Drydocks World announced today that Floating Storage Re-gasification Unit (FSRU) Toscana sailed away from Drydocks World – Dubai. The unit, formerly the 138,830-cbm LNG carrier Golar Frost, has been under conversion since June 2009 at Drydocks world Dubai yard for contractor Saipem and owner OLT. The LNG Carrier, built by Hyundai Heavy Industries was converted into a floating LNG receiving terminal of the FSRU type, and will be permanently moored off Livorno, Italy and connected to shore through a gas export pipeline. There are only a few such units in operation around the world.
According to a Drydocks World statement the unit has a net storage capacity of 137,100 m3 and it is classed as a marine unit designed to remain at the site for 20 years. The FSRU has a steel mono-hull with four Moss-type LNG tanks, the Re-gasification Plant is located at the forward end and the accommodation with central control room and utility machinery is at the aft end. The 3.75-billion-cbm-per-day (cbm/d) capacity FSRU Toscana will be located 19.31 kilometres (12 miles) off Livorno coast.
The project consisted of constructing, installing and commissioning various components such as the Turret mooring system, side by side berthing mooring system for LNG carrier, LNG storage tanks and loading system, LNG transfer system to re-gasification plant, process plant for re-gasification, boil-off gas handling and gas send-out to Export System, metering systems, utilities including power generation and sea water systems, control, automation and communications systems, gas flexible risers and riser base and control umbilical from FSRU.
“Floating Storage Re-gasification Units have been a key contributor towards developing new markets for LNG and provide vital links for a new market. They offer flexibility, are accepted technically and are attractive from an economic point of view – all of which are significant factors for the development of the market. Such conversions involve a high level of sophistication and a wide-range of technical and commercial skills. We are delighted that our shipyard was able to offer these and was able to conclude complex tasks safely, efficiently and to the satisfaction of our client. Our project management skills have been of a high standard and will help us enter the new emerging markets in oil & gas and energy sectors as per our business strategy and catapult our reputation as a reliable service provider in these areas,” said H.E. Khamis Juma Buamim, Chairman of Drydocks World and Maritime World.
HAWAI'I GAS has announced that Thomas K.L.M. Young has been promoted to executive vice president of Strategic Initiatives & Supply effective immediately. He will be responsible for overseeing the continued development of the company's liquefied natural gas (LNG) initiative-a key component of its strategy to further diversify its fuel supply and provide Hawai'i with clean, cost-effective and reliable gas energy.
A HAWAI'IGAS executive of more than 30 years, Young previously served as senior vice president of Strategic Initiatives & Supply and has been responsible for leading the company's renewable and alternative energy initiatives, gas supply and commodity risk management.
"HAWAI'IGAS is committed to lowering the cost of energy for Hawai'i, and we see our LNG initiative as a key step to achieving that goal," said Alicia Moy, president and CEO. "We are aligning resources and expertise under Tom's leadership to implement this important project. His technical experience and familiarity with the gas utility infrastructure in the islands makes him the ideal person to lead our efforts to diversify our fuel supply."
Young will oversee the dedicated team of managers, contractors and consultants experienced in LNG and major infrastructure project development that HAWAI'IGAS has brought together over the past 18 months to advance LNG and other clean and cheaper sources of energy for Hawai'i.
Additionally, HAWAI'IGAS will be hiring in the near future a highly experienced team member to lead key engineering and technical workflow of the LNG project.
"I look forward to leading our growing team of experts in furthering our efforts to establish LNG as a viable energy source in Hawai'i," said Young. "HAWAIʽIGAS is committed to supporting the state's energy goals and working in partnership to deliver this abundant, cleaner, lower-cost fuel to consumers throughout the islands."
The INPEX operated Ichthys LNG Project conducted a steel cutting ceremony on June 18th, 2013 for the hull of its Floating Production, Storage and Offloading (FPSO) facility in Okpo, Korea. With fabrication of the hull underway, work on all of the project's major offshore facilities has started.
The FPSO is being built by Daewoo Shipbuilding & Marine Engineering (DSME). Speaking at the ceremony at the DSME shipyard, INPEX Ichthys LNG Project Director Offshore Claude Cahuzac said the steel cutting marked a major milestone. "Starting fabrication on the FPSO hull means that work is now underway on all major offshore facilities - this includes the Central Processing Facility, subsea structures and the Gas Export Pipeline," Mr Cahuzac said.
The Ichthys LNG Project is a Joint Venture between INPEX group companies, major partner TOTAL group companies and the Australian subsidiaries of Tokyo Gas, Osaka Gas, Chubu Electric Power and Toho Gas. Gas from the Ichthys Field, in the Browse Basin offshore Western Australia, will undergo preliminary processing offshore to remove water and raw liquids, including condensate. The gas will then be exported to the onshore processing facilities in Darwin via an 889km pipeline. The Ichthys LNG Project is expected to produce 8.4 million tonnes of LNG and 1.6 million tonnes of LPG per annum, along with approximately100,000 barrels of condensate per day at peak.
On June 18th, 2013 the Federal Energy Regulatory Commission (FERC) posted a notice of intent to prepare an environmental impact statement for the planned Magnolia LNG project.
The staff of FERC will prepare an environmental impact statement (EIS) that will discuss the environmental impacts of the Magnolia Liquefied Natural Gas Project involving construction and operation of facilities by Magnolia LNG, LLC in Calcasieu Parish, Louisiana. The Commission will use this EIS in its decision-making process to determine whether the project is in the public convenience and necessity.
This notice announces the opening of the scoping process the commission will use to gather input from the public and interested agencies on the project. The public input will help the FERC staff determine what issues they need to evaluate in the EIS. The scoping period will close on July 19, 2013.
Magnolia, a newly formed subsidiary of Liquefied Natural Gas Limited, plans to build, own, and operate the Magnolia LNG facility located on land at the Port of Lake Charles within Calcasieu Parish, south of Lake Charles, Louisiana. The facility would receive natural gas from North American sources via an existing pipeline and would liquefy and store it for export and domestic use.
According to FERC documents the Magnolia LNG Project would consist of the following facilities:
four liquefaction trains, with a capacity of 2.0 metric tons per annum (mtpa) for a total of 8.0 mtpa nominal capacity;
approximately 200 feet of interconnect pipeline located entirely within the project site;
two LNG storage tanks with a capacity of approximately 160,000 cubic meters each;
an LNG vessel loading terminal and berth; and
an LNG truck loading area, as well as other ancillary facilities.
The Canadian Environmental Assessment Agency is making available funding to support the participation of the public and Aboriginal groups in the federal environmental assessment of the Pacific NorthWest LNG Project located in British Columbia.
Funding is available for eligible individuals and groups to enable their participation in upcoming steps of the environmental assessment such as consultation related to the Environmental Impact Statement and consultation on the draft Environmental Assessment Report.
Applications received by July 14, 2013 will be considered. Recipients and the amounts of funding allocated will be announced at a later date.
To apply for funding or for more information on the project and the environmental assessment process, visit the Agency's website (registry reference number 80032) or contact the Participant Funding Program by writing to PFP.PAFP@ceaa-acee.gc.ca or by calling 1-866-582-1884.
As part of the strengthened and modernized Canadian Environmental Assessment Act, 2012 put in place to support the government's Responsible Resource Development Initiative, the Agency is conducting a federal environmental assessment of this project.
This project is being assessed using a science-based approach. If the project is permitted to proceed to the next phase, it will continue to be subject to Canada's strong environmental laws, rigorous enforcement and follow-up and increased fines.
The proposed project
Pacific NorthWest LNG Ltd. is proposing to construct and operate a liquefied natural gas (LNG) facility and marine terminal near Prince Rupert, within the District of Port Edward. The Pacific NorthWest LNG facility would be located on Lelu Island. The proposed project would convert natural gas to LNG for export to Pacific Rim markets in Asia.
The Canadian Environmental Assessment Agency administers the federal environmental assessment process, which identifies the environmental effects of proposed projects and measures to address those effects, in support of sustainable development.
On Friday June 14th, 2013 Australia Pacific LNG Curtis Island successfully raised the roof of one of two LNG storage tanks – an event marking the half-way mark on the journey to first LNG export in mid-2015.
Australia Pacific LNG noted the facility is on schedule and has seen a number of key developments over the past six months, including the completion of the material offloading facility, the arrival of the first modules, and commencement of work on both processing trains.
Kent Anderson, ConocoPhillips’ Downstream Project Manager, said that adding to those milestones, is the raising of the roof on the first LNG tank, which took less than 8 hours to lift and secure the 1050 tonne, 88 metre domed structure almost 32 metres vertically.
“The complexity of the roof raise is in itself a construction feat, with 1050 tonnes of carbon steel, stainless steel and aluminium materials lifted into place by low air volume created by fans – in principle, not dissimilar to blowing up a camping air bed.
“The five fans, which are almost 80 cm in diameter and with 75 horsepower motors, gradually build the volume and create enough pressure to lift the roof from the ground to the top of the tank. The fans are so effective that no cranes are required at all,” Mr Anderson said.
Once the roof reaches the top of the tank, it is simultaneously secured into place by a crew of specialized welders and boilermakers, a portion of the 350 CB&I work force required to safely manage and oversee the lift.
The external domed roof is made of carbon steel, which will act as the support for a reinforced concrete roof, and the inner tank roof is made of aluminum, chosen for its properties at cryogenic conditions, allowing for the LNG to maintain its -161oC temperature prior to being loaded on to the LNG tankers.
“With the roof of the first tank now in place, we will look to raising the roof on the second tank in coming months, and progress the remaining works on both LNG storage tanks,” Mr Anderson said.
The Australia Pacific LNG project includes the development of natural gas from coal seams in the Surat and Bowen basins and construction of a gas transmission pipeline from the gas fields to an LNG facility on Curtis Island, off Gladstone.
Angola LNG has confirmed that production of LNG has started at the Angola LNG plant in Soyo and that its first cargo has been shipped today. Angola LNG is a partnership between Sonangol, Chevron, BP, ENI and Total that will gather and process gas to produce and deliver LNG and NGLs. The project has an expected life of at least 30 years.
The first cargo was sold to Angola's state oil & gas company Sonangol and is currently being shipped to Brazil by the SS Sonangol Sambizanga, one of seven 160,000 m3LNG vessels that are under long-term charter to the Angola LNG project.
Commenting on the first cargo Artur Pereira, CEO, Angola LNG Marketing said: "Angola LNG is entering the market at an exciting time. The world LNG market is expected to remain tight over the coming years, with very limited new LNG capacity coming on-stream. We are delighted to be producing and shipping our first LNG cargo."
Angola LNG stated a large number of master LNG sale and purchase agreements have been executed with energy companies across the world, providing Angola LNG with a robust and diverse portfolio of customers. Further agreements are currently being negotiated.
"Angola LNG's vision is to be a reliable and competitive supplier, a strong community partner, and a role model for the economic development of Angola." added António Órfão, Chairman, Angola LNG Ltd. "The project provides a solution to minimize flaring and environmental pollution by gathering associated gas from Angola's offshore oil fields to provide clean and reliable energy to our customers and a return on investment for our shareholders."
Captain and crew onboard the SS Sonangol Sambizanga before the ship leaves Soyo with Angola LNG’s first cargo. June 2013.
Today Tokyo Gas Co., Ltd. released gas sales volumes for the month May 2013. Total gas sales volume was 1,111.094 million m3, up 7.0% from May 2012.
In the residential sector, volume totaled 289.015 million m3, up 1.0% from May 2012.
In the business sector volume totaled 181.360 million m3,down 1.1% from May 2012.
In the industrial sector, volume totaled 474.978 million m3, up 18.1% from May 2012.
Volume for wholesale supply to other gas companies totaled 165.741 million m3, down 0.2% from May 2012.
GasLog Ltd. today announced that the Board has appointed Mr. Dennis Houston as new independent member of the Board of GasLog effective June 14, 2013. Dennis Houston has also been appointed member of the Audit & Risk Committee as well as a member of the Compensation Committee and HSSE Committee of the Company. The Board has further appointed Graham Westgarth as Chief Operating Officer.
Dennis M. Houston retired from Exxon Mobil on May 31, 2010, after over 35 years with Exxon and then Exxon Mobil and currently about 40 years of total experience in the Downstream Sector of the Oil and Gas industry. His positions at retirement were Executive Vice President Refining & Supply Company, Chairman and President of ExxonMobil Sales & Supply LLC, and Chairman of Standard Tankers Bahamas Limited.
"We are delighted that Dennis Houston has accepted to join the Board" said Chairman of the Board Peter G. Livanos. "His extensive experience and knowledge within the energy industry will be an enormous asset to the Board and the Company."
EDF Trading announced today the appointment of Matthew Arnold as Head of LNG effective July 8th, 2013.
According to a statement from EDF Trading Arnold will be based in London and will focus on developing EDF Trading’s international LNG and NGL footprint, identifying market opportunities and creating a strategy for expanding the business. Arnold will report to John Rittenhouse, Chief Executive.
“Matthew has over 20 years experience in the LNG/gas space. He will be a great addition to our business and we look forward to welcoming him to EDF Trading,” said John Rittenhouse.
Arnold joins from ExxonMobil where he has held a number of roles, most recently as Production Planning and Commercial Manager for ExxonMobil Qatar.
Centrica plc announced today they have acquired a 25% interest in the Bowland exploration license in Lancashire from Cuadrilla Resources Ltd and AJ Lucas for £40 million in cash. Centrica will also pay exploration and appraisal costs of up to £60 million.
The Bowland license is operated by Cuadrilla, and three exploration wells have been drilled to date. The data obtained from drilling these three wells has confirmed the shale formation thickness and the presence of natural gas.
Centrica stated although initial data suggests that there could be 200 trillion cubic feet (tcf) of gas in place within Cuadrilla’s Bowland Shale license in Lancashire, further drilling will be required to establish whether the discovery is commercial.
Mark Hanafin, Managing Director of Centrica’s International Upstream business, said: “With North Sea gas reserves declining and the UK becoming more dependent on imported gas supplies, it is important that we look for opportunities to develop domestic gas resources, to provide affordable sources of gas to our customers, and to deliver broader economic benefits to the UK.
“The Government’s clear commitment to developing the UK’s shale gas industry is creating the right environment for companies to invest and to deliver those benefits.
“This transaction presents an attractive opportunity for Centrica to explore the potential and commercial viability of natural gas from shale in the UK, while utilizing its expertise as a responsible operator and developer of UK gas resources.”
Under the agreement, Centrica has acquired two subsidiary entities for consideration of £40 million, one each from Cuadrilla and AJ Lucas, in total containing a 25% interest in the Bowland exploration license. Centrica will then pay exploration and appraisal costs of up to £60 million.
Bechtel Corporation announced today they have been selected by Pacific NorthWest LNG to perform front end engineering and design (FEED) for a proposed LNG export facility in British Columbia, Canada. According to a Bechtel statement the FEED covers the gas liquefaction plant, LNG storage tanks, and marine infrastructure that will allow for gas exports. The facility will be located on Lelu Island within the District of Port Edward on land administered by the Prince Rupert Port Authority.
"Bechtel brings extensive global experience in the LNG market to Pacific NorthWest LNG," saidJack Futcher, president of Bechtel's Oil, Gas and Chemicals business unit. "We have worked inCanada for more than 40 years and will apply our local knowledge to design and build a world-class facility that will bring economic and social benefits to the local community, the province, and the country."
BG Group today announced today they have completed the sale of the Group’s 65.12% holding in India’s largest private natural gas distributor Gujarat Gas Company Limited (GGCL) for INR 24.6 billion or approximately $422 million at current exchange rates.
A binding agreement for the sale of the interest, to a subsidiary of Gujarat State Petroleum Corporation (GSPC), was announced in October 2012. The transaction was completed after BG Group and GSPC received the necessary approvals from the Reserve Bank of India and the Competition Commission of India.
BG Group’s sale of its interest in GGCL is part of a broader rationalization program, aimed at refocusing the Group’s portfolio on its core strengths of exploration and production and liquefied natural gas.
QGC Pty Limited announced they have awarded a three-year incident response services contract in the Western Downs to Queensland Company Corporate Protection Australia Group Pty Ltd (CPA Group). Under the A$27.5 million contract, CPA Group will provide a full-time fire and rescue team at each of QGC’s three main operational sites near Dalby, Chinchilla and Wandoan in the Surat Basin.
The teams will form one of the largest private fire and rescue services in Australia with capacity to respond across about 4500 square kilometers. About 50 trained personnel will have specialist equipment and vehicles to respond in industrial and field environments.
Managing Director Derek Fisher said safety was QGC’s first priority. “The response capability provided by CPA Group is an additional safety mechanism in the unlikely event of an incident,” Mr Fisher said. “Having our own professional fire and rescue service keeps our workforce safe without placing pressure on local volunteer crews.
“Our service will also provide additional capability for local emergency services, particularly during floods and bushfires where we will continue to help local crews and communities.” Mr Fisher said QGC was pleased to engage a Queensland business for the service, which was another example of local communities benefiting from QGC’s investment in home-grown suppliers.
CPA Group, which has been operating in Queensland for 15 years, provides fire and rescue, security and medical services to industry.
Kentz Corporation Limited has announce the award of an AUD$104m contract for the underground electrical and instrumentation package for the Ichthys LNG Project in Darwin, Australia.
Leighton Contractors has awarded this contract to work in alliance with Kentz's Construction Business Unit, as part of the main civil works package for the Ichthys Project's onshore LNG facilities. The contract duration is expected to be 17 months from mobilization to final handover in Q4 2014. The scope of Kentz's contract includes the installation of an earthing system that will be integral to the plant and the installation and testing of all underground electrical, instrumentation and telecommunication cables.
Chris Warlow, Kentz's Regional Managing Director for Australasia, commented: "It is pleasing to be announcing this major contract award on the Ichthys Project for work in the early phases of construction and adds to the temporary telecoms package that our EPC business unit is currently executing.
"The Ichthys LNG Project will be one of the most important LNG developments to take place in Australia during the coming decade. The strength of our Construction Business Unit in winning and executing work on major LNG facilities in Australia continues to demonstrate our ability to capitalise on our global presence and grow LNG market share."
The main civil works package was awarded to Leighton Contractors in December 2012 by JKC Australia LNG Pty Ltd (JKC), a joint venture between JGC Corporation, KBR and Chiyoda Corporation.
The Ichthys LNG Project is a joint venture between INPEX group companies (the operator), major partner TOTAL group companies and the Australian subsidiaries of Tokyo Gas, Osaka Gas, Chubu Electric Power, and Toho Gas. It is expected to produce 8.4 million tonnes of LNG and 1.6 million tonnes of LPG per annum, along with approximately 100,000 barrels of condensate per day at peak.