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THE SUEZ CANAL AND LNG

• LNG 14 Doha Qatar 21-24 March 2004
• Eng. Ahmed El Manakhly
• SUEZ CANAL AUTHORITY

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Contents

• Suez Canal , the International water way
• International Gas Trade
• LNG Fleet
• LNG Via Suez Canal

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Suez Canal the International water way
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INTRODUCTION

• The Suez Canal is actually the first Canal
  directly linking the Mediterranean sea to the Red
  Sea
• It was opened for international navigation on 17
  th November 1869
• Egypt nationalized its canal on 26 th July 1956
• The Canal was closed five times , The last time
  was the most serious one ( after 1967 war ) ,
  since it lasted for 8 years , and it was reopened
  for navigation on 5 th June 1975

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THE MAIN ADVANTAGES OF THE SUEZ CANAL

• Longest Canal in the world without locks.
• Compared with other waterways, the percentage of
  accidents is almost nil.
• Navigation goes day and night.
• Liable to be widened and deepened when required
  to cope with the expansion in ship sizes.
• The VTMS (Vessel Traffic Management System) has
  been introduced. It is a very accurate electronic
  system with a most up to date radar network.

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Suez Canal Traffic System

• Ships transit the canal in 3 convoys daily
• - The first from port said at 0000
• - The second from port said at 0700
• - The third from Suez at 0600
• Pilotage is compulsory for all kinds of
  transiting ships.
• The speed limit of the ship during transit is
  between
• 13 15 km/ hour.
• On average the ship takes 12 15 hours to
  transit the canal.
• The numerical capacity of the canal is about 76
  ship / day.

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THE IMPORTANCE OF THE SUEZ CANAL

• The Suez Canal plays a very important rule in
  servicing international trade, by shortening the
  distance between Eastern and western ports.
• The following table shows the saving distance
  between the main ports

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SAVING DISTANCE BY USING THE SUEZ CANAL
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CHARACTERISITICS OF THE SUEZ CANAL YEAR 1869
2003
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TRAFFIC BY SHIP TYPE YEAR 2003
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The International Gas Trade
The International Gas Trade
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International trade in natural gas 1970-2002

•    

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International trade in natural gas 1970-2002
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LNG Fleet
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LNG Fleet by Capacity (2002)
Source Drewry
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LNG Fleet by Capacity
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Future LNG Tankers

• Capacity LOA Beam Draft
  Draft
• (,000) (m)
  (feet)
• 145 m3 290 45
  11.5 38
• 200 m3 315 50
  12.0 40
• 250 m3 345 55
  12.0 40
• Suez Canal Draft
  62

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LNG Via Suez Canal
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Potential LNG Trade
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LNG Trade Movement in 2002(BCM)
Potential for The SC equal 5.5 BCM (4.0 MT)
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The philosophy of Suez Canal tolls

• It is based on
• 1-Considering the earning capacity of the
  ship .
• 2- Comparing the ship cost through the Canal
  route with other alternative routes
• Cape route
• Pipelines
• 3-Considering the ship type and size .

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However, for LNG Carriers

• This philosophy is based on the market
  competition for natural gas.
• Co-operation between all parties of LNG trade
  -
• - the producer
• - the transporter
• - Suez Canal
• To make sure that The CIF price of Arabian LNG
  in Europe can compete with other producers
  (N.Africa W.Africa )

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The Advantages offered by The Suez Canal To LNG
Carriers.

• To encourage LNG Trade from the Arabian
  Gulf countries to Europe and USA , The Suez Canal
  offers the following-
• A rebate of 35 of normal SC transit tolls
  (started from 1994)
• Cargo Incentive (started from 1999)
• Reduction Cargo (MT/year)
• 5 0.5 1.0
• 10 1.0 2.0
• 15 Over 2.0

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Suez Canal transit duesfor LNG Carrier , 2004
Cost of transit for 125000 Cu.m LNG 0.17
/MMBTU
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Traffic of LNG Carriers through the canal
(1995 2003)
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Traffic of LNG Carriers through the Canal
(1995 2003)
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Year 2002 by O-D

• Total Numbers 174
• Loaded 86
• Ballast 88
• As for loaded LNG Carriers -
• 45 From Qatar (32 to Europe , 13 to
  USA)
• 27 From Oman
• 11 From U.A.E
• 3 From Others

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Thanks