GAZPROM MOU LNG Market
with Baltic Sea Port
21 July 2014
GAZPROM has announced it has signed a have signed a memorandum of understanding
with the operator of the Baltic Sea port of Rostock, Hafen-Entwicklungs-gesellschaft
Rostock mbH for cooperation in the LNG market.
According to GAZPROM the cooperation will focus on the development, marketing,
and usage of LNG in road transport and shipping in the German state of Mecklenburg-Western
Pomerania. The companies share the long-term goal of providing the infrastructure
required to bunker LNG and will creating an additional sales channel for LNG.
GAZPROM noted establishing infrastructure at Germany’s largest multi-purpose
Baltic Sea port will allow LNG to be delivered to Rostock – and thereby to
Germany. The port of Rostock provides the necessary port space. The GAZPROM
Group is also investigating transporting the LNG from intermediate storage
to independent gas utilities by truck and supplying it for use in natural
gas vehicles. The LNG will be shipped from the planned liquefaction plant
in the Gulf of Finland.
“We look forward to working with GAZPROM. LNG has the best environment and
safety balance of all the fuels used to power ships, and that allows shippers
to meet the high environmental protection requirements”, says Ulrich Bauermeister,
Managing Director of Hafen-Entwicklungsgesellschaft Rostock.
Stricter environmental standards will apply to shipping in the North Sea
and Baltic Sea from 2015. Under the new standards, shipping fuel will be allowed
to contain just 0.1 % sulphur instead of the 1.0 % currently permitted.
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Indonesia
PGN FSRU Lampung starts commercial operation
28 July 2014
Höegh LNG announced today the PGN FSRU Lampung project offshore Indonesia
reached a milestone on July 21st, 2014 when the unit started commercial
operation for its client Perusahaan Gas Negara (PGN). Höegh LNG noted
the PGN FSRU Lampung completed receiving its first cargo of LNG through a
Ship-To-Ship transfer on July 27th, 2014 and has now entered its final commissioning
phase. The contract with PGN is for 20 years.
Sveinung J.S. Støhle, President and CEO of Höegh LNG Holdings
Ltd. said, “We are proud to have commenced commercial operation of this technically
advanced and innovative FSRU project for our client PGN. This is the largest
and most complex FSRU project Höegh LNG has undertaken so far, and the
project team and the Company deserves a lot of praise for their excellent
performance. With the second and third FSRU scheduled to commence commercial
operation later this year and the fourth FSRU being delivered in the first
quarter next year, the Company is in the process of preparing for further
expansion within the FSRU segment, thus demonstrating our commitment to keep
growing the Company within the FSRU market."
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Cameron LNG project Banks
sign 7.5 USD billion loans
By EMI URABE and TESUN OH Bloomberg July 28, 2014
Loan rates fall to the lowest ever
About 30 banks are set to sign a $7.5 billion loan early next month for
a US shale gas project that could offer Japan imports from fracking, according
to three people familiar with the matter. Japan’s three biggest lenders are
among banks that will supply $5 billion to the Hackberry, Louisiana-based
Cameron liquefied natural gas development, two separate people said. The rest
will be extended by state-owned Japan Bank for International Cooperation,
they said.
The Cameron LNG project may give Asia’s second-largest economy an alternative
source for fuel after a nuclear industry shutdown following the 2011 Fukushima
disaster forced it to boost energy imports, resulting in a record run of trade
deficits. For the nation’s banks, the deal will provide income from overseas
as loan rates at home fall to the lowest ever due to central bank stimulus.
“It’s worthwhile for Japanese banks to participate in these projects at
a time when there’s fierce competition” in domestic lending, said Hironari
Nozaki, an analyst at Citigroup Inc. in Tokyo. The lenders’ “capital is ample,”
he said.
The lending units of Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui
Financial Group Inc. and Mizuho Financial Group Inc. are among the Japanese
banks taking part in the deal, according to the two people. HSBC Holdings
Plc, Societe Generale SA and ING Groep NV are also among the lenders, they
said. Nippon Export and Investment Insurance will guarantee $2 billion of
the private-sector bank loans, the people said.
Lending Rate
The loan will be for 16 years, and its guaranteed portion will initially
pay 125 basis points over the London interbank offered rate while the non-guaranteed
part will pay 175 basis points more than Libor, according to the people. Japan’s
average interest rates on new lending dropped to a record-low 0.779% in May,
Bank of Japan data show. A basis point is 0.01 percentage point.
The $10 billion Cameron project is slated to produce 12 million tpy of LNG
starting in 2018. It’s owned by Sempra Energy, GDF Suez, Mitsui & Co.,
and a joint venture between Mitsubishi Corp. and Nippon Yusen KK, according
to the project’s website. Pati Mitchell, a spokeswoman for Sempra Energy,
said “we can only say that it will be this year,” when asked about the timing
of the loan signing.
Spokesmen for Mitsubishi and Mitsui, who asked not to be named citing company
policy, declined to comment. Spokesmen for Nippon Yusen and GDF Suez weren’t
immediately available to comment.
Japan’s trade deficit in June exceeded economist forecasts at 822.2 billion
yen ($8.1 billion), marking the 24th straight month of shortfalls, according
to government data released today. Imports in the first six months of 2014
were the most in any half-year in comparable data back to 1979.
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Antwerp to build LNG bunker
station
Joc.com 7/19/2014
The Port of Antwerp plans to build a bunkering station to encourage use
of liquefied natural gas by self-propelled river barges.
UKCS, NCS and the Netherlands is ageing production needs Russian and global
LNG
.eclipseenergy.com 10/2012
The indigenous production from the UKCS, NCS and the Netherlands is ageing
and this will increase the probability of supply failures. Their production
capability and flexibility is in decline and will increase import dependency
from more distant supply sources such as Russia and global LNG.
Under stressed market conditions the UK “toolbox” is limited and may be
too reliant upon an efficient market balancing supply and demand. This may
not be an advantage to the UK as other European countries can use the UK
to balance their own portfolios. Storage is a viable insurance and will improve
“security of price” against events of short or longer term duration. LRS
is a better solution than SRS for the scenarios tested – even for events
of only 1 month duration.
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Nord Stream Start to Damp
U.K. Gas Prices as Stores High
By Isis Almeida Jul 3, 2014
Prices on the U.K.’s National Balancing Point hub will average 39 pence
a therm ($6.63/mmbtu) in the third quarter, Credit Suisse said, cutting
its forecast from 57 pence a therm ($9.69/mmbtu) . Prices in the last three
months of the year, when the winter season starts, will be 54 pence ($9.18/mmbtu)
, down from an earlier estimate of 65 pence ($11.05/mmbtu) , according to
the bank.
The end of maintenance at a pipeline linking Germany to Russia will probably
cut gas export demand from the U.K., putting pressure on prices currently
at a 4-year low as Britain’s storage sites fill up earlier than usual.
Planned maintenance at the Nord Stream pipeline that’s limiting supply
to Germany will end July 04, 2014, according to network operator Opal
Gastransport GmbH. The works, started June 24, helped support gas prices last
week in the U.K., which boosted exports to the continent, London-based consultants
Energy Aspects Ltd. said in a report e-mailed on June 30.
Gas demand to fill storage sites in the U.K. will slow this month and
the next as inventory building is “basically already done,” according to
Credit Suisse Group AG. (CSGN) Facilities will probably be filled in August,
earlier than the usual October period, Richard Sarsfield-Hall, a senior
principal at Poeyry Consulting (U.K.), said by phone on June 30.
“Russia has the ability to move vast amounts of gas through Nord Stream,
so the end of works is generally bearish to U.K. gas prices,”
Tobias Davis, a gas broker at GFI Securities Ltd. in London, said yesterday
by e-mail.
“We also have large LNG deliveries and historically high storage levels,
so expectations are we will be oversupplied.”
U.K. gas for August, which fell at the slowest rate in more than a month
in the week ended June 27 as Nord Stream maintenance started, slid to 37.89
pence a therm ($6.49 a million British thermal units) on the ICE Futures
Europe exchange in London today. That’s the lowest for a next-month contract
since August 2010. Prices are down 44 percent this year.
Normal Flows
The U.K. received 10 LNG cargoes in May, the most in a year, according
to port authorities and ship-tracking data compiled by Bloomberg. Eight vessels
arrived in June and four are scheduled so far this month. Normal flows to
Europe via Ukraine after Russia cut supplies to the nation on June 16 are
also adding bearish pressure on U.K. gas prices, Davis said.
Russia’s OAO Gazprom (OGZD) said today transit to Europe via Ukraine was
proceeding normally while the Slovakian grid operator said it didn’t record
pressure reduction or lower volumes at a compressor station at the Ukrainian
border.
Europe’s mildest winter in seven years meant less gas was withdrawn and
inventories filled up earlier, with facilities in the U.K. 93 percent full
as of June 29, according to data from Gas Infrastructure Europe, a lobby
group in Brussels. That’s the highest for that time of the year since at
least 2007. Facilities were yesterday 84 percent full after more storage
space was made available, the data showed.
Demand Declines
Demand usually declines in the summer as less gas is used for heating,
with an average low point on Aug. 7, according to National Grid data for
the past 10 years.
The U.K.’s “exceptionally high” inventories left “far too little storage
demand in the system this spring and summer,” Credit Suisse analysts including
Jan Stuart said in a June 23 report.
“It is a matter of time before the winter futures and next year’s
calendar average futures come down more.”
Winter gas, for the six months from October, was little changed at 56.4
pence a therm ($9.59/mmbtu) on ICE. The contract lost 9.9 percent since
the summer season started on April 1.
Belgium Exports
Exports from the U.K. to Belgium started to slow as Nord Stream ended
its full shutdown on June 28, with capacity at the Greifswald terminal in
Germany at 50 percent until tomorrow.
Shipments to Belgium fell for a fifth day yesterday to 19 million cubic
meters from 38.5 million on June 27, according to data from Interconnector
U.K. Ltd., which operates the pipeline.
Nord Stream flows reached 923 gigawatt-hours a day (86 million cubic meters
a day) yesterday, approaching the average level of 1,013 gigawatt-hours a
day since the start of the year,
according to data from Opal and NEL Gastransport GmbH, operators of the
two German onshore pipelines connected to the marine link.
U.K. prices probably won’t find support from gas usage in power generation,
according to Sarsfield-Hall. While the amount of electricity produced from
the fuel climbed in the past two months, according to National Grid, higher
prices later this year mean coal will be more advantageous this winter, he
said.
“Gas usage in power generation often is higher in the summer than in the
winter” because of seasonality in prices, Sarsfield-Hall said. With gas prices
rise later this year and coal continuing to fall,
“that will push the market back to using more coal in the winter.”
Prices on the U.K.’s National Balancing Point hub will average 39 pence
a therm ($6.63/mmbtu) in the third quarter, Credit Suisse said, cutting
its forecast from 57 pence a therm ($9.69/mmbtu) . Prices in the last three
months of the year, when the winter season starts, will be 54 pence ($9.18/mmbtu)
, down from an earlier estimate of 65 pence ($11.05/mmbtu), according to
the bank.
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GAZPROM LNG Plant Market
Baltic Sea Port 10 MM tpy
Gazprom to Build LNG Plant on Coast of Gulf of Finland 21 July 2014
The LNG will be shipped from the planned liquefaction plant in the Gulf
of Finland.
10 million tons per year (2013)
GAZPROM has announced it has signed a have signed a memorandum of understanding
with the operator of the Baltic Sea port of Rostock, Hafen-Entwicklungs-gesellschaft
Rostock mbH for cooperation in the LNG market.
According to GAZPROM the cooperation will focus on the development, marketing,
and usage of LNG in road transport and shipping in the German state of Mecklenburg-Western
Pomerania. The companies share the long-term goal of providing the infrastructure
required bunkering LNG and will creating an additional sales channel for
LNG.
GAZPROM noted establishing infrastructure at Germany’s largest multi-purpose
Baltic Sea port will allow LNG to be delivered to Rostock – and thereby to
Germany. The port of Rostock provides the necessary port space. The GAZPROM
Group is also investigating transporting the LNG from intermediate storage
to independent gas utilities by truck and supplying it for use in natural
gas vehicles. The LNG will be shipped from the planned liquefaction plant
in the Gulf of Finland.
“We look forward to working with GAZPROM. LNG has the best environment
and safety balance of all the fuels used to power ships, and that allows
shippers to meet the high environmental protection requirements”, says Ulrich
Bauermeister, Managing Director of Hafen-Entwicklungsgesellschaft Rostock.
Stricter environmental standards will apply to shipping in the North Sea
and Baltic Sea from 2015. Under the new standards, shipping fuel will be
allowed to contain just 0.1 % sulphur instead of the 1.0 % currently permitted.
Alexey Miller, Chairman of the Gazprom Management Committee and Alexander
Drozdenko, Governor of the Leningrad Region recently signed a Memorandum
of Understanding and Cooperation with regard to a liquefied natural gas (LNG)
plant project.
The signing ceremony took place in the presence of Russian President Vladimir
Putin as part of the St. Petersburg International Economic Forum 2013.
Under the Memorandum, the parties will use their best endeavors to prepare
and implement the LNG plant project to be deployed on the coast of the Gulf
of Finland.
The Leningrad Region Government will inter alia ensure that necessary
approvals are granted by authorized regulatory bodies and local authorities,
relevant permits are issued and Gazprom's ownership rights to constructed
facilities and purchased lands are registered.
“Gazprom has taken the decision to launch a fundamentally new and ambitious
project – the construction of an LNG plant in the Leningrad Region. I mean
the project that we announced recently. The plant capacity will be 10 million
tons per year. Today we have started developing an Investment Rationale and
selecting a construction site,” said Alexey Miller.
|
Croatia confirms plans for
new LNG terminal in 2016
ZAGREB Jul 3, 2012 Reuters
* Total cost of 600 mln euros* Hopes EU will fund 25 pct of investment*
Expected annual capacity of 5 billion cubic metres* Rival Adria LNG project
remains on hold
Croatia plans to build its own liquefied natural gas (LNG) terminal
in the northern Adriatic and hopes to have it up and running in 2016, Deputy
Prime Minister Radimir Cacic told an energy conference on Tuesday. "The
investment's value is expected to be 600 million euros ($755 million) and
we hope to get 25 percent of the money from European Union development funds,"
said Cacic, who is also the economy minister. Croatia's two state-owned
energy companies, power board HEP and gas transport operator Plinacro, formed
the LNG Hrvatska consortium for the construction of the terminal.
"We would need four years to complete the project if we are very efficient,"
Cacic said. "The capacity of the terminal, at least in the first stage, will
be 5 billion cubic metres of gas per year."
The LNG project is an alternative to a previously planned terminal at
the same site on the northern Adriatic island of Krk. That project was started
by an international Adria LNG consortium comprising four European energy
companies: Germany's E.ON-Ruhrgas, Austria's OMV Group, France's Total and
Slovenia's Geoplin.
However, the consortium postponed a final investment decision until 2013
because of falling gas demand on European markets amid the economic crisis.
It declined to comment on Croatia's new plans and said only that the project
was on hold until next year.
Croatia's slow decision-making process was blamed widely for the limited
progress of the Adria LNG terminal, which was expected to have annual capacity
of up to 15 billion cubic metres of gas.
Croatia consumes about 3 billion cubic metres of gas a year and imports
between 30 and 40 percent of that. As well as diversifying its energy supply,
Croatia hopes that the new terminal will make it a key transit country for
gas transportation.
Cacic and other energy officials visited Poland last week for talks on
possible gas links between the Baltic Sea and the Adriatic, but few details
were made public.
Poland is building a terminal at Swinoujscie, a port in the western part
of Poland's Baltic coast. The terminal, which is expected to become operational
in 2014, is planned to provide access to 5 billion cubic metres of gas a
year. ($1 = 0.7947 euros) (Reporting by Igor Ilic; Editing by Zoran Radosavljevic
and David Goodman)
|
Gulf
of Finland 6 ports refueled flexibly from a Porvoo LNG plant
Press Release, July 01, 2014; navaltoday.com
The Finnish Border Guard’s new offshore patrol vessel Turva, fuelled with
environmentally friendly LNG, has begun service in and around the Gulf of
Finland.
The Border Guard’s new offshore patrol vessel (OPV) is the second large
LNG-fuelled vessel sailing the Finnish waters.
As well as performing border management duties, the multipurpose vessel
will serve in maritime search and rescue missions and demanding environmental
safety operations such as oil spill response.
The vessel can be refueled flexibly at various Gulf of Finland ports,
such as Hanko, Hamina, Vuosaari, Turku, Pori and Raahe where LNG will be
delivered by Skangass by road tankers from company’s own production plant
in Porvoo. OPV Turva will be refueled – bunkered – using two road tankers
at the same time.
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EU
Work on Gas Link to Ukraine on Schedule
Reuters July 24, 2014 PRAGUE, July 24
Existing Polish and Hungarian connections have been small, with Ukraine
citing reluctance of companies within the EU to antagonize Gazprom.
Construction work on a pipeline that will allow gas to be sent from Western
Europe to Ukraine is on schedule and the contracted capacity will be available
from Sept. 1, Slovak pipeline operator Eustream said on Thursday.
Ukraine uses about 50 billion cubic metres (bcm) of gas a year and has
increased efforts to secure more gas from the European Union after Russian
producer Gazprom raised prices for supplies to Ukraine in a spat that has
added to the crisis in the former Soviet state.
Russia covered half of Ukraine's gas needs last year but halted supplies
on June 16 over the price disagreements and Kiev's outstanding debt for earlier
deliveries.
The Slovak pipeline - an upgraded older link leading from the Vojany power
station near the Ukrainian border to the western Ukrainian town of Uzhorod
- can supply up to 10 bcm of gas a year and an Eustream spokesman said this
capacity would be available on an interruptible basis from September and
on a firm basis from March 2015.
Testing of the pipeline will start in late August, the company said, adding
that full capacity was booked until 2019.
Combined with available connections from Hungary and Poland, Ukraine can
get obtain up to 16-17 bcm of gas from Western Europe. Real flows through
the existing Polish and Hungarian connections, however, have been smaller
in the past two weeks, with Ukraine citing reluctance of companies within
the EU to antagonise Gazprom.
Eustream said it has also moved ahead with constructions on an interconnector
with Hungary, which should start test operations in September.
|
Huge 400 billion USD Russia
China gas deal a tough ask
Anthony Harrington, July 25, 2014 qfinance.com
With its economy flat lining and being held up by oil and gas exports,
Russia desperately needs to increase the scale of those exports. On the
face of it the massive $400 billion deal Russia signed with China on 21 May,
for a 30 year gas supply contract, looks just the ticket to deliver that
increase over the long haul. However, the deal has a number of non-trivial
obstacles to overcome, chief of which are disagreements between China and
Russia over pricing and the difficulty Russia may find in funding the required
pipeline.
The stakes are high, and not just for Russia. A Reuters article argues
that the deal could well bring down gas prices across Asia, pointing out
that this would be a huge plus for Japan, China's long time rival and the
world's biggest buyer of liquefied natural gas (LNG). To make the deal work,
Russia will need to build a new pipeline linking its Siberian gas fields
to Chinese cities. The idea is for gas to start to flow through the pipeline
from 2018, building up to a steady 38 billion cubic meters per year.
Reuters quotes a possible price between the parties as translating to
around $10.00 to $10.50 per million British thermal units (mbtu). If this
is true, it will work out to around $3 less than the current average price
for Asian gas, which is around $13.00 per mbtu, spelling the end for the
so-called "Asian premium" on gas prices. Reuters comes at the deal from the
idea that plentiful cheaper Russian supplies will put downward pressure on
LNG pricing. Since Japan spent $70 billion in 2013 on LNG shipments to replace
nuclear power generation after the Fukushima core meltdown, and currently
has to pay top prices for LNG, the Chinese will in effect be extending a helping
hand to one of their biggest commercial rivals.
However, in an insightful blog, the oil and gas expert Dr Kent Moors
points out that while the Russia-China deal may well turn out to be everything
Russia hopes it will be, there are issues. The deal, as is usual with Russian
gas deals, is in the form of a take-or-pay contract. This means that China
has to commit to taking a certain quantity of gas each month or pay as if
it had taken the entire quantity. The problem with this, Moors points out,
is that "China does not need, nor can it absorb, the volume called for in
this deal". He continues:
"At present, gas accounts for no more than 30% of China's energy needs.
What's more, that total is already completely met for at least the next six
years, with a combination of domestic production (which is going to increase
- China has the largest extractable shale gas reserve in the world) and
ongoing import accords with Turnkmenistan and Myanmar. Also, the infrastructure
[in China] does not even exist to use what Russia expects to sell. It might
in a decade, but Gazprom needs the revenue now."
Then there is the fact that Russia is also in talks with Japan and Korea
to provide them with major gas flows. Its most cost-effective way of doing
this would be to have a single pipeline to China with branches off to Korea
and Japan. But, according to Moors, China wants a dual pipeline all to
itself, so Gazprom is probably looking at having to fund an exceedingly
large capital expenditure program in order to turn all of this into a reality
- all of this in a flat Russian economy.
To make matters even tougher, Moors' recent blogs argue that, since Putin's
Ukraine adventure and the annexation of Crimea, Gazprom is now under attack
from the West which is actively seeking to block Gazprom deals and pipeline
routes any which way it can, in order to put pressure on Putin to rein
in Russian nationalism.
What Moors feels is certain is that, as he puts it, "the fulcrum of the
global energy trade is gravitating to the Asian and Pacific market". The
big unresolved question is whether this burgeoning demand - intensified by
the continent's drive to move away from the destructive use of inferior grades
of coal - will be met with pipelined gas, or via LNG tanker transport. One
to watch...
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STQ LNG Ferry Launched in
Italy
July 2, 2014 in LNG, Marine by Rich Piellisch
Fincantieri-Built, Wärtsilä-Powered FA Gauthier to Be Delivered
This Year
http://hhpinsight.com/marine/2014/07/stqs-lng-ferry-launched-in-italy/?utm_source=HHP+Insight+July+3%2C+2014&utm_campaign=July+3%2C+2014&utm_medium=email
North America’s first liquefied natural gas-fueled ferry was launched
by the Fincantieri shipyard in Castellammare di Stabia (Naples) this past
Saturday. The 436-foot vessel (133-meter) is to be delivered to STQ, the
Société des traversiers du Québec, later this year.
The LNG-diesel dual fuel ship has been named F.A. Gauthier in honor
of Félix-Adrien Gauthier, former mayor of the town of Matane and
founder of the Matane-Godbout ferry route.
The $148 million F.A. Gauthier will be STQ’s largest, with capacity
for 800 passengers and 180 vehicles.
The new ferry will have four Wärtsilä 34DF dual fuel engines
and Wärtsilä’s LNGPac liquefied natural gas fuel system (HHP
Insight, August 5, 2013).
Two Smaller LNG Ferries on Order
Besides being the first LNG ferry for North America, F.A. Gauthier
is the first-ever gas-powered ferry built in Italy.
Two smaller Wärtsilä-powered ferries for STQ are being built
by Lévis, Que.-based Chantier Davie Canada.
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Port of Antwerp LNG bunkering
station for barges 2016
18 July 2014
The Port of Antwerp announced it plans to set up a LNG bunkering station
for barges. The plan calls for barges being able to fill up with
LNG at a permanent bunkering station in the port of Antwerp by the beginning
of 2016.
Truck-to-ship bunkering has already been possible in the port of Antwerp
since 2012. Currently a truck collects LNG at the LNG import terminal
in Zeebrugge and takes it to Antwerp. The truck then parks on the quay
from where the LNG can be delivered to the barge. By building a permanent
bunkering station LNG will be available in the port at all times. In this
way Antwerp Port Authority is looking to break out of the “chicken-and-egg”
scenario. By making LNG permanently available it is hoped that the barge
industry will be more willing to make the necessary investments for switching
to the environment-friendly fuel of LNG.
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Nor Lines duo fuelled
solely on LNG in shortsea trade
11 Jul 2014 motorship.com
Changing order in the shortsea trades: Nor Lines' new generation will
be fuelled solely on LNG; the special hull form includes a fuel-saving,
wave piercing bow
Changing order in the shortsea trades: Nor Lines' new generation will
be fuelled solely on LNG; the special hull form includes a fuel-saving,
wave piercing bow
As the first of a pair of LNG-burning general cargo ships for operation
in ECAs is nearing completion in China, David Tinsley looks at what could
prove the future for European coastal and shortsea ships.
Standards of operational flexibility, service dependability and environmental
compatibility demanded of participants in the Norwegian coastal and shortsea
trades set the bar high in terms of design performance and newbuild investment.
Integrated transport company Nor Lines, which maintains a liner-type cargo
network with ships currently up to about 4,000dwt, is providing a beacon
for the industry with a new generation of larger, extremely versatile vessels
powered by purely gas-burning main machinery.
As the first of two 5,000dwt newbuilds from Tsuji Heavy Industries
(Jiangsu) in China, the Kvitbjorn is expected to be phased into her allotted,
regular sailing schedule, linking Norwegian ports with the northwest Continent,
towards the end of 2014. Intended deployment within IMO-designated emission
control area (ECA) waters, in conjunction with considerations of long-term
operating economics, has determined the engineering solution adopted.
Developed by Nor Lines in collaboration with Rolls-Royce Marine, Kvitbjørn
and sister newbuild Kvitnos embody the Environship design concept. The
Environship model has attracted prestigious Norwegian and international
awards in recognition of its innovative blend of technologies resulting
in superior environmental and operational qualities.
For the Nor Lines project, the specific design is the type NVC 405
LNG, wherein Environship principles have been combined with the multi-modal
cargo working arrangements emblematic of Norwegian coastal service providers.
The forthcoming entrants to the Nor Lines fleet will each have the capability
to handle cargo by ro-ro, sto-ro, side-load and lo-lo means.
Running on natural gas, bunkered as LNG, the single Bergen B35:40 lean-burn
gas engine will virtually eliminate sulphur oxides (SOx) emissions and
curb nitrogen oxide (NOx) emissions by about 90%, thereby ensuring compliance
with both next year’s 0.1% sulphur cap and the 2016 IMO Tier III NOx limit.
Moreover, the heightened thermal efficiency (TE) relative to a typical,
medium-speed diesel propulsion engine will also offer economic benefits
contributing to the vessel’s long-term operating competitiveness and associated,
lessened ‘greenhouse gas’ impact.
In fact, key design and engineering features encapsulated by the Kvitbjørn
together promise a reduction of up to 40% in carbon dioxide (CO2) emissions
compared to a conventional vessel.
Unlike other propulsion solutions using LNG fuel, the 3,940kW Bergen
engine has spark ignition and operates solely on gas, without any requirement
for pilot injection of liquid diesel fuel.
With a claimed TE of some 48-49%, the Bergen B-series prime mover offers
a more effective energy conversion factor and corresponding diminution
of around 17% in CO2 per unit of power than a diesel engine. As utilised
in the Nor Lines newbuild application, one of the advantages inherent to
the Bergen gas engine series is that the power unit can drive the controllable
pitch propeller mechanically. The engine can operate at variable load and
speed, maintaining a high TE down to low loads. Both the engine and the
propeller can thereby be run at their optimal design points for maximum
efficiency.
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LNG Container Ships
to Ferries LNG Power for Freight and Passenger Vessels
Lloyd's Register Called Upon to Classify All Manner of Shipping Using
New Greener Fuel
Handyshippingguide.com July 23, 2014
UK – CANADA – WORLDWIDE – Lloyd’s Register (LR) might be the oldest
known operation of its type but one doesn’t continue to be successful in
any field for as long as Lloyd’s, which can trace it’s history back over
250 years, unless one is prepared to move with the times and evolve as the
face of business changes. Lately many ship builders are switching to Liquefied
Natural Gas (LNG) for propulsion and power, usually in a dual fuel configuration
as merchant vessels, from container ships to bulk freight carriers dip their
toes in the waters of the new and cleaner technology.
Lloyd’s is now working on a wide variety of LNG projects worldwide
including a bulk carrier for Swedish principals; car carrier project for
Norwegian operators; an ice breaker in Finland; and joint development and
investment projects with major shipowners and Asian shipyards, as well
as infrastructure related consultancy projects with ports in Asia and Europe.
Last month Lloyd’s Register announced a joint development project with
Piraeus, Greece based Capital Shipmanagement and Daewoo Shipbuilding (DSME)
for an 18,000 TEU LNG-fuelled container ship design, and earlier this month
it was announced that LR will class Texelstroom, the new innovative large
hybrid propulsion ferry that will operate in the Netherlands.
Ferries it seem are one of the first classes of vessels to wholeheartedly
embrace the new LNG systems with Lloyd’s Register collaborating in ferry
projects in the Netherlands, Quebec and British Columbia in Canada whilst
last week it was announced that LR is supporting Portsmouth as the UK port
prepares to receive Brittany Ferries’ new large LNG-fuelled ferries.
The latest project for Lloyd’s will see three new dual fuel (LNG/diesel)
new intermediate class vessels constructed to ‘LR Class’ meaning that
the ferries will be required to be built to LR’s Rules, LR’s surveyors
will be surveying the ship during construction to check for compliance
and, once the ferries have been found to meet LR class requirements and
placed in service, LR will survey the ships at regular intervals through
their operational lives.
The ferries are for BC Ferries and the first such powered craft on
the Canadian company’s fleet replacing the 49-year old Queen of Burnaby,
which sails between Comox and Powell River and the 50-year old Queen of
Nanaimo, which services the Tsawwassen – Southern Gulf Islands route.
The third vessel will augment peak and shoulder season service on the Southern
Gulf Islands route, plus provide refit relief around the BC fleet. These
new 105 metre vessels will accommodate 145 vehicles and 600 passengers.
Following a competitive bidding process the ships will be built by
Remontowa Shipbuilding S.A. of Gdansk, Poland in contracts totalling $165
million. The first new intermediate class vessel is scheduled to arrive
in British Columbia in August 2016, the second in October 2016 and the
third in February 2017. Remontowa is responsible for delivering the vessels
to Victoria. The first vessel is expected to be in service in the fall
of 2016, following extensive crew training and familiarisation. Mark Wilson,
BC Ferries’ Vice President of Engineering, said:
"BC Ferries is very pleased to have LR as the classification society
on these new ‘Intermediate Class’ ferries. LR has had a strong relationship
with BC Ferries over the years and has the necessary experience and presence
in Canada as we make this important transition to LNG-fuelled ferries. This
is an exciting initiative for BC Ferries that can reduce upward pressure
on fares due to lower fuel costs for LNG, and reduce the environmental emissions
substantially as LNG is a cleaner and greener fuel compared to current alternatives.”
In addition to its other duties Lloyd’s Register’s LNG fuel expertise
has been drawn on by BC Ferries to support overall risk management of the
project to help ensure the safety of bunkering and all LNG operations and
Bud Streeter, President, LR Canada, commented:
"This project is the culmination of a great deal of hard work. The
outlook is good for LNG in Canada, there is availability of Canadian gas
at highly competitive prices, so commercially this is looking like a smart
decision for BC Ferries. Our job was, and will be, to help ensure safety
and reliability in the design, build and the bunkering and operation of
these ships. Passengers are the most valuable cargo so we will endeavour
to contribute to the safe operation of these ships. LNG can provide significant
environmental benefits and, as BC Ferries is well aware, safety comes
first. We are pleased to provide BC Ferries with our assistance and expertise."
|
Gothenburg Fee Discount
for LNG powered ships
Source: Port of Gothenburg with HHP Insight July 2, 2014
In LNG, Marine, Money Available by Rich Piellisch
Harbor Fees Reduced by 30% Through December 2018
‘The Aim Is to Induce More Shipping Companies to Switch’
Sweden’s Port of Gothenburg has pledged to reduce port tariffs by 30%
for ships powered by liquefied natural gas. The aim is to induce more shipping
companies to switch to cleaner fuel,” states a release. The discount is
come into effect next year and continue through December 2018 – four years.
“It has been our firm belief for a long time that LNG is the fuel of
the future,” Port CEO Magnus Kårestedt says in the LNG discount
announcement. “This initiative is entirely in line with our ambition to
reduce the environmental impact of shipping and create a sustainable Scandinavian
freight hub.”
The “substantial savings” will make a difference, the Port says.
The Port of Gothenburg is encouraging LNG bunkering, promising ‘a substantial
reduction in the port tariff,’ through 2018, for ships powered by liquefied
natural gas. (photo of Hapag-Lloyd’s 740-foot Europa 2 courtesy Port of
Gothenburg)
It’s the Money that Matters
“It’s not technology that is the limiting factor, it’s the financial
considerations,” Carl Carlsson of the Swedish Shipowners’ Association
says in the Port release. “We will attempt to convince other ports in
the Baltic to offer the same type of support.”
The Port of Gothenburg notes that it’s preparing to a terminal “that
will supply both shipping and industry with liquefied natural gas,” part
of a collaborative venture between Rotterdam and Gothenburg to build an
LNG infrastructure.
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Whiting to buy Kodiak for
$3.8 billion, create No. 1 Bakken producer
By Ernest Scheyder and Liana B. Baker Jul 13, 2014 (Reuters)
Whiting Petroleum Corp (WLL.N) said on Sunday it would acquire Kodiak
Oil & Gas Corp (KOG.N) for $3.8 billion in stock, to become the largest
producer in North Dakota's Bakken shale oil formations, eclipsing Harold
Hamm's Continental Resources Inc (CLR.N).
By surpassing Continental, Whiting is signaling its desire to become
the preeminent player in what is considered one of North America's most-prolific
shale formations, where more than 1 million barrels of oil are extracted
daily.
"It's going to allow our production at the combined company to grow
faster than Whiting standalone did before," Whiting Chief Executive James
Volker said in an interview.
Whiting said the deal, valued at $6 billion when Kodiak's net debt
of $2.2 billion is included, is expected to close in the fourth quarter.
Kodiak shareholders will receive 0.177 share of Whiting stock for each
share of Kodiak common stock they hold, representing a value of $13.90
per share based on the closing price of Whiting shares on July 11.
That would be a 5.1 percent premium to the volume weighted average price
of Kodiak shares during the last 60 trading days.
Whiting's Volker added that the combined company will have greater
access to capital which will accelerate development of oil production.
The deal is expected to be accretive to the combined shareholders for cash
flow, earnings per share and production per share for 2015 and beyond.
The companies' combined output from the Bakken/Three Forks formations
in the first quarter was more than 107,000 barrels of oil equivalent per
day, with 855,000 combined net acres and almost 3,500 net future drilling
locations.
To compete with Continental, which has gobbled up more than 1 million
acres of land, Whiting had to acquire a smaller North Dakota rival. The
CEOs said in a joint interview that the merger of the two Denver-based
companies had been considered for years but came together in the past
few months.
Kodiak's appeal stems from its long-standing policy of marketing itself
to Wall Street as a "pure-play" bet on North Dakota's oil revolution,
and CEO Lynn Peterson had made bold and expensive bets to increase production.
For example, Peterson actively touted Kodiak's use of expensive ceramic
proppant during the hydraulic fracturing process to hold cracks open in
shale rock and extract oil and natural gas. While pricey, ceramic proppant
is considered by Peterson and some others in the industry the best way to
increase production.
Whiting, however, does not widely use ceramic proppant, and it wasn't
immediately clear if Whiting would cut costs at Kodiak once the company
is absorbed. Whiting's management will lead the company while Kodiak's Peterson
will join the board along with Kodiak executive James Catlin.
Whiting's financial advisor was JPMorgan (JPM.N), while
Foley & Lardner and Stikeman Elliot provided legal counsel. Petrie
Partners Securities advised Kodiak while Credit Suisse provided a fairness
opinion. Dorsey & Whitney and Miller Thomson were Kodiak's legal advisers.
|
World Bank funds Colombia
LNG plant as regional demand booms
By ISIS ALMEIDA Bloomberg gasprocessingnews.com
The World Bank’s private lending arm will help finance a $300 million
liquefied natural gas export project in Colombia as demand for the super-chilled
fuel in Latin America is forecast to double over the next decade.
The International Finance Corp. is leading a $240 million debt financing
for the world’s first floating liquefaction plant to start operating in
Colombia by mid-next year, said Lance Crist, the IFC’s global head of oil
and gas. The IFC will invest $75 million in the plant and the balance will
be provided by other lenders in transactions expected to close “in the next
several weeks,” he said.
Transport and power generation are boosting energy demand in Central
America, where spending on petroleum imports more than tripled in 2013
from 2000, according to the Institute of the Americas. The Colombian plant
is part of a $2 billion investment in energy projects that the IFC will back
for Central America and the Caribbean basin over the next year, Crist said.
“The beauty of this is that it will basically enable Colombia to take
advantage of some of its stranded gas and supply it to regional markets,”
he said. “In the near term, they will be selling gas to the international
market, but now that this kind of supply is available, you will start to
see regasification units being built in the Caribbean.”
$500 Million
The Colombian plant, which will produce 500,000 tpy of LNG, is a venture
between Pacific Rubiales Energy Corp., the nation’s largest independent
oil and gas exploration and production company, and Belgium’s Exmar, an
LNG and LPG carrier owner in Antwerp.
Peter Volk, a spokesman for Toronto-listed Pacific Rubiales, confirmed
the company is in talks to receive investment from the IFC when reached
by telephone today. The IFC will probably supply at least $500 million
in regional project funding over the next year, and the rest will come
from other banks and partners, Crist said. The Colombian facility is under
construction in China and will be brought to the Andean nation and commissioned
next year, he said.
Pacific Rubiales said last year it was in talks to sell supplies from
its plant to Gazprom Marketing & Trading Ltd., a UK-based subsidiary
of Russia’s OAO Gazprom, for a period of five years, according to a statement
on the company’s website. The two companies are still in negotiations, Volk
said.
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Ice class LNG carriers Russia's
Yamal Peninsula to markets
Mitsui O.S.K. signs contracts for ice class LNG carriers July 9
Mitsui O.S.K. Lines Ltd. said that shipbuilding contracts had been
signed with Daewoo Shipbuilding & Marine Engineering Co. in South
Korea to build three ice class LNG carriers.
It said the carriers are intended for the Yamal LNG project, Russian's
most strategic project in energy.
The ice class LNG carriers will have independent ice-breaking capabilities
that enable them to maneuver in waters with up to 2.1-meter ice thickness.
The vessels will be capable of transporting LNG from the Yamal LNG plant
at Sabetta in Russia's Yamal Peninsula to main LNG markets around the world.
During the summer months, the carriers will also be able to independently
negotiate the Northern Sea Route to transport LNG to East Asia.
The contract was drawn up by joint venture companies between Mitsui
O.S.K. Lines and China Shipping (Group) Co.
Arctic Ocean
LNG in 2018 using icebreakers July 9 2014
TOKYO, July 9 (Reuters) - Japan's Mitsui OSK Lines Ltd (MOL) said
on Wednesday that it will start transporting liquefied natural gas (LNG)
through the Arctic Ocean in 2018 using icebreaker LNG tankers.
MOL, with its joint venture partner China Shipping, has ordered
three icebreaker LNG carriers from South Korea's Daewoo Shipbuilding
& Marine Engineering Co Ltd.
The new tankers will deliver LNG to Europe and Asia from a gas plant
to be built on the Yamal Peninsula in northern Russia by Russia's second-largest
gas producer Novatek, France's Total and China National Petroleum Corporation.
With the melting of sea ice due to global warming effects, the Arctic
Ocean route, the shortest shipping route linking Europe and Asia, has
opened up in the past few years, a MOL spokesman said.
The icebreaker tankers are expected to deliver LNG to Europe via
the route all year while they will likely transport the gas to Asia only
between July and November, the spokesman said.
The new route through the Arctic Ocean will enable the gas to arrive
from the Yamal plant to Europe in about 11 days, and Northeast Asia including
Japan in about 18 days, according to the spokesman. (Reporting by Yuka
Obayashi; Editing by Tom Hogue)
Daewoo Shipbuilding wins icebreaking LNG carrier orders
By Park Jin-hai jinhai@koreatimes.co.kr
Daewoo Shipbuilding & Marine Engineering, the country's second-largest
shipbuilder, said Wednesday it has received orders for icebreaking LNG
carriers from Canada and Japan, worth $2.8 billion.
It received six orders from Teekay & CLNG, a joint venture between
Canada's Teekay and China's CLNG, and three from MOL & CSLNG, a joint
venture between Japan's MOL and China's CSLNG.
"The Arctic region is a market with invaluable potential, where
30 percent of natural gas and 13 percent of oil is located," said Ko
Jae-ho, CEO of Daewoo Shipbuilding & Marine Engineering.
"It is meaningful that our efforts to enter the Arctic carrier market
have been brought to fruition."
The company's first icebreaking LNG carriers, costing some $300
million each, will be used to transport gas from the Yamal Peninsula,
in the western part of Siberia, the shipbuilder said.
The carrier has applied anti-freezing technology that can operate
in conditions of minus 52 degrees Celsius.
The company began experimenting with the technology in 2008 using
a 10-ton oil tanker. Since then, it has developed LNG carriers and drill
ships that can weather the harsh conditions in the region.
The company has been working on the current order since 2011.
The latest orders are part of 16 icebreaking LNG carriers Daewoo
Shipbuilding is expected to provide in all.
Daweoo said it has won $5 billion in new orders so far this year,
including those for the LNG carriers. Last year, it won $13.6 billion
in new orders.
Teekay LNG Partners Finalizes Contracts for Six Yamal LNG Carrier
Newbuildings
07/09/2014 HAMILTON, BERMUDA -- (Marketwired) -- 07/09/14 --
Teekay LNG Partners L.P. (Teekay LNG or the Partnership) (NYSE:TGP),
through a new 50/50 joint venture with China LNG Shipping (Holdings) Limited
(China LNG), today announced that it has finalized shipbuilding contracts
for six internationally-flagged icebreaker liquefied natural gas (LNG)
carriers for the Yamal LNG Project, which is located on the Yamal Peninsula
in Northern Russia.
Under the agreements, the joint venture between Teekay LNG and China
LNG will build six 172,000 cubic meter ARC7 LNG carrier newbuildings to
be constructed by Daewoo Shipbuilding & Marine Engineering Co., Ltd.,
of South Korea, for a total fully built-up cost of approximately $2.1
billion. The vessels will be constructed with maximum 2.1 meter icebreaking
capabilities in both the forward and reverse direction.
Yamal LNG, a joint venture between Russia-based Novatek (60 percent),
France-based Total (20 percent) and China-based China National Petroleum
Corporation (CNPC) (20 percent), will consist of three LNG trains with
a total expected capacity of 16.5 million metric tons of LNG per annum
and is currently scheduled to start-up in early-2018.
"We are pleased to finalize this previously announced accretive
transaction, which solidifies Teekay LNG's role in Yamal LNG, a strategic
international energy project sponsored by Novatek, Total and CNPC, and
further expands our partnership with China LNG," commented Peter Evensen,
Chief Executive Officer of Teekay GP LLC. "These six newbuildings will
both increase and extend the average duration of Teekay LNG's existing
fixed-rate contact portfolio, providing further long-term stability for
the Partnership's cash flows. These vessels also add to Teekay LNG's existing
pipeline of growth projects scheduled to deliver between now and 2020, which
includes our five MEGI LNG carrier newbuildings, 10 LPG carrier newbuildings
ordered through our Exmar LPG joint venture, and our ownership interest
in four LNG carrier newbuildings that will be chartered to BG Group."
The signing by the owner of the remaining newbuilding carriers required
for the Yamal LNG Project will take place in Russia.
About Teekay LNG Partners L.P.
Teekay LNG Partners is one of the world's largest independent owner
and operator of LNG carriers, providing LNG, LPG and crude oil marine
transportation services primarily under long-term, fixed-rate charter
contracts through its interests in 50 LNG carriers (including one LNG regasification
unit and 15 newbuildings), 31 LPG/Multigas carriers (including five chartered-in
LPG carriers and 10 newbuildings) and nine conventional tankers. The Partnership's
interests in these vessels range from 20 to 100 percent. Teekay LNG Partners
L.P. is a publicly-traded master limited partnership (MLP) formed by Teekay
Corporation (NYSE:TK) as part of its strategy to expand its operations
in the LNG and LPG shipping sectors.
Teekay LNG Partners' common units trade on the New York Stock Exchange
under the symbol "TGP".
About China LNG Shipping (Holdings) Ltd.
China LNG Shipping (Holdings) Limited, a private China-based LNG
shipping company, was founded jointly by Dalian Ocean Shipping Company
and China Merchant Energy Shipping LNG Carrier Investment Inc. China LNG
is currently the only LNG shipping company that owns and operates LNG carriers
in China. Its businesses cover LNG carrier asset investment and management,
LNG shipping, LNG shipping management and consultancy services for LNG
shipping investments.
|
China LNG Project Signs
Deal for Siberia Yamal
HONG KONG, July 10 (Reuters) –
A subsidiary of Chinese state oil giant China National Offshore
Oil Corporation (CNOOC) has signed an around $1.6 billion deal to build
equipment for a liquefied natural gas project in Siberia, the company
said late on Wednesday. Under the agreement, CNOOC's Offshore Oil Engineering
Co will build "core modules" for the liquefication process on the project
in Yamal in the Russian Arctic, according to a statement posted on CNOOC's
website (www.cnooc.com.cn).
Novatek, Russia's second-largest gas producer, is developing the
$27 billion Yamal LNG project with France's Total and China's top energy
group, state-owned China National Petroleum Corporation (CNPC).
The first production unit, with annual capacity of 5.5 million tonnes,
is due to be launched in 2017.
In May, CNPC signed a deal to buy 3 million tonnes of LNG
per year from the Yamal project, as did Russia's Gazprom.
CNPC also agreed in May to buy 38 billion cubic meters of
gas per year from Russia's Gazprom, in a deal unofficially valued at
$400 billion. ($1 = 6.1972 Chinese Yuan Renminbi) -
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Rotterdam LNG Gate Terminal
Facilities for Distribution 03 July 2014
lngglobal.com Tuesday, July 08, 2014
Gate terminal, a joint venture of Gasunie and Vopak located on
the Maasvlakte in Rotterdam, announced today it will add LNG break bulk
infrastructure and services to the terminal. The new facility is expected
to increase the use of liquefied natural gas as a transportation fuel
in the Netherlands and Northwest Europe.
The goal of the break bulk LNG infrastructure is to split up large-scale
LNG shipments into smaller quantities. This will enable the distribution
of LNG as a fuel for maritime vessels, ferries, trucks and industrial
applications. The use of LNG as a fuel is expected to grow substantially
following the introduction of new emission regulations for the marine
sector in the North Sea and in the Baltic Sea in 2015.
Construction is scheduled to start this year with the start of
first services scheduled in the first half of 2016. The terminal
will be expanded with an additional harbor basin which will enable LNG
distribution for small scale use with a maximum capacity of 280 berthing
slots per year.
Shell will play a key role as a launching customer in enabling
the project.
From Gate in Rotterdam Shell and other customers will be able to
supply LNG to bunker stations in the Wadden area, Scandinavia, the Baltics,
but also to stations along the Rhine, Main and Danube.
Maarten Wetselaar, Shell’s Executive Vice President, Integrated
Gas, said: “We are pleased to have reached this agreement. The collaboration
between Gasunie, Vopak, the port of Rotterdam, and Shell will provide
security of supply of LNG for marine and road transport customers in
northwest Europe, through dedicated and scalable infrastructure. LNG
is a viable option for fuelling cleaner and more sustainable transport.
We believe LNG will form a bigger part of the transport fuel mix in the
future, and this project demonstrates our confidence in LNG as a fuel
option.”
In January 2014, Gate launched a tank truck loading station for
trucks and containers, with a total capacity of 5,000 trucks per year.
Over the past year, Gate has also developed into a hub, from where LNG
can be re-exported to other parts of Europe and around the world.
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LNG tractors for Turkish
container terminal Marmara Sea
08 Jul 2014 portstrategy.com
Netherlands-based Terberg Benschop is to supply 40 LNG tractors
for Asyaport’s new container terminal, being built in Turkey on the Marmara
Sea.
The YT222 tractors with 170kW Mercedes engines are powerful enough
to handle two trailers carrying 20 foot containers.
Asyaport says it chose LNG as a fuel for its environmental properties
and the fact that it’s considerably cheaper in Turkey than diesel. There
is also an LNG filling station near the terminal, so maintenance is easy.
Terberg’s Turkish distributor Portunus, based in Istanbul, will provide
service and support. Delivery will begin in January 2015.
Asyaport’s new deep-water container terminal is strategically located
as a transhipment hub for containers destined for the Black Sea via the
Bosporus. It will handle vessels carrying up to 18,000 teu and will have
an annual capacity of around two million teu. Investors in the terminal
include Terminal Investment Ltd SA (TIL), the terminal operating subsidiary
of Mediterranean Shipping Company (MSC), and the Soyuer Group in Turkey.
Following this order, Terberg will also supply 28 tractors
to TIL’s terminal at Lomé in Togo, West Africa. - See more at:
http://www.portstrategy.com/news101/lng/lng-tractors-for-new-turkish-terminal#sthash.Bx50VRQi.dpuf
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BC Ferries powered by
liquefied natural gas
BC Ferries has awarded a Polish firm a $165-million contract for
three new vessels — the first in its fleet to be powered by liquefied
natural gas (LNG).
By Tyler Orton Jul 3, 2014
Remontowa Shipbuilding scored the contract after the only B.C.-based
shipyard — Vancouver’s Seaspan — shortlisted for the bid dropped out,
the ferry service announced July 3. The entire project is budgeted
at $252 million with $51 million allocated to cover taxes and federal
import duties when the ferries are delivered to the West Coast beginning
in August 2016. The last ferry is scheduled to arrive in February 2017,
while all three will be able to run on either diesel or LNG.
BC Ferries vice-president of engineering Mark Wilson told Business
In Vancouver he expects up to seven vessels of this particular class to
be operating in the fleet within the next few years.
He said the bidding processing did not come down entirely to dollar
figures. Rather, BC Ferries was drawn to Remontowa’s bid due to their
experience with LNG-powered vessels. He said the duel-fuel capable
vessels offer lower fueling costs and reduced environmental impacts.
Wilson said the company spent $126 million on diesel fuel last
year but —based on numbers crunched internally — the LNG-powered ferries
could cut that cost in half. He added the cost-savings associated
with the ferries is not dependent on whether the proposed LNG boom being
touted by the B.C. government comes to fruition. The ferries will
replace aging vessels that sail between Comox and Powell River, and Tsawwassen
and the Gulf Islands. The new ferries will be 105 metres in length,
and capable of holding 145 vehicles and 600 passengers.
Among the provisions signed with Remontowa is an agreement stating
the shipbuilder will have to pay a $20,000 a day penalty if the ships
are more than two weeks late. The penalties max out at $6 million, but
BC Ferries can rescind the contract and get a full refund if the ships
are six months late.
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Gasum poised to build LNG
import terminal in Finland
07 Jul 2014
Gasum, a Finnish importer and supplier of natural gas, has laid
out plans to construct several liquefied natural gas (LNG) import terminals
in Finland, with construction on the first terminal set to commence
in Pori this autumn, if the Government offers its backing for the project.
An advisory board at the Ministry of Employment and the Economy
is set to consider the application of Gasum for investment aid at the
earliest in August, spokespersons at the ministry reveal.
Thereon, the matter will be presented to the Cabinet Finance Committee
for consideration.
Despite having yet to take a final decision on the investment,
Gasum has already commissioned preliminary work on the site of the planned
import terminal at the Tahkoluoto harbour in Pori. “If everything goes
well and the construction proceeds on schedule, the first LNG terminal
in Finland should be ready in the autumn of 2016,” estimates Johanna Lamminen,
the CEO of Gasum.
Gasum also holds a share in a joint venture that is contemplating
building an LNG import terminal in Röyttä, Tornio.
Liquefied natural gas occupies only a fraction of the volume of
regular natural gas and can be stored in large quantities and transported
across long distances. LNG can also be used as fuel in transportation
and industrial activities.
For the present, all natural gas consumed in Finland is supplied
through a pipeline from Russia.
The European Commission and the International Energy Agency (IEA)
have urged Finland to develop its natural gas market in order to reduce
its dependence on Russian gas supplies. Baltic countries are similarly
dependent on Russian natural gas.
The countries could bolster their energy security by integrating
their gas networks with an underwater pipeline running across the Gulf
of Finland. “However, the pipeline alone would not guarantee energy security.
It would be sensible to [build] a regional terminal and to integrate the
pipelines in order to open the market,” says Lamminen.
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LNG Pushes UK Gas to 4Year
Low Jul 7, 2014
By Isis Almeida
U.K. natural gas prices fell to the lowest since April 2010 as
more cargoes of the liquefied fuel were due to arrive and fears eased
of supply disruptions through Ukraine.
Front-month futures declined as much as 3.9 percent on the ICE
Futures Europe exchange in London. Flows from LNG terminals were as much
as 24 percent higher than the 10-day average, according to National Grid
Plc data, as three more tankers were scheduled to dock in Britain this
month.
Russian gas supplies to Europe via Ukraine were proceeding normally,
OAO Gazprom said in a statement. Ukrainian forces secured control of
the Donetsk region towns of Artemivsk and Druzhkivka, after recapturing
Slovyansk and Kramatorsk, turning the tide against pro-Russian insurgents.
Brent oil, linked to contract gas prices in mainland Europe, fell to the
lowest in more than three weeks as Libya prepares to boost exports and amid
speculation Iraq’s crude supplies remain safe.
“Libya also may no longer be a drag on the energy supply chain,”
INTL FCStone Inc. (INTL) said in a report e-mailed today. “Another crisis
that is now well on its way to becoming self-contained is Ukraine. Rebel
forces now seem to be on the back foot, with Russia reluctant to come to
their aid.”
U.K. gas for next-month delivery fell to 35.1 pence a therm ($6.02
a million British thermal units) on ICE, the lowest since April 30, 2010.
The fuel was trading at 35.45 pence at 4:38 p.m. in London. Dutch gas
on the Title Transfer Facility hub declined as much as 3.4 percent to
15.43 euros ($21) a megawatt-hour, the lowest since May 2010, according
to broker data compiled by Bloomberg.
LNG Imports
The U.K. received eight LNG tankers in June, one fewer than a
year earlier, after May deliveries were little changed from a year earlier
at 10 cargoes, according to data compiled by Bloomberg. Gas flows from
LNG terminals reached about 51 million cubic meters a day, up from an
average 41 million cubic meters a day in the past 10 days, data from network
operator National Grid showed.
Cargoes are coming to the U.K. after milder-than-usual temperatures
cut demand in Asia, the world’s biggest buying region. The Al Samriya
will dock July 14 at the South Hook terminal on May 14, four days after
the Al Ghuwairiya, according to the Milford Haven Port Authority. The
Al Kharsaah is due at the Dragon terminal, also in Milford Haven, Wales,
on July 15, according to ship-tracking data on Bloomberg. That would take
the July total to six, one more than last year.
“LNG imports remain exposed to temperatures in Northeast Asia,
which seem supportive of more LNG coming back to Europe,” London-based
consultants Energy Aspects Ltd. said in a report e-mailed today. Imports
“could begin to increase in 2015 as more supply becomes available in that
market.”
Seventh Month
U.K. gas prices fell for a seventh month in June, the longest
losing streak since at least 1997, with little support from seasonal
maintenance on pipelines including Nord Stream from Russia to Germany.
Prices are down 48 percent this year as Europe’s mildest winter in seven
years left inventories high. Storage sites in the European Union were
71 percent full, the highest for this time of year since 2011, Gas Infrastructure
Europe data showed.
“It remains hard to be bullish about the U.K. summer gas market,
with supply threats posed by the Russia-Ukraine gas dispute and Nord Stream
maintenance doing little to tighten the underlying gas market in June,”
Energy Aspects said. “Storage injection requirements will stay below average.”
U.K. gas for within-day delivery fell as much as 2.9 percent to
35.2 pence a therm, the lowest since September 2010, while day-ahead
fuel slid 3.8 percent to 35.1 pence a therm, also the lowest since September
2010, broker data showed. Total flows were at 205 million cubic meters
compared with a 10-day average of 183 million cubic meters, National Grid
data showed.
Demand including for exports and power generation was forecast
at 191 million cubic meters, above the seasonal norm of 183 million cubic
meters, according to grid data. Exports to Belgium were nominated at
19.2 million cubic meters, down from 20.6 million cubic meters yesterday,
according to data from Interconnector U.K. Ltd.
|
Egypt 17 shipments of LNG
170,000 cm each of gas
Mohamed Adel / July 7, 2014
EGAS Sonatrach negotiating over 5 LNG shipments for electricity
production
Each shipment of LNG meets the needs of the power plants, estimated
at 500 m cubic feet per day, for a period of more than six days, according
to Abdel Badie.
The Egyptian Natural Gas Holding Company (EGAS) and Algerian company
Sonatrach are currently in negotiations for the latter to provide five
shipments of liquefied natural gas (LNG) for electricity production over
the summer months.
EGAS Chairman Khaled Abdel Badie said the Algerian delegation
will arrive in Egypt in mid-July in order to conclude the proceedings.
EGAS needs about $1bn to import gas to power stations throughout
the three summer months. The amount is needed to import 17 shipment of
LNG, rent a regasification vessel and dock at Ain Sokhna, and sign letters
of guarantee, according to Abdel Badie.
He explained that an agreement has already been reached with the
Russian company Gazprom to provide seven shipments of LNG, while the
French company EDF will provide five shipments. Each shipment will contain
about 170,000 cubic metres of gas.
Each shipment of LNG meets the needs of the power plants, estimated
at 500 m cubic feet per day, for a period of more than six days, according
to Abdel Badie.
The regasification vessel will reach the port of Ain Sokhna in
September. In May, the Ministry of Petroleum signed a five-year agreement
with Norwegian company Höegh to rent a regasification vessel, to
convert LNG back into its gaseous state, said Abdel Badie.
Egypt is currently facing a decline in the gas production rates.
The deficit has reached about 2bn cubic feet per day while the current
output stands at 4.9bn, compared to 5.6bn produced the same time last
year.
|
Worldwide LNG fuel development
3 Jul 2014
| By Stuart Radnedge
GDF SUEZ, Mitsubishi and NYK signed a framework agreement aiming
to develop the LNG Bunkering market worldwide through LNG Bunkering Vessels.
This partnership results in two first contracts: on behalf of
the venture, the NYK’s order of an LNG bunkering vessel and an LNG bunkering
contract between GDF SUEZ and United European Car Carriers (UECC), a
leading short-sea operator. The partners will provide their know-how
and experience to develop this first project in the Northern Europe Emissions
Controlled Area (ECA)* from Zeebrugge, in Belgium.
Jean-Marie Dauger, Executive Vice-President of GDF SUEZ in charge
of the Global Gas & LNG business line declared, “GDF SUEZ regards
LNG as the future of bunkering. These new agreements emphasize the Group’s
Retail LNG strategy and demonstrates our commitment to the development
of LNG bunkering business on a global scale, alongside with harbor infrastructures
and ship operators.”
The LNG bunkering vessel will be built in the Korean shipyard
Hanjin Heavy Industries & Construction with a delivery expected
by 2016. Its home port will be Zeebrugge where GDF SUEZ has already secured
long term access rights in the Fluxys LNG terminal. The bunkering vessel
will be operated by NYK and will supply a range of end-customers.
The first customer will be UECC which purchased LNG to GDF SUEZ
on a medium-term basis for its two new dual fuel (LNG and marine gasoil)
car carrier ships operating in the North Sea and Baltic Sea. By end 2016,
the LNG will be delivered by means of ship-to-ship transfer from the LNG
bunkering vessel to the new ships ordered by UECC in the port of Zeebrugge.
LNG will be sourced from the supply portfolio of GDF SUEZ. The use of LNG
as fuel for meeting the increasing environmental constraints requires a network
of LNG bunkering services to be set up for the bunkering of vessels in main
harbors, with reliable supply chains.
GDF SUEZ is a global LNG player and the main LNG importer in Europe.
GDF SUEZ has the third largest LNG supply portfolio in the world, supplied
from six different countries, and representing 16 mtpa. It controls a
large fleet of 14 LNG carriers under mid and long term charter agreements.
The fleet is permanently optimized to satisfy GDF SUEZ long term commitments
and short term opportunities. The group has also a significant presence
in regasification terminals around the world, including FSRU’s and therefore
a large and flexible access to downstream markets.
|
Remontowa to build LNG fueled
ferries for BC Ferries
JULY 4, 2014—
Canada’s BC Ferries has awarded contracts worth $165 million to
Remontowa Shipbuilding S.A., Gdansk, Poland, to build three new dual-fuel
intermediate class vessels. The three 105 meter, 145-vehicle, 600-passenger
vessels will be able to burn Liquefied Natural Gas (LNG), as well as
marine diesel oil. Remontowa won the contract against stiff international
competition from shipyards in Germany, Norway and Turkey. The only Canadian
shipyard in the RFP process, Seaspan Marine, withdrew from the competition
because of its commitments to the Canadian Government’s National Shipbuilding
and Procurement Strategy and an order for a new BC cable ferry.
BC Ferries selected Remontowa based on its design and construction
plan, recent experience building intermediate ferries, capability of
introducing new technology such as LNG, customer satisfaction (references
from other customers), delivery schedule, price and payment terms, financial
stability and ability to provide guarantees. The total budget for
the newbuilding project is $252 million, which includes financing and project
management costs and $51 million for Canadian taxes and federal import
duties. “These are design-build, fixed-price contracts that provide
BC Ferries with substantial guarantees related to delivery dates, performance
criteria, cost certainty and quality construction,” says Mark Wilson,
BC Ferries’ Vice President of Engineering.
Other highlights of the contracts include:
• Remontowa assumes all design, construction and delivery risk
• Guarantees are in place for vessel completion dates
• Favorable payment terms with 80 per cent payment upon vessel
completion
• Vessel performance guarantees related to speed, carrying capacity,
maneuverability and fuel consumption
• Warranties above industry standard
• Penalties for late delivery
• Refund guarantee
“As we begin the next phase of our newbuild program, a key
objective is to achieve capital and operating cost savings and efficiencies
through an overall class and standardization strategy,” says Wilson.
“Standardization offers greater interoperability and lower crew training
and maintenance costs, and also enhances safety. This is a significant
step forward in taking BC Ferries from 17 classes of ships to five classes.”
The new intermediate class vessels will be the first vessels in
BC Ferries’ fleet to operate as dual-fuel capable using Liquefied Natural
Gas (LNG) or diesel fuel for propulsion and power generation. “This is
an exciting initiative for BC Ferries that can reduce upward pressure on
fare due to lower fuel costs for LNG, and reduce the environmental emissions
substantially since LNG is a cleaner and greener fuel compared to current
alternatives,” adds Wilson.
Two of the new ships will replace the 49-year-old Queen of Burnaby,
which sails between Comox and Powell River and the 50-year-old Queen
of Nanaimo, which services the Tsawwassen–Southern Gulf Islands route.
The third vessel will augment peak and shoulder season service on the
Southern Gulf Islands route, plus provide refit relief around the fleet.
The first new intermediate class vessel is scheduled to arrive
in British Columbia in August 2016, the second in October 2016 and the
third in February 2017. Remontowa is responsible for delivering the vessels
to Victoria. The first vessel is expected to be in service in the fall
of 2016, following extensive crew training and familiarization
|
WPCI Sets Website for
LNG Bunkering July 3, 2014
LNG, Marine, Publications by Rich Piellisch
‘Intended to Be a Resource and a Conversation-Starter,’
Website Includes Checklists for LNG Operations in Ports
The World Ports Climate Initiative, which counts 55 of the world’s
key ports among its International Association of Ports and Harbors
members, has launched LNGbunkering.org providing a detailed overview
of the use of liquefied natural gas as a ship fuel.
The site lays out the technical requirements for ships, for bunkering
infrastructure, and for LNG vessels under development, as well as the
business case for using LNG in the maritime environment.
LNGbunkering.org includes sections on pending regulations, on
legislation affecting LNG in Europe and the U.S., and checklists for
LNG operations in ports.
‘LNG Is the Ship’s Fuel of the Future’
“Representatives from some of the world’s largest and most progressive
ports developed this site for the benefit of all interested industry
parties, including port authorities, fuel suppliers and shipping companies,”
IAPH president Grant Gilfillan says in a release.
Deen Shipping's LNG-fueled Argonon bunkering for the first time
at the Port of Antwerp in late 2012 (HHP Insight, December 13, 2012).
Deen Shipping’s dual fuel Argonon was the first vessel to bunker
LNG at the Port of Antwerp (HHP Insight, December 13, 2012).
“The site is intended to be a resource and a conversation-starter
among ports and stakeholders because we believe that LNG is the ship’s
fuel of the future and ports must prepare to offer safe storage and bunkering
of LNG for shipping lines,” Gilfillan said. He is the CEO and director
of the Port Authority of New South Wales, Australia.
As of this Thursday morning, LNGbunkering.org includes summaries
of LNG availability or preparations at the ports of Amsterdam, Antwerp,
Bremerhaven and Bremen, Brunsbüttel, Fujairah, Gijon, Gothenburg,
Hamburg, HAROPA (Le Havre, Rouen, Paris), Los Angeles, Rotterdam, and
Zeebrugge.
The website is a product of IAPH’s LNG Fuelled Vessels Working
Group, led by the Port of Antwerp.
|
LNG infrastructure fuel
distribution across Europe 04 July 2014
A major infrastructure development in the supply of LNG (liquefied
natural gas) for transport is underway, with the agreement to build
a new 'break bulk' terminal to distribute the fuel around North West Europe.
The investment comes from the Gas Access To Europe (Gate) terminal
at the port of Rotterdam, in the Netherlands, and is made possible by
a commitment from Shell to buy LNG capacity for freight transport. The
new, dedicated break bulk terminal is expected to be operational in Q4
2016 and will be located alongside the central Gate terminal, where LNG
arrives via huge carriers from around the world. When operational, the new
terminal will receive gas in liquid form from the central terminal by pipeline,
and break it down into smaller quantities for distribution.
Previously, all LNG arriving at the port was regasified for
the power and industrial sector, and re-exported.
Shell will charter a specialised LNG bunker vessel for ship-to-ship
transfers and to deliver the fuel to secondary distribution terminals
outside the port area.
For truck operators, the terminal's existing truck-loading
station will be used to distribute LNG to Shell's initial network of
up to seven truck refuelling stations. The first, in Rotterdam, will open
later this year.
Maarten Wetselaar, Shell's executive vice president for integrated
gas, says the collaboration will provide security of supply of LNG for
marine and road transport operators in North West Europe. "We believe LNG
will form a bigger part of the transport fuel mix in the future, and this
project demonstrates our confidence in LNG as a fuel option," he states.
Gate is a joint venture between Gasunie, Vopak and OMV. Pictured,
left to right, in front of the 'Green Rhine' LNG-powered tank barge
are: Han Fennema, CEO of Gasunie; Maarten Wetselaar, Shell's EVP integrated
gas; Eelco Hoekstra, CEO of Vopak; and Allard Castelein, CEO of the port
of Rotterdam. - See more at: http://www.transportengineer.org.uk/transport-engineer-news/lng-infrastructure-deal-to-boost-fuel-distribution-across-europe/62390/#sthash.EiCO9blm.dpuf
|
Rotterdam LNG bunkering
for seagoing ships 7/1/2014
Source Port of Rotterdam Authority Rotterdam Port Management
Bye-laws amendment
As of 1 July vessels can bunker LNG (Liquefied Natural
Gas) in the port of Rotterdam. Up to now only inland shipping could do
this in the Seinehaven. The Municipality of Rotterdam took over the proposals
of the Port of Rotterdam Authority Harbour Master to that end and amended
the Rotterdam Port Management Bye-laws accordingly. The legislative
amendment is a huge impulse for the introduction of LNG as fuel for
shipping. LNG is cheaper and cleaner for the environment than fuel oil,
the traditional shipping fuel. It is anticipated that many ports will
follow the example of the port of Rotterdam as largest European port.
Container ships are able to bunker LNG in the port of Rotterdam
The legislative amendment is in line with the aim of the Port
of Rotterdam Authority to promote the use of LNG as shipping fuel and
to become a leading LNG hub. The Port Authority previously supported
an initiative of Gate to open an LNG terminal on the Maasvlakte in 2011.
Facilities in the Seinehaven were opened last year allowing inland shipping
to bunker LNG from an LNG tanker. The European Union (EU) supports these
initiatives warmly. A subsidy of €40 million was awarded at the end of
last year to stimulate the use of LNG as shipping fuel on European waters.
This concerns the LNG Masterplan for Rhine-Main-Danube, in which the Port
Authority plays an important coordinating role. The Dutch LNG Platform
also supports the use of LNG by trucks, inland and seagoing shipping.
Ship-to-ship
The Port Authority has worked intensively over the past two
years with other ports to achieve a legislative amendment which enables
LNG-fuelled vessels to bunker from an LNG bunkering vessel. “That was
a major condition of the general introduction of LNG,” according to
Harbour Master René de Vries. “In the ten hours they stay in
the port of Rotterdam, container ships should be able to bunker at the
same time as they transfer cargo. This is only possible, if it happens
ship-to-ship. And that is now possible.”
The new rules also imply that LNG may only be bunkered at designated
locations within the Municipality of Rotterdam. The legislation is based
on national and international safety studies and laws and regulations,
standards and best practice guidelines of other ports.
|
Launch of Second U.S.
LNG Ship Expected
July 2, 2014 in Dual Fuel, LNG, Marine by Rich Piellisch
New Orleans-based Harvey Gulf International Marine is preparing
to launch the second of at least six liquefied natural gas-fueled ships,
as Harvey Power has been transferred from the Gulf Coast Shipyard Group
assembly building to a sinker lift apparatus in Gulfport, Miss.
Harvey Power is on the sinker lift and will be launched in the
next couple of weeks,” Harvey Gulf senior VP Chad Verret told HHP Insight
today.
Like Harvey Energy, which was launched late in January (HHPI,
January 24), Harvey Power is an OSV, or offshore supply vessel, to
be charted by Shell. They are the first and second U.S. flag vessels
to be powered by LNG.
STX Design, Powered by Wärtsilä
The STX-designed ships are 302 feet long (92 meters) and are
powered by three STX-designed SV310DF sisters are powered by three 34DF
dual fuel engines from Wärtsilä, with LNG fuel handled in a
Wärtsilä LNGPac fuel system.
Chart Industries supplied the vessels’ 67,625-gallon (256-cubic-meter)
LNG tanks.
|
I-5 Clean Fuels New California
1MMgpd LNG
June 30, 2014 in Companies, Infrastructure, LNG by Rich
Piellisch
Panoche Westside Proposes $300 Million Plant for Fresno
At Bay Planning Coalition Briefing This Month in Oakland
California’s Panoche Westside Group is proposing to build a
$300 million, million-gallon-per-day natural gas facility in four phases
outside Fresno. Liquefied natural gas from the I-5 Clean Fuels plant
first would be used to fuel heavy duty trucks in California’s Central
Valley, and ultimately for high horsepower applications.
I-5CleanFuelsPhase 1 would cost some $95 million of a total
project cost estimated at $300 million, the company says.
Project director Rich Zahner outlined the plans at a recent
meeting of the Oakland, Calif.-based Bay Planning Coalition, which
held a BPC Expert Briefing workshop on marine LNG for San Francisco
Bay on June 11 (HHP Insight, June 11).
‘We Have the Money’
“We have the money to make it through the next phase, the permitting
phase,” says Garrett Rajkovich managing partner of the property owner,
Panoche Westside Farms. He told HHPi that he’s confident his organization
will be able to raise the necessary capital when it comes time to build.
The facility will eventually have 3 million gallons of LNG storage
capability.
“I-5 Clean Fuels will be an efficient and environmentally friendly
production facility,” the company says.
The (San Francisco) Bay Planning Coalition is held its BPC Expert
Briefing: Fuels for Transportation meeting on June 11, in Oakland,
Calif.
The Phase 1 plant is to be built on some 20 acres, part of a
66-acre Panoche Westside Farms parcel approved for the purpose by the
Fresno County Board of Supervisors in May.
Trucks Would Be First
“The site is ideally located near both high-pressure gas and
electric transmission systems,” Panoche Westside says, noting that work
will include a new 3-mile pipeline spur to bring natural gas feedstock
for liquefaction.
“The production process chosen will minimize local impacts and
provide regional environmental benefits in the form of lower total pollutant
and greenhouse gas emissions from long haul trucking in the near term
and eventually rail and maritime vehicles and vessels.”
|
World First RSD CNG Tug
June 27, 2014 By MarEx
Damen, MTU and SVITZER will launch the world’s first RSD CNG
tug in 2016
The new 16-cylinder pure gas engine being developed by MTU is
based on its proven workboat Series 4000 M63 diesel engine. It will
be complemented with a multipoint gas injection system, a dynamic engine
control and an optimized safety concept. “We are developing our new gas
Series in order to meet the extreme load profile of the tugboat. The
acceleration will be comparable to the level of our diesel engines. Due
to the clean combustion concept, compliance with IMO Tier 3 emission legislation
will be ensured without the need of additional exhaust gas after treatment.
The 2,000 kW MTU gas engine is characterized by high power density combined
with low fuel consumption,” says Dr. Ulrich Dohle, CEO of Rolls-Royce Power
Systems AG.
Commenting on the reasons why SVITZER has decided to invest
in such a unique vessel, CTO, Kristian Brauner, says: “As a major harbor
towage operator an important consideration is also that this tug will
realize a considerable reduction in fuel costs and obviously fuel is a
major cost concern for all operators. And crucially, as a market leader
it is important for us to stay innovative with regards to performing
safe and eco-friendly operations and to reduce emissions. Through the
years we have already developed one version of the ECOtug and with this
in mind, the choice to develop the new CNG tug is a natural step towards
remaining an eco-conscious towage company.”
The new 16-cylinder pure gas engine being developed by MTU is
based on its proven workboat Series 4000 M63 diesel engine. It will
be complemented with a multipoint gas injection system, a dynamic engine
control and an optimized safety concept. “We are developing our new gas
Series in order to meet the extreme load profile of the tugboat. The
acceleration will be comparable to the level of our diesel engines. Due
to the clean combustion concept, compliance with IMO Tier 3 emission legislation
will be ensured without the need of additional exhaust gas after treatment.
The 2,000 kW MTU gas engine is characterized by high power density combined
with low fuel consumption,” says Dr. Ulrich Dohle, CEO of Rolls-Royce Power
Systems AG.
Commenting on the reasons why SVITZER has decided to invest
in such a unique vessel, CTO, Kristian Brauner, says: “As a major harbor
towage operator an important consideration is also that this tug will
realize a considerable reduction in fuel costs and obviously fuel is a
major cost concern for all operators. And crucially, as a market leader
it is important for us to stay innovative with regards to performing
safe and eco-friendly operations and to reduce emissions. Through the
years we have already developed one version of the ECOtug and with this
in mind, the choice to develop the new CNG tug is a natural step towards
remaining an eco-conscious towage company.”
|
Florida Railroad Test LNG
4,GE ES44C4 2-Tenders
June 28, 2014 in Dual Fuel, LNG, Rail by Rich Piellisch
FRA and Related Approvals Sought for FEC Pilot Project
To Initially Involve Four GE Locomotives & Two Tenders
The Florida East Coast Railway is seeking approval from the
Federal Railroad Administration and other relevant authorities for
a trial of liquefied natural gas-diesel dual fuel locomotives, starting
with a 116-mile test zone south of Jacksonville.
FEC wants to test four converted locomotives in pairs with two
LNG tenders. Fuel from Pivotal LNG and/or Clean Energy Fuels will initially
be trucked to Jacksonville from Macon, Ga., FEC senior VP Bob Ledoux
said at last week’s Florida Natural Gas Association meeting in Boca Raton.
FEC is targeting 80% diesel displacement.
Ledoux told HHP Insight that as trucking firms in Florida and
elsewhere take advantage of lower-cost natural gas fuel, diesel-dependent
railroads face pressure to do likewise. Natural gas represents “the
next paradigm shift for U.S. rail transportation,” Ledoux said at the
FNGA meeting.
FEC Is Buying 24 New GE Locomotives
“Fuel is our highest cost,” he says, “higher than labor.”
FEC’s LNG trials are planned for a Jacksonville-serving northern
segment of the railroad’s 351-mile network, which extends all the way
south to the Port of Miami.
FEC and GE Transportation said in January that FEC is buying
24 of GE’s new ES44c-4 locomotives from GE. They are Tier III diesel locomotives,
GE notes, observing that there is as yet no regulatory provision for
LNG locomotives.
GE is working on both low- and high-pressure natural gas variants
to displace diesel fuel with cleaner and cheaper natural gas (HHPi,
December 5). The low-pressure variant is more desirable for the short-term,
as it allows the locomotive to revert to full diesel operation if necessary.
ISO Tenders Seen as Adequate
FEC would start its tests with the low-pressure GE system, says
Ledoux. FEC is evaluating 10,000-gallon ISO fuel tenders from Westport
and other candidate suppliers, he says. The tender would include a gas
supply module. Glycol-based LNG vaporization would take place on the
tender and no cryogenic liquid would cross the tender-locomotive coupler.
The 30,000-gallon LNG tenders advocated by larger Class I railroads
aren’t necessary for FEC, Ledoux says.
Key Ports Served by FEC
FEC has approximately $375,000 in funding from NFTPO, the North
Florida Transportation Planning Organization, in support of the LNG
dual fuel project, Ledoux says.
The initial 116-mile test zone envisioned by FEC runs from Jacksonville,
site of FEC’s Bowden Yard, south to New Smyrna Beach (Daytona). FEC
has prepared detailed information on the route’s road crossings, trackbed
types, signaling equipment and safety record.
The Florida East Coast Railway was bought by the New York-based
Fortress Investment Group in mid-2007. Overall, FEC operates a 351-mile
freight rail system between Miami and Jacksonville – a heavy truck route
where, Ledoux notes, over-the-road carriers are increasingly taking
advantage of lower-cost natural gas fuel.
FEC serves the Port of Miami, Port Everglades (Ford Lauderdale),
the Port of Palm Beach, Port Canaveral, and connects with the CSX and
Norfolk Southern railroads at Jacksonville. They are the closest U.S.
ports to the Panama Canal.
Mr. Fran Chinnici is senior VP of mechanical, engineering and
purchasing at FEC.
Key Largo for FNGA Next Year
Separately, the Florida Natural Gas Association has set the
dates for next year’s annual meeting. FNGA 2015 is to be held June
15-17, 2015 at the Ocean Reef Club in Key Largo.
|
GDF SUEZ agree to develop
LNG as marine fuel worldwide
July 2, 2014 By PennEnergy Editorial Staff Source: GDF
Suez
GDF SUEZ is a global LNG player and the main LNG importer
in Europe. GDF SUEZ has the third largest LNG supply portfolio in the
world, supplied from six different countries, and representing 16 mtpa.
It controls a large fleet of 14 LNG carriers under mid and long term
charter agreements. The fleet is permanently optimized to satisfy GDF
SUEZ long term commitments and short term opportunities. The Group has
also a significant presence in regasification terminals around the world,
including FSRU’s and therefore a large and flexible access to downstream
markets.
GDF SUEZ signs agreement to develop LNG as marine fuel worldwideGDF
SUEZ, Mitsubishi and NYK signed a framework agreement aiming to develop
the LNG Bunkering market worldwide through LNG Bunkering Vessels.
This partnership results in two first contracts: on behalf of
the venture, the NYK’s order of an LNG bunkering vessel and an LNG
bunkering contract between GDF SUEZ and United European Car Carriers
(UECC), a leading short-sea operator.
The partners will provide their know-how and experience to develop
this first project in the Northern Europe Emissions Controlled Area (ECA)
from Zeebrugge, in Belgium.
Jean-Marie Dauger, Executive Vice-President of GDF SUEZ in charge
of the Global Gas & LNG business line declared: “GDF SUEZ regards
LNG as the future of bunkering. These new agreements emphasize the Group’s
Retail LNG strategy and demonstrates our commitment to the development
of LNG bunkering business on a global scale, alongside with harbor infrastructures
and ship operators.”
The LNG bunkering vessel will be built in the Korean shipyard
Hanjin Heavy Industries & Construction with a delivery expected
by 2016. Its home port will be Zeebrugge where GDF SUEZ has already secured
long term access rights in the Fluxys LNG terminal. The bunkering vessel
will be operated by NYK and will supply a range of end-customers.
The first customer will be UECC which purchased LNG to GDF SUEZ
on a medium-term basis for its two new dual fuel (LNG and marine gasoil)
car carrier ships operating in the North Sea and Baltic Sea. By end 2016,
the LNG will be delivered by means of ship-to-ship transfer from the
LNG bunkering vessel to the new ships ordered by UECC in the port of
Zeebrugge. LNG will be sourced from the supply portfolio of GDF SUEZ.
The use of LNG as fuel for meeting the increasing environmental
constraints requires a network of LNG bunkering services to be set
up for the bunkering of vessels in main harbors, with reliable supply
chains.
|
NovaCopper Eyes Alaskan
LNG to Support Mine
July 03, 2014
The firm is joining Wellgreen in pursuing supply from a new
state-funded LNG plant.
NovaCopper is hoping to use LNG produced by MWH Global’s North
Slope merchant plant to supply its developmental mine in Northwest Alaska.
Mining News reported June 29 that the facility would be reliant on the
development of a new 200 mile road to the Ambler Mining District, where
the mine would be located. As reported in this publication in June, Wellgreen
Platinum has already been hoping to use LNG from the planned facility
for its mine in Canada’s Yukon Territory.
Should the plan go forward however, NovaCopper believes that
low-cost LNG fuel can help lower production costs thanks to cheaper electricity.
The plant is expected to use five 3.6 megawatt diesel generators, with
an average diesel price of US$4.47 per gallon.
NovaCopper reports that it expects to sign a memorandum of understanding
in the near future to examine the possibility to truck the LNG to the
plant.
|
NYK Orders LNG Bunkering
Vessel 02 July 2014
NYK announced today the company has signed a contract with Hanjin
Heavy Industries & Construction Co. Ltd. in Korea to build an LNG
bunkering vessel built for the purpose of providing LNG to LNG-fueled
vessels.
In a joint initiative to develop a global market for the LNG
bunkering business, NYK signed a framework agreement with GDF SUEZ S.A
and Mitsubishi Corporation on May 13, 2014. As the first project under
this initiative, GDF SUEZ, Mitsubishi Corporation, and NYK have agreed
to build an LNG bunkering vessel to form the core infrastructure for
this business and enable distribution of LNG fuel in the European maritime
region.
The vessel will be delivered in 2016, and will be based at the
port of Zeebrugge, Belgium. The vessel will deliver LNG to LNG-fueled
vessels operating mainly in the North Sea and the Baltic Sea. NYK noted
with increased emission regulations, demand for LNG as a fuel is growing
in the seas around Europe. This LNG supply and sales business will initially
be targeted at LNG-fueled car carriers operated by United European Car
Carriers based in Oslo, Norway as well as other LNG-fueled vessels operating
in the North Sea and the Baltic Sea.
GDF SUEZ is a charterer and co-owner of NYK’s LNG carriers.
With Mitsubishi Corporation, NYK has established a relationship in
both the LNG carrier business and the Cameron LNG project in the U.S.,
representing upstream interests in the LNG value chain. GDF SUEZ, Mitsubishi
Corporation, and NYK intend to establish a company to own the LNG bunkering
vessel, as well as an LNG-fuel sales company which will charter the vessel
and build a solid sales framework in Europe. In the future the joint venture
plans to expand its business globally.
The NYK Group has been promoting practical use of environment-friendly
LNG fuel by constructing LNG-fueled car carriers and Japan’s first LNG-fueled
tugboat. The new LNG bunkering vessel is part of the group’s new “More
Than Shipping 2018” medium-term management plan. By participating in
the supply of marine fuel, NYK will further contribute to a more widespread
use of LNG fuel in order to maintain a clean environment.
|
New French gas pipeline to
Germany alternative supply Jul 2, 2014
(Reuters) Jul 2, 2014
A pipeline under construction in the beetroot fields of
northern France is set to link a new liquefied natural gas (LNG) terminal
in the port of Dunkirk with Germany by 2016, offering Europe's biggest
energy market an alternative to Russian gas.
Germany is currently the world's biggest importer of Russian
gas but the European Union in the wake of the crisis in Ukraine has
reiterated its call for EU member states to reduce their reliance on
Russian energy.
The 300-kilometre-long Arc de Dierrey pipeline being built by
grid operator GRTgaz will mainly carry gas from state utility EDF's
(EDF.PA) new LNG terminal and improve transit to southern France.
Its potential as an alternative link for Germany and Switzerland
have gained importance since the Ukraine crisis reignited concerns about
the transit of Russian gas to Europe.
"Arc de Dierrey is the first step of a grand plan to unify the
two French gas hubs," Olivier Aubert, head of supply at GRTgaz, told
Reuters in an interview.
"But it will contribute to another service in the future, making
France an entry point for gas in Europe. And the most important market,
that we all have in mind, is Germany."
Germany, which relies for 36 percent of its gas
imports on Russia, does not have direct access to an LNG terminal on
its coast,
although two other terminals, in Belgium and the Netherlands,
can supply it with LNG.
In Europe it still struggles to compete with cheap, piped gas
from countries such as Russia, but French LNG operators are among those
betting that will change. Faced with the prospect of declining
North Sea production, GRTgaz' majority shareholder GDF Suez (GSZ.PA)
and EDF are upgrading France's three LNG terminals to increase the country's
import capacity.
LNG prices have been swollen by rising Asian demand since 2011's
Fukushima disaster in Japan but new projects are coming on stream in
Australia and the United States in anticipation that global gas demand
will continue to grow.
The potential for U.S. supplies in particular, fed by cheap
shale gas and shipped from the U.S. east coast, is focusing investor
attention. "It's totally possible that LNG becomes more competitive
and on that day, the question will come up about exporting to central
Europe," Aubert said.
"Germany is a first step," he said, but other countries further
east could also be interested. "That's the key point today for these
countries which have access to Russian gas only through routes crossing
Ukraine," he said.
Russian gas exporter Gazprom (GAZP.MM) shut off supplies to
Ukraine on June 16 citing unpaid bills. It is the third such stand-off
between Moscow and Kiev in a decade and while gas is still flowing via
Ukraine to the EU, it has focused attention on the issue of Europe's
energy security.
IMPROVE INTERCONNECTIONS
The 635 million euro ($866 million) pipeline, whose construction
started in March in the plains north of Paris, has received a 77-million-euro
subsidy from the EU for its role in diversifying European energy procurement.
It will also fully unify France's two gas zones, Peg Nord and
Peg Sud, which have experienced diverging prices in recent years, with
prices in the south, which already depends on the global LNG market,
rising well above those in the north, which is supplied by pipelines.
To that end, GRTgaz is expected to take a final investment decision
at the end of 2015 on another section of pipeline in the Val de Saone
in the centre of the country.
That will remove the bottleneck between the two zones - currently
linked only by a low-capacity pipe - by around 2018.
In the meantime, work on a section called Hauts de France II
is expected to be finished this year.
It will then link up with the Arc de Dierrey pipeline, joining
the towns of Cuvilly in Picardy and Voisines in the Champagne region
and forming an arc east of Paris.
Phase 1 will be ready in November 2015 when the Dunkirk LNG
terminal is completed, and phase 2 will link up with existing pipelines
to Obergailbach on the German border and Oltingue on the Swiss border
in November 2016.
Gas currently flows in one direction only, from Germany to France,
but there is no major technical issue preventing it from flowing the
other way, Aubert said.
However, France would have to change the way it odorises gas
if it wants to start exporting to Germany, he added. Under French law,
the odorisation process - adding a smelly liquid into natural gas distribution
system so that leaks are easily detectable - is done centrally at gas
hubs.
In Germany and most other European countries, however, it is
done at stations outside each city. GRTgaz is currently experimenting
with the first non-odorised link in France near the Belgian border to prepare
for that possibility, Aubert said.
Russian gas supplies make up only about 10-15 percent of French
needs, and Aubert said this meant France could cope without Russian
gas, except in the case of extremely low temperatures, which are seen
about every 50 years.
Nevertheless, Aubert believes other reverse flows should be
made possible to improve France's options, such as the Marches du Nord
Est link which carries North Sea gas to Italy via France and Switzerland.
"We could totally imagine to make this pipe flow in the other direction,
in case there's a lot of gas in Italy but not enough in France, for example,"
he said, adding that the investment costs involved in doing so would be
minimal.
($1 = 0.7331 Euros) |
LNG tanker 75,760 cm at UK's
Isle of Grain Algeria 4 day trip
Reuters - UK Focus LONDON, July 2 (Reuters) –
LNG tanker Cheikh El Mokrani to arrive at UK's Isle of Grain
July 3
The liquefied natural gas (LNG) tanker Cheikh El Mokrani is
scheduled to arrive at Britain's Isle of Grain terminal in Kent from
Algeria on July 3, shipping data on Reuters showed.
The 75,760 cubic capacity vessel is currently entering the Bay
of Biscay and left Algeria on June 29. (Reporting by Henning Gloystein;
editing by Jason Neely)
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Rotterdam LNG bunkering
possible for seagoing ships 7/1/2014
7/1/2014 Source Port of Rotterdam Authority
Rotterdam Port Management Bye-laws amendment
As of 1 July vessels can bunker LNG (Liquefied Natural
Gas) in the port of Rotterdam. Up to now only inland shipping could do
this in the Seinehaven. The Municipality of Rotterdam took over the proposals
of the Port of Rotterdam Authority Harbour Master to that end and amended
the Rotterdam Port Management Bye-laws accordingly. The legislative
amendment is a huge impulse for the introduction of LNG as fuel for
shipping. LNG is cheaper and cleaner for the environment than fuel oil,
the traditional shipping fuel. It is anticipated that many ports will
follow the example of the port of Rotterdam as largest European port.
Container ships are able to bunker LNG in the port of Rotterdam
The legislative amendment is in line with the aim of the Port
of Rotterdam Authority to promote the use of LNG as shipping fuel and
to become a leading LNG hub. The Port Authority previously supported
an initiative of Gate to open an LNG terminal on the Maasvlakte in 2011.
Facilities in the Seinehaven were opened last year allowing inland shipping
to bunker LNG from an LNG tanker. The European Union (EU) supports these
initiatives warmly. A subsidy of €40 million was awarded at the end of
last year to stimulate the use of LNG as shipping fuel on European waters.
This concerns the LNG Masterplan for Rhine-Main-Danube, in which the Port
Authority plays an important coordinating role. The Dutch LNG Platform
also supports the use of LNG by trucks, inland and seagoing shipping.
Ship-to-ship
The Port Authority has worked intensively over the past two
years with other ports to achieve a legislative amendment which enables
LNG-fuelled vessels to bunker from an LNG bunkering vessel. “That was
a major condition of the general introduction of LNG,” according to
Harbour Master René de Vries. “In the ten hours they stay in
the port of Rotterdam, container ships should be able to bunker at the
same time as they transfer cargo. This is only possible, if it happens
ship-to-ship. And that is now possible.”
The new rules also imply that LNG may only be bunkered at designated
locations within the Municipality of Rotterdam. The legislation is based
on national and international safety studies and laws and regulations,
standards and best practice guidelines of other ports.
LNG
LNG stands for liquefied natural gas. Natural gas (methane)
turns into liquid at -162 degrees. Ships powered by LNG are quieter
and have very low sulphur and nitrogen oxide emissions. Moreover, the
CO2 emissions can be cut by 20 percent.
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Florida Railroad Test LNG
4, GE ES44C4 2, ISO Tenders
June 28, 2014 in Dual Fuel, LNG, Rail by Rich Piellisch
FRA and Related Approvals Sought for FEC Pilot Project
To Initially Involve Four GE Locomotives & Two Tenders
The Florida East Coast Railway is seeking approval from the
Federal Railroad Administration and other relevant authorities for
a trial of liquefied natural gas-diesel dual fuel locomotives, starting
with a 116-mile test zone south of Jacksonville.
FEC wants to test four converted locomotives in pairs with two
LNG tenders. Fuel from Pivotal LNG and/or Clean Energy Fuels will initially
be trucked to Jacksonville from Macon, Ga., FEC senior VP Bob Ledoux
said at last week’s Florida Natural Gas Association meeting in Boca Raton.
FEC is targeting 80% diesel displacement.
Ledoux told HHP Insight that as trucking firms in Florida and
elsewhere take advantage of lower-cost natural gas fuel, diesel-dependent
railroads face pressure to do likewise. Natural gas represents “the
next paradigm shift for U.S. rail transportation,” Ledoux said at the
FNGA meeting.
FEC Is Buying 24 New GE Locomotives
“Fuel is our highest cost,” he says, “higher than labor.”
FEC’s LNG trials are planned for a Jacksonville-serving northern
segment of the railroad’s 351-mile network, which extends all the way
south to the Port of Miami.
FEC and GE Transportation said in January that FEC is buying
24 of GE’s new ES44c-4 locomotives from GE. They are Tier III diesel locomotives,
GE notes, observing that there is as yet no regulatory provision for
LNG locomotives.
GE is working on both low- and high-pressure natural gas variants
to displace diesel fuel with cleaner and cheaper natural gas (HHPi,
December 5). The low-pressure variant is more desirable for the short-term,
as it allows the locomotive to revert to full diesel operation if necessary.
ISO Tenders Seen as Adequate
FEC would start its tests with the low-pressure GE system, says
Ledoux. FEC is evaluating 10,000-gallon ISO fuel tenders from Westport
and other candidate suppliers, he says. The tender would include a gas
supply module. Glycol-based LNG vaporization would take place on the
tender and no cryogenic liquid would cross the tender-locomotive coupler.
The 30,000-gallon LNG tenders advocated by larger Class I railroads
aren’t necessary for FEC, Ledoux says.
Key Ports Served by FEC
FEC has approximately $375,000 in funding from NFTPO, the North
Florida Transportation Planning Organization, in support of the LNG
dual fuel project, Ledoux says.
The initial 116-mile test zone envisioned by FEC runs from Jacksonville,
site of FEC’s Bowden Yard, south to New Smyrna Beach (Daytona). FEC
has prepared detailed information on the route’s road crossings, trackbed
types, signaling equipment and safety record.
The Florida East Coast Railway was bought by the New York-based
Fortress Investment Group in mid-2007. Overall, FEC operates a 351-mile
freight rail system between Miami and Jacksonville – a heavy truck route
where, Ledoux notes, over-the-road carriers are increasingly taking
advantage of lower-cost natural gas fuel.
FEC serves the Port of Miami, Port Everglades (Ford Lauderdale),
the Port of Palm Beach, Port Canaveral, and connects with the CSX and
Norfolk Southern railroads at Jacksonville. They are the closest U.S.
ports to the Panama Canal.
Mr. Fran Chinnici is senior VP of mechanical, engineering and
purchasing at FEC.
Key Largo for FNGA Next Year
Separately, the Florida Natural Gas Association has set the
dates for next year’s annual meeting. FNGA 2015 is to be held June
15-17, 2015 at the Ocean Reef Club in Key Largo.
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Conversion of Great Lakes
Bulk Vessel’s to LNG Study:
Evaluation of a Potential Fuel Terminal
Hiroko Tada, Julia Haeder and Dr. Richard Stewart
University of Wisconsin-Superior
Full research reports
are available at www.glmri.org
in order to support
the GLMRI study on establishing a liquefied Natural Gas (LNG} supply
chain to serve ships in the Great Lakes, Hiroko Tada and Julia Haeder,
student researchers under the direction of Dr. Richard Stewart, examined
the Calumet marine fueling terminal in Duluth, Minnesota. The information
gathered will assist in determining supply chain options and the potential
market for marine fuels in this region. The market data will, to an extent,
impact the size of a liquefaction plant that would be built in this region
to supply LNG for transportation systems.
There are currently no USCG approved terminals to fuel vessels
with LNG but the Calumet terminal was examined for the potential delivery,
storage and fueling of vessels with LNG.
Most current marine fuels are residual fuels, which is the low-grade
oil product that remains after the distillation of crude oil.
After the petroleum
crisis of 1973, the quality of the residual oil declined because oil
companies improved their refining technologies to exact the maximum quantity
of refined products.
At the same
time the contaminants, such as sulfur, in residual fuels that causes
negative health effects and environmental threats has increased. To improve
on air quality and protect public health from the toxic emission, the
United States and Canada became signatories to the Treaty that designated
Emission Control Areas (ECA). The ships sailing within the ECAs, which
include all of the Great Lakes, have to reduce their emission of sulfur
oxide (SOx), nitrogen oxide (NOx), and fine particulate matter (PM). To
meet the ECA standard, the ships will have to reduce their emissions by
either installing, scrubbers to remove exhaust contaminates when burning
residual fuel, using a very low sulfur content fuel, or converting to an
alternative (not oil based) cleaner fuel.
Natural gas has emerged as a viable option as an alternative
fuel.
If the ship continues to use a residual fuel with scrubbers, the company
will have to deal with several issues. First: is the ability to fit
a scrubber into existing vessels where space is at a premium. Second:
is the fact that it will cost millions of dollars to purchase and install
a scrubber and that cost will have to be recovered. Third: The effluent
that results from scrubbing the exhaust gasses has to be stored aboard
the vessel and will require shore side disposal. Fourth: shore side disposal
facilities have to be certified as the effluent may be a hazardous waste
material and there will be a limited number and this may impact voyage
planning and or winter lay-up.
Initial GLMRI research indicated that LNG would be the most likely type
of natural gas fuel used by Great Lakes vessels. In order to use LNG
as a marine fuel, it is essential to develop a supply chain for LNG in
the Great Lakes region. Without a stable availability of LNG, it is difficult
for ship owners to convert to LNG. GLMRI has cataloged the current fueling
locations used by Great Lakes vessels and as part of the research process
is evaluating the potential to modify the existing fuel terminals to
provide LNG.
Duluth, Minnesota Superior, Wisconsin (the Twin Ports) is the largest
port on the Great Lakes and in the top 20 ports for tonnage shipped in
the United States. With over 1200 vessel calls each year at the port,
it has been a fuel hub for over 100 years.
There are sufficient natural gas supply pipelines coming to
the region that could supply a gas liquefaction plant.
Within 250 miles of the port there are multiple markets for
LNG including trucking, rail, mining, transit and agriculture as well
as shipping.
The research team prepared a survey for the major fuel suppliers
to obtain fuel consumption data.
The research team prepared a survey for the major fuel suppliers
to obtain fuel consumption data. The student team was able to tour the
Calumet Marine Fuel Terminal in Duluth, MN.
They met with
the manager, prepared a survey for the major fuel suppliers to obtain
fuel consumption data and learned about the facility, its operations
and resources. While at the terminal they observed the bunkering operation
for MN Paul R. Tregurtha, a Great Lakes bulk carrier that is 1,013 feet
(300m) long. The vessel’s Chief Engineer said that the ship burns and
average 9,700 U.S. gallons (36,718 liters) of Intermediate Fuel Oil (IFO)
a day when they are underway. He also mentioned that in the winter the
ship loads fuel in Duluth every trip in case the vessel would not be able
to stop at a fueling dock because of ice. In the summer, they load fuel
less frequently than in the winter.
The Calumet fueling terminal has four different pumps. Three of them
are located inside their facility: for heavy fuel, diesel fuel, and for
blending the diesel fuel into heavy fuel. The fourth pump is for pumping
fuel for the ships’ bow thruster and is located at the far end of the
facility. Diesel fuel is pumped by this remote pumping station
The Calumet Marine Terminal obtains its fuel from the Calumet Refinery
located in Superior, Wisconsin. The refinery obtains its crude oil from
Canadian wells that arrives at the refinery by pipelines. The Calumet
terminal does not have a pipeline to transport their fuel at their terminal.
The refined products are shipped to the Calumet fuel terminal by truck
and placed in storage tanks. The Jeff Foster Trucking Company delivers
most of the fuel to Calumet fueling terminal from Calumet’s refinery in
Superior, WI.
A diesel delivery truck and a heavy fuel delivery truck can
unload their fuel at the same time since Calumet expanded their truck
terminal two years ago.
One of the advantages to Calumet Marine Terminal is having a refinery
close to fueling terminal. It is approximately 8 miles between the refinery
and the fueling terminal. In the tank storage area, there is space to build
additional tanks that could possibly be used to store LNG. The facility
is already approved by the U.S. Coast Guard (USCG) for bunkering operations.
However, specific regulations on bunkering LNG are still in
development with USCG.
Since Calumet leases the site from the Duluth Seaway Port Authority,
there is additional land that could be accessed if requirements dictate
a separation zone greater than the current one.
There are multiple potential users for LNG in the Twin Ports market.
The Calumet terminal moves an average of over 17 million
gallons of fuels a year.
There are four class one railroads operating in the Twin Ports.
One of the railroads uses about 18 million gallons of diesel
per year.
Establishing a liquefaction plant in the Twin Ports would not
only provide fuel to regional users but LNG can be drayed to other
nearby markets.
Within a 250 miles circumference of the Twin ports there is
a population base of 4.3 million people that includes the Minneapolis/St.
Paul statistical Metropolitan Area (the Twin Cities along with the
Twin Ports.
Both the Twin Ports and Twin Cities are major transportation
hubs that include multiple rail lines, trucking, and mining, transit
and agriculture as well as Great Lakes and Mississippi river shipping.
The Calumet terminal has potential to serve as an LNG
fueling station for marine vessels. The success of the terminal will
be dependent on regulatory compliance, availability of LNG and profitability.
(The full report of this study is available at: www.glmri.org)
HIROKO TADA and JULIA HAEDER
Hiroko Tada
and Julia Header were students at the University of Wisconsin-Superior,
Transportation and Logistics Program. Ms. Tada completed an internship
in the summer of 2012 with Japan Marine Science, Inc. located in Tokyo.
Japan. During her three months at Japan Marine Science she assisted in
a variety of research projects with a focus on alternative fuels.
Ms. Julia Haeder was an exchange student at UW-S tor one semester
in the Transportation and Logistics Program. She was enrolled in a
cooperative bachelor’s degree program in Aviation Management at the
University of Applied Sciences, Frankfurt am Main, Germany.
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DSME and ABS To Work Together
on LNG Fueled Drillship
02 July 2014
ABS has entered into a joint development project with South
Korea's Daewoo Shipbuilding & Marine Engineering to develop an
LNG fueled drillship.
"This project builds on years of collaboration between ABS and
DSME to evaluate innovative design concepts and new approaches that serve
the needs of our clients and feature enhanced safety and efficiency
standards," says Dr. Hoseong Lee, ABS Vice President, Global Korea
Business Development and ABS Korea Energy Technology Center in Busan.
"We are targeting the Gulf of Mexico as a key market for an LNG fueled
drillship where, given the abundance of affordable shale gas resources
in the US, LNG as a marine fuel makes good economic sense."
To initiate the project, DSME has performed a concept design,
comparison between two types of LNG storage tanks and analysis of the
fuel gas supply system that will be installed on the drillship. ABS'
scope of work calls for concept design review, basic engineering review
and a risk assessment of the tank space and access area, fuel gas supply
system, machinery space and access area and associated configurations.
The verification aspect of the JDP will rely on ABS' extensive
experience as the preferred classification society for the offshore
and energy industry for more than 60 years and its experience leveraging
these capabilities to help industry move LNG-as-fuel and other gas developments
forward.
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