Excelerate Energy to provide FLNG for Ophir project in Equatorial Guinea

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Published on Thursday, 06 November 2014 06:59

Ophir Energy has announced that Excelerate Energy will provide the Floating Liquefaction and Storage facilities at Ophir’s FLNG project in Block R, Equatorial Guinea. Ophir noted Excelerate will be appointed as the lead in a consortium of technology providers that is expected to include Samsung Heavy Industries and Black & Veatch. Negotiations regarding a detailed Memorandum of Understanding have concluded and will be signed today between the EquatoGuinean Ministry of Mines, Industry and Energy, GEPetrol, Ophir and Excelerate. This Memorandum of Understanding will fully align the parties ahead of a full FEED contract later this year according to Ophir. The Upstream and Midstream FEED contracts will start in early 2015 and late 2014, respectively. FID is expected in 2016 and first gas in 2019.

Ophir Energy CEO Nick Cooper said, “I’m delighted to announce the appointment of the Excelerate consortium as our midstream partners for the Block R FLNG Project. The recent newsflow on the EG FLNG Project demonstrates its commercial viability and moves it further up the value curve ahead of a planned farm down in 2015. The selection of Excelerate and partners follows a comprehensive evaluation process. The Excelerate consortium has deep sector expertise and a leading position in marine based LNG applications. Ophir looks forward to working with Excelerate and our partners in Equatorial Guinea to deliver Africa’s first newbuild, open seas FLNG project.”

Ichthys LNG Project offshore installation

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Published on Wednesday, 05 November 2014 06:10

The INPEX-operated Ichthys LNG Project has successfully installed its Riser Support Structure (RSS) tower at the Ichthys Field.  The installation of the 6,500 tonne structure by the deepwater construction vessel Aegir marks the beginning of the Project’s major installation campaign in the Browse Basin, offshore Western Australia.

Ichthys LNG Project Managing Director Louis Bon said the RSS is the largest subsea structure ever laid on the seabed. “The Riser Support Structure is the masterpiece of the Project’s subsea facilities,”

The completed RSS will be a physical, fixed support for flexible risers and dynamic umbilicals that connect subsea gathering systems to the Project’s semi-submersible central processing facility (CPF), currently under construction in Korea.

Ichthys LNG Project Offshore Director Claude Cahuzac said it was an exciting time for the Project as facilities and structures started to move from construction yards around the world to the Ichthys Field.

The Aegir arrived at the Ichthys Field in mid-October to begin the pipe lay campaign and to perform the RSS installation. The overall offshore installation campaign is planned to be a continuous 12-month program of work.

The Ichthys LNG Project is a Joint Venture between INPEX group companies, major partner Total and the Australian subsidiaries of Tokyo Gas, Osaka Gas, Chubu Electric Power and Toho Gas. Gas from the Ichthys Field, in the Browse Basin offshore Western Australia, will undergo preliminary processing. The gas will then be exported to the onshore processing facilities in Darwin via an 889 km pipeline.

The Ichthys LNG Project is expected to produce 8.4 million tonnes of LNG and 1.6 million tonnes of LPG per annum, along with approximately 100,000 barrels of condensate per day at peak. 

Rolls-Royce To Supply Turbines for proposed Lake Charles LNG Export Project in Louisiana

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Published on Friday, 31 October 2014 08:51

Rolls-Royce has announce that BG Group has selected the Trent 60 DLE industrial gas turbine as the driver for the main refrigeration compressors in the proposed Lake Charles LNG Export project in Louisiana.

BG Group and Rolls-Royce have also agreed the terms of a Long Term Service Agreement covering the support and maintenance of the equipment for up to 25 years. According to a Rolls-Royce statement each of the three LNG trains will utilize four Trent 60 DLE gas turbines as part of the Air Products C3MR refrigeration process. Each train will employ two Trent 60 DLE gas turbines driving propane compressors and two Trent 60 DLE gas turbines driving mixed refrigerant compressors for a total of twelve Trent 60 DLE gas turbines in the plant.

Andrew Heath, President of Rolls-Royce Energy, said: "We're delighted with BG Group's vote of confidence in the Trent 60 DLE. We believe our aero-derivative technology will become the leader in the LNG sector, due to its superior economics. We are looking forward to a long and productive relationship with BG."

Pieridae Energy Needs U.S. Gas for Goldboro LNG Project in Nova Scotia, Canada

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Published on Thursday, 30 October 2014 08:53

Pieridae Energy in its capacity as the general partner of Goldboro LNG Limited Partnership has requested from the U.S. DOE Office of Fossil Energy long-term, multi-contract authorization for Pieridae US to engage in exports of up to 292 billion cubic feet of natural gas per year from the United States to Canada.

The gas would be used as feedstock in the planned Canadian natural gas liquefaction facility (Goldboro LNG), where the LNG produced from the feedstock would be exported from Canada to one or more countries which are U.S. Free Trade Agreement countries as well as U.S. Non-FTA Countries.

The Goldboro LNG facility will be located at the Goldboro Industrial Park in Guysborough County, Nova Scotia, Canada. 

Freeport LNG Executes Agreements For Debt Financing Of First Natural Gas Liquefaction Train

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Published on Thursday, 30 October 2014 08:13

Freeport LNG announced yesterday that its subsidiary, FLNG Liquefaction, LLC, has entered into definitive agreements for the debt financing of approximately $3.85 billion of capital required for the development of Freeport LNG's first train facility at its proposed natural gas liquefaction and LNG loading facility on Quintana Island near Freeport, Texas.

The Train One debt financing is being provided by Japan Bank for International Cooperation (JBIC) and the following six commercial banks: The Bank of Tokyo-Mitsubishi UFJ, Ltd., Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., Sumitomo Mitsui Trust Bank, Limited, Mitsubishi UFJ Trust and Banking Corporation, and ING Bank N.V., Tokyo Branch. The portion of the loans financed by the commercial banks is insured by Nippon Export and Investment Insurance. Pursuant to their previously announced agreement Osaka Gas and Chubu Electric are investing approximately $1.2 billion for the development of Train One.

"We are excited to announce our partnership with Japanese governmental institutions to support the financing needs of the Freeport LNG liquefaction facility and to become a key contributor to the long-term diversification and security of energy supplies to Japanese utilities," said Michael S. Smith, Chief Executive Officer, Freeport LNG. "We look forward to commencing construction of the initial two trains of the liquefaction project in the coming weeks and beginning commercial exports in 2018."

Construction Starts at Cove Point LNG Export Project in Maryland

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Published on Thursday, 30 October 2014 06:50

Dominion announced it has begun construction-related activities for the Cove Point LNG Export project.  The Cove Point LNG Export project is estimated to cost between $3.4 billion and $3.8 billion. The proposed export facility will be within the 131-acre footprint of the existing LNG terminal site. No new pipelines or storage tanks are needed at the facility. It is targeted to begin operations in late 2017. IHI/Kiewit Cove Point, a joint venture between IHI E&C International Corporation of Houston and Kiewit Corporation of Omaha, Neb., is the engineering, procurement and construction contractor for the new liquefaction facilities.

"This is a historic event for Dominion, Maryland and the nation," said Diane Leopold, president of the company's Dominion Energy business unit. "The Cove Point LNG export project will help meet the world's need to move toward cleaner fuels. At the same time, it will provide significant economic benefits in terms of thousands of construction jobs, hundreds of millions of dollars in new tax revenues over the life of the facility, and an outlet for some of the nation's surplus natural gas supplies."

Leopold noted that the project underwent a comprehensive three-year regulatory review and approval process designed to ensure the project meets all safety, environmental and other requirements. Numerous federal, state and local agencies as well as thousands of private citizens participated in the process. More than 60 approvals and permits were required before construction could begin.

Dominion has fully subscribed the marketed capacity of the project with 20-year service agreements with ST Cove Point, LLC, a joint venture of Sumitomo Corporation, a Japanese corporation that is one of the world's leading trading companies, and Tokyo Gas Co., Ltd., a Japanese corporation that is the largest natural gas utility in Japan; and GAIL Global (USA) LNG LLC, a wholly owned indirect U.S. subsidiary of GAIL (India) Limited, one of the largest natural gas processing and distributing companies in India.

Air Products to Work with Technip on Inner Mongolia LNG Project

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Published on Monday, 27 October 2014 08:03

Air Products announced today it has signed an agreement to supply LNG process technology and equipment to Technip for a mid-scale LNG project in Fengzhen City, Inner Mongolia Province, China. A liquefaction train producing approximately 300,000 tons per year of LNG for Fengzhen Wanjie Gas Co. Ltd is planned.  The LNG facility is targeting production for the second half of 2016.

Under the agreement Air Products' single mixed refrigerant process technology, as well as the engineering, design and manufacturing of the heat exchanger equipment for the liquefaction section, will be supplied for the LNG plant.  The liquefaction process at this site will use Air Products' proprietary coil wound main cryogenic heat exchanger technology. The LNG produced will be distributed to the Chinese market to help meet the growing demand for clean energy.

Cameron LNG Export Project Breaks Ground In Louisiana

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Published on Thursday, 23 October 2014 13:16

More than 300 community, business, government and international leaders today took part in a groundbreaking ceremony for the new $10 billion liquefaction export facilities at Cameron LNG in Hackberry, Louisiana. The LNG export project is being developed by a joint venture formed by Sempra LNG, GDF SUEZ S.A., Mitsui & Co., Ltd. and Mitsubishi Corporation. Cameron LNG was competed in 2009 as a LNG receiving terminal along the Calcasieu Channel. The project will use Cameron LNG’s existing facilities, including two marine berths capable of accommodating Q-Flex sized LNG carriers. 

"Today is a special day for all of us at Cameron LNG," said Farhad Ahrabi, CEO of Cameron LNG. "We are proud to kick off construction alongside elected leaders from Louisiana, community members who have supported this project since day one, our Cameron LNG partners and our dedicated employees that have helped make this project a reality. We look forward to 2018 when the first LNG cargo is loaded and on its way to global markets."

The liquefaction project will have three trains with an export capability of 12 million tonnes per annum of LNG or approximately 1.7 billion cubic feet per day.  All three trains are expected to begin operations during 2018, with the first full year of operations in 2019. The Cameron LNG liquefaction project received final approval to operate by the Federal Energy Regulatory Commission in June 2014.  In September the project received the U.S. Department of Energy's final authorization to export LNG to non-free-trade-agreement countries.

Community, business and international leaders, along with several federal, state and local elected officials, today took part in a groundbreaking ceremony for the new $10 billion liquefaction export facilities at Cameron LNG in Hackberry, La.

Sabine Pass Liquefaction Project Progress Report for September 2014

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Published on Tuesday, 21 October 2014 15:22

Overall, Train 1 and 2 project progress is 75.6% complete against a plan of 76.1%. Overall Train 3 and 4 project progress is 42.8% complete against a plan of 42.6%.

On October 21st, 2014 Cheniere Energy submitted a monthly construction progress report to the Federal Energy Regulatory Commission for the Sabine Pass Liquefaction Project in Cameron Parish, Louisiana. The report covered activities for the Sabine Pass Liquefaction Project Stage 1 (Trains 1 and 2) and Stage 2 (Trains 3 and 4) occurring during the month of September 2014.

The report noted that stage 1 engineering is 99.9% complete, procurement is 99.9%, and subcontract and direct hire construction work are 50.9% and 44.5% complete, respectively. Stage 1 overall project completion is 75.6% against the plan of 76.1%.

Stage 2 engineering is now 88.3% complete, procurement is 63%, and subcontract and direct hire construction work are 26.8% and 8.5% complete, respectively. Overall project completion for Stage 2 is 42.8% against the plan of 42.6%.

Actual project progress continues to support the achievement of the scheduled substantial completion dates for Trains 1 and 2, which remain as February 2016 and June 2016, respectively. Trains 3 and 4 substantial completion dates are April 2017 and August 2017.

Photos from the FERC Project Report: 

Above: Train 1 Installing Plumes for Propane Subcoolers

Above: Train 1 Installing Pipe

Above: Train 2 Set LS Propane-Ethylene Condensate Feed Chiller

Above: Train 3 Installing Propane Coolers

Project Highligts from the FERC Report:

Stage 1 Engineering continued in punch list mode and Stage 2 Engineering issued first loop check drawings.

Multiple columns and vessels arrived at site for Trains 3 and 4, while Trains 3 and 4 also received deliveries for propane condensers, pentane heaters and shell and tube heat exchangers. Procurement continued to support construction activities at the jobsite through delivery of piping and structural items.

During the month of September, Subcontracts managed the following major subcontracts for Trains 1 and 2: storm water ditch work, field erected tanks, onsite concrete batch plant, offsite and onsite equipment insulation, permanent telecommunications, fire and gas detection, and the supervision of refrigeration compressors installation. For Trains 3 and 4, Subcontracts managed the efforts for field erected tanks, busing, the onsite concrete batch plant, permanent telecommunications, NDE, and fire and gas detection. The equipment insulation subcontract was awarded. Bids were received for the electric heat tracing and heavy haul subcontracts.

Construction in Train 1 continued to work on structural and paving concrete, structural steel erection, installation of underground and aboveground piping, testing of aboveground pipe, installation of electrical grounding, cable tray, lighting, control cable, and mechanical equipment. Train 2 continued to work on structural and paving concrete, structural steel erection, electrical grounding, installation of underground and aboveground pipe, control cable, and cable tray installation and mechanical equipment. Construction in the Stage 1 OSBL area continued to work on structural and paving concrete, including LNG swales and trench, structural steel erection, electrical grounding, installation of underground and aboveground pipe, testing of aboveground pipe, cable tray installation, and mechanical equipment installation. In the Revamp area, work commenced on tie-ins of aboveground piping and electrical, including installation of remaining electrical conduit, cable, and trays.

Construction in Train 3 continued to work on structural concrete and paving concrete, installation of underground piping, erection of structural steel, installation of aboveground piping and installation of mechanical equipment. Construction in Train 4 continued to work on structural and paving concrete, installation of underground piping, and erection of structural steel. Construction in the Stage 2 OSBL continued with the placement of structural concrete, fabrication and installation of underground piping, erection of structural steel, and installation of mechanical equipment. Installation of Revamp area rack piping continued.

Freeport LNG and Port Freeport project designed to widen the harbor channel

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Published on Tuesday, 21 October 2014 07:50

Freeport LNG and Port Freeport announced today the beginning of work on a project designed to widen the Port Freeport harbor channel.

In August of this year Freeport LNG, as project manager for Port Freeport's channel-widening project, entered into an agreement with Great Lakes Dredge & Dock Company, LLC, to widen the entrance and jetty sections of the Port Freeport ship channel from the existing 400 feet width to 600 feet. The channel's reach extends from the port's sea buoy to the U.S. Coast Guard station in Surfside for an approximate distance of 6.1 miles. The work is scheduled to be completed in May 2015.

Freeport LNG noted widening the channel entails removing approximately 3.2 million cubic yards of material, approximately 300,000 cubic yards of which is beach-quality sand. This beach-quality sand will be used for beach nourishment and placed on sections of the beach on Quintana Island.

"We are appreciative of the close collaboration among Port Freeport, the Brazos Pilots and Freeport LNG over the past few years to advance this project through all of the necessary approvals and we are pleased to be acting as project manager on behalf of Port Freeport," said Mark Mallett, Senior VP, Operations and Projects, Freeport LNG. "Widening the Port Freeport ship channel will not only benefit the entire region but is another important piece of the puzzle for Freeport LNG's overall expansion plans in Brazoria County."

Wilhelmsen Technical Solutions LNG carrier Boil Off Rate Trial Results

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Published on Monday, 20 October 2014 07:34

Wilhelmsen Technical Solutions announced today their subsidiary Ti Group has successfully passed the gas trial for the first ever 0.08% Boil Off Rate on a LNG carrier according to a Wilhelmsen Technical Solutions statement.  Wilhelmsen Technical Solutions noted the milestone was passed by successfully completing the gas trial for the first LNG carrier built to a Boil Off Rate of 0.08% per day. Ti Group completed the test on the LNG carrier Seishu Maru, currently under construction at Mitsubishi Heavy Industries in Japan for NYK Line.

The ship passed its gas trial and was delivered to the owner in late September 2014. Ti Group Managing Director Anstein Sorensen noted the ship’s insulation system received no specific comments during the trial, indicating a very satisfactory performance.

“The gas trial is one of the critical tests to pass before the ship can be handed over to owner because it proves that the vessel’s containment system, including the insulation, is working correctly,” said Sorensen. “Passing the test at a BOR of just 0.08% is a milestone for the project and sets a standard that reflects our knowledge and expertise in this area.”

Veresen Announces Appointment of President and CEO of Jordan Cove LNG

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Published on Friday, 17 October 2014 07:50

Veresen Inc. announced today that Elizabeth (Betsy) Spomer has been appointed President and Chief Executive Officer of Jordan Cove LNG LLC and Executive Vice President of Veresen. The Jordan Cove Energy Project is a proposed LNG export terminal and storage facility to be located on the bay side of the North Spit of Coos Bay, Oregon.

Prior to joining Jordan Cove LNG, Spomer was Senior Vice President, Global Business Development with BG Group PLC.  Ms. Spomer has also held senior leadership positions with BP and Amoco.  She has been involved in LNG projects worldwide including Australia, South China, Louisiana, Trinidad and Prince Rupert.

"This is an exciting time for Veresen and I'm delighted that Betsy has joined our organization to lead Jordan Cove LNG and serve on Veresen's executive leadership team," said Don Althoff, President and CEO of Veresen. "Our ability to attract an executive of Betsy's caliber to lead our LNG project is further affirmation of our growing confidence to successfully execute this exciting growth opportunity. I look forward to Betsy's contributions as we continue to deliver on our key project milestones."

With a final investment decision for Jordan Cove LNG expected in 2015, Veresen noted it plans to augment its LNG team, adding key individuals who will be required through the construction and operating phases of the project.

Veresen is a publicly-traded dividend paying corporation based in Calgary, Alberta, that owns and operates energy infrastructure assets across North America. 

EDF Trading Appoints Christopher McKey as Head of Business Development, North America

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Published on Tuesday, 14 October 2014 06:03

EDF Trading has announced the appointment of Christopher McKey as Head of Business Development, North America.  McKey started on Monday October 13th, 2014 and reports to Philipp Büssenschütt, Chief Commercial Officer, Origination and Business Development. 

McKey joins from Goldman Sachs where he has spent the past 10 years operating at a senior level in the firm’s Commodity division in Europe and Asia.  Most recently he was Managing Director and Co-Head of Asia Corporate Sales based in Singapore.

McKey will focus on identifying and structuring larger and longer term transactions in the energy trading space including but not limited to LPG, LNG, natural gas and electricity.

“Christopher has worked in the energy sector in the US, Europe and Asia and is ideally placed to develop EDF Trading’s footprint across North America as well as to originate commodity positions that link the North American energy market to the rest of the world.  To this end, while Christopher will work mainly with our Houston office, he will have close contact with EDFT’s offices in Singapore, and London”, said Philipp Büssenschütt.

Santos GLNG project has fed natural gas into its 420-kilometre gas transmission pipeline

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Published on Monday, 13 October 2014 17:27

Santos has announced the Santos GLNG project has fed natural gas into its 420-kilometre gas transmission pipeline for the first time via its primary compressor station in the Fairview field in south-west Queensland, Australia.

Santos Vice President Downstream GLNG Rod Duke said he was pleased to take another important step towards Santos GLNG’s first shipment of LNG from Gladstone Harbor next year. “Commissioning of our pipeline is an important milestone, not only for our business, but the Queensland LNG industry as a whole,” Mr Duke said. Once fully commissioned and in operation, the pipeline will transport up to 40 million cubic meters of natural gas each day from Santos GLNG’s gas fields to its gas liquefaction plant on Curtis Island, off Gladstone, Australia.

Mr Duke said work in Santos GLNG’s gas fields across the Bowen and Surat Basins and construction of the LNG plant at Curtis Island were also progressing strongly towards first LNG in 2015.

The pipeline will now be progressively filled with gas, section by section, with first gas into the Santos GLNG plant scheduled for later this year. Saipem Australia constructed the pipeline for Santos GLNG.

NextDecade Formation of Strategic Partnership to Jointly Develop LNG Export Projects

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Published on Monday, 13 October 2014 08:03

NextDecade LLC announced today an investment byYork Capital Management Global Advisors, LLC in NextDecade and the formation of a strategic partnership for the joint development of a portfolio of LNG export projects. Through this agreement, NextDecade will initially focus on developing low-cost, mid-scale LNG export projects in Brownsville and Galveston, Texas according to a NextDecade statement.

NextDecade and York plan to work together to conduct additional Front-End Engineering and Design analysis in order to pre-file applications with the U.S. Federal Energy Regulatory Committee to permit, site, construct and operate LNG export terminals in Brownsville and Galveston within the first quarter of 2015.

Kathleen Eisbrenner, CEO of NextDecade said, "We are excited to announce York's investment in, and partnership with NextDecade. York has extensive experience investing across the LNG value chain and provides strong backing to support financing for the advancement of NextDecade's LNG export projects. We look forward to working closely with the cities of Brownsville and Galveston to maximize the economic impact of these projects for the local communities. Based on extensive development work already completed, and the use of safe, reliable and proven LNG liquefaction technology, while working with strong industrial partners, we are confident we can achieve a Final Investment Decision in a timely and cost effective manner."