LNG For Fuel

Gaz Métro LNG expansion project complete

Gaz Métro announced today that its subsidiary Gaz Métro LNG has completed its expansion project.  

The expansion project increases the annual liquefaction capacity of Gaz Métro’s Montréal plant from 3 billion cubic feet to more than 9 billion cubic feet.

"In addition to serving robust demand for LNG in the Province of Québec, we have now, more than ever, an increased capacity to deliver LNG to local distribution companies, industries, and other customers in the Northeast U.S.,'' said Martin Imbleau, Senior Vice President, Operations, Transport and Development of New Energies at Gaz Métro.

Gaz Métro LNG serves various clients in the U.S. Northeast, notably National Grid's Massachusetts and Rhode Island gas distribution companies. “LNG plays an important role in meeting the needs of our customers on the coldest days of the year,” said John Vaughn, National Grid Vice President of Energy Procurement. “Demand for natural gas in New England is rising, and partners like Gaz Métro allow us to diversify our supply chain and are playing an important role by providing LNG that lets us serve customers efficiently throughout the year.”

Gaz Métro LNG

Image: Gaz Métro

Retail price of LNG in Long Beach, California

On April 4th, 2017 at the Speedy Fuel location in Long Beach, California, the price of retail LNG was $2.25 USD per Diesel Gallon Equivalent (DGE). The diesel fuel price was $2.56 per gallon at the same station.

On June 2nd, 2013, a diesel gallon equivalent of LNG at the same station was $2.82 USD. Diesel fuel was $3.85 per gallon at this same station on June 2nd, 2013.

There has been a 20% decrease in the retail LNG price at this station in the last 46 months and a 33.5% decrease in the price of diesel fuel.

The average price of diesel fuel in the U.S. the week of April 3, 2017 is $2.36 per gallon.

The average price of diesel fuel in the state of California the week of April 3, 2017 is $2.92 per gallon.

Speedy Fuel location in Long Beach, California

Speedy Fuel Long Beach, California April 4th, 2017

SCF Group Agreement With Shell for LNG Supply

SCF Group (Sovcomflot) announced today the company has signed an agreement with Shell Western LNG B.V. for the supply of LNG to fuel the first Aframax crude oil tankers in the world to be powered by LNG. According to SCF Group the agreement calls for Shell to provide the LNG fuel for the new generation of SCF Group’s 114,000 deadweight ice-classed Aframax tankers that are scheduled to come into operation beginning in Q3 2018.

The tankers will operate primarily between the Baltic and Northern Europe transporting crude oil and petroleum products. Shell will fuel the vessels from a LNG bunker vessel at the Gas Access to Europe (GATE) terminal in Rotterdam, the Netherlands and other supply points in the Baltic. Each LNG-fuelled tanker will have an ice class 1A hull enabling year-round export operations from the Russian Baltic.

“SCF Group and Shell have an extensive and successful track record of collaboration and technical innovation, and at the heart of our joint aspirations is the shared desire to play a major role in delivering a cleaner and safer maritime environment. This is why SCF Group and Shell decided to pilot this breakthrough initiative to switch the principal fuel of Aframax tankers, the workhorse of the global tanker industry, to LNG,” said Sergey Frank, President & CEO of Sovcomflot.   

U.S. EPA : States under no obligation to adhere to Clean Power Plan

Yesterday the U.S. Environmental Protection Agency announced EPA Administrator Scott Pruitt sent letters to state governors advising them that they are under no obligation to adhere to the Clean Power Plan (CPP) rule.

The EPA statement noted Pruitt fulfilled a promise of cooperative federalism. Acting on President Trump’s Energy Independence Executive Order, Environmental Protection Agency States have no obligation to spend resources to comply with a rule that has been stayed by the Supreme Court of the United States.

“The days of coercive federalism are over,” the letter reads.  “Accordingly, I look forward to working with you, your state experts and local communities as we develop a path forward to improve our environment and bolster the economy in a manner that is respectful of and consistent with the rule of law.”

See EPA Administrator Scott Pruitt's March 30, 2017 letter to Kentucky Governor Matt Bevin, providing guidance with respect to implementation of the Clean Power Plan here.  (Link to PDF)

International Gas Union Report: Significant Role of LNG in Marine Transport

The International Gas Union (IGU) has released a new report on the role of liquefied natural gas in enabling cleaner marine transport.

The report highlights the detrimental impact of marine transport on air quality levels, emphasizing the positive role LNG can play in combatting these impacts as an alternative and cleaner fuel for shipping.

The IGU noted the use of LNG in marine transport can deliver significant environmental, economic and social benefits. These include reductions in emissions of harmful pollutants, including up to 90% reductions in sulfur oxide (SOx) emissions, 29% reductions in carbon dioxide (CO) emissions, and 85% reductions in PM levels.

“The case for using LNG fuel for shipping is clear. It will provide significant improvement to our quality of life by dramatically reducing air pollution. It will also support climate change goals by reducing greenhouse gases. We need effective policy change to encourage a switch to LNG,” said David Carroll, President of the IGU. 

To download the full report in PDF format, click here.

International Gas Union Report: Significant Role of LNG Marine TransportSource: IGU LNG Marine Report 




Crowley Launches LNG Powered ConRo Ship at VT Halter Marine

Crowley Maritime Corp. and VT Halter Marine have launched Crowley’s new Commitment Class ship El Coquí. The El Coquí is a combination container/Roll On-Roll Off (ConRo) ship powered by liquefied natural gas.  The launch took place in Pascagoula, Mississippi on March 20th, 2017.

Crowley noted this is the first in a series of milestones expected to be achieved this week as part of Crowley’s $550 million project to expand and modernize the company’s shipping and logistics services between Jacksonville, Florida., and San Juan, Puerto Rico.

El Coquí, named after a beloved frog native to the island, will now proceed through the final topside construction and testing phase before beginning service in the U.S. Jones Act trade during the second half of 2017.

“This was a special day for Crowley, VT Halter Marine and all of the men and women who designed, and who are constructing, this world-class ship,” said Tom Crowley, company chairman and CEO. “We are extremely appreciative of all the work that has been accomplished so far and look forward to the successful delivery of El Coquí later this year and her sister ship, Taíno, in the first half of next year.”  


Hyundai Heavy Industries Group Order for LNG fueled Aframax Tankers

Hyundai Samho Heavy Industries (HSHI), Hyundai Heavy Industries’ shipbuilding affiliate, announced today that it recently won an order to build four 114,000 DWT Ice-Class IA Aframax tankers from Sovcomflot, Russia’s state-owned shipping company.

The LNG-fueled Aframax tankers, measuring 250 meters in length, 44 meters in width and 21 meters in height, are scheduled to be delivered from the third quarter of 2018 and to be chartered to Shell.

By running on LNG, the Ice-Class IA tankers will emit 90% less SOx, 80% less NOx, 15% less CO2 along with 50% reduced engine noise according to HSHI.

An HSHI official said, “We believe the winning of the world’s first LNG-fueled Aframax tankers is the proof of our world’s leading eco-friendly shipbuilding technology. As the demand for eco-ships increases with tightening environmental regulations, we will further accelerate our efforts to win eco-ship orders.”

Hyundai LNG ship tanker

UPS New Investment in Natural Gas Vehicles and Infrastructure

UPS today announced plans to build an additional six compressed natural gas fueling stations and add 390 new CNG tractors and terminal trucks and 50 LNG vehicles to its alternative fuel and advanced technology fleet.  UPS stated this new investment will total more than $90 million in natural gas vehicles and infrastructure.

“With more than 4,400 natural gas vehicles and a network of fueling stations, UPS has had great results using natural gas as an alternative fuel in our fleet,” said Mark Wallace, UPS senior vice president global engineering and sustainability. “We know the importance of investing in natural gas globally for our fleet and the alternative fuel market. In 2016, we used more than 61 million gallons of natural gas in our ground fleet, which included 4.6 million gallons of renewable natural gas.”

UPS purchased 50 additional LNG vehicles that were deployed in Indianapolis, IN, Chicago, IL, Earth City, MO and Nashville, TN where UPS has existing LNG stations.

The six new CNG stations will be built in Ontario, Calif.; Orlando, Fla.; Salina, Kan.; Louisville, Ky.; Greensboro, N.C; and Vancouver, B.C. Renewable natural gas (RNG) will be used at the station in Ontario to fuel UPS vehicles in the area with renewable compressed natural gas (RCNG).


LNG tractor trailer in Ontario, California 

Above Image Source: UPS

ABS issues Approval in Principle for LNG-fueled design concept

Last week ABS granted approval in principle for the Seatransporter-DF, a dual-fuel design concept developed by Algoship Designers Ltd. of Nassau, Bahamas. The design has the capability to accommodate multiple engine types as well as Type-C or membrane containment systems for LNG fuel.

“Technically innovative designs that advance the use of LNG as fuel will play an increasingly important role in the marine sector, and ABS is working alongside industry to enable this critical technological advancement,” says ABS Executive Vice President for Global Marine Dr. Kirsi Tikka. “As industry considers future fuel strategies, design concepts that promote the use of LNG as fuel will play an increasingly important role in that mix.”

Algoship is applying the same design philosophy to Panamax, Ultramax and Kamsarmax sized carriers and has determined that the dual fuel technology is also applicable to other vessel types.

“ABS contributed to this effort as a trusted advisor, engaging early in the process to apply its rigorous engineering and safety standards and verify the feasibility of the design,” said Algoship Designers Ltd President Antony Prince. “By working with ABS through its AIP process, we’ve been able to demonstrate that the Seatransporter was developed with a focus on safety and reliability and will be able to satisfy flag and port state requirements.” 

abs Seatransporter

Image Source: ABS

LNGgc Americas May 31st, 2017 Houston

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Hitachi High-Tech AW Cryo, Inc. LNG Transport Tanks

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