China's JOVO preps LNG carrier for ship-to-ship transfer in Philippines' Subic Bay

Singapore — Chinese privately held LNG importer JOVO has begun splitting full-sized LNG cargoes into smaller parcels at Subic Bay in the Philippines with the arrival of LNG carrier Methane Shirley Elisabeth and another LNG carrier expected in the coming days, according to market sources, vessel tracking data and Subic Bay executives.

The move will see Subic Bay resume LNG break bulking after a hiatus of several months, even though the Philippines itself has no LNG terminal of its own, and underscores the growing small-scale LNG market in Southeast Asia along with players vying for a slice of the business.

LNG ship-to-ship transfer operations have resumed in Subic Bay with the arrival of the vessel over the weekend, although the crew won't be allowed to disembark due to COVID-19 health protocols, Subic Bay Metropolitan Authority said in a statement dated Aug. 3.

The 78,996 dwt Methane Shirley Elisabeth will transfer its LNG cargo to smaller feeder ships, while the crew and officers remain on board throughout the two-week operation, even though 16 of the 31 crew members are Filipinos, SBMA Chairman and Administrator Wilma T. Eisma said.

The same policy will apply to crew members of feeder vessels that transport LNG from Methane Shirley Elisabethto ports in China, she said.

Bermuda-flagged Methane Shirley Elisabeth, which has a capacity of 140,000 cu m, originated from Qatar and dropped by at a Hong Kong port to pick up three mooring masters before proceeding to Subic, SBMA seaport manager Jerome Martinez, said.

It is expected to stay at anchor until Aug. 15 for STS operations, after which the Singapore-flagged LNG carrier Lerici will conduct STS transfers in Subic, SBMA said.

The Methane Shirley Elisabeth is on a six- to 12-month time charter to JOVO starting in June, with a hire rate in the high-$10,000s to low-$20,000s/day, according to S&P Global Platts data.

JOVO operates the Dongguan LNG terminal in China with a capacity of 1.5 million mt/year and its term contracts include a supply agreement with Petronas LNG for 0.5 million mt/year of LNG from 2016 to 2023.

However, its terminal has berthing restrictions that only allows smaller vessels. JOVO last conducted an STS transfer in Subic Bay in 2019, and a couple in 2018, but the bulk of its previous STS transfers were in 2017, shipping data showed.