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LNG For Fuel

LITGAS and Statoil prepare joint venture to enter the Baltic Sea small scale LNG market

LITGAS and Statoil have signed a memorandum of understanding on Thursday in Vilnius, Lithuania regarding establishment of a joint venture company in Lithuania to develop small scale LNG bunkering services.

The new joint venture company is planned to be established in Lithuania later this year and would supply LNG as a fuel to ships, small terminals in the Baltic Sea, and transport LNG by trucks to on-shore customers.

"This marks an important milestone in Lithuania’s energy industry and will enable LITGAS to diversify its activities internationally", General Manager of LITGAS Dominykas Tuckus said. “Increased usage of the Klaipeda terminal will help to reduce infrastructure and maintenance costs incurred by the Lithuanian and Baltic gas consumers and position Klaipeda as an important hub in the Baltic LNG market".

LITGAS noted the joint venture company would be well positioned to supply this growing market due to convenient logistical setup capturing one of the shortest supply chains in the region and operational flexibility. The joint venture company is expected to start its small scale supply operations in the Q4 of 2017 or sooner.

Securing vessel capacity is an important prerequisite for the joint venture company and dialogue has been initiated with shipping companies with the aim to secure vessel capacity from the time the joint venture company becomes operational and received the final regulatory approvals.

"We believe that the small scale LNG market in the Baltic Sea has the potential to become commercially attractive business opportunity. The combined competencies of the two companies put the joint venture in a position to successfully develop this market and contribute to the usage of environmentally cleaner fuel in the Baltic region. Naturally, all relevant regulatory and corporate approvals will need to be obtained prior to the final investment decision.” Geir Heitmann, Chief Origination Officer, LNG, Statoil, said.

The possibility to cooperate on joint development of small scale LNG bunkering services was identified in a 5-year supply contract signed by LITGAS and Statoil in August 2014.

Chart Industries Completes Acquisition of Thermax

Chart Industries announced today that it has completed the previously announced acquisition of vaporizer manufacturer Thermax, Inc. Thermax will be operated as part of Chart’s Distribution & Storage business segment.

Thermax, headquartered in Dartmouth, Massachusetts, is a provider of cryogenic fluid vaporizers utilized in industrial gas, petro-chemical, and liquefied natural gas applications.  The product portfolio spans ambient and powered vaporizer solutions.  Thermax’s international presence includes business in the United Kingdom, China, and Indonesia.

“Now that the acquisition has been completed, we are pleased to welcome Bob Bernert, President of Thermax, his management team and all current employees to Chart and look forward to integrating the business into the existing Chart D&S family,” commented Tom Carey, President of Chart D&S.  He continued, “We are confident that the combination of Chart’s and Thermax’s excellence in cryogenic engineering and customer service will deliver growth and add even more value to our customers.”

Rolls-Royce completes LNG retrofit of Bergen Viking

The Rolls-Royce powered Bergen Viking has returned to service following a successful conversion from diesel-electric to Liquefied Natural Gas electric propulsion Rolls-Royce noted in a statement today.

The retrofit replaced four of the ship’s original six diesel generating sets with two Rolls-Royce Bergen C6 generating sets. The LNG fuel containment system and control system is delivered by two off 155m³ fuel tanks configured for redundant propulsion, with crossover options both on bunkering and supply lines.

Kjell Olav Haugland, Managing Director of Bergen Tankers, said: “We are delighted to take over a renewed and more environmental friendly vessel. Our fleet sails along the long and beautiful Norwegian coast, and visit several ports every day, reducing emissions is an obligation we take very seriously. With the Bergen Viking returning to service we are also looking forward to significant savings in operational costs.”

The Bergen Viking is a 95 metre long chemical and product tanker, owned by Bergen Tankers supplying diesel and petrol along the Norwegian coastline in trade for Statoil. Delivered in 2007, the vessel is part of a total fleet of six vessels owned by Bergen Tankers AS.

John Knudsen, Rolls-Royce, President - Commercial Marine, said: “The Bergen Viking project demonstrates that LNG is an option not just for new vessels but can be successfully retrofitted into existing ships to deliver significant economic and environmental benefits for owners.”

Rolls Royce LNG Bergen

Image: Rolls-Royce 

AS Tallink Group loan agreement for LNG powered fast ferry

AS Tallink Group announced today it has signed the loan agreement for a new LNG powered fast ferry

AS Tallink Grupp's subsidiary Tallink Line Ltd. and Nordea Bank Finland Plc have signed the loan agreement in the amount of EUR 184 million to finance the new EUR 230 million LNG powered fast ferry currently under construction in Meyer Turku shipyard. 

The loan is arranged by Nordea Bank and Finnish Export Credit Agency “Finnvera” guarantees 95 per cent of this post-delivery buyer credit for which Finnvera’s subsidiary, Finnish Export Credit Ltd, has provided long term financing. 

The loan is secured by the mortgage on the new vessel and the corporate guarantee of AS Tallink Grupp. This OECD-term export credit loan will be drawn on the delivery of the vessel, expected at the beginning of 2017 and has the final maturity of twelve years from the drawdown. The loan bears OECD Commercial Interest Reference Rate (CIRR) based fixed interest rate.

Tallink lng

Image: Meyer Turku

The new ferry will be about 212 metres in length with a gross tonnage of 49 000. The ship will operate on the route between Helsinki and Tallinn and she is planned to carry 2800 passengers.


General Dynamics NASSCO Starts Construction on Second LNG conversion ready product tanker

Yesterday General Dynamics NASSCO announced the start of construction for the second of three 50,000 deadweight ton, 330,000 barrel cargo capacity product tankers for SEA-Vista Newbuild III LLC, a subsidiary of SEACOR Holding Inc. Each LNG conversion ready product tanker will be constructed at the NASSCO shipyard in San Diego under Jones Act requirements.

Representatives from General Dynamics NASSCO and SEA-Vista attended the start of construction ceremony held at the NASSCO shipyard on Thursday, June 25, 2015. The honoree, senior director for human resources at NASSCO, Debora Burke, signaled the beginning of construction by pressing a button to cut the first piece of steel.

“We are pleased to begin construction on the second state-of-the-art Jones Act-qualified tanker for our customer, SEA-Vista,” said General Dynamics NASSCO vice president and general manager Kevin Graney. “NASSCO remains committed to building the most economical and environmentally-sound products for Jones Act owners and operators—and these tankers exemplify that commitment.”

General Dynamics NASSCO noted these new 610-foot-long vessels are a continuation of the ECO MR Tanker design, offering improved fuel efficiency and incorporating the latest environmental protection features, including a Ballast Water Treatment System and reduced emissions.

The tankers were designed by DSEC, a subsidiary of Daewoo Shipbuilding & Marine Engineering of Busan, South Korea. DSEC’s ECO design achieves improved fuel efficiency through several features, including a G-series MAN ME slow-speed main engine and an optimized hull form. The tankers will have conversion-capable, dual-fuel-capable auxiliary engines and the ability to accommodate the future installation of an LNG fuel-gas system and tanks.

nassco LNG 2

Above: Kevin Graney, Pete Radzicki, Parker Larson, Debora Burke, Dave Burke, and Tom Denning 25 June, 2015 Source: General Dynamics NASSCO

Rederi AB Gotland Orders a second LNG Ferry

Rederi AB Gotland, Sweden’s oldest passenger shipping company, announced today it has signed a contract with GSI Shipyard in China for a LNG fueled passenger and cargo ship with a capacity for 1650 passengers. This will be a sister vessel to an order announced in the fall of 2014 by Rederi AB Gotland. Both vessels will be fueled by LNG. The two vessels are scheduled for delivery in 2017 and by 2018.

Rederi lng

Image Source: Rederi AB Gotland


Clean Energy Port of Long Beach LCNG Station Photo Story

This Clean Energy LCNG station is located on property leased from the Port of Long Beach at Anaheim and I Streets on a 2.9-acre site adjacent to the Ports of Long Beach and Los Angeles.  The station is specifically designed to support the goals of the San Pedro Bay Ports’ Clean Air Action Plan and Clean Truck programs. This station opened in 2009. 

cleanenergy wide2

cleanenergy wide

About 1000 trucks come though the station a day.  The station is open 24 hours a day, 7 days a week and it is the largest public LNG station in the United States.

In Newport Beach, CA there is a Clean Energy operations center where they can remotely monitor all their stations around the country.  From there they can see how low they are on fuel and dispatch fuel.   With the ports station they have been running it so long it is pretty automated with a LNG delivery once or twice a day.

cleanenergy tanks fill

cleanenergy tankfill

Offloading will take an hour at this station. The station does not shut down.  An offload can take place simultaneously while fueling 6 lanes of traffic.  Gets Clean Energy customers in and out and there is never downtime. 

cleanenergy tanks fill2

This station does have attendants.  The drivers get paid by the load and are in and out quick.  Typically trucks are in the fueling lane less than 10 minutes. Clean Energy tries to make the experience as close to a diesel experience as possible.

cleanenergy fueling

cleanenergy sign costAbove: 2nd June, 2015

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The station has 2 CNG dispensers and 6 LNG dispensers at the location.  

cleanenergy wide right

cleanenergy lng pipe

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Clean Energy Port of Long Beach LCNG Station - 3400 I St, Wilmington, CA 90744


Kinetrex Energy Announces New Chief Operating Officer

Kinetrex Energy announced today the promotion of Craig Moore to Senior Vice President and Chief Operating Officer. 

“This promotion reflects Craig’s involvement with Kinetrex Energy from its idea infancy to being a national leader in LNG,” said Aaron Johnson, President of Kinetrex Energy. “With two liquefied natural gas facilities, Kinetrex has more than 24-million gallons of storage and an ability to produce in excess of 200-thousand LNG gallons per day.”

In his new role, Moore will oversee all aspects of day-to-day business activities including:  operations, logistics, marketing, purchasing, and accounting.  Additionally, Moore will continue to oversee Kinetrex Energy’s strategic planning efforts along with managing specific growth strategies. 

“I am thankful to Citizens Energy Group and Kinetrex Energy for this great opportunity,” said Moore. “As part of this new role, a key objective of mine is to work with our value-chain partners to make LNG simple for our customers.  LNG is a truly perfect substitute for diesel, and we have to ensure customers are getting the correct information.  LNG burns cleaner and reduces greenhouse gases by more than 20 percent, costs about 40-50 percent less than diesel on a whole-sale basis, is domestically abundant, and is safer than diesel.”

Carnival Corporation Contract to Build Ships Powered By Liquefied Natural Gas

Carnival Corporation announced today it has signed a contract to build four next-generation cruise ships with the largest guest capacity in the world. The contract with Meyer Werft is part of larger previously announced strategic memorandum of understanding with shipbuilders Meyer Werft and Fincantieri S.p.A for nine new ship orders between 2019 and 2022.

According to Carnival the four new ships will be the first in the cruise industry to use LNG in dual-powered hybrid engines to power the ship both in port and on the open sea. LNG will be stored onboard and used to generate 100 percent power at sea – producing another industry-first innovation for Carnival Corporation and its brands.

The company said two of the ships will be manufactured for AIDA Cruises at Meyer Werft's shipyard in Papenburg, Germany. Additional information about the ships, including which new ships will be added to each brand, will be made available at a later date.

Each of the four next-generation ships will have a total capacity of 6,600 guests, feature more than 5,000 lower berths, and exceed 180,000 gross tons.

Carnival Corporation CEO Arnold Donald said the contract is consistent with the company’s measured capacity growth strategy to replace ships with less efficient capacity with newer, larger and more fuel efficient vessels over time.

"We are looking forward to executing on the next step in our fleet enhancement plan," said Donald. "At a cost per berth in line with our existing order book, these new ships will enhance the return profile of our fleet. These are exceptionally efficient ships with incredible cabins and public spaces featuring a design inspired by Micky Arison and Michael Thamm and developed by our new build teams." Arison is chairman of the board of directors for Carnival Corporation & plc and Thamm is CEO of the Costa Group, which includes AIDA Cruises and Costa Cruises.

Added Donald: “It will be exciting to see our shipbuilding team bring these new ships to life. Every step of the way, our focus is on designing state-of-the-art ships that provide a vacation experience our guests will love, and we are putting all of our creative energy and resources into making sure we achieve that goal.”

“These ships will expand our leadership position for the Costa Group, the market leader in all the major European markets,” said Thamm. “These will be spectacular ships designed specifically for our guests who sail on our Costa Group brands.”

Bernard Meyer, CEO of Meyer Werft, said: “In past years, we have built seven highly successful ships for AIDA Cruises. We are honored that Carnival Corporation has entrusted us with the implementation of this ambitious shipbuilding program, and we look forward to building these four magnificent ships.”

Agility Fuel Systems provider of natural gas fuel systems to Freightliner

Freightliner Trucks announced this week that Agility Fuel Systems will now serve as the sole provider of natural gas fuel systems to Freightliner Trucks. The seven-year agreement will provide custom designed products with the latest features and technological innovations according to Freightliner.

Based in Santa Ana, California, Agility designs and produces natural gas fuel systems for heavy duty vehicles. The manufacturer offers a variety of compressed natural gas and LNG solutions in a number of customizable configurations.     

Freightliner has worked with Agility Fuel Systems for more than 13 years.  “What drives both Freightliner and Agility is our shared vision of using innovation to deliver the best solutions to our customers,” said Mary Aufdemberg, director of product marketing for Freightliner Trucks. “This partnership will help us evolve as the industry continues to embrace natural gas as a viable option.”

Agility recently announced the opening of a new manufacturing facility in Salisbury, N.C., which is in close proximity to the Freightliner manufacturing plants in Cleveland, N.C., and Mt. Holly, N.C., where the Freightliner Cascadia 113, M2 112 and 114SD natural gas trucks are produced.  

“We have been collaborating with Freightliner since 2002 and in 2009 we began the industry’s first on-line factory installation of our natural gas fuel systems. We have worked as partners ever since to drive natural gas adoption rates in the heavy duty trucking industry”, stated Barry Engle, Chief Executive Officer of Agility Fuel Systems, “We are thrilled by the signing of this long term agreement and to be able to serve the Freightliner plants and dealers from our world class facility in Salisbury, North Carolina.”  

Freightliner Trucks is a division of Daimler Trucks North America LLC, headquartered in Portland, Oregon, and is the leading heavy-duty truck manufacturer in North America. Daimler Trucks North America produces and markets Class 5-8 trucks and is a Daimler company.

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