Strategic Partnership Will Ensure the Supply & Delivery of LNG As Firms Pledge to Fully Finance Necessary Ship Conversions Too
By: Rich Piellisch
(HHP Insight) – WesPac Midstream and the new Clean Marine Energy are announcing a strategic partnership to bring liquefied natural gas to the marine sector at HHP Summit 2014 in New Orleans today. The firms promise not only to supply the clean marine fuel, but to finance the LNG engines and related accouterments for the ships, backed by multi-billion-dollar Oaktree Capital Management. this item was initially posted on October 6
Clean Marine Energy and WesPac Midstream will finance the LNG upfit, and then provide the fuel.
It’s an integrated solution representing “a significant step in the evolution of LNG as a marine fuel,” the companies say. “The partnership is able to provide both the funding required for LNG conversion as well as the infrastructure for LNG supply and delivery.
“Conversion to LNG while financing the up-front investment provides the economic benefit of LNG fueling to ship owners without capital deployment, and ensures compliance with ECA regulations taking effect on January 1,” states a release.
Not Just Marine
“The first question every ship owner asks is ‘Where will I get the LNG?’ because if they cannot ensure the future delivery of LNG then they will not see the investment payback,” CME co-founder and president Pact Ralli says in the announcement.
“CME’s partnership with WesPac provides the answer to this question and greatly simplifies the decision to convert to clean, lower-cost LNG fuel,” Ralli says.
WesPac for Tote in Florida, and in Alaska
WesPac and CME say they’ll “help reduce the barriers to LNG adoption and assist the early movers in the marine industry and other high horsepower industries such as rail, mining and E&P. Oaktree Capital, they note, had $91.1 billion in assets under management as of June 30, and “emphasizes an opportunistic, value-oriented and risk-controlled approach to investments.”
￼￼WesPac Midstream, with Pivotal LNG, is to supply fuel in Jacksonville for the two new dual fuel container ships being built for the Caribbean by Tote (HHP Insight, February 6). More recently, WesPac proposed a $600 million complex for LNG in Alaska (HHPi, September 10).