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October 6, 2014

Wespac and Clean Marine partner for LNG fuel supply

Energy infrastructure and LNG solutions provider WesPac Midstream LLC (WesPac) has entered into a partnership agreement with Clean Marine Energy LLC (CME) for the supply of LNG fuel to ship owners.

By Samseer M

Energy infrastructure and LNG solutions provider WesPac Midstream LLC (WesPac) has entered into a partnership agreement with Clean Marine Energy LLC (CME) for the supply of LNG fuel to ship owners.

CME is the global facilitator of finance mechanisms for LNG conversion and emission control area (ECA) compliance. The collaboration will ensure the supply and delivery of LNG to ship owners using CME’s emissions compliance service agreement (ECSA) to convert to cleaner fueling.

"CME’s partnership with WesPac…greatly simplifies the decision to convert to clean, lower-cost LNG fuel." 

The new development enables both the financial support for LNG conversion and the infrastructure for LNG supply and delivery. Conversion to LNG with the upfront investment brings economic benefits to ship owners without capital deployment and helps to follow ECA regulations, which will come into effect from 1 January 2015.

CME CEO and co-founder Pace Ralli said: "The first question every ship owner asks is ‘Where will I get the LNG?’ because if they cannot ensure the future delivery of LNG then they will not see the investment payback.

"CME’s partnership with WesPac provides the answer to this question and greatly simplifies the decision to convert to clean, lower-cost LNG fuel."

The partnership intends to minimise the hurdles for LNG adoption and also to support the ship owners who wish to be early movers in the US domestic shipping industry and other high horsepower industries such as rail, mining and E&P.

Oaktree Capital Management will administer the funds for both WesPac’s LNG infrastructure projects and CME’s ship upgrades.

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