Seaside LNG Announces Two Milestone First Deliveries

Rhea-AI Summary

Seaside LNG, in partnership with Carnival Corporation & plc (NYSE: CCL; NYSE: CUK), marks the first in port LNG bunkering delivery along the U.S. Gulf Coast, with the successful delivery to the Carnival Jubilee, a cruise ship stationed in Galveston, Texas. The company's newest barge, the Clean Everglades, has also made its first delivery at TOTE Maritime’s terminal near Jacksonville, Florida. Seaside's barge, the Clean Jacksonville, has safely completed over 350 bunkering operations and has been moved to operate out of Galveston to serve the Texas Gulf Coast.

Insights

Energy Market Analyst

The announcement by Seaside LNG of their first ship-to-ship LNG bunkering operation in the Port of Galveston signifies a pivotal development in the maritime energy sector. This event marks a notable expansion in the infrastructure required to support LNG as a marine fuel, a cleaner alternative to traditional bunker fuel. The significance of this lies in the alignment with global emission reduction targets, which are pushing the shipping industry towards lower-carbon fuel options.

LNG, or liquefied natural gas, is predominantly methane that has been cooled to a liquid state for ease of storage and transportation. Its role in the transition towards greener shipping practices is critical, given that it emits up to 25% less carbon dioxide when combusted compared to heavy fuel oil. The operationalization of LNG bunkering facilities along the U.S. Gulf Coast could potentially catalyze a shift in fueling practices across the region, influencing the demand for LNG and impacting the stock valuations of companies engaged in this sector.

From a market perspective, this development could enhance the competitive advantage of Carnival Corporation, as the use of LNG can result in operational cost savings and compliance with stringent environmental regulations. Investors may view this as a positive signal for Carnival's long-term sustainability and financial performance.

Environmental Policy Expert

The commencement of LNG bunkering services at the Port of Galveston by Seaside LNG is a significant step forward in environmental policy implementation within the maritime industry. By facilitating access to LNG, this move supports the International Maritime Organization's (IMO) strategy to reduce greenhouse gas emissions from ships by at least 50% by 2050 compared to 2008 levels.

Furthermore, the expansion of LNG bunkering infrastructure may encourage other shipping companies to transition to LNG, thus amplifying the environmental benefits. However, it is crucial to consider the full life cycle emissions of LNG, including methane leakage during extraction and transportation. As policies evolve to address these concerns, the long-term viability of LNG as a transitional fuel may be subject to further scrutiny.

Maritime Logistics Expert

The operational launch of the Clean Jacksonville barge for LNG bunkering services along the Texas Gulf Coast introduces a logistical milestone for maritime operations in the region. The ability to perform in-port ship-to-ship LNG transfers is a complex process that necessitates meticulous safety and coordination protocols. The successful execution of over 350 bunkering operations by Seaside LNG's barge fleet demonstrates a robust operational framework, which could set a precedent for other ports and maritime logistics companies.

For stakeholders, including port authorities and shipping companies, the availability of LNG bunkering services may lead to diversification of fuel supply chains and potentially more competitive bunkering costs. In the long term, the adoption of LNG by major shipping lines could reshape trade routes and port calls, based on the availability of LNG infrastructure.

Galveston Delivery Marks First In Port LNG Bunkering Along the U.S. Gulf Coast

HOUSTON--(BUSINESS WIRE)-- Seaside LNG announces its first delivery to the Carnival Jubilee, an LNG propelled cruise ship stationed in Galveston, Texas. After entering into a term bunkering agreement with Carnival Corporation & plc (NYSE/LSE: CCL; NYSE: CUK), the delivery took place on December 30, 2023, after months of careful coordination with all parties involved, including the Port of Galveston. This operation marked the first in port ship-to-ship LNG bunkering delivery not only in Galveston but also along the entire U.S. Gulf Coast.

The Clean Everglades, the newest member of the Seaside LNG fleet, is an articulated tug barge that holds 5,500 cubic meters of LNG. It made its first delivery last week at TOTE Maritime’s terminal near Jacksonville, Florida as part of a long-term contract. (Photo: Business Wire)

Seaside’s barge, the Clean Jacksonville, was moved from Jacksonville, Florida to operate out of Galveston and serve the Texas Gulf Coast. The Clean Jacksonville has safely completed more than 350 bunkering operations to date.

In related news, the Clean Everglades, the newest member of the Seaside LNG fleet, made its first delivery last week. The delivery was made to Isla Bella at the TOTE Maritime’s terminal near Jacksonville, Florida. The operation was a regularly scheduled delivery per TOTE’s long-term service contract with Seaside’s maritime transportation company, Polaris New Energy. Seaside took delivery of the Clean Everglades, an articulated tug barge that holds 5,500 cubic meters of LNG, in October 2023. In addition, TOTE Services acts as Seaside’s operating partner for both the Clean Jacksonville and Clean Everglades.

“The Seaside LNG team is excited to start 2024 off strong with these two deliveries. We appreciate the trust our customers put in us to arrange these important fueling operations. We also recognize TOTE Services for their contributions as a reliable operating partner,” noted Tim Casey, CEO of Seaside LNG. “As the demand for LNG as a cleaner maritime fuel continues to grow, our team and barge fleet are ready to deliver.”

About Seaside LNG

Seaside LNG provides LNG production and maritime transportation logistics to meet the growing demand for LNG, a cleaner alternative fuel, to customers in the maritime, aerospace and transportation industries. Seaside owns 50% of JAX LNG, a small-scale (360,000 gallons/day) LNG production facility operating two trains in Jacksonville, Florida, and a 100% ownership stake in an LNG bunkering barge operation through Polaris New Energy (PNE). PNE, the bunkering arm of Seaside LNG, maintains the largest fleet of Jones Act-compliant bunkering vessels in the U.S., including Clean Canaveral, Clean Jacksonville and tug Polaris, and Clean Everglades and tug Tortuga. PNE’s bunkering operation is compatible with several vessel types, including cruise ships, containerships, tankers, and car carriers. Seaside continues to pioneer the buildout of LNG bunkering in the U.S. and looks to continue to grow its market leading geographic reach and Jones Act LNG barge fleet to additional ports soon. In October 2023, Seaside welcomed its newest barge, the Clean Everglades. For more information, visit www.seasidelng.com.

About TOTE Services

TOTE Services, LLC (“TOTE Services”) is a U.S.-based company providing ship management services, vessel construction management and technical solutions to meet the needs of commercial, privately-owned, and U.S. Government vessels. Since 2015, TOTE Services has overseen construction and management of the world’s first LNG-powered container ships, activated U.S. training ships to support disaster relief, and managed many MARAD vessels. TOTE Services, along with TOTE Maritime Alaska, LLC and TOTE Maritime Puerto Rico, LLC, are part of TOTE Group, LLC (“TOTE Group”). TOTE Group is a member of the Saltchuk family of companies. For more information about TOTE Services, please visit www.totegroup.com/services.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240124116809/en/

Seaside LNG

Jennifer Petree/Abbey Sellers

pr@petreepartners.com

+1-713-269-3776

TOTE Services, LLC

Heather Alves

+1-904-704-6522

Source: Seaside LNG

FAQ

What is the significance of the recent delivery by Seaside LNG to the Carnival Jubilee?

The delivery marks the first in port ship-to-ship LNG bunkering delivery in Galveston and along the entire U.S. Gulf Coast.

What is the name of the newest barge in Seaside LNG's fleet?

The newest barge is called the Clean Everglades, which holds 5,500 cubic meters of LNG.

How many bunkering operations has Seaside LNG's barge, the Clean Jacksonville, completed?

The Clean Jacksonville has safely completed more than 350 bunkering operations to date.

Who is Seaside LNG's operating partner for both the Clean Jacksonville and Clean Everglades?

TOTE Services acts as Seaside's operating partner for both the Clean Jacksonville and Clean Everglades.