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Seaspan carving out domestic market for LNG as fuel for ships in B.C.
Seaspan carving out domestic market for LNG as fuel for ships in B.C.

The Province

time6 hours ago

  • Business
  • The Province

Seaspan carving out domestic market for LNG as fuel for ships in B.C.

Container ships, automobile carries and cruise liners are all showing up at the Port of Vancouver to take on LNG as fuel. The Seaspan Lions, a specially built LNG bunkering tanker, is shown conducting the first ship-to-ship refuelling of an LNG-powered ship, the oil tanker Pacific Jade, in January. As most of the attention in B.C. has been on producing liquefied natural gas sector for export, the Port of Vancouver and shipping interests are quietly looking at using LNG to fuel ships. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Exclusive articles by top sports columnists Patrick Johnston, Ben Kuzma, J.J. Abrams and others. Plus, Canucks Report, Sports and Headline News newsletters and events. Unlimited online access to The Province and 15 news sites with one account. The Province ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles and comics, including the New York Times Crossword. Support local journalism. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Exclusive articles by top sports columnists Patrick Johnston, Ben Kuzma, J.J. Abrams and others. Plus, Canucks Report, Sports and Headline News newsletters and events. Unlimited online access to The Province and 15 news sites with one account. The Province ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles and comics, including the New York Times Crossword. Support local journalism. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors The international shipping industry has been under pressure to reduce the emission impacts from burning notoriously carbon-intensive fuels, such as heavy oil, and LNG is seen as one of the most readily available alternatives to lessen that environmental burden. Local maritime conglomerate Seaspan commissioned a fleet of three specialized LNG refuelling tanker ships to deliver some of B.C.'s LNG to the increasing number of ships being built or converted. 'There are emissions pressures coming from the international regulators of ships,' said Harly Penner, president of the Seaspan subsidiary that operates the tankers. Those pressures, combined with Seaspan's proximity to made-in-Canada LNG from FortisBC's Tilbury plant in Delta, got the company to think, 'OK, the market opportunity is here to create that business,' Penner said. Stay on top of the latest real estate news and home design trends. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. Seaspan refuelled its first ship, the oil tanker Pacific Jade, in the Port of Vancouver on Jan. 30, while it was at anchor off Trans Mountain's Westridge Terminal in Burnaby. Since then, two of Seaspan's refuellers have topped up container ships, automobile carriers and even a cruise ship — the Silver Nova of the luxury Silver Seas line — on May 9. The Vancouver Fraser Port Authority considers the arrival of Seaspan's LNG refuelling capability as 'a vital step' in its own objectives for reducing emissions from port operations, according to Shri Madiwal, vice-president of operations. The introduction of high-capacity electric connections for cruise ships to plug into while in port, was an earlier step. Some 80 per cent of cruise ships that call on Vancouver now use that service. which means they do not have to run their electrical generators while docked here. This advertisement has not loaded yet, but your article continues below. Making alternative fuels available is another step, Madiwal said in a news release, and 'LNG is one of the most widely adopted alternative marine fuels and the first approved for bunkering at the Port of Vancouver.' LNG use does come 'with its own emission issues,' according to University of B.C. shipping expert Trevor Heaver. 'But if LNG is going to be a significant component of the change, then a coastal region — a port area — needs to have the capacity to service those ships,' said Heaver, a professor emeritus in operations and logistics at UBC's Sauder School of Business. Heaver said Seaspan's service is a 'technically needed, financially viable market component to service an element of the global shipping industry, which is already adopting LNG as one of the fuel alternatives to reduce carbon emissions.' This advertisement has not loaded yet, but your article continues below. Domestically, Seaspan's own private commercial ferry service, followed by B.C. Ferries, have already been using LNG as fuel, and FortisBC has had increasing sales in the marine sector, said Ian Finke, FortisBC's director of LNG operations. 'This is why FortisBC is pursuing the development of a jetty at its Tilbury facility to support local marine fuelling,' Finke said in an email response to Postmedia questions. Seaspan has also received approval to operate in Nanaimo and, through the U.S. Coast Guard, permission to refuel ships in the Port of Long Beach in California. A container ship at Long Beach was Seaspan's very first customer last December shortly after it received its first LNG refuelling vessel from the shipyard, the Seaspan Garibaldi. This advertisement has not loaded yet, but your article continues below. The Seaspan Garibaldi next to a cruise ship at B.C. Place. Built at the CIMC Sinopacific Offshore and Engineering shipyard in China, Seaspan's three 112-metre long LNG tankers all have West Coast-mountain themed names, Seaspan Garibaldi, Seaspan Lions and Seaspan Baker. During ship refuelling, referred to as bunkering in the industry, Penner said fuel is typically brought to vessels, most often by the barges often seen sidled up to cruise ships docked at Vancouver's Canada Place cruise terminal. '(Ship owners') expectations are that those service providers — like groceries, fuel, lubrication oil — they come to them,' Penner said. 'That's just a norm, a market norm of how the market works.' The LNG tankers, Penner said, give Seaspan the flexibility to take LNG to ships wherever they are. This advertisement has not loaded yet, but your article continues below. 'We'll continue to desire to expand to ports in places like the Puget Sound, which includes Seattle, Tacoma, Port Angeles and the Oakland area, which includes San Francisco, Benicia, (Port of) Richmond,' Penner said. He added that Seaspan has completed 40 refuelling jobs since taking delivery of its first LNG tanker late last year and expect to hit 80 by the end of this year. 'We're in a building phase right now,' Penner said. However, with industry analysts counting some 806 orders for LNG-powered ships since 2022, according to ship brokering company Fearnleys, Seaspan sees potential for growth. 'A large percentage of new cruise ships are being built using LNG as fuel,' Penner said. 'There is no segment that isn't (building LNG-powered ships), except for the smaller domestic places that just don't have the capabilities,' Penner added. depenner@ Read More News Vancouver Canucks Vancouver Canucks NHL News

Seaspan carving out domestic market for LNG as fuel for ships in B.C.
Seaspan carving out domestic market for LNG as fuel for ships in B.C.

Vancouver Sun

time7 hours ago

  • Business
  • Vancouver Sun

Seaspan carving out domestic market for LNG as fuel for ships in B.C.

As most of the attention in B.C. has been on producing liquefied natural gas sector for export, the Port of Vancouver and shipping interests are quietly looking at using LNG to fuel ships. The international shipping industry has been under pressure to reduce the emission impacts from burning notoriously carbon-intensive fuels, such as heavy oil, and LNG is seen as one of the most readily available alternatives to lessen that environmental burden. Local maritime conglomerate Seaspan commissioned a fleet of three specialized LNG refuelling tanker ships to deliver some of B.C.'s LNG to the increasing number of ships being built or converted. Stay on top of the latest real estate news and home design trends. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Westcoast Homes will soon be in your inbox. Please try again Interested in more newsletters? Browse here. 'There are emissions pressures coming from the international regulators of ships,' said Harly Penner, president of the Seaspan subsidiary that operates the tankers. Those pressures, combined with Seaspan's proximity to made-in-Canada LNG from FortisBC's Tilbury plant in Delta, got the company to think, 'OK, the market opportunity is here to create that business,' Penner said. Seaspan refuelled its first ship, the oil tanker Pacific Jade, in the Port of Vancouver on Jan. 30, while it was at anchor off Trans Mountain's Westridge Terminal in Burnaby. Since then, two of Seaspan's refuellers have topped up container ships, automobile carriers and even a cruise ship — the Silver Nova of the luxury Silver Seas line — on May 9. The Vancouver Fraser Port Authority considers the arrival of Seaspan's LNG refuelling capability as 'a vital step' in its own objectives for reducing emissions from port operations, according to Shri Madiwal, vice-president of operations. The introduction of high-capacity electric connections for cruise ships to plug into while in port, was an earlier step. Some 80 per cent of cruise ships that call on Vancouver now use that service. which means they do not have to run their electrical generators while docked here. Making alternative fuels available is another step, Madiwal said in a news release, and 'LNG is one of the most widely adopted alternative marine fuels and the first approved for bunkering at the Port of Vancouver.' LNG use does come 'with its own emission issues,' according to University of B.C. shipping expert Trevor Heaver. 'But if LNG is going to be a significant component of the change, then a coastal region — a port area — needs to have the capacity to service those ships,' said Heaver, a professor emeritus in operations and logistics at UBC's Sauder School of Business. Heaver said Seaspan's service is a 'technically needed, financially viable market component to service an element of the global shipping industry, which is already adopting LNG as one of the fuel alternatives to reduce carbon emissions.' Domestically, Seaspan's own private commercial ferry service, followed by B.C. Ferries, have already been using LNG as fuel, and FortisBC has had increasing sales in the marine sector, said Ian Finke, FortisBC's director of LNG operations. 'This is why FortisBC is pursuing the development of a jetty at its Tilbury facility to support local marine fuelling,' Finke said in an email response to Postmedia questions. Seaspan has also received approval to operate in Nanaimo and, through the U.S. Coast Guard, permission to refuel ships in the Port of Long Beach in California. A container ship at Long Beach was Seaspan's very first customer last December shortly after it received its first LNG refuelling vessel from the shipyard, the Seaspan Garibaldi. Built at the CIMC Sinopacific Offshore and Engineering shipyard in China, Seaspan's three 112-metre long LNG tankers all have West Coast-mountain themed names, Seaspan Garibaldi, Seaspan Lions and Seaspan Baker. During ship refuelling, referred to as bunkering in the industry, Penner said fuel is typically brought to vessels, most often by the barges often seen sidled up to cruise ships docked at Vancouver's Canada Place cruise terminal. '(Ship owners') expectations are that those service providers — like groceries, fuel, lubrication oil — they come to them,' Penner said. 'That's just a norm, a market norm of how the market works.' The LNG tankers, Penner said, give Seaspan the flexibility to take LNG to ships wherever they are. 'We'll continue to desire to expand to ports in places like the Puget Sound, which includes Seattle, Tacoma, Port Angeles and the Oakland area, which includes San Francisco, Benicia, (Port of) Richmond,' Penner said. He added that Seaspan has completed 40 refuelling jobs since taking delivery of its first LNG tanker late last year and expect to hit 80 by the end of this year. 'We're in a building phase right now,' Penner said. However, with industry analysts counting some 806 orders for LNG-powered ships since 2022, according to ship brokering company Fearnleys, Seaspan sees potential for growth. 'A large percentage of new cruise ships are being built using LNG as fuel,' Penner said. 'There is no segment that isn't (building LNG-powered ships), except for the smaller domestic places that just don't have the capabilities,' Penner added. depenner@

Eby won't stop BC Ferries from building new ships in China, but says it's ‘not ideal'
Eby won't stop BC Ferries from building new ships in China, but says it's ‘not ideal'

CTV News

time6 days ago

  • Business
  • CTV News

Eby won't stop BC Ferries from building new ships in China, but says it's ‘not ideal'

Premier David Eby says he won't interfere with BC Ferries' decision to hire a Chinese state-owned shipyard to build four new vessels, a move that has been panned by opposition critics and unions. The premier faced questions from reporters about the controversial contract for the first time Tuesday, upon return from a trade mission to Asia that did not include a stop in China. Read more: Minister flags concern over BC Ferries' deal with Chinese state-owned shipyard BC Ferries operates independently, but the province, as the B.C. Ferry Authority, is its sole shareholder and it is funded by the provincial and federal governments. That hasn't stopped calls for the NDP to step in and reverse the plan. Eby said he's 'not happy with the result' of BC Ferries' five-year procurement process, but the need to replace the former Crown corporation's major vessels—most of which are 50 years old and frequently break down—is the more pressing matter. 'The decision to reopen…is not just a billion-dollar decision, it is well in excess of that when you're re-tendering again in an inflationary environment,' Eby told reporters in Victoria. 'In addition, the amount of time that would take – it took five years to get to this process, and I will not leave families sitting on the blacktop waiting for a ferry that is broken down in the strait somewhere when they need to get to see grandma.' No Canadian companies placed a bid to build the ferries. B.C.'s main shipbuilder Seaspan said it's currently too busy building for the military, and even when it has time down the line, the company argued last September, it won't be able to compete with countries that pay lower wages and have lower safety standards. Read more: BC Ferries union upset Chinese company was hired to build new vessels Transportation Minister Mike Farnworth said earlier it would cost more than $1 billion extra if BC Ferries were to build in Europe, but he too expressed concern over the contract going to China. The exact value of BC Ferries' contract with China Merchants Industry Weihai Shipyards has not been revealed, with officials citing the need to protect future procurements. Terms include payment tied to delivery, refund guarantees and a fixed price. Read more: Business leader says BC Ferries' hiring of Chinese shipyard is 'informed decision' When the deal was announced, BC Ferries CEO Nicolas Jimenez said CMI Weihai 'was the clear choice based on the overall strength of its bid' and noted the shipyard has built ferries for several major western corporations including Canada's Marine Atlantic. Nevertheless, the decision created a stink in the era of 'Buy B.C.' and 'build, baby, build,' not to mention China and Canada's ongoing trade dispute. 'I agree it's not ideal that the ferry award went to China, but reopening would mean a delay in delivering ferries for British Columbians who are desperate for them. It would mean significantly increased costs, and at this point, I'm not prepared to do that,' Eby said. The premier insisted there's an opportunity to work with the federal government to make sure there's capacity for the next round of BC Ferries vessels, expected after the latest four, to be built in B.C., or at least in Canada. 'It's important to me that wherever we can, we're building Canadian, we're creating Canadian jobs. but it's equally vital to me that when there's no Canadian company willing to bid on a contract, that we don't leave families sitting on the tarmac waiting,' Eby said. 'We need the ferries urgently, and we've got to go. That doesn't excuse either our government or the federal government from the work that we need to do ahead to make sure that the next round of ferries is built right here at home.'

Chris Selley: Why would B.C. pay more for ferries just to spite Donald Trump?
Chris Selley: Why would B.C. pay more for ferries just to spite Donald Trump?

National Post

time16-06-2025

  • Politics
  • National Post

Chris Selley: Why would B.C. pay more for ferries just to spite Donald Trump?

British Columbia's transportation minister claimed Friday that buying new ferries from European shipyards would have cost roughly $1.2 billion more than buying them from a Chinese government-owned shipyard in Weihai, Shandong province, which is a city roughly the size of Montreal that I had never heard of until this week. China knows how to build cities. They burst into existence from nothing, like popcorn. China also knows how to build ships, and highways, and high-speed rail, and just about anything else you would care to name, better and more efficiently than the Canadian public service can realistically comprehend. Article content Article content The four ships B.C. Ferries is fixing to replace, of 1960s and 1970s vintage, were built at Seaspan in North Vancouver (which is an active shipyard), at the Victoria Machinery Depot (which is no longer an active shipyard), and at the Burrard Dry Dock (which is also defunct). Canada's shipyards, for better or worse — certainly for expensive! — are very busy building things for the navy. Article content Article content Article content B.C. Ferries has plenty of experience with foreign-built vessels. Its current fleet includes ships built in Romania, Poland, Germany and Greece. Other than the Baynes Sound cable ferry on Vancouver Island — which is not especially popular — the Crown corporation's newest Canadian-built boat went into service in 1997. So 'foreign' obviously isn't the problem. Article content But China is China, and that's legitimately another thing. China is not a Canadian ally. They try to screw with our democracy, and most other democracies by the sounds of it. And right now we are in a profoundly protectionist moment: Across the political spectrum, mostly because of President Donald Trump, 'buy Canadian' is the only philosophy really on offer. Article content Article content But does that make sense? We should pay over the odds for ferries … because of Trump? There wasn't half of all this foofaraw when Marine Atlantic on the East Coast bought its newest ferry from Weihai. Since last year it has safely been shepherding Canadians between Nova Scotia and Newfoundland, without a whisper of controversy in the Rest of Canada. Article content Article content But this is 2025. So on Tuesday during question period in Ottawa, Conservative MP Jeff Kibble assailed the government for allowing this purchase go forward, as opposed to handing the contract to a 'proven Canadian shipbuilder such as Seaspan.'

Transportation minister says building in Europe would have cost B.C. Ferries an additional $1.2 billion
Transportation minister says building in Europe would have cost B.C. Ferries an additional $1.2 billion

Vancouver Sun

time13-06-2025

  • Business
  • Vancouver Sun

Transportation minister says building in Europe would have cost B.C. Ferries an additional $1.2 billion

B.C.'s transportation minister now acknowledges that while he has concerns about B.C. Ferries' decision to award a contract to a Chinese state-owned company, the corporation had few other options. Building four new vessels in Europe would have cost B.C. Ferries a lot more money, Farnworth told Postmedia News. The corporation has warned additional costs could lead to further fare increases for taxpayers. 'I know some people have suggested going to Europe. But the reality is, I learned from B.C. Ferries, to go to Europe, to build the ships, it would be an additional $1.2 billion.' Stay on top of the latest real estate news and home design trends. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Westcoast Homes will soon be in your inbox. Please try again Interested in more newsletters? Browse here. Farnworth said he was informed of the ferry service's decision to award the contract to Weihai shipyards about a month before it was made public this week, at which point he raised concerns about doing business with a country engaged in a trade war with Canada. 'I raised my concerns. One … the fact that there's no Canadian content in terms of construction. The tariffs, the trade disputes that are currently ongoing between our two countries is also, quite frankly, very concerning, and something that I think is going to be a real problem,' he said. However, part of the problem, Farnworth said, is that there were no Canadian bids for the contract, which seeks to have four vessels delivered by 2031 in order to replace B.C. Ferries' oldest ships. B.C. Ferries has refused to release the value of the contract with Weihai shipyards. North Vancouver-based shipbuilder Seaspan said in September that 'Canadian shipyards and their supply chains cannot compete with low-wage countries that have lower employment standards, lower environmental standards and lower safety standards.' It had urged the provincial government to step in to provide tax breaks and forgivable loans and grants to allow local companies to compete for bids. Farnworth said that although Seaspan has indicated it's now busy with federal contracts, he wants to develop a plan to ensure future contracts are kept in B.C. 'I know B.C. Ferries will be wanting to build more ships in the future, and I want to ensure that as much of that as possible is done here in B.C. and Canada,' he said. 'I've asked for work within my ministry in terms of what is required to ensure that happens.' The Shipyard General Workers Federation said in a statement Thursday that while Seaspan may not be in a position to bid, 'many smaller shipyards in Canada have expressed their willingness and capability to collaborate as a consortium to keep this work within our borders.' It urged the provincial and federal governments to intervene so that the project can be returned to Canada. Asked whether he planned to do so, Farnworth sidestepped the question and simply cited the additional cost that would come with moving the contract. A China expert at the Center for Strategic and International Studies in Washington, D.C., told Postmedia earlier this week that such contracts could help China's military aspirations and preparations for a possible invasion of Taiwan. But Farnworth said he wasn't concerned. 'Shipyards all over the world are used for building commercial vessels and for military vessels. Our shipyards build military vessels as well,' he said. 'That is why I think it is important that we look at how we can ensure that we can build ships here in our own country, in the future.'

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