Featured in this LNG Shipping & Terminal round-up, is news on terminal and FSRU developments, LNG as a marine fuel, sales agreements and corporate news
Terminal news
The Elbehafen LNG Import Terminal project, located at the port of Brunsbüttel near Hamburg, took a significant step towards securing Germany’s energy future using two floating LNG tankers commissioned by German utility RWE.
EnerMech and its alliance partner, Offshore Technical Services, have been contracted by Worley, and provided with a range of precommissioning, commissioning execution, start-up support and specialist services including flange management, N2 leak testing, boroscopic inspection for pipeline cleanliness, and strength testing of the newly constructed temporary oil pipeline.
“Work on the first phase of this project has been a huge success which has already seen first gas come to site,” said EnerMech chief executive officer Christian Brown. “Fast-tracking a project requires adequate planning and detailed execution to avoid problems, regardless of the reduced timescales involved.”
In other news, VTTI and Höegh LNG have signed a 50/50 agreement to jointly develop an FSRU-based energy terminal in Zeeland, Netherlands.
The facility will have an annual throughput capacity of up to 7.5Bn m3, which corresponds to around 25% of the current total average gas consumption in the Netherlands (source: central bureau of statistics NL – 2022).
The project will be developed under a ‘Rijkscöordinatieregeling’, a decision-making process co-ordinated by the Dutch government for energy projects of national importance with all stakeholder discussions starting in 2024 with operations commencing in 2027.
FSRUs
Snam Group has finalised its approximately US$400M acquisition of FSRU I Limited from BW LNG.
FSRU I Limited is the owner of 2015-built BW Singapore, which has a storage capacity of 170,000 m3 of liquefied natural gas and a regasification capacity of 5Bn m3 per year. The vessel will be located off the coast of Ravenna in the northern Adriatic.
Legal advice was provided by a multidisciplinary Watson Farley & Williams team, led by Rome assets and structured finance partner Michele Autuori, supported by Milan senior associate Davide Canepa and associates Beatrice D’Amato and Teresa Roussou. London corporate partner Mark Tooke advised on UK law matters of the transaction.
The team worked closely throughout the transaction with Snam’s inhouse legal team comprising Umberto Baldi, Salvatore Branca and Alessandro Rizzi and law firm Appleby acted as Bermudan legal counsel.
LNG shipping
NYK Line, Namura Shipbuilding, and Sasebo Heavy Industries are collaborating to replace the main propulsion on steam turbine driven LNG carriers.
NYK has been granted approval in principle (AiP) from the Japanese classification society Class NK for converting the steam turbine of an LNG carrier to dual-fuel, low-speed X-DF diesel engines. This is the first AiP granted by Class NK for a main engine conversion on LNG carriers.
The three companies will proceed with a detailed design of steam turbine conversion, aiming to improve environmental performance, make efficient use of existing vessels, and contribute to stable LNG transport.
LNG SPA updates
Mexico Pacific Ltd (Mexico Pacific) and Woodside have signed a sales and purchase agreement (SPA) for 1.3M tonnes per annum, equivalent to approximately 18 cargoes per year, of liquefied natural gas (LNG) for 20 years.
Under the SPA, Woodside will purchase the LNG on a free-on-board basis over 20 years from the proposed third train of Mexico Pacific’s Saguaro Energia LNG Project, with pricing linked to US gas indices.
The SPA is subject to Mexico Pacific taking a final investment decision on the proposed third train at the Saguaro Energia LNG Project, which is expected in the first half of 2024.
In other news, Cheniere will provide OMV with up to 12 cargoes per year of LNG beginning in 2029. The LNG will be received and regasified through the Gate LNG Terminal in Rotterdam, the Netherlands, where OMV holds long-term regasification capacities - the contractual price for LNG is linked to the TTF index.
Finance
New Fortress Energy (NFE) has announced it has executed definitive agreements with the Brazilian development bank Banco Nacional de Desenvolvimento Econômico e Social, and funds managed by Lumina Capital Management and BTG Asset Management to fund up to US$575M in asset-based financing.
These financings will be used to complete construction of the 630-MW Barcarena power plant, which is approximately 37% completed pursuant to a fixed-price, date-certain EPC contract with Mitsubishi and Toyo Setal.
The power plant, located adjacent to NFE’s LNG import terminal at the mouth of the Amazon river, is on schedule to commence operations in Q3 2025 under a 25-year power purchase agreement with several electricity distribution companies in Brazil.
Executive moves
Tellurian co-founder and board of directors chairman Charif Souki has stepped down and has been replaced by co-founder and vice chairman Martin Houston.
Name change
N-KOM offshore and marine repairs facility in Qatar has been rebranded Qatar Shipyard Technology Solutions.
Chairman of Qatar Shipyard Technology Solutions, Abdullah Al-Sulaiti said, "The launch of the new identity of Qatar Shipyard Technology Solutions marks the beginning of a new chapter in our journey, as it underscores our commitment to adopting technology solutions and sustainable practices which is the driving force behind the variety of value-adding maritime services we offer to our customers around the world."
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