LNG news

LNGNEWS

Nigeria Nigeria Air Products’ LNG technology selected for NLNG project

Air Products has signed an agreement with SCD JV S.c.a.r.l, a joint venture (JV) of Saipem, Chiyoda, and Daewoo, for the Nigeria LNG (NLNG) Train 7 project. The project includes one complete LNG train and one combined liquefaction unit. Air Products will provide the main cryogenic heat exchangers (MCHEs) and the process technology for both liquefaction units. Air Products will supply this technology and proprietary processes to the JV for the production of 8 million tpy of LNG in Nigeria for a major LNG production expansion at NLNG’s existing NLNG Bonny Island facility.

Air Products previously provided the MCHEs and process technology for the first six trains for NLNG at Bonny Island with initial onstream LNG production from the units beginning in 1999 for the first, to 2007 for the sixth. All six LNG trains continue production today.

“Air Products prides itself on product quality and excellent customer service. Our relationship with NLNG points just to that, as we have an established and thriving business relationship spanning over two decades. We are very proud that the original six heat exchangers we built continue operating and that the Train 7 expansion will utilise two additional Air Products’ heat exchangers with delivery targeted for 2023,” said Dr. Samir J. Serhan, Chief Operating Officer at Air Products.

Air Products will build the LNG heat exchangers at its Port Manatee, Florida, US, manufacturing facility. Air Products opened its Port Manatee facility in January 2014 and completed a 60% expansion in October 2019 to meet the needs of the ever-growing LNG industry.

China China GTT and CCS sign MoU

GTT and CCS, the China classification society, have signed a Memorandum of Understanding (MoU) concerning a technical co-operation for the application of GTT membrane technology.

In the framework of this agreement, GTT and CCS will co-operate on the design of China’s LNG inland waterway transportation, small to large LNG carriers, as well as for LNG-fuelled vessels and onshore LNG storage tanks.

In-depth technical analysis will be performed by CCS, including technical plan approval of the cargo containment system and risk assessment. Some of the findings will be shared during the Marintec 2021 exhibition in Shanghai, China.

GTT and CCS also discussed the current LNG market and other kinds of energy development in domestic and international areas, and finally will consider the low-carbon emission reduction of the ship industry in the future.

USA USA Stabilis Solutions and the Galveston Wharves team up on LNG fuelling services

Galveston Wharves at the Port of Galveston and Stabilis Solutions Inc. have entered into a Memorandum of Understanding (MoU) to facilitate the use of LNG as a marine fuel at the Port.

Under the terms of the MoU, the Port and Stabilis will work together to provide turnkey LNG fuelling solutions to marine vessels calling on the Port, including identifying suitable dock space for shore-to-ship fuelling operations, obtaining the necessary permits and approvals, identifying and educating potential customers, and executing LNG fuelling events. Stabilis will deploy its existing fleet of mobile cryogenic assets, including LNG transportation and distribution equipment, and provide LNG from its liquefaction facilities in Texas and Louisiana, US, to support LNG fuelling operations. LNG bunkering services are expected to be available in 2021. "The use of LNG as a marine fuel is critical for marine operators to reduce their emissions profile, and Stabilis is building a North American network of LNG bunkering locations to provide this critical service to our marine customers. The Port of Galveston is the second LNG marine fuelling location (along with the Port of Corpus Christi) that Stabilis will operate on the Gulf Coast. As our marine customers pursue their environmental, commercial, and operational goals in the energy transition, Stabilis will be there to support them" said Jim Reddinger, President and CEO of Stabilis.

With this partnership providing LNG fuel and services, Stabilis and the Galveston Wharves hope to attract more LNG-fuelled vessels and to encourage additional conversions to LNG fuel.

LNGNEWS

Australia Australia BHP and Woodside commit to merger

Woodside Petroleum Ltd and BHP Group have entered into a merger commitment deed to combine their respective oil and gas portfolios by an all-stock merger to create a global top 10 independent energy company by production.

On completion of the transaction, BHP’s oil and gas business would merge with Woodside, and Woodside would issue new shares to be distributed to BHP shareholders.

The expanded Woodside would be owned 52% by existing Woodside shareholders and 48% by existing BHP shareholders. The transaction is subject to confirmatory due diligence, negotiation, and execution of full form transaction documents, and satisfaction of conditions precedent including shareholder, regulatory, and other approvals.

With the combination of two high quality asset portfolios, the proposed merger would create the largest energy company listed on the ASX, with a global top 10 position in the LNG industry by production. The combined company will have a high margin oil portfolio, long life LNG assets, and the financial resilience to help supply the energy needed for global growth and development over the energy transition.

Woodside and BHP have developed a plan to targeted Final Investment Decision (FID) for Scarborough (Australia) by the end of the 2021 calendar year, prior to the proposed completion date for the merger.

As part of this plan, Woodside and BHP have agreed an option for BHP to sell its 26.5% interest in the Scarborough joint venture (JV) to Woodside and its 50% interest in the Thebe and Jupiter JV to Woodside if the Scarborough JV takes a FID by 15 December 2021. The option is exercisable by BHP in the 2H22 calendar year and if exercised, consideration of US$1 billion is payable to BHP with adjustment from an effective date of 1 July 2021. An additional US$100 million is payable contingent upon a future FID for a Thebe development.

Both the Woodside and BHP boards of directors confirm their support for the transaction. The merger is expected to be completed in 2Q22 of the calendar year with an effective date of 1 July 2021.

USA USA Cheniere publishes LNG lifecycle assessment study

Cheniere Energy, Inc. has announced the publication of a peer-reviewed, LNG lifecycle assessment (LCA) study which allows for improved greenhouse gas (GHG) emissions assessment. The study has been published in the American Chemical Society Sustainable Chemistry & Engineering Journal.

This analysis utilises GHG emissions data specific to Cheniere’s LNG supply chain from natural gas production through LNG shipping. The use of supply chain specific data provides an improved methodology for GHG emissions accounting and estimates a lower GHG intensity for Cheniere’s LNG relative to other studies utilising generic national or regional data to assess US LNG emissions.

The Cheniere LCA is intended to be the foundational analytical tool to estimate GHG emissions to be included in Cheniere’s Cargo Emissions Tags and is expected to be enhanced over time through further collaboration with natural gas suppliers, midstream infrastructure owners, and shipowners.

The study is co-authored by individuals from the University of Texas at Austin, Queen Mary University of London, Duke University, KeyLogic Systems, and Cheniere.

THE LNG THE LNG ROUNDUP ROUNDUP

NYK awards hybrid energy system integration contract to WinGD Eni to deliver carbon neutral LNG cargo to CPC Corporation GlobalData: Delays force Argentina to purchase LNG at record-high prices

Follow us on LinkedIn to read more about the articles www.linkedin.com/showcase/lngindustry

LNGNEWS

Russia Russia Gazprom Neft completes construction of Russian LNG bunkering vessel

Construction of Russia’s first ever bunkering vessel – for LNG refuelling of cargo and passenger ships – is now complete: the final stage of building the Dmitry Mendeleev having involved testing of gas and cryogenic (freezing) equipment, loading systems, and LNG storage and offloading pumps and compressors. The vessel will shortly begin its maiden voyage towards its fixed berthing in the Baltic Sea.

This bunkering vessel, named after the great Russian chemist Dmitry Mendeleev, will provide ship-to-ship LNG transportation and refuelling at ports throughout the Gulf of Finland and the Baltic Sea – including St Petersburg, Ust-Luga, Primorsk, Kaliningrad, and Vyborg.

The vessel is 100 m in length, 19 m wide, and can transport up to 5800 m3 of LNG. Its Arc4 ice-class reinforced hull means it can navigate one-year-old ice (of up to 80 cm thick).

The latest shipbuilding and LNG transportation technologies have been utilised on the Dmitry Mendeleev project, in line with the most recent environmental standards governing maritime transport and LNG refuelling processes. The Dmitry Mendeleev is also environmentally friendly, in that it will be using tank-return gas (TRG or boil-off gas) from transported cargo as fuel for its onboard power plant.

All LNG bunkering equipment is fully compliant with MARPOL and ECO-S environmental standards.

Its integrated digital system means the vessel can be controlled by just one crew member, directly from the navigation bridge.

Japan Japan PETRONAS delivers its first carbon neutral LNG cargo

PETRONAS has completed the delivery of its maiden carbon LNG cargo to Shikoku Electric. The cargo was delivered from the PETRONAS LNG Complex in Bintulu and was received at the Sakaide LNG terminal in Shikoku Island, Japan.

PETRONAS has offset the estimated lifecycle carbon footprint of the LNG cargo through renewables-based carbon credits for the emissions generated from upstream gas exploration and production, transportation, liquefaction, and shipping of the cargo. The carbon credits used by PETRONAS for the delivery were certified through a rigorous verification process under the Verified Carbon Standard programme, which is globally recognised and has been adopted by energy players and producers.

PETRONAS President and Group Chief Executive Officer, Tengku Muhammad Taufik said, “Reflecting our support of the energy transition and in line with our Statement of Purpose, PETRONAS will continue diversifying our products and offerings to the market, while transforming ourselves to be a cleaner and more sustainable energy provider."

In the LNG industry, carbon neutral LNG is seen as a catalyst to spur greater carbon commitments, with a growing number of LNG consumers seeking ways to reduce their carbon footprint. As an integrated energy player, PETRONAS actively seeks collaborations with buyers and end users to achieve their sustainability goals.

Beyond the maiden carbon neutral LNG cargo, PETRONAS is also reducing its carbon footprint throughout its LNG and gas value chain. These carbon reduction efforts, among others, include powering the PLC with 90 MW of hydroelectricity, conducting flare recovery, as well as carbon capture and storage from offshore gas fields.

Finland Finland Gasum wins LNG supply agreement

Gasum has won the framework agreement in a competitive tendering process organised by the Finnish government central purchasing body, Hansel Ltd.

Gasum will supply LNG to the Finnish Transport Infrastructure Agency and the Finnish Border Guard for 2021 - 2022 as set forth in the framework agreement. The framework agreement has a two years additional option. LNG as a marine fuel meets the current as well as future emission limits. "Our well-functioning co-operation with Gasum will continue. Our competitive tendering process has helped achieve a framework arrangement that works well in this developing market, with suppliers as well as client needs taken into consideration. The framework arrangement enables government organisations to source LNG with a high level of supply security and with consideration for responsibility aspects. LNG is better shipping fuel than oil for climate and this framework arrangement enables clients to also procure bio version of LNG," said Pasi Tainio, Category Manager, Hansel.

LNGNEWS

Australia Australia Venice Energy to conduct a study for proposed LNG terminal

Venice Energy will initiate a study to assess the feasibility of reversing the flow of gas in the existing Victorian/South Australian pipeline as part of the company’s proposed AUS$200 million LNG import terminal near Port Adelaide, South Australia.

Managing Director of Venice Energy, Kym WinterDewhirst says that importing gas into Victoria could significantly ease the looming gas shortages in that state.

“Our project will provide competitively priced new gas supplies into both South Australia and Victoria at a time when domestic supply on the east coast is expected to fall dramatically in the coming years,” Mr WinterDewhirst said. “Making the existing Victorian South Australian pipeline bi-directional makes sense, especially as Victoria is the nation’s largest consumer of gas and faces the deepest cuts to domestic supplies,” he said.

The study forms part of a larger scope of work underway into pipeline operations to understand where within their network Venice Energy could distribute future imported gas once its project receives approval.

Government and other approvals for the LNG import terminal are due in the coming months, followed by an anticipated 12-month construction period from financial close that will see the first shipment of LNG into the facility, and connection to the state’s gas network, by the end of 2022 to early 2023.

Russia Russia Keel-laying ceremony held for new LNG carrier

Recently, a keel-laying ceremony was held at the Zvezda shipbuilding complex, in Russia's Far Eastern Primorsky region, for the new icebreaking LNG carrier ordered by SCF Group for Arctic LNG 2. This is the first vessel in a series of 14 new icebreaking LNG carriers ordered by SMART LNG, a joint venture between PAO Sovcomflot and PAO NOVATEK.

In total, Zvezda is contracted to build 15 such carriers, with the lead vessel in the series ordered by SCF directly and the remaining sister ships ordered by SMART LNG.

The vessel is scheduled for delivery in 2023. The keel has been laid in line with the contractual schedule.

Vessels of the new series are designed for year-round LNG transportation in the challenging conditions of the Northern Sea Route (NSR). They are assigned the highest ice class, Arc7. Importantly, these vessels will have increased icebreaking capabilities and manoeuvrability in ice compared with the first generation of icebreaking LNG carriers. The delivery of these new LNG carriers will help facilitate the growth of cargo traffic along the NSR and allow year-round navigation along its eastern part.

The commissioning of the LNG carriers will allow for the expedited implementation of national plans to boost cargo traffic along the NSR and to provide year-round navigation in the eastern sector of the Arctic.

The new series of gas carriers are 300 m long, 48.8 m wide, and will have a cargo capacity of 172 600 m3. The propulsion system includes three azimuth propulsion units, with a total capacity of 45 MW. All 15 vessels will operate under the Russian flag.

21 - 23 September 2021

Gastech Exhibition & Conference 2021

Dubai, UAE

www.gastechevent.com

21 - 22 October 2021 Downstream USA

Houston, USA

www.reutersevents.com/events/downstream 21 - 23 September 2021

Global Energy Show

Calgary, Canada

www.globalenergyshow.com

15 - 18 November 2021

ADIPEC

Abu Dhabi, UAE

www.adipec.com 04 - 06 October 2021

ILTA

Houston, USA

https://ilta2021.ilta.org

30 November - 03 December 2021

21st World LNG Summit & Awards Evening

Rome, Italy

LNGNEWS

Global Global EMSA awards framework contract to RINA

RINA has been awarded a framework contract by the European Maritime Safety Agency (EMSA) to support initiatives to increase the availability of LNG in the medium- term with small scale bunkering and depots to expand the use of this fuel throughout the Mediterranean, Black, and Caspian Seas.

This important, strategic project is aimed at reducing environmental impact by making LNG more widely available for a variety of uses including ferries, cruise ships, and tourist activities, as well as promoting LNG road supply chain. RINA will provide a flexible selection of services dealing with safety and feasibility to match project needs in different locations.

The services provided by RINA will help port authorities determine which locations are feasible, both in terms of safety and technical and financial viability, to install small scale LNG bunkering or depot facilities. RINA is providing a total of eight different services, from which each port authority can choose according to its goals. The activities include gap analysis of regulatory frame and evaluation of applicable standards, feasibility study, definition of risk acceptance criteria, site analysis, nautical analysis, hazard identification, quantitative risk assessment, and ship collision risk study.

Having a common methodology and framework will give nations, where there is a gap in LNG infrastructure, access to a high standard of qualified guidance, regulatory compliance, and safety. Increasing the numbers of ports with LNG refuelling capability will help support the wider adoption of this more environmentally friendly fuel and to meet MARPOL regulations.

Japan Japan Rystad Energy: Japan unlikely to meet LNG reduction targets

Japan’s recent revision to its Strategic Energy Plan (SEP) lowers the targeted share of LNG in the country’s power generation mix in 2030 to 20% from 27% previously, as a measure to cut emissions. A Rystad Energy analysis concludes that Japan’s targets are too ambitious to meet and that the changes the new plan will bring will mostly be in the structure of commodities trading.

Before Japan outlined its sixth SEP, Rystad Energy already considered the earlier 27% target an underestimation, as the company expects the country’s LNG reliance to be higher in 2030. Rystad Energy’s analysis shows that the new 20% target may somewhat reduce the share of LNG in the energy mix compared to what the company previously expected – but it does not believe that the share will drop lower than 27%.

In absolute terms, Rystad Energy calculates that if the sixth SEP’s targets were to be realised, Japan’s LNG demand in 2030 would be cut by 18 million t from the company’s previous estimate of 66 million t. In Rystad Energy’s base case, however, the country’s revised plan is only likely to remove 4.6 million t of demand in 2030, bringing total LNG demand to 61.4 million t, with the entire reduction coming from the power sector.

The reason Rystad Energy’s analysis concludes that Japan will fail to meet its new LNG target share is that the plan overestimates the potential contribution of renewables and nuclear in its power generation.

Before Japan’s recent revision, Rystad Energy estimated the global LNG supply deficit in 2030 at 104 million t. Based on currently operational and under-construction LNG projects, Japan’s realistic LNG demand reduction of 4.6 million t in 2030 is only a small trimming to the expected deficit and therefore will only have a limited market impact.

The Philippines The Philippines AG&P awards EPC contract to CB&I Storage Solutions

McDermott International, Ltd has announced that its CB&I Storage Solutions business has been awarded a contract by Atlantic Gulf and Pacific Company of Manila, Inc. (AG&P) for the engineering, procurement, and construction (EPC) of a second LNG storage tank and double-wall LNG bullet for AG&P's Philippines LNG import and regasification terminal called Philippines LNG (PLNG) in Batangas Bay, the Philippines.

CB&I Storage Solutions was awarded the first LNG storage tank by AG&P earlier this year.

The additional scope includes a 1200 m3 shop-fabricated double wall LNG bullet and a second 60 000 m3 full containment steel LNG tank along with geotechnical investigation, soil improvement, foundation and topside platform structure, pre-commissioning, purging, and commissioning activities.

Mechanical completion is expected in 1Q22 for the LNG bullet and 2Q24 for the second tank, with purging and commissioning activities to follow.