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THE SUEZ CANAL AND LNG

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THE SUEZ CANAL AND LNG

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

    2. Contents Suez Canal , the International water way International Gas Trade LNG Fleet LNG Via Suez Canal

    3. Suez Canal the International water way

    4. 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

    5. 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.

    6. Ships transit the canal in 3 convoys daily: - The first from port said at 00:00 - The second from port said at 07:00 - The third from Suez at 06:00 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. Suez Canal Traffic System

    7. 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 :

    8. SAVING DISTANCE BY USING THE SUEZ CANAL

    9. CHARACTERISITICS OF THE SUEZ CANAL YEAR 1869 & 2003

    10. TRAFFIC BY SHIP TYPE YEAR 2003

    11. The International Gas Trade

    12. International trade in natural gas 1970-2002

    14. LNG Fleet

    15. LNG Fleet by Capacity (2002)

    16. LNG Fleet by Capacity

    17. 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

    18. LNG Via Suez Canal

    21. 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 .

    22. * 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 )

    23. 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

    24. Suez Canal transit dues for LNG Carrier , 2004

    25. Traffic of LNG Carriers through the canal (1995 2003)

    26. Traffic of LNG Carriers through the Canal (1995 2003)

    27. 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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