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LNG For Fuel

Costa Cruises to Build Two LNG Fueled Cruise Ships

Carnival Corporation today announced that its Italian brand, Costa Cruises, will build two new cruise ships as part of an agreement with Meyer Werft to construct four next-generation cruise ships with the largest guest capacity in the world. In June, Carnival Corporation announced the other two ships included in this multi-billion dollar contract are destined for its German brand, AIDA Cruises.

The two new ships for Costa Cruises will be built by shipbuilder Meyer Werft at the company's shipyard in Turku, Finland, with deliveries expected in 2019 and 2020. Each new cruise ship will exceed 180,000 gross tons, offering more than 2,600 passenger cabins and 5,200 lower berths to accommodate a total capacity of 6,600 guests.

Carnival Corporation's four next-generation cruise ships for Costa Cruises and AIDA Cruises will be be powered at sea by Liquefied Natural Gas, representing a major environmental breakthrough Carnival Corporation. Carnival noted the company will be pioneering a new era in the use of sustainable fuels, these new ships will use LNG to generate 100 percent of the ship's power both in port and on the open sea – an industry-first innovation that will significantly reduce exhaust emissions to help protect the environment and support the company's aggressive sustainability goals.

The four-ship contract with Meyer Werft is part of a larger previously announced strategic memo of understanding with leading shipbuilders Meyer Werft and Fincantieri S.p.A for nine new ship orders between 2019 and 2022. As previously announced, construction of the two new ships for AIDA Cruises will take place at Meyer Werft's shipbuilding facility in Papenburg, Germany.

"These new ships will be phenomenal additions to our fleet, and we're looking forward to seeing our Costa and AIDA brands bring this ground-breaking new ship design to life for our guests in a way that is customized for each brand," said Arnold Donald, CEO of Carnival Corporation. "As we continue enhancing our fleet, it is very important to us that every decision we make in the development of these new ships is about the guest experience, which supports our goal to exceed guest expectations and create great vacation memories for every person who boards one of our ships."

Donald added: "Above all, these strategic investments are designed to exceed the vacation needs of our guests, but it is also important to note that these next-generation ships are an important part of our measured growth strategy, which includes replacing less efficient ships with newer, larger and more efficient vessels over a very specific period of time."

Jensen's LNG articulated tug-barge receives “Approval in Principle” by ABS

A Jensen Maritime designed, liquefied natural gas bunkering articulated tug-barge has been granted “approval in principle” by classification society American Bureau of Shipping. The designation establishes that the vessel concept, which is classed as an A1 Liquefied Gas Tank Barge, is compliant in principle with ABS rules and guides according to Jensen Maritime.

Jensen’s articulated tug-barge is also oceans rated, meaning that it is not limited to the intracoastal waterways, like many other similar types of LNG ATBs. This design feature allows the vessel to facilitate the transfer and use of small-scale LNG in places with limited infrastructure, including offshore locations.

The articulated tug-barge will be built with four 1,000- m3 Type C LNG tanks (seven bar working pressure), enough LNG to fill up a large containership twice before having to replenish its own supply. This capacity, combined with flexible operational areas, makes it an ideal solution for a customer who has significant LNG needs at one or more ports not located near an LNG terminal.

“This vessel is exciting for so many reasons, but perhaps most notably because it offers a solution for the maritime industry, which struggles with whether to develop LNG infrastructure or vessels first,” said Jensen’s Johan Sperling, vice president. “This unique concept offers customers an economical alternative to sourcing LNG terminals or trucking LNG to multiple ports. Additionally, the design was developed using Jensen’s proprietary production engineering capabilities, which makes the construction and assembly more efficient. It’s an incredible package.”

The barge measures 360’ x 60’ x 35’, with a combined tug-and-barge length of 452’. The tug (under 500 GT US regulatory) features two GE 6L250 engines (Tier 3), each offering at least 2,035 HP, and two Rolls Royce 205 Z-drives, with a speed of 12 knots. The ATB will carry 30,800 gallons of fresh water and 90,100 gallons of ballast water and provides enough space for 12 crewmembers.

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Image: Jensen Maritime

New Cummins Westport MidRange Natural Gas Engine

Cummins Westport announced today it is introducing the 2016 ISB6.7 G, a 6.7-liter MidRange, factory-built, dedicated natural gas engine, to the Type C School bus market at the North American School Bus Show – STN Expo Conference and Trade Show July 25-28 in Reno.

The ISB6.7 G natural gas engine is based on the Cummins ISB6.7 diesel engine platform. The ISB6.7 G is fueled by compressed natural gas, liquefied natural gas or renewable natural gas, utilizing Cummins Westport's proprietary spark-ignited, stoichiometric combustion with cooled Exhaust Gas Recirculation technology. Currently in field trials, the ISB6.7 G will be in full production by mid-2016.

Cummins Westport noted an important feature of the ISB6.7 G is Three-Way Catalyst  aftertreatment, which is packaged as a muffler, and is maintenance-free. No Diesel Particulate Filter or Selective Catalytic Reduction aftertreatment will be required.

Preliminary specifications include a range of ratings up to 260 hp and 660 lb-ft torque, and automatic transmission capability, to meet customer and original equipment manufacturer requirements. The ISB6.7 G will be manufactured at the Cummins Rocky Mount Engine Plant in Whitakers, N.C.

"We are pleased to display the ISB6.7 G to pupil transportation professionals from across the United States and worldwide here at the STN Expo," said Rob Neitzke, President of Cummins Westport. "The ISB6.7 G is the natural choice for Type C school bus customers desiring clean, quiet and safe operations with diesel-like power and performance."

Santa Monica’s Big Blue Bus converts to renewable natural gas

The City of Santa Monica’s Big Blue Bus announced today that it has become one of the country’s first municipal transit authorities to convert its fleet to renewable natural gas. Earlier this year Big Blue Bus modified its agreement with Clean Energy Fuels to transition the supply of LNG for its fleet to Clean Energy’s Redeem™ renewable LNG.   

Redeem™ is harvested from landfills. The gas has historically been burned off into the atmosphere. The gas is now harvested through a series of membranes implanted in the ground of landfills. With the announcement, Big Blue Bus also unveiled a new Bus ad campaign called “Bigger, Bluer, Skies” to emphasize the lower emissions and sustainability of this type of fuel.

Big Blue Bus has been fueling its LNG and CNG fleet of motor coaches with fuel supplied by Clean Energy since 2012. “City Council has voiced its support for non-fracked, sustainable sources of fuel, and Redeem™ delivers a fuel made entirely of waste; a more sustainable product at an equal cost. This makes Big Blue Bus’s partnership with Clean Energy to use the Redeem™ fuel a win-win solution,” said Big Blue Bus’s Transit Director, Ed King.

santa monica bus lng

LNG Fueled Ferry Commissioned in Matane, Quebec

In a statement released yesterday Gaz Métro expressed approval of the official commissioning of the NM F.-A.-Gauthier, the first ferry to run on liquefied natural gas in North America. It is also the first ship of any kind to run on LNG in Canada.

Following an agreement concluded in 2013, Gaz Métro, through its subsidiary Gaz Métro LNG L.P., was chosen as the LNG supplier to fuel three new Société des traversiers du Québec ferries, including the NM F.-A.-Gauthier.  The ship is replacing the NM Camille-Marcoux for the Matane–Baie-Comeau–Godbout ferry service. The two other ships will be assigned to the Tadoussac–Baie-Sainte-Catherine crossing.

“LNG motors are a proven technology widely used for many years in road and maritime transport worldwide, particularly in Europe. "It's extraordinary that this major first is happening here in Québec, and Gaz Métro is very proud to be a part of it," highlighted Martin Imbleau, Vice President, Development and Renewable Energies at Gaz Métro.

Gaz Métro noted by choosing natural gas as the fuel for its new admiral-ship, the Société des traversiers du Québec is reaching an important milestone in the Québec maritime transport sector and paving the way for local ship-owners to use a proven, high-performance and cleaner technology. Gaz Métro pointed out the use of liquefied natural gas makes it possible to reduce greenhouse gas emissions by up to 25%, compared with marine diesel, in addition to almost completely eliminating fine particle emissions and other air pollutants. LNG motors are also quieter and produce less vibration, which is more respectful of marine life. 

GE Capital, Canada and Gaz Métro to Accelerate Natural Gas in Trucking

GE Capital, Canada and Gaz Métro Transport Solutions, a subsidiary of Gaz Métro, announced today the signing of a strategic agreement that will facilitate the trucking industry's adoption of natural gas as a fuel in Eastern Canada. GE Capital has been providing wholesale and retail financing to the country's commercial trucking sector for 35 years.

Under this agreement, fleet operators will work with Gaz Métro Transport Solutions for natural gas supply and purchase and, separately, with GE Capital to secure loans or leases for natural gas vehicles. NGVs that are eligible under this agreement use either compressed natural gas or liquefied natural gas.

"As someone with nearly a decade of experience in the transportation industry, I understand how critical it is for fleet operators to reduce their fuel costs. To remain competitive, they need to cut 3%-5% annually just to keep up with the market," said Véronique Haché, strategic initiative leader for natural gas vehicles at GE Capital. "Transitioning to natural gas is a smart way to diversify their fuel portfolios and reduce those costs. Through this agreement, we're giving trucking company leaders the financial motivation to make the shift from diesel to nat-gas."

"This agreement reinforces GMTS's turn-key approach by adding a financial partner to accompany the fleet operators in their transition to natural gas," said Luc Génier, president of the board of directors of GMTS. "We are confident that combining our respective expertise will have a positive effect on the adoption of natural gas as a fuel for the trucking industry in Eastern Canada."

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.

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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.


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