Chinese firm Jovo Group Company Ltd. Guangdong (Jovo), a clean energy service provider, said it is ready to begin ship-to-ship (STS) transfer operations at Subic Bay.
The STS transfer operations will involve moving oil tankers carrying liquefied natural gas (LNG) coming from elsewhere in Asia Pacific onto smaller vessels that are bound for China, since most mainland ports can’t accommodate bulk carriers due to depth issues, said Subic Bay Metropolitan Authority (SBMA) in a statement.
In a public consultation, Jovo International Business general manager Yuan Lu said the LNG will be brought to Subic Bay from Australia and Indonesia by a Belgium-flag 94,000-ton bulk carrier. The cargo will then be transferred while at sea to a smaller 47,000-tonnage ship headed to China.
Lu said Jovo’s STS operations in Subic will be assessed after five years to determine if a regional hub should be established in the area for the delivery of LNG to the local market and the rest of Southeast Asia.
He said Jovo’s long-term plan is to introduce the LNG to local markets in the Philippines, especially those in the transportation sector, as this kind of fuel is safe and environment-friendly.
Lu noted that Jovo has decades of comprehensive experience in clean energy shipping, storage, processing, and sales with zero accidents, and assured that LNG and the STS operation will be safe for the environment.
The consultation was attended by local fishermen, members of the Philippine Coast Guard and PNP Maritime Group, and workers from SBMA.
Fishermen belonging to the Subic Bay Fisheries and Aquatic Resource Management Council (SBFARMC) said they are glad that SBMA and Jovo held consultations with them before the STS operation in Subic starts.
“We are thankful for the invitation of SBMA headed by its new chairman Martin Diño and Jovo for this consultation for them to hear our concerns and enlighten us on this ship-to-ship operation that might affect our livelihood,” said SBFARMC chair Laureano Artagame.
He noted that with the consultation, the accidental “intrusion” of large ships into the fishing areas of small fishermen in Subic Bay can be avoided.
China Classification Society (CCS) senior engineer Fan Hong Jun, in his presentation, said that compared to highly combustible gasoline or liquefied petroleum gas, LNG creates a less severe greenhouse effect.
It is also lighter than air, making it safer in case of spillage. With a property temperature of -162 ̊C, LNG is hard to burn but evaporates rapidly, so spills into the ocean will not affect marine life, and water will remain safe to drink even if the gas leaks into water sources, explained Fan.
“It burns slowly, and does not mix with water nor kill fish or any other marine life. LNG is very environmental friendly,” he said.
In terms of revenue, Fan said the Port of Subic stands to earn tens of millions of pesos from services such as anchorage, tug boat services and port services. This does not include indirect revenue from payments for tugboats, chandlers, bunkering and food supplies.
