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LNG For Fuel

Shell, Harvey Gulf Partner on LNG Powered Offshore Supply Vessel

Shell announced yesterday working with Harvey Gulf International they have put in service an LNG powered offshore supply vessel which will bring supplies to many of Shell’s Gulf of Mexico assets, such as the new Olympus platform.

The vessel, chartered from Harvey Gulf International Marine, will run on both Liquefied Natural Gas and diesel. Shell stated two more LNG fuelled vessels are expected to follow.

shell harvey marine LNG  

Above: The ‘Harvey Energy’ is 302 foot long and operates on three dual-fuel Wärtsilä engines. It will run on 99% LNG fuel and will be able to operate for around seven days before refueling. It will load from Harvey Gulf’s new LNG bunkering facility at their terminal at Port Fourchon. Port Fourchon is Louisiana’s southernmost port, with more than 600 oil and gas drilling rigs and platforms located within a 40-mile radius. From there the ‘Harvey Energy’ will go to Shell’s platforms, such as the new Olympus production platform, bringing equipment and drilling fluids. Image: Shell 

shell harvey marine LNG

Above: Marlon Reyes Granados, Business Development Advisor Downstream LNG, Shell, Chad Verret, Executive Vice President Alaska and LNG Operations, Harvey Gulf, Christian Buelow, General Manager Downstream LNG Americas, Shell, Christopher Hogan, Business Development Advisor Downstream LNG, Shell Image: Shell

“Shell is delighted to be the customer of this innovative vessel,” said John Hollowell, Executive Vice President, Deep Water, Shell Upstream Americas. “It is a pleasure to partner with Harvey Gulf on this pioneering project. Shell’s investment underlines our confidence in LNG becoming a bigger part of the global fuel mix.”

shell harvey marine LNG

Above: Christian Buelow, General Manager Downstream LNG Americas, Shell, Chad Verret, Executive Vice President Alaska and LNG Operations, Harvey Gulf Image: Shell

Christian Buelow, General Manager Downstream LNG Americas, added, “I’m pleased to see this first-of-its-kind vessel operating in North America. Shell continues to look in to the commercial opportunity of supplying LNG fuel to customers in the region – both marine and road transport customers.”

Harvey Gulf International Marine’s CEO and Chairman, Shane Guidry, noted, “Harvey Gulf is excited to share these historical maritime events with Shell, The ‘Harvey Energy’ and her sister ships exemplify Harvey Gulf’s commitment to Shell and our customers to bring the best available environmentally friendly technology to the market. We understand the environmental regulatory issues facing our customers and this new build program’s focus has been to work closely with them to address and mitigate these issues.”

Pennsylvania Governor Wolf Reverses Tax Increase on LNG for Fuel

The Pennsylvania Department of Revenue announced yesterday that Governor Wolf has reversed a decision made in late 2014 that increased state tax on LNG.

"One of my goals is to promote and develop a comprehensive energy portfolio for Pennsylvania that supports clean energy alternatives to imported petroleum," said Wolf.  "Liquefied natural gas is not only a cleaner alternative to diesel, generating lower pollutant emissions when used to fuel vehicles, but it's also produced here in Pennsylvania from abundant natural gas reserves.

The Pennsylvania Department of Revenue noted LNG in the state is defined as an alternative fuel that should be taxed based on its energy potential as compared to gasoline, and the Department of Revenue has historically taxed LNG using a cents-per-gallon basis indexed to gasoline. The policy shift late last year, which followed a Department of Energy change in how LNG is measured at the federal level, applied the higher diesel tax to LNG, effectively increasing the state tax on LNG by 4.3 cents per gallon.

For 2015, a gallon of gasoline is subject to state tax of 50.5 cents, while diesel is taxed at 64.2 cents per gallon.

The reversal of the tax change for LNG will be effective retroactively to January 1, 2015, the date the increase took effect.  As required by law, the new rate of 33.5 cents per gallon equivalent of LNG will be reflected in the March 13 edition of the Pennsylvania Bulletin.

"Given the immediate environmental benefits of fueling trucks with LNG and the future economic gains that will come from further development of the alternative fuels industry in Pennsylvania, it makes no sense to discourage LNG consumption by taxing it at a higher rate." added Wolf. 

Anthony Veder’s carrier Coral Anthelia retrofitted with a dual-fuel engine

Anthony Veder announced today their 6,500 cbm LPG/LEG/LNG carrier Coral Anthelia has been retrofitted with a dual-fuel engine that enables it to run on boil-off gas when transporting LNG. Having successfully completed its sea trials, the vessel operates in the North Sea and Baltic Sea and regularly loads LNG at the Rotterdam Gate Terminal.

“This great result was achieved by committed partners working effectively together in a trusting and safe way. Not only was this project completed ahead of time and within budget, it was also executed without any safety incidents. This breakthrough innovation in the use of LNG for short sea shipping shows that retrofitting a tanker to run on LNG is both technically and financially viable”, says Anthony Veder CEO Jan Valkier.

The vessel was delivered to Anthony Veder in 2013 with a conventional six-cylinder MaK M43C diesel engine. With the vessel’s design already optimized for ethylene trading, a new target was set: consumption of the boil-off gas as fuel when carrying LNG and without completely replacing the one-and-a-half year old engine. The solution was found by retrofitting the engine to make it a MaK M46 dual-fuel engine.

The overall planning and operation was performed by Anthony Veder in close cooperation with partners from Damen Shiprepair Rotterdam (Van Brink shipyard), Bolier (MaK dealer), Croon Elektrotechniek (electrical contractor), Leemberg (piping contractor) and Eekels (ship automation contractor). Despite the complexity, the team managed to execute the works in less than five weeks according to Anthony Veder. 

anthony veder

Stabilis Energy Opens Liquefaction Facility in George West, Texas

Stabilis Energy announced today the opening of its LNG production facility in George West, Texas. Stabilis Energy noted in a statement the 100,000 LNG gallon per day facility is strategically located in the heart of the Eagle Ford Shale to provide fuel for high horsepower engines used in the oilfield, as well as transportation, mining, rail, marine, asphalt and other industrial sectors.

The Stabilis George West facility is a dedicated LNG production facility that is open for business 24 hours per day and 365 days per year. LNG fuel can be sold either wholesale at the plant tailgate or retail through Stabilis' delivery service. The facility features two truck loading racks that can load two transport trailers simultaneously in less than an hour. Certified scales are provided at the truck racks. The facility has approximately 270,000 gallons of storage capacity.

"Stabilis is proud to announce the opening of our George West LNG liquefaction facility for commercial production," said Casey Crenshaw, CEO of Stabilis Energy. "We offer a reliable source of LNG fuel for customers in the Eagle Ford shale and throughout Texas. Despite recent declines in oil prices, Stabilis can provide LNG fuel that is cost competitive with diesel."

Applied LNG Names Kishore Duwadi Vice President of Engineering

Applied LNG announced today the promotion of Kishore Duwadi to Vice President of Engineering. Applied LNG noted in a statement Mr. Duwadi has been responsible for the growth of the engineering team, updating the company's first liquefier, and directing the successful build-out of the company's second liquefier in Topock, Arizona. He is currently overseeing the construction of the company's LNG production facility in Midlothian, Texas.

President and CEO Cem Hacioglu said, "Kishore has been and continues to be essential in the execution of Applied LNG's growth strategy of building additional production capacity in both existing and new markets. Our Topock expansion in 2014 was completed both on time and under budget under his direction. I am proud to name Kishore as Vice President of Engineering."

Prior to joining Applied LNG, Mr. Duwadi worked for Prometheus Energy, where he held the position of Senior Controls Engineer. Before Prometheus, he was the Director of Storage and Senior Engineer for Northwest Natural Gas. He has been an active part of the oil and gas industry since 1989, and is a registered Professional Engineer in California, Texas and Arizona. Mr. Duwadi is a graduate of Oregon Institute of Technology.

Eniram releasing Onboard and Onshore Boil Off Management Tool designed for LNG carriers

Eniram Limited, a Finnish provider of energy management technology and data analytic services to the shipping industry, today announced that they are releasing their Onboard and Onshore “Boil Off Management Tool” designed for LNG carriers.

Eniram stated it is the first company in the world to quantify and provide a Boil-off Management Tool for the actual measured boil-off, based upon real onboard data.

According to Eniram the Boil-off Management Tool enables both officers onboard, and officers onshore to understand and monitor the actual boil-off for LNG carriers.

“We are delighted to be able to help our LNG customers further with our latest addition to the Eniram LNG portfolio. We have worked hard to build a strong portfolio of products to help our LNG customers. The addition of Boil-off Management is a natural evolution as a key component in helping our LNG customers to operate as efficiently as possible.” Director of LNG & Tankers at Eniram Nick Pinkney commented.

AS Tallink Grupp and Meyer Turku Oy contract for LNG powered fast ferry

AS Tallink Grupp announced today the company has signed a contract with Meyer Turku Oy for the construction of a LNG powered fast ferry for Tallinn-Helsinki route shuttle operations. The dual fuel ship will be about 212 meters in length with a passenger capacity of 2800. The fast ferry will cost around 230 million euros and will be built at Meyer Turku shipyard for delivery in the beginning of 2017. The project will provide approximately 2000 man-years employment for the shipyard according to a AS Tallink Grupp statement.

The ship will use LNG as fuel and will comply with the new and stricter emission regulations for the ECA areas including the Baltic Sea. The ship, with a gross tonnage of 49 000 and service speed of 27 knots, will bring significant improvement in energy efficiency according to AS Tallink Grupp.  AS Tallink Grupp noted the highly innovative hull form minimizes the flow resistance and ensures that the ship operates well in ice conditions. Efficient and fast cargo turnaround in ports has been taken into account in the design of the new generation fast ferry.  

"Meyer Turku is very happy to continue the long and good tradition to build ferries for Tallink and with our new and advanced LNG propulsion plant we are lifting this partnership to the next technological level. With this contract we increase our output by 30% in 2016, which is good news for the shipyard and its suppliers and the entire region. It furthermore allows us to implement our strategy to further strengthen our capabilities by making the necessary recruits and by improving design and building methods", says Jan Meyer, CEO of Meyer Turku Oy.

AS Tallink Grupp is a passenger and cargo transportation service provider in the Northern region of the Baltic Sea. The company owns altogether 18 vessels and operates under the brands of Tallink and SIlja Line on 6 different routes.  

Meyer Turku Oy is a European shipbuilding company owned by Meyer Werft (70 %) and Finnish State through Teollisuussijoitus (30%). The company's shipyard in Turku employs 1,350 people and specializes in building cruise ships, car-passenger ferries and special vessels. 

AS Tallink Grupp and Meyer Turku Oy contract for LNG powered fast ferry

Davie LNG Powered Ferry Keel Laying Ceremony

Canadian shipbuilder Davie announced yesterday a keel laying ceremony was held for MV Armand-Imbeau II. The ceremony marked the beginning of the hull assembly for this first of two sister-ships under construction at Davie for the Société des traversiers du Québec.

The two LNG fueled ferries will be used for the Tadoussac‒Baie-Sainte-Catherine route are built for year-round navigation on the Saguenay Fjord. Measuring 92 meters long, each ship will include eight rows on two decks, enabling the transport of up to 110 vehicles, including tractor-trailers. The MV Armand-Imbeau II is scheduled to be delivered in Fall 2015 followed by the MV Jos-Deschênes II, four months later.

Mr. Alan Bowen, Davie’s chief executive officer, said, “We are very proud of the progress made. It is Davie’s ability to constantly deliver on time and to budget that lead to Davie being voted as North America’s number one shipyard at the Lloyd’s List North American Maritime Awards 2015, last week in Houston. Ferry construction is and has always been core business for Davie. The STQ ferries incorporate many of the technologies in which we specialize for example LNG propulsion, electrical thruster systems and high ice-class hulls.”

davie ceremonies LNG

Above: Keel Laying Ceremony: Mr. Jocelyn Fortier, Chairman and Chief Executive Officer of the Société des traversiers du Québec placing the $1 under the keel of the NM Armand-Imbeau II as Mr Alan Bowen, Chief Executive Officer and Mr. Jean D’Amour, Minister for Transport and the Implementation of the Maritime Strategy look on. 

WesPac and affiliate Clean Marine Energy to build dedicated LNG bunker barge

WesPac Midstream and its affiliate Clean Marine Energy announced today a construction contract with Conrad Orange Shipyard to build a dedicated LNG bunker barge for the marine market in North America. According to WesPac the barge will be a critical supply chain component in ongoing efforts around the world to reduce the environmental impact of maritime activity through the conversion of ships to LNG.

According to WesPac the first 2,200 cubic meter barge is expected to be delivered in early 2016 and planned to initially be deployed in Tacoma, Washington, to service ship owner Totem Ocean Trailer Express’s “Orca class” RO/RO vessels, in addition to other LNG-powered vessels. Later the barge will be relocated to Jacksonville, Florida to serve TOTE’s newbuild “Marlin class” container vessels and other LNG-powered vessels in the Port of Jacksonville.

Wespac noted in a statement the LNG barge will feature one tank equipped with MARK III Flex cargo containment technology, from the French engineering and technology company GTT to be constructed by Conrad Orange Shipyard under GTT license. Bristol Harbor Group, Inc. will be responsible for the vessel’s design, with the American Bureau for Shipping acting as the classification society.

Pace Ralli, CEO and Co-Founder of CME, commented: “A comprehensive LNG supply and distribution network for the marine market in North America is critical for the shipping industry. Today’s announcement shows that WesPac/CME is taking the necessary steps to complete the LNG supply chain so ship owners can be assured LNG will be available when and where it is needed.”

wespac barge LNG

Hyundai Heavy Industries Develops Gas Management System for Fuelling LNG Carriers

Hyundai Heavy Industries Co. announced yesterday that it has developed a gas management system for re-liquefying boil off gas from LNG containment tanks.

The newly developed gas treatment system is composed of an ME-GI engine, a BOG high-pressure compressor, a BOG re-liquefaction system, a LNG fuel gas supply system (FGSS) and Hyundai integrated gas supply system (Hi-GAS).  The system can re-liquefy 100 percent of the BOG and re-store it in an LNG tank which can later be used as the ship’s fuel.   Hyundai Heavy Industries pointed out in a statement conventional systems can only re-liquefy BOG partially.

Hyundai Heavy Industries noted with the alternative fuel consumption, the LNG carrier equipped with this system can save up to 50 percent of the fuel cost in comparison with the standard vessel using heavy fuel oil (HFO) or marine gas oil (MGO), and produce 92, 80 and 23 percent less emissions of SOx, NOx and CO2, respectively.

Equipped with this new gas treatment system, the two 176,000 m³ LNG carriers Hyundai Heavy Industries is building for Knutsen, Norway are scheduled to be delivered in 2016. 

HHI Gas Management System

Image Source: Hyundai Heavy Industries 

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