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LNG For Fuel

Applied LNG Announces Texas LNG Plant Groundbreaking Ceremony

Applied LNG announced yesterday it will break ground on a multi-liquefier LNG production platform in Midlothian, Texas. The Midlothian Plant will consist of up to five liquefiers with a production capacity of 86,000 LNG gallons per day, per liquefier, and a total on-site storage of up to 1.5 million LNG gallons according to Applied LNG.

“The natural gas industry in Texas is growing rapidly and production and storage facilities are vital to further industry advancement,” said Cem Hacioglu, President and CEO of Applied LNG. “Midlothian is a perfect location to build our first production platform in Texas. In addition to having all the required amenities to construct a state-of-the art facility, Midlothian’s strategic location will allow us to tap into a wide range of customers in fast growing verticals, and the company has already been taking orders in this desirable market. The Midlothian Plant is also an important step in Applied's continuing efforts to expand its footprint to provide cost-effective LNG to a growing number of customers.”

The official groundbreaking is scheduled for November 20, 2014 and the plant is expected to be operational in mid-2015. The Midlothian Plant will focus on end users in the high-horsepower, trucking, oil and gas, rail, marine, remote power and mining markets that currently use diesel fuel and are interested in converting to a lower-cost, cleaner-burning alternative.

LNG fueled harbor tug to feature full scope of Wärtsilä solutions

Wärtsilä has announced it has been contracted by Drydocks World based in Dubai, UAE to design and supply the propulsion and other equipment for a new harbor tug that will operate on LNG. The order was signed in November.

According to Wärtsilä the 29 meter long tug is the first of a series of nine such vessels to be built and operated by DDW. The project is part of a 'green' initiative launched by the Dubai government, and is intended to set an example for promoting environmental sustainability throughout the region.

"We are happy to work with Wärtsilä to promote a green image for our harbor work. Wärtsilä is a solution provider with vast experience and expertise in gas fuel systems. The company has a strong local presence and is capable of providing the support needed," says Mr Khamis Juma Buamim, Chairman DDW.

Wärtsilä will provide a full scope of solutions for this Eco tug, emphasizing both the company's use of LNG as a marine fuel, and its capability to provide a range of solutions from initial design to lifecycle support. Wärtsilä will supply the ship design, two 9-cylinder Wärtsilä 20DF dual-fuel engines, Wärtsilä Steerable Thrusters (WST), type WST-18 Compact thrusters, the automation equipment, and the Wärtsilä LNGPac system.

"The shift towards the use of LNG fuel is building up speed across the world. We at Wärtsilä feel proud that we have been at the forefront of this movement, first through the development of dual-fuel engine technology, and then by developing a full range of integrated solutions serving the complete gas value chain. This will be the first harbor tug in the Middle East to operate on gas, which indicates the growing importance of environmental issues everywhere," says Mr Ibrahim Behairy, Sales Director, Middle East, Wärtsilä Ship Power.

Crowley Maritime awarded second contract to supply LNG to Puerto Rico

Crowley Maritime announced today their services group has been awarded a second, multi-year contract to supply containerized, U.S.-sourced LNG to a pharmaceutical company’s manufacturing plant in Puerto Rico. The contract, executed through Crowley’s Carib Energy subsidiary, includes the fuel supply and transportation of LNG.

The transportation of LNG from U.S.-based liquefaction facilities to the pharmaceutical company’s plants will be managed by Crowley’s domestic logistics team. Crowley will coordinate over-the-road transportation of 40-foot intermodal containers authorized by the Department of Transportation to carry approximately 10,000 gallons of LNG to the company’s Jacksonville, Fla., shipping terminal. Once in Jacksonville, Florida, the containers will be loaded onto company-owned vessels departing for Puerto Rico. Upon arrival in Puerto Rico, Crowley’s logistics team will deliver the LNG to the customer’s facilities according. The LNG will be re-gasified into pipeline natural gas for boiler consumption at the customer location.

“We are thrilled to now be able to provide such valuable services to another customer in the Caribbean,” said Greg Buffington, Crowley vice president. “From the sourcing and transportation to the delivery into the equipment, the entire process and LNG supply chain will be seamless for them. We look forward to playing a pivotal role in supplying a cost-efficient, safe, reliable and environmentally friendly natural gas fuel source for our customer’s operations.”

Black & Veatch and Emerging Fuels Technology, Inc. Cooperation Agreement

Black & Veatch and Emerging Fuels Technology, Inc. are combining forces to improve the speed to market of alternative/renewable transportation fuel projects worldwide according to a Black & Veatch statement. Under a broad Cooperation Agreement the companies will enable an easier, faster, cost effective and reliable path to implementation of gas to liquids (GTL) projects. The agreement also covers projects that use a variety of other feedstocks. These include municipal solid waste (MSW), biomass and coal, often referred to as XTL.

"We have reviewed numerous GTL/XTL technologies and found that EFT's proprietary catalysts and process technology are very competitive over a broad range of applications," said George Gruber, Vice President of Technology at Black & Veatch. "We are also able to offer clients the benefit that a complete technology wrap provides. This is in addition to the traditional guarantees associated with mechanical completion, hydraulic performance, schedule and cost."

Gruber said the companies also have identified several cost and efficiency benefits from combining Black & Veatch's proprietary gas processing (PRICO-C2™, PRICO-NGL®, and LPG-PLUS™) and PRICO® LNG based technologies with the EFT platform.

"Black & Veatch's ability to offer technology wraps and their extensive EPC experience with both large scale gasification technologies and modularization and standardization for small scale projects makes them an ideal partner for numerous GTL and XTL project opportunities worldwide. This alliance will be a game changer for the industry," said Kenneth Agee, President of EFT.

General Dynamics NASSCO begins construction of LNG-conversion ready product tankers

General Dynamics NASSCO announced the start of construction for three 50,000 deadweight ton, 330,000 barrel cargo capacity product tankers for SEA-Vista LLC, a joint venture between SEACOR Holdings Inc. and Avista Capital Partners. Each LNG-conversion ready product tanker will be constructed at the NASSCO shipyard in San Diego under Jones Act requirements.  

“We are proud and honored to partner with SEA-Vista and build three state-of-the-art Jones Act-qualified tankers,” said General Dynamics NASSCO Vice President and General Manager Kevin M. 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. Our partnership with SEA-Vista is a clear indication that NASSCO is the shipyard of choice for Jones Act tankers.”

The tankers were designed by DSEC, a subsidiary of Daewoo Shipbuilding & Marine Engineering (DSME) of Busan, South Korea. Each of these tankers will play a role in offering SEA-Vista’s customers fuel efficient vessels available as they address their Jones Act transportation requirements for the movement of their current and projected crude oil and refined products volumes in the U.S.

Wärtsilä dual-fuel engines chosen to power Arc 7 design icebreaking LNG carriers

Wärtsilä announced today Daewoo Shipbuilding and Marine Engineering (DSME) yard in South Korea has ordered a total of 54 Wärtsilä dual fuel engines to power 172,600 cbm icebreaking LNG carriers being built for use in arctic conditions to serve the Yamal LNG project in Northern Russia. According to Wärtsilä the ships will be owned by one joint venture between Teekay LNG Partners of Canada and China LNG Shipping (CLNG), and another joint venture between China Shipping LNG Investment Co.,Ltd. (CSLNG) and Japan based Mitsui O.S.K. The order for engines was placed with Wärtsilä's Korean joint venture company, Wärtsilä Hyundai Engine Co., (WHEC) in October.

Wärtsilä noted the machinery is capable of operating on liquefied natural gas, heavy fuel oil (HFO), or low-viscosity marine diesel oil (MDO) but LNG will be the main type of fuel to be used. When operating in arctic waters the engines will be operating in ambient temperatures of as much as minus 50 degrees Celsius on LNG carriers breaking through ice more than two meters thick, in operating modes that allow dramatic variations in engine load within a limited period of time. Wärtsilä's ability to meet these demanding design criteria was a key factor in the award of this contract.

For each LNG carrier Wärtsilä will supply 12-cylinder and 9-cylinder Wärtsilä 50DF dual-fuel engines. The total power output from the Wärtsilä engines is 64,350 kW per vessel.

"This very important order once again emphasizes the technical leadership that Wärtsilä has established in dual-fuel engine technology. The fitting of Wärtsilä 50DF engines onboard the first LNG carriers in 2006 set a trend in the industry and since that introduction, 65 percent of all new LNG carriers have been fitted with Wärtsilä dual-fuel engines. The strong success of this particular engine over the alternatives is based on its superior propulsion efficiency and the clear environmental advantages that operating on gas allows," says Mr Lars Anderson, Vice President, Wärtsilä Ship Power.

Wärtsilä dual-fuel engines chosen to power Arc 7 design icebreaking LNG carriers

Above: The icebreaking LNG carriers for the Yamal LNG project will be equipped with Wärtsilä 50DF dual-fuel engines.




New California CNG and LNG Measurements and Rates

The California State Board of Equalization announced this week there will be new compressed natural gas and liquefied natural gas measurement and rates.

Beginning January 1, 2015, the new requirement adjusts the tax rate for CNG to 8.87 cents ($0.0887) for each 126.67 cubic feet or 5.66 pounds of CNG used, measured at the standard pressure and temperature (14.73 pounds PSI at 60° Fahrenheit). The new requirement also adjusts the tax rate for LNG to 10.17 cents ($0.1017) for each 6.06 pounds of LNG used.

The California State Board of Equalization noted If you make retail sales of CNG and/or LNG, you must begin collecting the adjusted tax rate on January 1, 2015. Additionally, you must place a label on the CNG dispensing apparatus in a conspicuous place indicating, “Gasoline gallon equivalent.” For retail sales of LNG, you must place a label on the dispensing apparatus in a conspicuous place indicating, “Diesel gallon equivalent.” For more information on the labeling requirements, contact the California Department of Food and Agriculture, Division of Measurement Standards, at

Port of Antwerp Request for Proposals to operate LNG bunkering station for barges

Antwerp Port Authority is one of the partners in the LNG Master Plan for the Rhine-Main-Danube aimed at promoting LNG as a fuel and as a cargo for European barges. As part of this European project the Port Authority is building a bunkering station for barges, partially subsidized by the European Commission’s TEN-T programme. After the European announcement of the selection of candidates earlier this year, the specifications for construction of the station will been given to the selected candidates this month.

Operation of the LNG bunkering station

The Port Authority is now issuing an official Request for Proposals with a view to appointing a candidate to operate the LNG bunkering station, for which the Port Authority will grant a five-year concession. During this period the operator will be responsible for providing LNG to barges in Antwerp and for maintenance and promotion of the facility. Interested parties have until 5 January 2015 to submit their proposals to Antwerp Port Authority.

The Request for Proposals is available at (in Dutch only).

Ferus Natural Gas Fuels Opens First Merchant LNG Facility in Canada

Ferus Natural Gas Fuels Inc. announced today the opening of the first merchant LNG facility in Canada.  The facility, which became commercially operational in May, 2014, is located in Elmworth, Alberta, about 65 kilometres southwest of Grand Prairie.

Ferus NGF’s Elmworth LNG plant produces LNG fuel for engines used in drilling rigs, pressure pumping services, water heating for well fracturing and heavy-duty highway and off-road trucks. To support the entire LNG supply chain, Ferus has also designed and built mobile storage and dispensing equipment to provide full-service fueling solutions.

Currently, the facility can produce up to 50,000 gallons per day of LNG and has capacity to expand up to 250,000 gallons per day of LNG.

“Regionally focused small-scale LNG plants like the one we have built in Elmworth ensure proximal and reliable supply for our customers,” said Dick Brown, CEO of Ferus NGF. “In order for customers to make the switch to natural gas they need a high level of certainty and trust. Ferus NGF is successfully fueling oil and gas operations and on-road trucking with natural gas and our business plans include the wide-spread build-out of LNG and CNG infrastructure to provide regional supply and service across multiple high horsepower industries in North America.”

Clough and GE Oil and Gas Australia Sign Small Scale LNG Agreement

Clough Limited and GE Oil and Gas Australia have signed an agreement to identify and deliver small-scale liquefied natural gas fuel solutions for clients located in Australasia according to a Clough statement. The agreement will bring together LNG technology and EPC capability to develop small LNG network solutions for domestic applications including remote power, industrial use and transportation fuel.

According to Clough the collaboration between GE and Clough will help build a virtual pipeline network for LNG fuelling in the region where physical pipeline infrastructure is scarce, particularly to remote areas for power generation and mining operations. The companies plan to provide an end-to-end LNG fuel solution that will convert natural gas into LNG and deliver it to the final point of use, including all the associated infrastructure, storage and transportation. Providing this fully-integrated solution ensures a reliable LNG fuel supply to replace diesel, allowing clients to focus on their core business.

Clough CEO and Managing Director Kevin Gallagher said the solution will enable clients to sustainably reduce energy costs and carbon emissions. “Replacing diesel with LNG fuel for transport and power will provide sustainable economic and environmental benefits, not only for clients, but for all of Australia. LNG fuel is cost-effective, clean and safe, and makes use of abundant Australian gas resources.  Clough and our partner GE aim to become the enabler for clients to convert from imported diesel to domestically supplied gas.” 

GE Oil & Gas Acting Regional Manager, Ross Ismail, said, “Natural gas is in abundant supply particularly in Australia, making it cost-efficient to use this cleaner burning fuel for transportation, fleet management, marine and other industrial applications. Together, with Clough, we will have the ability to bring a complete, fully-integrated solution to our customers in the Small-Scale LNG space.”