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study strengthens LNG investment case

 

 

SEA\LNG has released an independent study showing that LNG as a marine fuel delivers the best return on investment and is a competitive option for newbuild Pure Car and Truck Carriers (PCTC) on Pacific and Atlantic trade lanes. 

Peter Keller, chairman of the  SEA\LNG, stated, “This is the second in a series of studies commissioned from independent simulation and analytics expert Opsiana. Similarly to the results of the liner investment case, this study shows that shipowners ordering PCTC newbuildings should take advantage of the environmental, operational and commercial benefits of LNG.”

The study considered two PCTC trading scenarios using a 6,500 Car Equivalent Unit (CEU) vessel on the Atlantic Trade and an 8,000 CEU vessel on the Pacific Trade. The study indicated that LNG as a marine fuel delivers the best return on investment on a net present value (NPV) basis over a conservative 10-year horizon, with fast payback periods ranging from one to three years on the Atlantic Trade and from less-than-one year to two years on the Pacific Trade.

These two routes were chosen based on trading scale, with approximately 3.2 million vehicles shipped on the Pacific Trade and 1.7 million on the Atlantic Trade every year. LNG proved to be the best investment across both trading zones. This higher investment return was achieved without including the significant additional benefits and branding value gained by choosing LNG as a marine fuel.

The study provides greater clarity for those investing in LNG and highlights seven key findings: LNG has a better return on investment, the CAPEX hurdle is diminishing, it delivers competitive energy costs, has higher environmental performance, and is the most financially effective long-term method for complying with the 2020 sulphur cap. It also underlines the fact that scrubber operation is significantly more expensive than widely reported, and that the cost of LNG is stable, SEA\LNG said.

The financial results are more compelling given that this higher traditional investment return was achieved by choosing LNG, the only commercially viable marine fuel alternative available at scale today which is successfully able to achieve corporate sustainability and environmental goals, the coalition said.

To ensure the best possible data was available to Opsiana, SEA\LNG members contributed their maritime expertise and current corporate information and data from across the LNG value chain, to guarantee a high level of credibility in the study and results. All cost data was accurate in accordance with the latest estimations from industry experts, derived from their experiences in operation.

While this study focuses specifically on the PCTC investment case for LNG within a specific trade route, the coalition continues to collaborate with third parties on further independent research which will analyse the investment case for a dry bulk vessel and a very large crude carrier (VLCC).

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Asia’s spot LNG benchmark goes digital with launch of electronic platform

 

Price agency S&P Global Platts and clearing house Intercontinental Exchange Inc said on Thursday they are launching an electronic platform known as eWindow to the liquefied natural gas (LNG) market.

Unlike oil, which has several liquid financial and physical trading platforms and exchanges, LNG markets are still evolving, with companies jostling to lead the space.

Platts, a unit of S&P Global Inc, uses the eWindow platform as part of its pricing process. The platform allows participating companies to key in their bids, offers or transactions directly and which appear on a screen for others to see.

It is aiming to launch the platform in a few months, said Ciaran Roe, global director of LNG at Platts.

Currently, participating companies wanting to bid, offer or transact, do so manually through a Platts editor.

The pricing agency already uses the digital platform for its oil benchmarks and is now extending it to its LNG price assessments, including the Platts Japan-Korea-Marker (JKM), which is fast becoming the benchmark price for spot LNG delivered into Northeast Asia.

The JKM LNG Platts contract on ICE hit a record 44,394 lots for futures and options combined in June and reached a new open interest record of 52,080 lots at the end of June, the companies said.

“As LNG markets continue to liberalize and new types of price agreements emerge between buyers and sellers of LNG, a range of hedging products are critical to allow the market to hedge risk and manage price exposure,” they added.

Rising spot trading volumes have attracted several companies to launch LNG pricing and trading platforms, including Australia-headquartered Global LNG Exchange and Spark Commodities which is jointly owned by data firm Kpler and energy exchange Powernext.
Source: Reuters

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Polish LNG terminal operator, Polskie LNG, said it has reached a milestone at the President Lech Kaczyński facility in Świnoujście. 

The company noted in a brief statement through its social media channels that it has loaded 1000 LNG tanker trucks so far this year.

The first ISO container was loaded at the facility in September last year, marking the start of operation of the transshipment LNG installation for railroad tank cars and ISO containers.

Polskie LNG is in the process of expanding operations at the facility through three key projects; the construction of the third LNG storage tank, delivery of additional process installations increasing the regasification capacity to 7.5 billion cubic meters per year, and the LNG transshipment installation together with a railway siding.

The Polish LNG terminal in Świnoujście is the country’s flagship project to diversify gas supplies and reduce dependence on pipeline imports from Russia.

Polish Oil and Gas Company (PGNiG) is in charge of all the LNG supplies coming to the import terminal operated by Gaz-System’s unit Polskie LNG.

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Polish liquefied natural gas import facility the President Lech Kaczyński terminal in Świnoujście has received its 62nd cargo.

Polish LNG terminal operator, Polskie LNG, said via social media that the cargo was delivered onboard the Q-Flex liquefied natural gas carrier, the 216,200 cbm Al Kharaitiyat.

According to the data provided by VesselsValue the cargo was lifted at Qatar’s Ras Laffan LNG complex, and the vessel arrived in Poland on June 14.

The Polish LNG terminal in Świnoujście is the country’s flagship project to diversify gas supplies and reduce dependence on pipeline imports from Russia.

Polish Oil and Gas Company (PGNiG) is in charge of all the LNG supplies coming to the import terminal operated by Gaz-System’s unit Polskie LNG.

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Pieridae Energy has negotiated extensions of the key deadlines under its 20-year agreement with German utility Uniper.

These include expected commercial deliveries of gas to Uniper to start between November 30, 2024 and May 31, 2025, and the extension of the deadline to make a positive financial investment decision (FID) for the company’s proposed Goldboro LNG facility to September 30, 2020.

The 20-year agreement with Uniper is for half the liquefied natural gas produced at Goldboro or 5 mmtpa (million tonnes per annum).

“These extensions allow us to complete the work needed to make a final investment decision for the Goldboro project,” said Pieridae CEO Alfred Sorensen. “We continue to have ongoing discussions with KBR that will ultimately lead to finalized designs and fixed costs for the project. We expect the vast majority of that work to be completed near the end of 2019, which will move us closer to FID.”

KBR (Kellogg, Brown & Root Limited) is currently reviewing an amended version of the previously prepared front-end engineering and design (FEED) study for the proposed Goldboro LNG facility.

KBR will also conduct an open-book estimate necessary for entering into a lump sum turnkey engineering, procurement and construction (EPC) contract.

Pieridae expects to ship first gas overseas to meet the expected global LNG shortfall in 2023/2024.

“Our recent announcement that we will be acquiring key Shell assets in the Alberta Foothills helps us secure much of the remaining conventional natural gas supply needed for the first train at Goldboro,” added Sorensen.

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Pieridae Energy has signed a purchase and sale agreement with Shell’s Canadian entity to purchase all of Shell’s midstream and upstream assets in the southern Alberta Foothills.

Pieridae said on Wednesday that the purchase price was CAD$190 million ($145 million), subject to normal adjustments.

The purchase price will be satisfied via a cash payment to Shell raised by Pieridae through the issuance of term debt and equity and the issuance of the company’s common shares to Shell.

Closing of the acquisition is expected to occur in the third quarter of 2019, pending satisfaction of customary closing conditions and receipt of regulatory approvals.

Pieridae’s CEO Alfred Sorensen said: “[This] also demonstrates solid progress for our flagship Goldboro LNG project.

“We said we would acquire additional gas supplies for the LNG facility and we have done that. Not only does this deal help us secure the remaining conventional natural gas supply needed for the first train of the Goldboro LNG project, it makes Pieridae a major player in the Alberta midstream and upstream industry.”

Shell’s assets in the deal currently produce approximately 28,623 boe/d, consisting of approximately 118.9 mmcf/d) of natural gas, 5,646 bbl/d of NGLs, and 3,161 bbl/d of condensate and light oil.

Pieridae will also acquire Jumping Pound, Caroline, and Waterton deep cut, sour gas processing plants in the acquisition, with a combined capacity of approximately 750 mmcf/d (currently operating with 420 MMcf/d of spare capacity), a 14 percent working interest in the Shantz sulfur forming plant, and approximately 1,700 kilometers of pipelines.

The associated liquids will provide accretive NOI, and the associated gas will provide a large contribution to the 800 MMcf/d of conventional gas supply that is required for train 1 of the Goldboro LNG facility.

The three large gas processing plants included in the acquisition feed into the TC Energy Pipeline System and are located south of the normally congested James River transport corridor. This is anticipated to result in lower transportation tolls to AECO and fewer outages.

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To make ships more eco-efficient, engineers have been working with alternative fuels. A Norwegian engineer is currently pursuing a new approach: With VindskipTM, he has designed a cargo ship that is powered by wind and gas.

Software developed by Fraunhofer researchers will ensure an optimum use of the available wind energy at any time.

International shipping is transporting 90 percent of all goods on earth. Running on heavy fuel oil freighters contribute to pollution. The International Maritime Organization (IMO) wants to reduce the environmental impact of ocean liners. One of the measures: Starting from 2020, ships will only be allowed to use fuel containing maximum 0.1 percent sulfur in their fuel in certain areas. However, the higher-quality fuel with less sulfur is more expensive than the heavy fuel oil which is currently used. Shipping companies are thus facing a major challenge in reducing their fuel costs while complying with the emission guidelines.

A new way of reducing fuel consumption, emissions and bunker expenses is being pursued by the Norwegian engineer Terje Lade, managing director of the company Lade AS: With VindskipTM he has designed a type of ship that does not use heavy fuel oil but utilizes wind for propulsion. The highlight: The hull of the freighter serves as a wing sail. On the high seas, VindskipTM will benefit from free-blowing wind making it very energy efficient. For low-wind passages, in order to maneuver the ship on the open sea while also maintaining a constant speed, it is equipped with an environmentally friendly and cost-effective propulsion machinery running on liquefied natural gas (LNG). With the combination of wind and liquefied natural gas as an alternative fuel to heavy fuel oil, the fuel consumption is estimated to be only 60 percent of a reference ship on average. Carbone dioxide emissions are reduced by 80 percent, according to calculations by the Norwegian company.

Weather routing module determines the optimal course

For efficient operation, it is critical that the available wind energy is used in the best possible way. In order to calculate the optimal sailing route, researchers from Fraunhofer Center for Maritime Logistics and Services CML, a division of Fraunhofer Institute for Material Flow and Logistics IML, have developed a customized weather routing module for VindskipTM. Considering meteorological data the software for the new ship type uses a navigation algorithm to calculate a route with the optimum angle to the wind for maximum effect of the design.

“With our weather routing module the best route can be calculated in order to consume as little fuel as possible. As a result costs are reduced. After all, bunker expenses account for the largest part of the total costs in the shipping industry,” says Laura Walther, researcher at CML in Hamburg.

For the complex calculations, the researcher and her team apply numerous parameters, such as aero- and hydrodynamic data as well as weather forecasts from the meteorological services, such as wind speed and wave height.

So how is it possible that the VindskipTM is being pulled forward?

“At angles close to headwind the wind generates a force in the ship’s direction. The ship is pulled forward. Since the hull is shaped like a symmetrical air foil, the oblique wind on the opposite side – leeward – has to travel a longer distance. This causes a vacuum at the windward side that pulls the ship forward,” explains VindskipTM patent-holder Lade.

This makes the freighter move at speeds of up to 18 to 19 knots, hence just as fast as conventionally powered ships. Due to its very low fuel consumption, Vindskip™ can utilize liquefied natural gas (LNG) as fuel and still be capable – in the worst case – of 70 days of steaming between bunkering. Thus, it can meet all of today’s and tomorrow’s challenges with regards to fuel economy and emission control.

Wind-tunnel tests completed successfully

The researchers from CML are continually developing the weather routing tool further; the first version has been available since mid-December 2014. By the end of January 2015, the software will be handed over to the company Lade AS. Ship types that are particularly relevant to the VindskipTM-design, for which the weather routing module is developed, are ships like car and truck carriers, big ferries, container ships and LNG carriers. Terje Lade forecasts that the freighter will set sail as soon as 2019. First, the ship model has to pass numerous tests in a marine research model tank – also called a towing tank by experts. Tests in wind tunnels have already been completed successfully.

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The U.S. Maritime Administration (MARAD) released a comprehensive study examining the options for liquefied natural gas (LNG) bunkering and the necessary infrastructure, safety, regulatory, and training factors of each in supplying LNG to ships as a propulsion fuel in the maritime sector.

Bunkering is the transfer of LNG from a supply station to a receiving vessel for the sole purpose of use as propulsion fuel. The study examines the pros and cons of four bunkering options (truck-to-ship transfer, shore facility-to-ship transfer, ship-to-ship transfer, and transfer of portable tanks) based on factors such as the number and type of vessels to be served, local availability of LNG, port size, congestion and level of activity.

The study also makes recommendations to regulators, port operators, vessel operators and LNG infrastructure owners on ways to address the challenges associated with widespread use of LNG as a marine propulsion fuel and provides information to help them decide which method may be most appropriate for their needs.

https://www.maritime.dot.gov/documents/DNVLNGBunkeringStudy3Sep14.pdf

 

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Belgium’s DEME said it has ordered two new trailing suction hopper dredgers with dual fuel engines and LNG tanks.

Built according to a “green design the two vessels will have a ‘Green Passport’ and a ‘Clean Design’ notation“. The ships will be equipped with dual fuel engines and LNG tanks, “ensuring compliance with all of the international emission requirements within the Sulphur Emission Control Areas”, the company said in a statement.

Dual fuel technology enables engines to operate on either diesel or LNG.

Both trailing suction hopper dredgers will be built by the Dutch shipyard Royal IHC. They will be operational before the end of 2016.

Earlier this year the DEME announced its order of two smaller “green” vessels, the self-propelled jack-up vessel ‘Apollo’ and the multipurpose cable-laying ship ‘Living Stone’, which will both service the offshore energy market and are also equipped with dual fuel main engines.

 

 

 

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Wesfarmers unit, Evol LNG, has won a long-term contract to supply liquefied natural gas to the Kirkalocka gold mine in Western Australia.

Evol said that, under the long-term arrangement, it would supply LNG to Adaman Resources’ unit Kirkalocka Gold.

The gold mine, located approximately 70 kilometers south of Mt. Magnet in the mid-west region of Western Australia, is set to restart operation after more than a decade.

The mine will use LNG to fuel Zenith Energy’s 14.5-megawatt power station, with supply planned to begin from September 2019.

Evol LNG and Wholesale manager Nick Rea said: “LNG produces 25 percent less CO2 emissions than diesel, and during the initial six years of operation, the mine will avoid 50,000 tonnes of greenhouse gas emissions by fuelling its power station with LNG instead of diesel. This is the equivalent of keeping around 3,000 cars off the road.

Under the terms of the deal, Evol will build, own, operate and maintain the on-site LNG storage and vaporization facility at the mine. The facility will use the company’s modular design which allows fast installation and expandability to suit growing energy requirements.

Adaman Resources’ CEO Craig Bradshaw added: “Utilizing LNG as an alternative to diesel-fired generation will significantly reduce our energy costs and exposure to volatile diesel prices. Based on the current diesel price, we estimate our energy costs to be reduced by more than $13 million during the first six years of operation.

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An independent study has revealed that the use of LNG as marine fuel could achieve the reduction of greenhouse gas (GHG) of up to 21% when compared with current oil-based marine fuels.

SEA\LNG, a UK-registered not for profit collaborative industry foundation, said on Thursday that the study also confirms that emissions of other local pollutants, such as SOx, NOx, and particulate matter, were close to zero when using LNG compared with current conventional oil-based marine fuels.

The study, commissioned by SEA\LNG and non-government agency Society for Gas as a Marine Fuel (SGMF), was conducted by data and consultancy provider Thinkstep according to ISO standards.

SEA\LNG chairman Peter Keller said: “The Life Cycle GHG Emission Study is a long-awaited piece of the ‘LNG as a marine fuel’ puzzle. It not only confirms what we already knew in terms of LNG’s immediate impact on air quality, human health, and its cleanliness but clearly highlights the genuine, substantiated GHG benefits of using today’s marine engines capable of burning natural gas.

[…] it is clear that LNG is the most environmentally-friendly marine fuel that is readily available and safe, both today and in the foreseeable future.

On an engine technology basis, the absolute Well-to-Wake (WtW) emissions reduction benefits for LNG-fuelled engines compared with HFO fuelled ships today are between 14% to 21% for 2-stroke slow speed engines and between 7% to 15% for 4-stroke medium speed engines.

Also, 72% of the marine fuel consumed today is by 2-stroke engines with a further 18% used by 4-stroke medium speed engines.

Study partner Chad Verret, SGMF board chairman, added: “LNG is safe to use, fully compliant and readily available as a marine transport fuel. Standards, guidelines, and operational protocols are all in place to ensure that the safe way is the only way when using gas as a marine fuel.

LNG meets and exceeds all current and 2020 marine fuel compliance requirements for content and emissions, local and GHG. With the world LNG Bunker Vessel fleet doubling in the next 18 months and those vessels being deployed at major bunkering hubs, LNG as a ship fuel is rapidly becoming readily available.

Additionally, bioLNG and Synthetic LNG – both fully interchangeable with LNG derived from fossil feedstock – offer the potential for significant additional GHG emissions reductions. According to the study, a blend of 20% bioLNG as a drop-in fuel can reduce GHG emissions by a further 13% when compared to 100% fossil fuel LNG.

It is worth noting that the report looked at all major marine engines with help from quality data provided by equipment manufacturers including Caterpillar MaK, Caterpillar, GE, MAN, Rolls Royce, Wärtsilä, and Winterthur Gas & Diesel as well as from ExxonMobil, Shell, and Total from the supply side.

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Princess Cruises and shipbuilder Fincantieri have signed final contracts for the construction of two next-generation 175,000-ton dual-fueled cruise ships.

Princess Cruises said on Thursday that the two vessels would be the largest ships ever built in Italy, with deliveries scheduled in Monfalcone in late 2023 and spring 2025.

This announcement follows the initial signing of a memorandum of agreement between the two parties

The vessels will accommodate approximately 4,300 guests and will be based on next-generation platform design, being the first Princess Cruises’ ships to be dual-fuel powered primarily by liquefied natural gas (LNG).

Jan Swartz, Princess Cruises president, said: “Princess Cruises continues to grow globally — adding new ships to our fleet built by our long-time trusted shipbuilding partner, Fincantieri, who brings decades of expertise to these next-generation cruise ships.

Giuseppe Bono, CEO of Fincantieri, added: “[…] we firmly believe that a new class of Princess Cruises’ ships, one of Carnival Group’s top brands, can stem from this promising project. In fact, for Princess Cruises, we have received orders for 21 ships, another unprecedented result in this industry.

Fincantieri has built 85 cruise ships since 1990 (62 from 2002), 65 of which for Carnival’s different brands, while other 49, including agreements, are currently being designed or built in the group’s yards.

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Nanyang Technological University, DNV GL, and Shell have organized a competition for ideas to help reduce the cost of retrofitting an LNG fuel gas system to an existing ocean-going vessel.

The trio set up the ‘Low-Cost LNG Retrofit (LCLR) Challenge’ to assist shipping companies to embrace cleaner fuels and reduce harmful emissions and adhering the International Maritime Organisation’s (IMO) guidelines on ship emissions that come into effect next year.

Participants were encouraged to develop cost-effective and radical LNG fuel gas system designs and installation concepts that could be retrofitted to an existing vessel with a conventional fuel oil system.

The competition attracted over 60 participants from NTU, the National University of Singapore, Singapore Institute of Technology, and Newcastle University Singapore with two teams from SIT and one from SIT-Newcastle University named as winners.

Low Teck Seng, CEO of the National Research Foundation presented the prizes at the Singapore Maritime Technology Conference (SMTC) 2019 last week.

The proposals by the teams outlined ways to reduce costs and streamline retrofitting operations such as using alternative materials to store LNG fuel, improved methods to install LNG fuel systems, and alternative methods to speed up retrofitting process.

The proposals include using manganese-steel as a cheaper and viable alternative to the current nickel-based steels, factoring in the material’s tensile strength and feasibility to store LNG fuel at cryogenic temperatures – below 150 degrees Celsius.

A panel of international experts from NTU, Shell, DNV GL, Keppel O&M, WinGD, Wartsila, Sembmarine, SMI, and the Maritime and Port Authority of Singapore judged all project proposals.

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French engineering services company Sofregaz is conducting a study for the multi-trucks to ship LNG transfer technology to be attached to call for tenders.

Sofregaz said that Truck-to-Ship (TTS) LNG bunkering was a largely adopted method for initial LNG bunkering implementation.

With ships having a small to moderate demand for LNG, of a few hundred cubic meters, TTS provides a flexible option, responding to limited demand.

LNG bunkering TTS operations are carried out from typically standardized LNG trucks of around 40 to 80 cbm. With an increasing need for LNG, especially by ships with increased LNG fuel capacity, more than one truck may be required to bunker a single ship, depending on the required bunker volume.

This may be achieved either in a sequential manner or through a common bunkering manifold.

The company is currently working on a study for LNG Multi-Trucks to Ship (MTTS) transfer. This study will aim to define a scope of requirements and specifications for Multi-trucks to ship transfer of LNG to be attached to call for tenders.

According to Sofregaz, the main purpose is to specify the system that shall be used by companies in charge of the truck-to-ship operation in line with safety & HSE principles.

The main tasks to be performed for this study are the definition of a safety concept and definition of a dedicated specification for a skid allowing the transfer of LNG from multiple trucks to a ship.

After completion of this study, an additional study will be performed, related to a full conceptual and basis of design for a Multi-Truck to Ship (MTTS) bunkering skid.

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MAN Energy Solutions’ marine LNG fuel-gas-system manufacturer, MAN Cryo, has been contracted to supply an LNG fuel-gas supply system for a live-fish carrier ordered by Nordlaks, one of Norway’s largest aquaculture companies.

The new vessel will be a sister to an identical vessel ordered by Nordlaks during the summer of 2018 for which MAN Cryo also won the order to provide the fuel-supply system.

The system forms part of an innovative, hybrid gas-battery propulsion solution – a first for the segment, MAN Energy Solutions said in its statement.

Designed by NSK in Norway, the sister vessels will be built at Tersan Shipyard in Turkey.

Louise Andersson, Head of MAN Cryo, said, “These orders mark our entry into a new marine segment with its own unique demands.”

MAN Cryo’s scope of supply for each vessel covers, 2 vertical vacuum insulated 146-cbm LNG tanks, each with 2 redundant tank connecting spaces, 2 BS100-GR bunker stations and 2 HEU 100 glycol-heat exchanger units.

Upon construction, the vessels will have a length of 84.25 meters, a breadth of 19.0 meters, and will be capable of transporting over 600 tons of live fish, particularly salmon and trout.

The carriers are designed for operation at aquaculture facilities in more exposed waters and delivery of the latest vessel is expected during 2021.

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Evolving global markets affect US LNG exports, Senate panel told

Evolving global markets clearly are having impacts on proposed US LNG export projects, witnesses told the Senate Energy and Natural Resources Committee on July 11.

 

 

Jul 11th, 2019
 
 

Evolving global markets clearly are having impacts on proposed US LNG export projects, witnesses told the Senate Energy and Natural Resources Committee on July 11. Overseas customers are moving away from long-term contracts and toward investing in US terminals that can export US-sourced gas to Asia-Pacific customers at competitive prices, they said.

“The impact of ongoing gas production gains, and the national security and economic prosperity they have ushered in, should not be underestimated,” said Steven Winberg, assistant secretary for fossil energy at the US Department of Energy.

“We now are in our third consecutive year as a net exporter of gas, and projections from [the US Energy Information Administration] estimate that the US will be an overall net exporter of energy next year. These exports are not only reducing our trade deficit by billions of dollars each year, but are also increasing our national security,” he said.

Since LNG exports began from the Lower 48 US states in February 2016, more than 2.4 tcf of gas equivalent has been exported, Winberg said. “US exported cargos have landed in Europe, Asia, Africa, the Middle East, South America, North America, and the Caribbean—36 different countries in all. Europe has been the top destination for US LNG so far in 2019, receiving 55 cargos through April. And, led by imports into South Korea and Japan, Asia has been the top importing region of US LNG over the last 3 years,” he said.

Domestic production incentive

Because US gas supplies are so abundant, operating and planned export capacity are helping stabilize the domestic market, another witness said. “Exports provide another demand outlet and thus help to keep natural gas production steady and predictable,” said Charlie Riedl, executive director of the Center for Liquefied Natural Gas.

“In fact, growth in exports sends market signals to incentivize domestic production, which benefits consumers here at home and industries involved in the gas supply chain such as construction and manufacturing, spurring even more economic growth,” Riedl said.

“The US is entering a global market that is changing, and its entry will accelerate that change. But change is evolutionary and multilayered—thus, broad generalizations can mislead rather than illuminate,” said Nikos Tsafos, a senior fellow at the Center for Strategic and International Studies.

“There are new players, new business models, and new trade routes, but these exist alongside business practices and patterns that have persisted for decades. More than ever, it is important to understand each region and market on its own terms, with due regard to the idiosyncrasies that make it special,” Tsafos said.

Dennis V. Arriola, an executive vice-president and chief sustainability officer for Sempra Energy in San Diego, said that while most US LNG exports are from the Gulf Coast and take too long to reach Asia-Pacific customers at competitive prices, his company is developing two projects in Baja California that would solve that problem for otherwise stranded gas in western US states.

“When those two projects are completed, they will connect with pipelines from Texas to help form the “Permian-to-Pacific highway” and reduce the time it takes for US gas to reach Asian markets to approximately 12 days,” he said. “As a result, Asian LNG buyers will have increased options with the ability to access multiple gas producing regions, with different pricing mechanisms. This will help the US be even more competitive in the global LNG market.”

Alternatives are needed

Another witness, Melanie Hart, a senior fellow and director of the China Program at the Center for American Progress, said transporting US LNG there by tanker is prohibitively expensive and alternatives to long-term contracts need to be considered.

“US LNG would be a short-term fix for China when the country has its own gas resources. It already is the third-largest shale gas producer behind the US and Canada,” she said. “If China agrees to buy more US LNG or invest in projects, the US could lose leverage with one of its biggest global competitors.”

Sen. Joe Manchin (D-W.Va.), the committee’s ranking minority member, warned that Chinese investments in US LNG export projects potentially could imperil plans for an energy and petrochemical hub in his home state. “Chinese companies have said they are ready to invest $84 billion over 20 years. My gut tells me they want propane, ethane, and other building stock,” he said.

“We now are leading the world in natural gas production, and hopefully soon we will also lead in exports,” Committee Chair Lisa Murkowski (R-Alas.) said.

“Global demand for LNG, we know, is increasing. More US LNG export facilities are coming online and more of our friends and allies around the world are building import facilities. For the first time since the 1950s, we are now a net exporter of this abundant resource, and our production is driving the formation of a global spot market for natural gas,” Murkowski said.

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5 hours ago, ceo_energemsier said:

study strengthens LNG investment case

 

 

SEA\LNG has released an independent study showing that LNG as a marine fuel delivers the best return on investment and is a competitive option for newbuild Pure Car and Truck Carriers (PCTC) on Pacific and Atlantic trade lanes. 

Peter Keller, chairman of the  SEA\LNG, stated, “This is the second in a series of studies commissioned from independent simulation and analytics expert Opsiana. Similarly to the results of the liner investment case, this study shows that shipowners ordering PCTC newbuildings should take advantage of the environmental, operational and commercial benefits of LNG.”

The study considered two PCTC trading scenarios using a 6,500 Car Equivalent Unit (CEU) vessel on the Atlantic Trade and an 8,000 CEU vessel on the Pacific Trade. The study indicated that LNG as a marine fuel delivers the best return on investment on a net present value (NPV) basis over a conservative 10-year horizon, with fast payback periods ranging from one to three years on the Atlantic Trade and from less-than-one year to two years on the Pacific Trade.

These two routes were chosen based on trading scale, with approximately 3.2 million vehicles shipped on the Pacific Trade and 1.7 million on the Atlantic Trade every year. LNG proved to be the best investment across both trading zones. This higher investment return was achieved without including the significant additional benefits and branding value gained by choosing LNG as a marine fuel.

The study provides greater clarity for those investing in LNG and highlights seven key findings: LNG has a better return on investment, the CAPEX hurdle is diminishing, it delivers competitive energy costs, has higher environmental performance, and is the most financially effective long-term method for complying with the 2020 sulphur cap. It also underlines the fact that scrubber operation is significantly more expensive than widely reported, and that the cost of LNG is stable, SEA\LNG said.

The financial results are more compelling given that this higher traditional investment return was achieved by choosing LNG, the only commercially viable marine fuel alternative available at scale today which is successfully able to achieve corporate sustainability and environmental goals, the coalition said.

To ensure the best possible data was available to Opsiana, SEA\LNG members contributed their maritime expertise and current corporate information and data from across the LNG value chain, to guarantee a high level of credibility in the study and results. All cost data was accurate in accordance with the latest estimations from industry experts, derived from their experiences in operation.

While this study focuses specifically on the PCTC investment case for LNG within a specific trade route, the coalition continues to collaborate with third parties on further independent research which will analyse the investment case for a dry bulk vessel and a very large crude carrier (VLCC).

LNG is becoming a competitor for diesel which will help keep diesel prices moderated. In a decade we may see diesel use declining. Maybe sooner. If diesel prices do rise too much it will increase the build rate of LNG and CNG vehicles. 

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5 hours ago, ceo_energemsier said:

MAN Energy Solutions’ marine LNG fuel-gas-system manufacturer, MAN Cryo, has been contracted to supply an LNG fuel-gas supply system for a live-fish carrier ordered by Nordlaks, one of Norway’s largest aquaculture companies.

The new vessel will be a sister to an identical vessel ordered by Nordlaks during the summer of 2018 for which MAN Cryo also won the order to provide the fuel-supply system.

The system forms part of an innovative, hybrid gas-battery propulsion solution – a first for the segment, MAN Energy Solutions said in its statement.

Designed by NSK in Norway, the sister vessels will be built at Tersan Shipyard in Turkey.

Louise Andersson, Head of MAN Cryo, said, “These orders mark our entry into a new marine segment with its own unique demands.”

MAN Cryo’s scope of supply for each vessel covers, 2 vertical vacuum insulated 146-cbm LNG tanks, each with 2 redundant tank connecting spaces, 2 BS100-GR bunker stations and 2 HEU 100 glycol-heat exchanger units.

Upon construction, the vessels will have a length of 84.25 meters, a breadth of 19.0 meters, and will be capable of transporting over 600 tons of live fish, particularly salmon and trout.

The carriers are designed for operation at aquaculture facilities in more exposed waters and delivery of the latest vessel is expected during 2021.

Do you know anything about the advantages of using the hybrid design?  It sounds like using a locomotive diesel-electric but with LNG. 

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26 minutes ago, ronwagn said:

Do you know anything about the advantages of using the hybrid design?  It sounds like using a locomotive diesel-electric but with LNG. 

https://marine.man-es.com/applications/lng-tankers

 

https://marine.man-es.com/applications/fishing-vessels

 

https://corporate.man-es.com/press-media/news-overview

 

I have contacted them to find out more about a few of their lng products including that hybrid system

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Norway-based LNG design and engineering firm Fuelgarden Energy has commissioned a temporary LNG installation on the Isle of Skye in Scotland.

Fuelgarden said that the LNG installation was supplying natural gas to Mowi´s newbuilt fish feed factory at Kyleakin.

Mowi, the world´s largest salmon producer and one of the largest seafood companies in the world, constructed a new fish feed factory at Kyleakin in Scotland.

The factory, with an estimated cost of £125 million ($151.7M), will produce fish feed to Mowi´s salmon fish farms in Scotland, Ireland, and the Faroe Islands.

The process to produce the fish feed requires thermal energy, and for this purpose, Fuelgarden Energy designed and project managed the construction of a 2,000-cbm LNG terminal. The LNG terminal is mechanically complete, with commissioning planned for the third quarter of 2019.

While waiting for the LNG terminal to be started up, Fuelgarden Energy has designed and commissioned a mobile LNG installation that is temporarily supplying natural gas to the factory.

Dag Lilletvedt, founder and CEO of Fuelgarden Energy, said: “As an LNG designer with specialization in off-grid energy solutions we are very pleased to have been assigned the task by Mowi to design and project manage both the permanent and the temporary LNG solution at their newbuilt fish feed factory at Kyleakin. The temporary LNG installation has been designed with mobile LNG tanks and by using existing cryogenic equipment in the market.

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US-based classification society ABS has teamed up with OceanFinance and Scorpius Space Launch Company (SSLC) on the SPACE TECH4SEA project to adapt composite technologies developed for the space industry to liquefied natural gas (LNG) shipping.

The project, attracting more than 1 million euro ($1.13m) grant funding from the European Commission, aims to apply composite technology, which is lighter and more cost-effective, as a competitive alternative in LNG as marine fuel designs, principally for short sea shipping, according to a statement by ABS.

“Existing LNG tank technology can make adoption of the fuel prohibitively expensive. This composite technology has proven itself in other industries; we are committed to learning how to safely apply those lessons to benefit the maritime industries,” said ABS Vice President for Global Gas Solutions, Patrick Janssens.

The three-year SPACE TECH4SEA development project will adapt SSLC’S PRESSURMAXX composite tanks for marine applications based on its current use in a range of industries and more than 200 clients including NASA.

Composite carbon fiber technology allows development of ultralight compact tanks, making LNG as fuel feasible for a broader range of marine vessels.

“This technology is a game-changer product that will unlock latent demand for LNG as marine fuel. The benefit of leveraging this US space technology, to improve the environment in European Sea basins, is obvious. We expect introduction of this innovative product will enable sales of more than 2,000 tanks in the next 10 years,” said Managing Director, OceanFinance, Panayotis Zacharioudakis.

“Composite technology can make LNG a compelling choice for ship owners. The size and weight of existing technology reduces capacity and increases the need for additional horsepower. Composite tanks will remove these issues, offering significant improvement in vessels’ OPEX and CAPEX, making LNG as a marine fuel viable for a wide range of marine applications,” said SSLC President and CEO Markus Rufer.

The joint team’s goal is creating tanks which will attract new buildings and LNG as a marine fuel retrofits by cutting costs, reducing weight and increasing vessels’ cargo capacity.

The technology, which offers weight savings up to 80 percent over existing equivalent LNG tank designs and is not affected by corrosion, also introduces space technology safety standards to marine operations, the statement said.

While the tanks are currently made by hand, the project aims to adopt a highly automated production line to ensure a competitive pricing level.

Engineers from ABS’ Global Ship Systems Center in Greece will provide the rules, regulations and standards under which the composite tank technology can be approved for marine applications, reviewing the designs submitted by SSLC.

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Polish LNG terminal operator, Polskie LNG, said it has reached a milestone at the President Lech Kaczyński facility in Świnoujście. 

The company noted in a brief statement through its social media channels that it has loaded 5000 LNG tank trucks since the facility started operations.

The first ISO container was loaded at the facility in September last year, marking the start of operation of the transshipment LNG installation for railroad tank cars and ISO containers.

The company said that 5000 LNG trucks is equal to 200,000 cubic meters of the chilled fuel.

Polskie LNG is in the process of expanding operations at the facility through three key projects; the construction of the third LNG storage tank, delivery of additional process installations increasing the regasification capacity to 7.5 billion cubic meters per year, and the LNG transshipment installation together with a railway siding.

The Polish LNG terminal in Świnoujście is the country’s flagship project to diversify gas supplies and reduce dependence on pipeline imports from Russia.

Polish Oil and Gas Company (PGNiG) is in charge of all the LNG supplies coming to the import terminal operated by Gaz-System’s unit Polskie LNG.

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German shipyard Meyer Werft started the construction of the next LNG-fueled cruise ship for AIDA Cruises with the steel cutting. 

Delivery is planned for spring 2021, Meyer Werft said, noting that the third vessel in this class to AIDA Cruises in 2023.

The first vessel in this class for AIDA Cruises, the AIDAnova was delivered by the shipyard at the end of 2018.

Commenting during the steel-cutting ceremony, Stephan Schmees, executive board member project management ships at Meyer Werft said, “We are very pleased to work with AIDA Cruises and Carnival Corporation at further establishing LNG as a fuel in the cruise industry. We will also be implementing other innovative technologies on board this ship.”

This generation of ships for AIDA Cruises uses LNG engines by Caterpillar/MaK, which fulfill the strictest environmental regulations. This class of ships has been developed and designed with a focus on energy efficiency, the shipyard said.

The new ships for AIDA Cruises have the capacity for around 2,600 cabins, with a rating of 183,900 GRT.

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ExxonMobil charters Singapore's first LNG-fuelled bunker barge

 

SINGAPORE, Aug 16 (Reuters) - ExxonMobil Asia Pacific has signed a two-year time charter agreement with Singapore-based Sinanju Tankers Holdings Pte Ltd to lease Singapore's first liquefied natural gas (LNG) powered bunker tanker, Sinanju said in an statement on Friday.

The 7,990 deadweight tonnage (dwt) new build will be the first LNG bunker tanker for Singapore and Sinanju and will deliver ExxonMobil's new Engineered Marine Fuels (EMF.5) to ocean-going vessels within Singapore port limits from the first quarter of next year.

EMF.5 marine fuels are designed to comply with the International Maritime Organization's (IMO) global rules that limit the sulphur content in marine fuels to 0.5% from 2020, from 3.5% currently, according to the company's website.

Sinanju Managing Director Ju Kai Meng said the use of LNG for the tanker would help reduce greenhouse gas emissions in the bunker industry.

 

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