vessel was built for a greek owner according to the link. A couple of hard facts for context: 

1) China needs to be keep their shipyards working

2) Financing is very scare in the Greek shipping community

3) China would like to learn to build LNG carriers. 

Speculation on my part : as the vessel is named Boris Sokolov there is likely a COA between the Greek Owner and somebody. 

This is something as simple as markets. 

[Marina Schwarz + 1,576]

I completely agree, Rasmus. A lot of the conspiracies some people see everywhere, are most often all about supply, demand, and certain constraints, shall we say. I'm almost sure the vessel will be used to ship Russian LNG. There's no other Arctic LNG project out there, as far as I know.

[Rasmus Jorgensen + 1,169]

2 minutes ago, Marina Schwarz said:

I completely agree, Rasmus. A lot of the conspiracies some people see everywhere, are most often all about supply, demand, and certain constraints, shall we say. I'm almost sure the vessel will be used to ship Russian LNG. There's no other Arctic LNG project out there, as far as I know.

Probably will. It could also sail American LNG through the Arctic passage, or Norwegian if Equinor moves forward with barents sea projects. My point is just that the Greek Owner and (likely) Chinese fiancier is taking some risk. If this vessel is not sailing in the Arctic passage then it is higher CAPEX (ice-class vessels are expensive to build) than competitors and that will reflect in the Owners margin. 

When people take risk they win if it goes well and lose if goes bad. Don't get mad just because you didn't want to take this risk. 

[Marina Schwarz + 1,576]

True. Not sure about U.S. LNG, though. All the LNG projects in the U.S. are on the Gulf Coast and by all I mean the ones that are already working and the ones nearest completion, though I may be missing some higher up. I'm very bad at geography but I'm not sure it would profitable to ship U.S. LNG from the Gulf Coast to China via the Arctic. Would it?

[Rasmus Jorgensen + 1,169]

6 minutes ago, Marina Schwarz said:

True. Not sure about U.S. LNG, though. All the LNG projects in the U.S. are on the Gulf Coast and by all I mean the ones that are already working and the ones nearest completion, though I may be missing some higher up. I'm very bad at geography but I'm not sure it would profitable to ship U.S. LNG from the Gulf Coast to China via the Arctic. Would it?

likely not. 

Maybe Australian LNG to Europe would be economic. I don't know. My point was more the risk that if this vessel is not sailing in the Arctic then the Owners would be better off with cheaper built vessel. And that is risk.