Established in 1998, Brunei Gas Carriers (BGC) proudly manages a fleet of five A-class LNG ships that predominantly serve as the arteries for exporting Brunei’s natural gas. The flagship carrier for Brunei LNG, BGC is aptly positioned to analyze the health of the energy export industry. Shahbudin Musa, Managing Director of BGC, explains.
How would you describe Brunei’s energy shipping market?
The Brunei shipping market is not independent of the global trend, which is currently characterized by an oversupply. However, although there are still a lot of orders for new LNG ships, we still need to evaluate the risk of not having a contract ready when that new LNG ship is put into operation.
What effects does the dropping oil prices have on business?
Like the rest of the economy, the LNG industry is suffering from the impact of declined oil prices. LNG demand in this situation is always going to be challenged by alternative sources of energy; one can say that it’s a buyer’s market. Hence, LNG products may be pressured because alternatives are plentiful and there may be a lowering of demand. Competitive pressure is also coming from US shale gas production.
What is your engagement with China?
There were recent discussions with China on shipping opportunities, but our ships are mostly allocated to Brunei LNG. Two years ago, China was a potential LNG buyer. But the opportunity didn’t go through because China has more options in their portfolio for LNG sources.
How is BGC aligned with His Majesty’s Wawasan 2035 plan?
We are targeting to run our ships with as many Bruneians as possible within five years.