Lng ship february 2014

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February 2014 - Issue 6

lng

MONTHLY FREE REPORT FOR THE LNG, OIL & GAS INDUSTRY

Ship

Tokyo LNG Co. builds a new type of LNG vessel ESPO urges RINA chosen by Low sulphur norms: LNG carriers Kawasaki to build Hign End Offshore Parliament and action needed at the training - a new Denmark’s shipping body to eleventh hour phase completed Service Vessel Council to reach an agreement on oversee LNG fuel the Clean Fuel projects Strategy before EU elections

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Tokyo LNG Co. builds a new type of LNG vessel Tokyo LNG Tanker Co., Ltd. (headquartered in Minato-ku, Tokyo; hereinafter referred to as “Tokyo LNG Tanker”), which is a 100% subsidiary of Tokyo Gas Co., Ltd., has signed a contract for shipbuilding regarding two LNG vessels (165,000m3 tank capacity) with Japan Marine United Corporation (headquartered in Minato-ku, Tokyo;

hereinafter referred to as “JMU”), and has signed a Heads of Agreement regarding the joint ownership and 20-year charter of the vessels one with Mitsui O.S.K. Lines, Ltd. (headquartered in Minato-ku, Tokyo; hereinafter referred to as “MOL”) and the other with Nippon Yusen Kabushiki Kaisha (headquartered in Chiyoda-ku, Tokyo; hereinafter referred to as “NYK”).

Two LNG vessels scheduled to be deliv-

ered in 2017 will be employed for transporting LNG mainly from U.S. Cove Point Project. The vessel is designed to transit the expanded Panama Canal. Ship management of the vessels will be done by MOL and NYK respectively, in accordance with the 20-year time charter agreement.

When the vessels are delivered, the number of LNG vessels in Tokyo LNG Tanker fleet will become twelve.

The vessels’ containment system is SPB*1”, which is a Japanese technology developed by IHI Corporation (headquartered in Koto-ku) and JMU. This containment system enables to maximize utilization of the space inside the hull and free designing of the shape of hull for the best fuel consumption..

The SPB system has been adopted for LNG vessels the first time in 24 years (building year base), and it is the first time for Tokyo LNG Tanker to order LNG vessel with SPB tanks. The vessels will be

the world’s largest LNG vessels with SPB tanks.

To comply with the U.S. emission control regulations*2 within coastal area of the U.S., the vessels will be equipped with Tri Fuel Diesel Electric*3(TFDE) propulsion system allowing to use low-sulfur oil or gas. The vessels are also designed with world’s lowest boil-off rate*4 (0.08%/day), and combination with TFDE propulsion will show excellent fuel consumption and eco-friendly performance.

Tokyo Gas Group will aim to diversify and increase suppliers, and decrease material costs, by owning and operating its LNG vessels proactively.

The SPB system has been adopted for LNG vessels the first time in 24 years (building year base), and it is the first time for Tokyo LNG Tanker to order LNG

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lngShip 3 Shell: Shaping the energy future through innovation Energy is vital for producing food, fuelling transport, and offering communication channels across the world. As the global population rises, more people are moving out of poverty and gaining access to energy. All sources will be needed to meet growing needs in a sustainable way. Everyone has a part to play. At Shell we use advanced technologies and take an innovative approach to help deliver more, cleaner energy and find ways to use energy more efficiently.

More than 9 billion people are expected to live on Earth by 2050, up from 7 billion today. Asia’s fast-growing cities will absorb much of this growth, with three in four people living in urban centres.

Billions of people will rise out of energy poverty.

As living standards improve for many across the world and more people buy their first refrigerators, computers or cars, energy use will rise. Total global energy demand could rise by up to 80% by mid-century from its level in 2000.

A range of sources will be needed to supply this vital energy over the coming decades. Up to 30% of the world’s energy mix could come from renewables in 2050, with fossil fuels and nuclear providing the rest. At Shell we are finding ways to provide energy from cleaner sources and help customers use energy more efficiently.

More, cleaner, smarter energy Shell plans to spend $100 billion from 2011-2014 to support new energy production. We are entering more challenging environments to unlock new resources and boosting production from existing fields. At the same time, we are using new technologies and an innovative approach to limit our impact on the environment and find effective ways to engage with communities near to our operations.

We are developing cleaner energy sources, such as natural gas, the cleanest burning fossil fuel. From the extraction of the fuel to the generation of electricity, natural gas power plants emit around half the CO2 of coal power plants. Natural gas complements wind and solar power, which need a highly flexible backup supply when the wind stops or the sun goes down.

For our customers we offer advanced fuels and lubricants to help boost fuel efficiency, as well as driving tips and programmes to help save fuel.

We believe the most practical, commercially viable way to reduce CO2 from transport fuels over the next 20 years will be lowercarbon biofuels. Already one of the largest suppliers of biofuels, we have moved into biofuel production. Through the Raízen joint venture in Brazil, we are producing the lowest-carbon biofuels commercially available today in the form of ethanol from Brazilian sugar cane.

Kawasaki to build HighEnd Offshore Service Vessel Kawasaki Heavy Industries, Ltd. announced today that it has signed a shipbuilding contract with Island Offshore Shipholding LP (Island Offshore) for one vessel to be built according to the Mobile Offshore Unit (MOU) regulations.

Island Offshore, based in Norway, is a company offering a range of complex services to the offshore industry including Light Well Intervention, Subsea Installation and Maintenance, Anchor Handling as well as Logistics and Supply.

The unit is a UT 777 vessel designed by Rolls Royce and Island Offshore in close cooperation. The topside handling equipment will be delivered by National Oilwell. Emphasis has been placed on designing and outfitting the vessel for optimal subsea operations and Island Offshore has built-in experience from operating equivalent units over the last 10 years. The technical features of the vessel are as follows:To be equipped for Tophole Drilling and may also be adapted for Light Well Intervention services.

Enclosed Module Handling Tower to secure a safe and comfortable working environment when operating in harsh conditions.

The highest level of positioning capability, powered by the seven thrusters, which is securing more redundancy than the existing similar offshore service vessels.

Applying the highest comfort class as an offshore service vessels.

Increased dimension compared with the existing similar offshore service vessel Island Offshore is owning.

The Vessel’s principal particulars are outlined below.

Length : Approx. 169 m Molded breadth : 28.0 m Molded depth :

11.7 m Positioning Capability :

DP3 Class :

ICE1B Accommodation : 91 persons Kawasaki will build the vessel at its Kobe shipyard and carry out the necessary engineering work for the construction together with Rolls Royce.

The vessel is scheduled for delivery in the first quarter of 2017.

Kawasaki will actively pursue its shipbuilding operations in light of the expected rise in demand for the offshore industry, including various offshore service vessels and offshore structures.

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ESPO urges Parliament and Council to reach an agreement on the Clean Fuel Strategy before EU elections Tomorrow, the European Parliament and Council are meeting in a socalled “trilogue” on the Clean Fuel Strategy to reach a compromise and find a solution on the outstanding issues. If necessary, another trilogue is foreseen in two weeks time. If an agreement can be found, it can be endorsed by the Parliament before the elections.

ESPO fully supports the Clean Fuel Strategy proposal as a way to promote and enhance the use of alternative fuels as a means to further improve as much as possible the environmental footprint of the different modes of transport.

“This strategy is important because it sets out a plan for Member States and stakeholders to work towards alternative fuels. We hope that this strategy is finalised soon, in view of giving the different stakeholders a clear sign on where to go and allowing them to start or continue working towards that goal. We therefore urge the Parliament and the Council to do everything possible to reach a first reading agreement”, says ESPO’s Secretary-General Isabelle Ryckbost.

Two of the issues under discussion are of importance for seaports: the deadline for the provision of LNG refuelling points in core network ports and the conditions under which shore side electricity has to be provided in ports.

European ports are in favour of the pragmatic approach that is taken by both European institutions regarding the deployment of LNG refuelling points in core TEN-T ports. The aim here should be the deployment of a sufficient network of LNG refuelling points taking market realities and distances between ports into account. ESPO agrees with the Parliament that it makes sense for such an LNG refuelling network to be deployed already by 2020 in consistency with the entering into force of the sulphur Directive. It is of outmost importance though that the relevant co-funding possibilities for LNG projects are ensured also after the 2014- 2020 period.

As regards shore side electricity, ESPO considers a compromise obliging core TEN-T ports to provide shore side electricity wherever there is demand, the costs are not disproportionate to the benefits and there is significant positive impact on the environment, as acceptable for both institutions. The deadline for meeting this obligation is of a lesser importance to ESPO. If, as a result of an assessment it seems that shore side electricity is the most viable solution for the whole or a part of the port, ports should not wait until 2020 or 2025.

Over the last years, and in absence of any regulatory obligation, several European ports have been actively supporting this technology and exploring the possibility of providing shore side electricity in their berths. In some cases, this has lead to successful implementation projects.

At the same time, shore side electricity must be seen as one of the pillars of a more comprehensive clean fuel strategy and might in that respect not always score as the “best” solution in terms of environmental benefits in all ports or on all berths. Ports must assess the full picture and look at this technology in combination with LNG and other upcoming innovative solutions.

“The aim of this Strategy should be to push ports to reflect as soon as possible on their way to enhance the use of cleaner fuels. Shore side electricity is certainly one of the pillars of such a strategy and reflection. If cost-effective and wherever it comes out as the best environmental solution, it should be installed. But we should not see this technology in isolation. For berths where only LNG fuelled ships are arriving, such a technology is completely redundant. It is also clear that technologies in the field are evolving constantly. We should give ports the possibility to adapt to and invest in those as well”, adds Isabelle Ryckbost.

LNG fuel innovations highlighted |A select group of influential speakers will offer insights on the future of liquefied natural gas (LNG) as a transport fuel for ships at the upcoming Gastech, the world’s leading LNG and natural gas conference and exhibition.

Gastech 2014 will host a day-long seminar on LNG Fuel Technology as part of its Centres of Technical Excellence (CoTEs) programme, a series of free exhibition seminars taking place at the KINTEX exhibition and conference center in Seoul, South Korea, from the 25th to 27th March, 2014.

The Gastech CoTEs technical seminar programme is dedicated to delivering knowledge, education and awareness of technological innovations in the gas industry.

The focus on LNG fuel technology will be of special interest to Korea since its leading ports, such as Busan, could become regional bunkering centres for supplying LNG as a marine fuel. Korea’s shipbuilding industry must also consider the adoption of LNG as a fuel in retrofitting existing vessels and constructing new ones. Industry experts believe the use of LNG as a transport fuel is becoming more feasible because of tougher environmental regulations and the gradual delinking of LNG prices from oil prices.

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UECC orders two Dual Fuel Liquefied Natural Gas (LNG) Pure Car and United European Car Carriers (UECC), jointly owned by Nippon Yusen Kabushiki Kaisha (NYK) and Wallenius Lines, has signed a contract to construct two dual fuel LNG

The contract has been signed with Kawasaki Heavy Industries (KHI) and the vessels will be constructed at the NACKS shipyard in Nantong, China which is a joint venture between KHI and China Ocean Shipping (Group) Company. Deliveries of both the vessels will be in the second half of 2016.

The vessels will be 181 metres long with a 30 metre beam. Both the vessels will have 1A super Finnish/ Swedish ice class, facilitating year round trading in the Baltic area. Approximately 3 800 standard sized cars spread over 10 decks will able to be transported. A significant part of the cargo capacity can also be used to transport high & heavy cargo and any other cargo loaded on to mafi trailers. The deck configuration is optimised for both present and predicted future cargo mix.

The vessels are capable of operating with LNG fuel or heavy fuel oil and marine gas oil, providing greater flexibility and efficiency. It is the first PCTC of its kind to be fitted with an LNG fuel propulsion system, and can complete a fourteen day round voyage in the Baltic using solely LNG fuel, including main engine and auxiliary power generation.

LNG is recognised as the cleanest and most environmen-

tally friendly choice of fuel suitable for marine transport.

The choice of LNG as a fuel significantly reduces CO2 and NOx emissions, as well as almost eliminating Sulphur Oxide and particulate emissions. “The LNG installation is a pioneering design and will be one of the largest employed on a commercial vessel and the largest yet of its kind on a pure car and truck carrier. We are proud of the exciting step UECC is taking towards greener and more environmentally friendly shipping” said Glenn Edvardsen, CEO of UECC. The vessels will employ a number of other design elements and technologies to help reduce fuel consumption and emissions, ensuring safer and more efficient operations. With capacity for approximately 3800 cars, it will be the largest PCTC type vessel specifically designed for transiting the Baltic and other ice prone areas. Mr. Edvardsen further stated, “UECC will be able to provide our customers with transportation in the Baltic area with unparalleled efficiency, reliability and superior environmental performance”.

The vessels have been jointly developed by UECC, Wallenius Marine and NYK Technical Group, together with Kawasaki Heavy Industry in Japan.

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DSME Wins Orders for Eight VLGCs DSME demonstrates their ability to construct high quality vessel by winning new orders.

DSME signed two contracts for four Very Large Gas Carriers (VLGC) on 20th and 21st February with two different Asian clients.

The value of the eight vessels is approximately 640 million USD and DSME and the clients agreed in principle to contracts for two additional VLGCs. The vessels will be 226m long, 36.6m wide, and able to load liquefied petroleum gas(LPG)up to 84,000m³.

They are scheduled for delivery in the latter half of 2016.

The market outlook for gas carriers is very bright. Recently the governments of various countries are trying to expand the use

of natural energy to respond to the rapidly increased demand for power. Therefore, the amount of gas requiring transportation is also increasing. By constructing these new gas carriers, DSME’s clients are expecting to cover the transportation of gas to their respective domestic markets. These contracts were won based on DSME’s fame in gas carrier construction and their ability to comply with the dates of delivery.

Mr. Jaeho Ko, the president and CEO of DSME said, “DSME will do its best to match the delivery date and construct high quality vessels in order to repay our client’s trust.” This latest contract puts DSME’s 2014 secured orders at 11 vessels worth approximately 1.4 billion USD.

RS: LNG carriers training - a new phase completed RS has carried out a new phase of surveyors training on classification services for LNG carriers. The first phase (2008 to 2010) was carried out by RS in cooperation with American Bureau of Shipping (ABS) and included a theoretical course for surveyors according to joint programme and a practical training on LNG carriers directed by qualified ABS mentors. This phase enabled to train 15 specialists. Currently, many of them are successfully performing classification and survey during the construction of LNG carriers at shipyards in South Korea.

In 2012 to 2013, due to predicted activity growth in design and construction of LNG carriers for procurement of large Russian projects on LNG production (Vladivostok LNG, Yamal LNG, etc.), another two training seminars on LNG transportation by sea were held for surveyors at the RS Training Center. Some competent highly-skilled RS experts have been involved in these seminars.

In total, 51 persons successfully finished this theoretical training.

Further on, during 2013 to 2014 the trained engineers proceeded to the yard STX Offshore and Shipbuilding in South Korea for onsite training on LNG tankers under construction. Currently, their training is successfully completed. Therefore, nowadays RS has sufficient (over 60 persons) number of highly-skilled experts in classification services during construction or operation of state of the art LNG carriers all over the world. Russian Maritime Register of Shipping (RS) is an integral member of national expertise in LNG transportation by sea. It continues to extensively augment its potential in services for large Russian projects of LNG transport by sea. RS signed a number of agreements on strategic partnership with leading representatives of the industry, including Gazprom Marketing & Trading (GM&T), OAO United Shipbuilding Corp.

(USC) and OAO Sovcomflot (SCF).

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lngShip 7 Approval to export granted for the American project Cameron LNG: A major step in its development

Cameron LNG, one of the most advanced U.S. LNG export projects, promoted by GDF SUEZ as a shareholder and a capacity holder, has just reached a decisive step with the conditional non-Free Trade Agreement (FTA) approval from the U.S. Department of Energy (DOE). The Non-FTA authorization will enable GDF SUEZ to export LNG from the Cameron LNG project in Louisiana into countries that have not signed a FTA with the USA. The project already received the FTA approval in January 2012. The two approvals will enable GDF SUEZ to sell the LNG produced by the Cameron plant to a much wider range of partners around the world. The Final Investment Decision (FID) of the Cameron liquefaction project is expected to be taken this year.

Gérard Mestrallet, Chairman and CEO of GDF SUEZ, said: “The decision of the DOE to grant non-FTA approval opens a major opportunity for GDF SUEZ to further develop long-term LNG sales in a fast-growing global market. Cameron LNG will open new horizons for U.S. gas production that is dramatically boosted by the shale gas revolution and will strengthen GDF SUEZ’s position in the LNG world market.” The completion of the environmental impact assessment by the Federal Energy Regulatory Commission (FERC) is expected in the coming weeks as the last gate before FID. In May 2013, GDF SUEZ concluded a Joint Venture Agreement with Sempra, Mitsubishi and Mitsui to develop the Cameron LNG Project. Under these agreements GDF SUEZ will hold a stake of 16.6% in the Project and will have a long-term liquefaction capacity of 4 million tons per annum (mtpa), which will enhance the Group’s LNG portfolio. The facility should be commercially operational in 2018.

D

evon Energy and Crosstex Energy Complete Transaction to Create EnLink Midstream. “We are excited to announce the completion of the transaction and the new beginning for us as EnLink Midstream,” said Barry E. Davis, President and Chief Executive Officer of EnLink Midstream. “Our vision is to not only be one of the largest, but one the best midstream providers in the industry. EnLink Midstream’s geographically diverse asset base, strong financial foundation, and strategic upstream sponsorship from Devon Energy position us for growth over the near and longterm.”

Successful completion of full height jacking trials of Teras Sunrise | Teras Offshore, along with Global Maritime and ASL Shipyard in Batam, Indonesia are pleased to announce the completion of full height jacking trials of the Teras Sunrise. The trials were completed on 7th February and mark another successful milestone in the Teras Sunrise reactivation project.

The Teras Sunrise is the second “Service Jack” design developed by Global Maritime. The vessel is a jack-up construction vessel with a payload of up to 7,200 tonnes, outfitted with four jack-up legs for jacking operations in the North Sea in up to 80m water depth. She has accommodation for 160 persons with the option to increase to 260 using Pullman berths. She also has two 750 tonne pedestal cranes, a helideck and six thruster DP2 dynamic positioning system for independent operations offshore. In addition to designing the Teras Sunrise, Global Maritime has also been providing technical support to the owners, Teras Offshore, during the reactivation project. Working closely with Teras Offshore, Global Maritime was able to use their in-depth knowledge of the vessel and systems to help ensure the reactivation work ran smoothly.

Taking advantage of its extensive geographical network, Global Maritime’s London and Singapore offices provided assistance in preparation for and during the jacking trials. This included carrying out the site specific assessment, preparing the jacking procedure, ballast plan and providing technical advice during the trials. Global Maritime’s project manager explains: “It has been great for us to see this project through from initial concept to final completion. Our close working relationships with Teras Offshore and ASL have been key in overcoming the inevitable challenges associated with a reactivation project. All parties have been 100% committed to making the project a success and we are incredibly proud to be involved.” The vessel sea trials are scheduled for March 2014 and the Teras Sunrise is expected to begin service in April 2014.

Low sulphur norms: action needed at the eleventh hour Priorities must be set to smoothen the introduction of low sulphur norms in Northern Europe: establishing a fair level playing field is one of them. With the 1 January 2015 deadline elapsing in Sulphur Emission Control Areas (SECA) in less than ten months from now, there is no time to lose.

This was the core message ECSA Secretary General Patrick Verhoeven gave earlier this week in his keynote speech at the Clean Shipping Conference. The conference is part of Baltic Transport Week, a leading logistics event held annually in the Baltic port city of Gdansk. “With the SECA implementation date approaching fast, there is a lot of talk about monitoring and enforcing compliance”, said Patrick Verhoeven, “I would make a plea for a playing field that is level but fair. It means first of all that the early adopters, those operators that completed all the investments and are ready to meet the sulphur norms in time, are not penalised. But it equally means that those that can demonstrate that they made the necessary commitments to meet the norms, but may not be entirely ready by the time the deadline elapses for technical or other good reasons, are given a

compliance path within a limited and conditional timeframe.”

“This key point must be discussed in the context of the European Commission’s European Sustainable Shipping Forum, of which ECSA is an active member. Other issues need priority attention as well, such as the need to clarify financial support options and legal certainty on applicable rules and regulations in ports. The sense of urgency in getting clear answers on these issues cannot be underlined enough”, added Patrick Verhoeven, who concluded his intervention at Baltic Transport Week with a reflection on lessons to be learned from the sulphur debate: “Let’s just say that, for a variety of reasons, this file does not deserve a beauty prize. What we can learn from it is that we need genuine international rules, also within an IMO context, proper impact assessments and a less defensive attitude from industry. Considering the uniquely positive role we play for society at large, providing so much of what people consume and use in their daily lives at such a low cost, I think we are doing quite well in terms of overall sustainability. But we need to be out there telling that story much better.”

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US DOE Authorises 8 MTPA Export to FTA Countries USA The Directors of Liquefied Natural Gas Limited

(Company) are pleased to advise that the United States Department of Energy (DOE), has granted authorisation for Magnolia LNG, LLC (wholly owned by the Company), to export an additional 4 million tonnes per annum (mtpa) of LNG, from its proposed LNG project site at the Port of Lake Charles, Louisiana (Magnolia LNG Project).

This follows the DOE’s initial approval granted on 26 February 2013 to export up to 4 mtpa of LNG to Free Trade Agreement (FTA) countries with the United States.

The DOE authorisation is valid for first LNG sales to commence within 10 years and then for a period of 25 years from first LNG sales. LNG sales are permitted to all existing, and any future, countries that have, or enter into, a Free Trade Agreement with the Government of the United States. Managing Director Maurice Brand said “Negotiations are progressing smoothly with the three proposed existing tollers for long-term tolling agreements, Brightshore Overseas Limited (a subsidiary of the Gunvor Group), Gas Natural SDG, S.A (a subsidiary of the Gas Natural Fenosa Group), and LNG Holdings Corp., (owned by a fund managed by West Face Capital Inc.). As announced yesterday, the Company now has signed a fourth non-binding tolling term sheet with the AES Group and will be negotiating a long-term tolling agreement with that counterparty as well”. “Magnolia LNG is currently focused on LNG supply to FTA countries, so the DOE approval today for up to 8 mtpa is timely”, said Mr. Brand.

Jensen Maritime Selected to Design Some of First LNG Bunker Barges in U.S. Vessels to Supply Maritime Industry with Clean Fuel Source and Build LNG Infrastructure along U.S. Gulf Coast Jensen Maritime, Crowley Maritime Corp.’s Seattle-based naval architecture and marine engineering company, has been awarded a contract to design some of the first liquefied natural gas (LNG) bunker barges in the U.S. for customer LNG America LLC, a Houston-based LNG fuel supply and distribution company. Currently no LNG bunkering barges are in operation in American waterways and these vessels will be among the first to be developed and built, marking a significant step in LNG America’s build-out of LNG bunkering infrastructure along the U.S. Gulf Coast and in delivering a new clean fuel to the maritime industry.

The vessels, which are expected to deliver in late 2015, have an initial planned capacity of up to 3,000 cubic meters of LNG. Once in operation, the bunker barges will serve the dual purpose of moving LNG from LNG America’s Louisiana supply source to coastal-based storage and distribution terminals and in directly bunkering large ships.

“Through LNG America’s LNG bunkering initiative, we plan to serve and facilitate the growing marine demand for LNG,” said Keith Meyer, CEO of LNG America. “LNG America sees the demand for marine LNG to be robust as long as LNG can be made available to the maritime industry on a reliable, dependable and cost-competitive basis. Our mission is to deliver competitively priced LNG as fuel where needed, when needed and in the quantity needed.”

“The significance of this agreement is not only incredible news for the marine industry, which struggles with whether to develop LNG infrastructure or vessels first, but also for companies along the U.S. Gulf that hope to replace their traditional vessels with cleaner, more efficient LNG-powered ones,” said Jensen’s Johan Sperling, vice president. “We are thrilled to be working with LNG America in the development of its marine infrastructure and also in providing a green fuel source to this important region. Jensen is on the leading edge when it comes to LNG vessel design and we look forward to serving LNG America and other customers with this valuable service.” Jensen first produced prototype designs for LNG vessels in 2008. Additionally, Jensen has developed designs for a 100’ x 40’ LNG tugboat and is currently working on several other prototype designs of LNG bunker vessels, harbor tugs, ATBs, container ships and tankers, along with inland vessels for a variety of customers in the U.S. LNG America was formed last July to develop LNG distribution infrastructure that serves not only the marine market but the burgeoning use of LNG in the oil and gas, rail, mining and heavy-duty trucking markets as well. These markets have emerged due to the fuel’s price competitiveness resulting from the abundant U.S. natural gas reserves.

Moody’s Assigns Baa3 rating to Petronet

|M/s. Moody’s Investor Service (“Moody’s”) has assigned Baa3 Corporate Family Rating to Petronet LNG Limited. The outlook on the rating is stable.

It may be noted that Baa3 is also the external rating of India as a Country and, therefore, PLL has been assigned rating equivalent to that of the Sovereign.

This is the first time that PLL has gone for a credit rating from an International Rating Agency. With this rating, PLL has joined the elite group of companies like Bharat Petroleum Corporation Limited, Bharti Airtel Limited, Indian Oil Corporation Limited and National Thermal Power Corporation Limited who are similarly rated by the Moody’s.

PLL’s rating reflects its dominant position in the gas sector in India. PLL is a company formed as a joint venture among BPCL, GAIL, IOCL and ONGC who together hold 50% equity in the Company. GDF International, a GDF Suez company, holds another 10% equity and 5.2% equity is held by ADB. PLL has two LNG plants in India.

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Yamal LNG AusGroup awarded Harnessing the Arctic’s gas AU$174 million scaffolding contract on the resources Ichthys LNG Project AGC, a leading Australian based maintenance services, construction and fabrication company to the mining, oil & gas and infrastructure sectors is pleased to announce that its subsidiary company MAS Australasia Pty Ltd (‘MAS’), has been awarded a AU$174 million scaffolding works contract for the INPEX-operated Ichthys LNG Project.

MAS will be providing scaffolding assets comprising management, design and engineering, scaffolding material supply and installation services to the LNG process and inlet areas at the Ichthys Project Onshore LNG Facilities at Blaydin Point in Darwin, Northern Territory for lead onshore contractor JKC Australia LNG Pty Ltd (JKC).

JKC has been contracted to deliver the engineering procurement and construction of the onshore LNG facilities including the gas processing plant at Blaydin Point. “With decades of experience providing scaffolding and access services, MAS brings a wealth of knowledge and expertise to the project. We are excited to work with JKC to deliver another project of excellence, as we continue to build our maintenance business within the Oil & Gas market”, said CEO and Managing Director Stuart Kenny.

The Yamal LNG project is based in the estuary of the Ob River which is ice-bound nine months of the year. The project ensures production and marketing of the Russian Arctic’s vast natural gas reserves and has involved the construction of a major new maritime route for transporting liquefied natural gas to Europe and Asia.

The Yamal LNG project is one of the largest industrial undertakings in the Arctic. It will eventually involve the drilling of more than 200 wells, the construction of 3 LNG trains, each with a capacity of 5.5 million tons per year, and a vast gas terminal, and the commissioning (a world first) of 16 icebreaker tankers, each able to transport 170,000 m³.

This ground-breaking project in the Yamal peninsula, to develop the huge South Tambey condensate gas field, calls on Yamal LNG’s logistical and industrial expertise in terms of managing LNG production in extremely cold conditions with the help of high-performance technologies. Total is leading the project as part of a strategic alliance with Novatek, Russia’s second-largest independent natural gas producer.

LNG carriers training - a new phase completed RS has carried out a new phase of surveyors training on classification services for LNG carriers.

The first phase (2008 to 2010) was carried out by RS in cooperation with American Bureau of Shipping (ABS) and included a theoretical course for surveyors according to joint programme and a practical training on LNG carriers directed by qualified ABS mentors. This phase enabled to train 15 specialists. Currently, many of them are successfully performing classification and survey during the construction of LNG carriers at shipyards in South Korea.

In 2012 to 2013, due to predicted activity growth in design and construction of LNG carriers for procurement of large Russian projects on LNG production (Vladivostok LNG, Yamal LNG, etc.), another two training seminars on LNG transportation by sea were held for surveyors at the RS Training Center. Some competent highly-skilled RS experts have been involved in these seminars. In total, 51 persons successfully finished this theoretical training. Further on, during 2013 to 2014 the trained engineers proceeded to the yard STX Offshore and Shipbuilding in South Korea for on-site training on LNG tankers under construction. Currently, their training is successfully completed. Therefore, nowadays RS has sufficient (over 60 persons) number of highly-skilled experts in classification services during construction or operation of state of the art LNG carriers all over the world.

Reference: Russian Maritime Register of Shipping (RS) is an integral member of national expertise in LNG transportation by sea. It continues to extensively augment its potential in services for large Russian projects of LNG transport by sea. RS signed a number of agreements on strategic partnership with leading representatives of the industry, including Gazprom Marketing & Trading (GM&T), OAO United Shipbuilding Corp. (USC) and OAO Sovcomflot (SCF).

The agreements foresee interaction on designing, construction, classification and certification of ships including LNG tankers as well as on cooperation development of educational level of Russian seafarers, and implementation of innovative technical decisions in shipbuilding and safe navigation. It makes possible for RS to act in line with the state policy for increasing the share of Russian companies in national shipbuilding projects and to applying the knowledge and practice of the maritime industry all over the world.

Today, RS surveyors continue successfully carrying out survey of series of state of the art Atlanticmax LNG carriers (with membrane tanks of 170,000 cu m) at STX Offshore & Shipbuilding yard. The lead tanker of series - Velikiy Novgorod has been already delivered to the customer. Tankers Pskov, SCF Melampus, SCF Mitre are currently under construction. They are outfitted with the equipment designed for operation in low temperatures. It will allow their yearround LNG transportation from all the existing terminals.

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Yokogawa Wins LNG Carrier Control System Order for Ichthys LNG Project

JAPAN Yokogawa Electric Corporation announces that it has received an order from Kawasaki Heavy Industries, Ltd. to supply the control system for an LNG carrier that is being built for the Ichthys LNG project* in Australia.

The ship will be the world’s largest Moss-type LNG carrier and will be used for transporting LNG from an onshore LNG processing plant that is being constructed as part of the Ichthys LNG project. The ship is scheduled to enter service by the end of 2016, in time for the completion of the plant. The ship is also the first Moss-type LNG carrier equipped with a dual fuel diesel engine (DFDE), which burns both fuel oil and gas.

Yokogawa will deliver the CENTUM® VP integrated production control system for monitoring and controlling the LNG carrier’s LNG tanks and loading/unloading facilities as well as the supply of gas to the DFDE and the supply of power to other driving units. Yokogawa will also be responsible for the engineering and commissioning of the control system.

Yokogawa believes that the following factors were key considerations in the decision to give it this order: The company has already delivered control systems for other DFDE ships.

The company has a global service network, ensuring that vessels can undergo maintenance at any LNG port.

Yokogawa won the control systems order for other Ichthys LNG project facilities in 2012. These include the onshore LNG processing plant, offshore production/process facilities, and the floating production, storage and offloading (FPSO) vessel.

With this contract, the CENTUM VP system will cover all project facilities, from production to LNG transport.

Globally, the construction of many LNG carriers is planned for the transport of LNG from North America, Russia, Africa, and other regions. Backed by this order, Yokogawa will expand its control business for marine resource development facilities, including LNG carriers, FPSO vessels, floating LNG (FLNG) vessels, and floating storage and re-gasification units (FSRU). * This project is being carried out by a joint venture between INPEX (operator), Total, and several other companies. Gas from the Ichthys field, which is located offshore of northwestern Australia, will undergo preliminary processing at sea to remove water and impurities, and extract condensate. The gas will then be transported by undersea pipeline to onshore processing facilities in Darwin. The project is expected to produce 8.4 million tons of LNG and 1.6 million tons of LPG per year, along with approximately 100,000 barrels of condensate per day at peak.

Pivotal LNG and WesPac Midstream LLC Selected to Serve TOTE’s LNG Vessels ATLANTA Pivotal LNG, Inc., a wholly owned subsidiary of AGL Resources (NYSE: GAS), and WesPac Midstream LLC

(WesPac) today announced they have been selected by TOTE, Inc. to provide liquefied natural gas (LNG) to fuel TOTE’s two new state-of-the-art container ships in Jacksonville, Fla. TOTE’s new dual fuel LNG container ships are expected to be delivered to the port in Jacksonville in late 2015 and early 2016.

To move forward on this project, Pivotal LNG, Inc., WesPac and TOTE have signed a letter of intent and are working toward definitive agreements. While there is still work to be done, Pivotal LNG, Inc. and WesPac plan to work together on this project to create a joint venture which will develop a new liquefied natural gas plant in Jacksonville, Fla. “We are very pleased to have been selected by TOTE to supply their two new LNG container ships. We look forward to working with TOTE and WesPac to develop opportunities that help meet the growing demand for LNG as an alternative fuel solution in the Jacksonville area,” said Stephen Cittadine, president of Pivotal LNG. AGL Resources, the parent company of Pivotal LNG, has more than four decades of experience in providing customers with clean, abundant, cost-effective LNG fuel. AGL Resources is one of the largest operators of liquefaction facilities in the nation primarily through its distribution utility operations that use the LNG facilities for peak-shaving services for customers when demand is highest.

In addition, Pivotal LNG owns and operates a merchant LNG facility and sells LNG wholesale to truck fleets and other high horsepower engine operators.

“With access to multiple LNG supply locations and its merchant liquefaction facility in Trussville, Alabama, Pivotal LNG is uniquely positioned to offer consistent fuel supply and flexible solutions to businesses looking to make LNG their fuel of choice,” said Cittadine.

WesPac is a private energy infrastructure company with several small LNG facilities under development in North America.

WesPac LNG projects are focused on high-horsepower engine applications including oil-to-gas fuel switching in power plants, commercial ships, railroad locomotives and trucking.

Ferus Smit and Erik Thun A.B. agree on building LNG powered ships

|Swedish shipping company Erik Thun A.B. has granted Shipyard Ferus Smit the order for building an LNG powered cargo vessel, with 2 more units on option.

The first vessel will be delivered in autumn 2015 from the yard in Westerbroek, Groningen.

The Thun shipping company has a strong market position in Northern Europe and the Baltic area. To further strengthen her position as ‘green’ fleet with the new SECA rules coming into force in 2015 for the Baltic, Thun believes LNG will be the way forward.

For Ferus Smit shipyards it is a great challenge to build the first LNG powered short-sea dry cargo vessels to date. Many concepts and studies have been above the market already, but it will be down to the long-term cooperation between yard and ship owner to work out viable solutions that can be profitable in daily use.

The ships will be bulk oriented general cargo vessels sizing 5800 DWT, with the option to convert them into self-unloaders. They will be of iceclass 1A and suitable for yearround Baltic service.

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CoTE Focus: LNG Fuel Technology Producer: Mirja-Maija Santala, Media Manager, Wärtsilä Corporation

A significant innovation at the Gastech exhibition is a series of free-to-attend theatres dedicated to delivering knowledge, education and awareness of technological innovations in natural gas. At the next Gastech in South Korea in March, these Centres of Technical Excellence (CoTEs) will feature over 60 seminars at which industry leaders will showcase their latest developments. In advance of these seminars, Gastech News has asked them for their views on key industry trends. Here, we examine their replies on the theme of LNG fuel technology for marine applications – focusing on how quickly the market is likely to grow, which will be the most promising regions, and what the industry is doing to ensure safety of operations.

Over the past two years it has become clear that a promising new market for LNG will be in transportation, in road and marine applications, traditionally the province of oil products. The use of LNG as fuel in marine applications is being driven by two key factors: tightening environmental regulations and the big differential between oil and gas prices in some regions, notably North America.

So, how quickly is the market expected to grow? And which will be the most promising regions?

“Wärtsilä envisages that by 2020, more than a quarter of the ordered vessels could be designed to run on gas fuel,” says Rolf Stiefel, the company’s Sales Director. “The regions for the fastest adoption will be Emission Control Areas (ECAs) and Sulphur Emission Control Areas (SECAs), and areas where LNG is readily available at attractive price levels versus liquid fuels.”

Luis Benito, responsible for global strategic marketing at Lloyd’s Register, agrees that environmental regulations will be a key driver: “The use of LNG as a shipping fuel is starting to occupy a significant portion of marine market minds, focused on short sea shipping for ECA areas – including inland water ways – with the reality of Norway, the Baltic Sea and North America ECAs to start with.

“Gas-fuelled shipping could start to expand in potential future ECA areas – such as the Mediterranean Sea – before too long, as the European Union is now showing direct support for all European waters and not only the declared ECAs. Furthermore, other countries where ECAs are not planned yet are showing increased interest in adopting LNG as shipping fuel in their territorial waters.

“The first major international LNG-fuelled shipping project was the Lloyd’s Register classed Viking Grace [pictured above], delivered in January 2013.

This project has set the agenda for addressing international, open sea trading of gas-fuelled ships.”

How feasible are retrofits?

A crucial issue for fleet operators, and a significant factor in how quickly the market is likely to grow, is whether it will be feasible to retrofit existing vessels.

“In our view, gas as fuel will be mostly driven by new-building activity,” says Wärtsilä’s Stiefel. “Depending on vessel type and operation, a retrofit can be feasible but we do not expect it to become a mainstream activity.

The cost for retrofitting is higher than for new building. The biggest challenge is the integration of the LNG tanks required onboard the ships not colliding with cargo operations. We are running several feasibility studies for our customers.”

Sören Karlsson – General Manager, Gas Applications, Ship Power Technology at Wärtsilä – adds: “There is a potential to retrofit LNG fuel

systems for ships in operation. However, since the investment is rather heavy, the ships should not be older than 10 years, and naturally, space for the LNG tank has to be found.”

Lloyd’s Register’s Benito agrees that while retrofitting existing ships may be technically feasible, “it may be economically non-viable for certain ship types and sizes, due to the complexity of adapting an existing ship’s layout to the outfitting and gas-fuelled tank size requirements”. Except where financial aid is made available for reasons of policy, he adds, “we should not expect a mass retrofitting market emerging anytime soon”.

Ensuring safety As the use of LNG as fuel becomes more widespread, the number of people involved in handling it will grow, which raises issues of training and safety. What is the industry doing to address these issues, given the need to protect its impressive safety record over several decades?

“The industry seems well aware of the paramount importance of addressing this challenge,” says Benito. “It has started to work on several fronts to address the competency issue in its entirety.

“For example, we at Lloyd’s Register have developed a Competency Framework for the Maritime and Port Authority of Singapore so that appropriate standards can be produced and prescribed to crew on board gas bunkering and gas receiving ships. Also, reputable gas ship operators with years of experience are starting to offer crew training to operators that are new in handling gas ships and gas on board.”

A very significant development, he adds, is that SIGTTO has created a new organisation – the Society for Gas as a Marine Fuel (SGMF) – that is focused on gas-fuelled shipping. “That will greatly contribute to the standards of crew and people involved in handling gas safely,” he says.

“The regulatory framework for LNG as ship fuel is evolving very fast,” agrees Wärtsilä’s Karlsson, “with Lloyd’s Register introducing its rules for gas-fuelled vessels in January 2014. The design is inherently safe, whereby a single failure will not cause a dangerous situation. For the LNG systems delivered by Wärtsilä, we always arrange on-site training for the personnel – on board or at the Wärtsilä Land and Sea Academy.”

Looking forward to Gastech Both Wärtsilä and Lloyds Register will be participating at Gastech and all three of the experts we spoke to for this article described the event as very important for their businesses.

“Gastech has become a global forum where the marine community gathers to focus,” says Benito, “and the focus is always clear – it is gas.”

SOURCE: http://www.gastechnews.com

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RINA granted Danish LNG fuel authority International classification society RINA has been authorised by the Danish Maritime Authority to act on its behalf to carry out drawing approval activity and surveillance during construction on board ships using LNG as marine fuel. The authorisation is valid for ships flying the Danish Flag.

Andrea Cogliolo, head of innovation, RINA Services, says, “This authorisation recognises RINA’s expertise with gas and will allow us to assist owners in Denmark who are actively considering conversions to and newbuildings with LNG fuel. We believe there will be a rapid and accelerating switch to LNG as a fuel in north European waters, but the move to gas must be done safely and with good management of all the risks involved. That is where we can make a real difference, by helping owners and yards to adopt new fuel solutions in a safe and timely manner.”

RINA has rules and requirements for the use of liquefied or compressed natural gas (LNG or CNG) on board ship as an alternative to traditional fuels.

These rules give the industry a regulatory tool to ensure that the arrangement and installation on board of machinery using this type of fuel are such as to provide a level of integrity, from the point of view of safety and reliability, equivalent to that of a conventional installation.

Cogliolo says that until the new IMO Code for Gas Fuelled Ships is completed owners and yards must work to class requriements. “We are helping owners move to gas, and we are making sure they avoid the pitfalls as well gaining the benefits,” he says. RINA is actively involved in a number of projects to convert existing tonnage or build new vessels with gas fuel and is also facilitating studies for the diffusion of LNG as a fuel in the Mediterranean area.

First ship bunkering directly PETRONAS signs new lng from Skangass LNG plant supply agreements with The Swedish ship Bit Viking leave today to Risavika to refuel LNG. This has CPC corporation of Taiwan resulted in considerable excitement because it will be the first marine diesel engines that have been converted to gas engines.

The product tanker is thus the first ship with regular fuel oil operation which is converted to far more environmentally friendly propulsion based on natural gas. This marks Skangass`, with its LNG plant in Risavika, step into the market for refueling vessels.

The ship was built in 2007 and is owned by the company Tarbit Shipping.

Bit Viking sails daily along the Norwegian coast with petroleum products for Statoil. The conversion of the Swedish-owned ship is supported by NOx. Through a completely new technique, the ship`s engineer were recently customed for LNG fuel.

- Statoil is very pleased with the cooperation with Tarbit Shipping and Skangass, and this opportunity to help reduce emissions along the Norwegian coast, says vice president of Statoil, Bent Pedersen.

- This is a unique event set in an environmental perspective. By converting Bit Viking`s engines from running on heavy oil to LNG reduces NOx emissions by 85 percent, sulphur and particle emissions are removed completely and CO2 by 99 percent. Skangass with its LNG terminal and Wärtsilä made it all possible, says technical manager, Anders Hermansson, of Tarbit Shipping.

He argues that this will have a huge impact on the environment along the Norwegian coast.

With bunkering directly from the tank at Skangass, the supply chain is far more efficient. It will become increasingly common for vessels to use LNG for fuel, as it is a much cleaner and better option than the heavy oil and diesel. In Norway a lot of ferry traffic is switched to LNG. The expectations are high also for offshore supply vessels.

For Skangass the bunkering of ships is an important priority. LNG for ships will provide significant reductions of NOx, sulphur, soot and particle emissions. In addition to these environmental benefits, LNG will provide large economic benefits, says CEO Bjørn Torkildsen of Skangass.

PETRONAS’ subsidiaries Malaysia LNG Sdn Bhd (MLNG) and PETRONAS LNG Limited (PLL) have signed two contracts to supply CPC Corporation of Taiwan with a total of up to 2.6 million tonnes per year (mtpa) of liquefied natural gas (LNG), for a period of six years.

Delivery to CPC is scheduled from the second quarter of 2014 and 2015 respectively.

The volume, which will ship from the PETRONAS LNG Complex in Bintulu, Sarawak and other supply sources, is to meet the demand and requirements of CPC’s customers in Taiwan, primarily the country’s power sector.

The contracts were signed on 5 March in Kuala Lumpur where MLNG was represented by its Managing Director / CEO Encik Zakaria Kasah while PLL by its CEO Encik Mohamad Azmi Ahmad. Signing on behalf of CPC was its CEO of Natural Gas Business Mr. Chen Jei-Yuan.

The event was also attended by PETRONAS’ President & Group CEO Tan Sri Dato’ Shamsul Azhar Abbas, PETRONAS’ Executive Vice-President of Gas & Power Business Datuk Anuar Ahmad, CPC’s Chairman Mr. Lin Sheng-Chung and CPC’s Vice-President Mr. Chang Ray-Chung.

PETRONAS began its LNG supply to CPC in 1995 through a 20-year contract for an annual supply of 2.25 million tonnes of LNG. The signing of the new contracts today is expected to further strengthen the ties between the two companies.

MLNG was set up in 1978 and operates the PETRONAS LNG Complex in Bintulu, one of the world’s largest LNG complexes operating on a single site. PLL, previously known as ASEAN LNG Trading Co. Ltd, is a global LNG trading arm for PETRONAS. PETRONAS has now embarked on new LNG projects in Malaysia as well as in the international arena as part of its continuous efforts to strengthen security of supply to the nation and increase its LNG supply portfolio for future global demand.

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Erik Thun AB designing the first LNG Dry Cargo vessel.

Erik Thun is designing one of the first dry cargo vessels with LNG powered pulpulsion. Together with ship yard Ferus Smit and class society Lloyds Register we designing and building a Dry Cargo vessel in Holland. The design process is ongoing and keel lying will happen after summer with delivery in August 2015.

Sovcomflot Takes Delivery of Dual-Fuel Power

Singapore: Prime Minister Lee Hsien Loong Officially Opens the Singapore LNG Terminal Terminal on track for further expansion to boost throughput capacity and potential as a regional LNG Hub

|Prime Minister Lee Hsien Loong officially opened Singapore’s first Liquefied Natural Gas (LNG) Terminal this evening, at a ceremony held at the Terminal on Jurong Island. Some 400 guests attended the event, marking a new chapter in Singapore’s energy security and the future development of Singapore’s energy sector.

The S$1.7 billion Terminal, which commenced Sovcomflot, Russia’s largest shipping company, has taken delivery of its latest LNG car- operations on 7 May 2013, is owned and operated by rier – the ‘Velikiy Novgorod’ – from South Korea’s STX Offshore & Shipbuilding. The ship Singapore LNG Corporation Pte Ltd (SLNG). It is a critical infrastructure that allows Singapore to import natural is equipped with a diesel-electric, dual-fuel propulsion system consisting of 2 × MAN gas from around the world, thereby ensuring the secu8L51/60DF and 2 × MAN 9L51/60DF engines, offering a total rated power of 34 MW, rity of supply sources to meet Singapore’s current and which were constructed at MAN Diesel & Turbo’s Augsburg plant in Germany. future energy demand. In 2013, more than 90% of the The propulsion facility provides the LNG carrier with a highly efficient, low-emission electricity in Singapore was generated using natural gas. propulsion system, especially when running in gas mode. It also features a high degree To date, some 18 LNG vessels have called at the of redundancy, while the MAN 51/60 DF engines provide multiple fuelling options.

Terminal, delivering more than 56 million MMBTUs MAN Diesel & Turbo states that the delivery of the LNG carrier newbuilding orders mark (Million British Thermal Units), or about 1.08 million a major milestone in its strategy of expanding its environmentally friendly dual-fuel metric tonnes, of LNG to Singapore. The LNG, from BG engine technology into the marine sector. MAN Diesel & Turbo sees promising opporGroup’s portfolio, has been supplied from a number tunities ahead in the significant LNG market. The Velikiy Novgorod has been designed of sources including Equatorial Guinea, and Trinidad for sailing through sea ice and has an Arctic ice classification. The vessel has a total and Tobago.regulation. The facility, which is designed length of 300 m and a load capacity of 170,200 cubic metres of gas. It is the first in a to serve multiple terminal users, has the potential to series of ships to be built by STX Offshore & Shipbuilding in South Korea and becomes support the growth of Singapore’s LNG sector, and the fifth LNG carrier in Gazprom’s fleet of long-term-charter tankers. the development of Singapore as an LNG hub for the While working on the Sovcomflot project, MAN Diesel & Turbo utilised the valuable region. It will help to catalyse LNG-related business experience it gained from working on its first 51/60DF reference project, delivered in opportunities and create new jobs in the energy sector.

2010 to Spanish shipping line Elcano. Featuring 5 × MAN 8L51/60DF units, the ‘Castillo These include LNG trading, bunkering and vessel coolde Santisteban’ has been operating globally since summer 2010. down services.

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TOTEM Ocean chooses Wartsila technology for largest LNG Ship conversion

WA Totem Ocean Trailer Express (Totem Ocean) has announced that Wärtsilä will supply main engines, generators and

integrated LNG storage and fuel gas handling systems (LNGPac™) for the largest LNG conversions ever undertaken in North America. In making this decision John Parrott, President of Totem Ocean, cited Wärtsilä’s proven technology as a deciding factor in selecting the company. Mr. Parrott emphasized that “maintaining reliable, on time service is critical to Totem Ocean’s customers as well as the economy and citizens of Alaska.”

The contract was signed in the fourth quarter of 2013, and executives from both companies met on February 17, 2014 in Tacoma, Washington to announce the project.

“Today marks the beginning of a long relationship between our two companies,” said Parrott. ”Our relationship will outlast this project to extend over the 35-plus year life of our vessels.”

Totem Ocean’s fleet of two Orca Class roll-on/roll-off cargo ships – M.V. Midnight Sun and M.V. North Star transport about one-third of all the goods required by the inhabitants of Alaska. Cargo includes essential items such as food, household goods, vehicles, construction materials and military supply support.

As a result of the conversion, the Totem Ocean vessels will set new standards for environmental responsibility by reducing sulphur oxide (SOx) emission by 100 percent; particulate matter (PM) by 91 percent; nitrogen oxide (NOx) by 90 percent; and carbon dioxide (CO2) by 35 per cent. ”It is an unprecedentedly exciting time to be in the maritime industry. Economic constraints and the need to comply with environmental legislation have combined to accelerate the switch to LNG fuel. Wärtsilä is uniquely positioned to enable this transition since we have been a leader in developing the appropriate technology for nearly 30 years. We look forward to working with TOTE on converting the Midnight Sun and North Star to LNG so that they can realize the benefits that LNG as a marine fuel can provide,” says Björn Rosengren, President & CEO of Wärtsilä Corporation.

“We are seeing a transformative change in the marine industry with the switch from oil based product to natural gas,” says Quentin Stewart, Sales Manager, Ship Power, Wärtsilä North America.

Höegh LNG - Naming Ceremony for FSRU HN2549 Independence The naming ceremony for “Independence”, the first of the four FSRUs that Höegh LNG has under construction at Hyundai, took place today, 19 February 2014. “Independence” will serve the Klaipedos Nafta FSRU project in Lithuania, and the President of Lithuania, H.E Dalia Grybauskaite, is the Lady Sponsor.

The Lithuanian Ambassador in Norway, Andrius Namavicius, said in a comment: “The day of inauguration of the vessel “Independence” by the President of Lithuania, Dalia Grybauskaite, is truly significant. “Independence” serves as an excellent example of reliable economic cooperation between the Republic of Lithuania and our Nordic friend - the Kingdom of Norway. It is symbolic that the naming ceremony nearly coincides with the Lithuanian Independence Day of February 16. Today Lithuania has made a significant step towards ensuring its energy security and creating a diversified and competitive energy market. I do believe that today’s achievements will be followed by the further partnership and friendship of our countries.”

Sveinung Støhle, CEO and President of Höegh LNG, says: “Höegh LNG is both honored and pleased to be part of a project that is of such great importance to the Lithuanian energy supply security and economy. This project is a prime example of the innovative, cost effective and flexible solutions HLNG’s FSRU represent to its clients.

Our company looks forward to the start-up of the project and a continued excellent cooperation with our client Klaipedos Nafta”.

The World’s Premier Natural Gas Conference & Exhibition Reaches South Korea

|Gastech is the world’s favourite meeting place for energy professionals working in the natural gas and liquefied natural gas (LNG) industries.

Established as the leading international event for technical and commercial executives, and operating on an 18 month cycle, the event celebrates its 42nd birthday in 2014 when it will be held in South Korea, hosted by KOGAS. Apart from being the heart of their nation’s energy supply, South Korea has a major strategic and economic importance at the very center of Asia’s growing demand for gas. The country is surrounded by China, Japan, Taiwan and Russia, some of the world’s most important players in the natural gas and LNG export and import business, and who are influential over many of the global suppliers and project developers that work in the region.

With a stronghold for both the technical and commercial sectors for the natural gas and LNG industry, Gastech 2014 is proud to be hosted by this vibrant country and its highly influential NOC, KOGAS.

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lngShip15 PETRONAS reaches final investement decision on second floating LNG project PETRONAS has reached the Final Investment Decision (FID) for its second floating liquefied natural gas facility (PFLNG 2) project, located off the coast of Sabah in Malaysia. The FID was approved by the PETRONAS Board on 23 January 2014.

Subsequently PETRONAS has issued a letter of award for the Engineering Procurement, Construction, Installation, Commissioning (EPCIC) contract for the project to the consortium of JGC Corporation, Samsung Heavy Industries Company Limited, JGC (Malaysia) Sdn Bhd and Samsung Heavy Industries (M) Sdn Bhd. The EPCIC contract award followed the 2012 dual Front End Engineering Design (FEED) study for the project undertaken by two consortia – the Modec Inc., CB&I Nederland B.V and Toyo Engineering Corporation consortium and the JGC Corporation, Samsung Heavy Industries Company Limited, JGC (Malaysia) Sdn Bhd and Samsung Heavy Industries (M) Sdn Bhd consortium.

The FID and the EPCIC contract award mark a significant milestone in the progress of the PFLNG 2 project. The facility will be moored at the Rotan gas field in deep water Block H, offshore Sabah and is designed to produce 1.5 million tonnes a year (mtpa) of LNG. It is scheduled to be ready for start-up by early 2018.

Meanwhile, PETRONAS’ first floating LNG facility (PFLNG 1) project recently achieved another key construction milestone with the commencement of the vessel’s keel laying process at the Daewoo Shipbuilding & Marine Engineering (DSME) shipyard in Okpo, South Korea.

The PFLNG 1 will be moored at the Kanowit field, offshore Sarawak, and is designed to produce 1.2 mtpa of LNG. It is scheduled to be ready for start-up by end of 2015.

Once operational, both facilities are expected to change the landscape of the LNG business where the liquefaction, production and offloading processes of LNG -- previously only possible at onshore plants – will now be able to be carried out hundreds of kilometres away from land and closer to the offshore gas fields.

As such, the facilities will play a significant role in PETRONAS’ efforts to unlock the gas reserves in Malaysia’s remote and stranded fields which otherwise could be uneconomical to develop and evacuate.

Technip and BP extend their successful Purified Terephthalic Acid Alliance | Technip announces the extension of its long-standing agreement with BP in the purified terephthalic acid (PTA) domain. Technip will now also become the exclusive provider of the ISBL (Inside Battery Limit) FEED (front-end engineering and design) to BP for third-party licensing.

This announcement follows BP’s decision last year to make its leading, proprietary PTA technology available for licensing to third parties (not affiliated with BP). This builds upon the agreement signed in 2000, whereby Technip and BP entered into an exclusive alliance for FEED services for BP’s PTA projects.

BP is one of the largest PTA producers in the world and its PTA technology has significantly lower capital and operating costs, compared with conventional PTA plants.

Besides, it is more energy efficient, uses less water and produces less solid waste than its competitors. Marco Villa, Senior Vice President of Technip’s Region B, declared: “The relationship between Technip and BP has been a unique model for almost 15 years, creating mutual benefit for both parties. We are proud to become BP’s engineering contractor of choice for third-party PTA licensing, thereby reinforcing our long-term relationship with BP and our distinct capabilities as one of the world’s leading engineering contractors.”

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chosen by Denmark’s shipping body to oversee LNG fuel projects Registro Italiano Navale, the Italian-based international classification society known as RINA, has been authorised by the Danish Maritime Authority to act on its behalf to carry out plan approval and surveillance during construction on board ships using LNG as marine fuel.

Gasum chooses Pori as the location for the first LNG Terminal | Gasum has chosen Tahkoluoto, Pori as the location of its first LNG import terminal. The 30,000 cubic metre terminal will improve the availability of LNG in Finland and reduce emissions.

Gasum intends to build an efficient liquefied natural gas distribution logistics chain based on truck transport around the Pori terminal. Gas supply will be targeted to fit the needs of the industry as well as maritime and road traffic. When completed, the LNG import terminal will serve the entire western coast from Hanko to Kokkola.

The Tahkoluoto port, which is accessible throughout the year, has an existing infrastructure, active ship traffic and many significant industrial clients operate in its vicinity.

The final investment decision regarding the Pori import terminal has not yet been made. Gasum has applied for investment funds for the LNG terminal from the Ministry of Employment and the Economy. Gasum expects to begin construction of the terminal during this year. The terminal is expected to be completed in the fall of 2016.

The construction project of the Pori terminal will employ an estimated 250 FTE (full-time equivalent) workers. After its completion the terminal will directly employ 10 people and indirectly 50 more.

The LNG import terminal will diversify Finnish gas and fuel markets.

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