floating lng technip energies, kbr see liquids production
TRANSCRIPT
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THURSDAY, AUGUST 19, 2021 - VOL. 2, NO. 216
FLOATING LNGTechnip Energies, KBR See Liquids Production, Savings Give Boost to FLNG
Floating liquefied natural gas (FLNG) projects could offer a cost-competitive alternative to offshore venting and flaring as opera-tors increasingly take aim at their carbon footprints, industry experts said at the Offshore Technology Conference in Houston this week.
Around 30% of offshore associated gas is flared globally, said Technip Energies SE’s Jean-Philippe Dimbour, director of business
...cont' pg. 4
Port of New Orleans, Cleancor Partner to Advance LNG Bunkering 8
Daily Rundown• FLNG projects are seen helping to cut offshore flaring• The Port of New Orleans is advancing LNG
bunkering services• -- European natural gas prices fell on indicators that
NS2 could soon start operations
See The Offtake on Pg. 8 for Other LNG Highlights
development and offshore technology. That presents an opportunity for FLNG to monetize wasted gas, he said. In addition, liquids pro-duction could make floating projects even more economic.
“When the gas composition is rich, even more revenues can be generated from production on sales of higher-value byproduct liquids,” he said. Those liquids could include condensate, natural gas liquids (NGL) and liquefied petroleum gas (LPG).
Offshore oil producers have a number of options to dispose of their associated gas, including injection or piping
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...cont' pg. 6
. . . from FLOATING LNG - Technip Energies, KBR See Liquids Production, pg. 1
it onshore. However, the options can be costly or difficult to build depending on where the field is located, Dimbour said.
He painted a picture of an alternative, central LNG hub that could be connected to floating production units in deepwater fields or shallow-water platforms. The scheme could benefit new offshore oil developments, “where the associated gas management can become a showstopper against the greenhouse gas emissions,” he said.
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...cont' pg. 7
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“The monetization of associated gas will become an enabler for such oil development.”
Technip Energies has led engineering efforts on several FLNG projects including Royal Dutch Shell plc’s Prelude unit offshore Australia and the Eni SpA-operated Coral South project under construction offshore Mozambique.
The company recently developed a “Megamodule” concept for FLNG topsides to reduce project costs and schedules.
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...cont' pg. 8
“The key features are based on the design and construction of large, integrated modules with multiple functionalities instead of multiple modules,” Dimbour said.
The concept could allow operators to produce more LNG with the same amount of space as traditional projects, he added.
Dimbour presented a comparison between an LNG-only floating project versus a project that would include liquids production using the Megamodule concept. The project including liquids production would require a 6% increase in capital expenditures, but
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THE OFFTAKE: LNG IN BRIEFA ROUNDUP OF NEWS & COMMENTARY FROM NGI’S LNG INSIGHT
• European natural gas prices fell Thursday amid signs that Russia could begin shipping natural gas to the continent via the Nord Stream 2 (NS2) pipeline this year. Gazprom PJSC said the line is 99% finished and would be capable of shipping 5.6 billion cubic meters this year. NS2 could help provide the continent with more natural gas as inventories are scarce heading into winter.
• Asian spot prices followed declines in Europe and were assessed at under $17/MMBtu for September delivery.
• European prices tumbled 10% Wednesday after German gas grid operator Gascade falsely reported that gas had started flowing on NS2. The error was corrected, but EBW Analytics Group also said it briefly pushed Henry Hub futures lower before they rebounded and finished higher on the day.
• Malaysia’s state-owned Petroliam Nasional Berhad, aka Petronas, has delivered its first carbon-neutral LNG cargo to Japan. Petronas supplied the cargo from Bin-tulu LNG to Shikoku Electric Power Co. Inc. Emissions related to the cargo from its production, transporta-tion and liquefaction were offset with renewable-based carbon credits certified through the Verified Carbon Standard program.
SMALL-SCALE LNGPort of New Orleans, Cleancor Partner to Advance LNG Bunkering
The Port of New Orleans and Cleancor Energy Solutions LLC have signed a memorandum of understanding (MOU) to develop liquefied natural gas (LNG) fueling services for ships in the port.
Cleancor, which distributes small-scale LNG and com-pressed natural gas, would work with the port to provide the super-chilled fuel for bunkering. The port would provide the company with data, logistics, customer contacts and marketing support.
...cont' pg. 9
they may be offset by a 20% increase in returns, he said. The carbon footprint could also be reduced, he added.
Costs RiseFolding in additional production on an FLNG project isn’t a
new concept. Shell’s Prelude is already capturing liquids, said KBR Inc.’s Shane Tierling, senior technical leader. However, he told the audience that Prelude is also one of the highest-cost projects in the FLNG space on a per-metric ton basis at $2,000. By comparison, the Tango FLNG project, which is smaller and built on a barge, was built at a cost of $600/metric ton, according to Tierling.
However, Prelude represents the “gold standard” when it comes to FLNG, Tierling added. Prelude uses dual-mix refrigeration tech-nology, and it is able to withstand Category 5 hurricanes, he said.
Other FLNG operators have been able to achieve cost savings by repurposing LNG tankers. Golar LNG Ltd. was the first reuse an LNG tanker with the Hilli FLNG unit off Cameroon, which came online in 2018.
“Call it saved by the bell because you’re taking an end-of-life life carrier and finding new use for it,” Tierling said of the Hillii project.
By reusing an old vessel, Golar was able to shave 39% off steel savings compared to a newbuild, Tierling said. It also resulted in a 33% reduction in greenhouse gas emissions related to facility construction, he added.
Golar is looking to ramp up production from Hilli next year by 200,000 tons with total utilization at 1.4 million tons. The recent agreement with its upstream partners included an option to grow capacity by another 400,000 tons from 2023 to 2026. n
“Our mission is to accelerate the adoption of low carbon fueling solutions and this constitutes an exciting opportunity to not only advance the region’s first such project, but also to contribute to the decarbonization of the maritime sector,” said Cleancor CEO Jeff Woods.
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Volume 2, No. 216
Port officials said Cleancor would work to educate its customers and other local stakeholders about the environmental and financial benefits of LNG bunkering. The MOU would also help to develop bunkering infra-structure that aligns with the port’s long-term planning.
In addition, Cleancor would provide LNG bunkering options that are compatible with forecasted customer demand in the port and help it obtain federal, state and other regulatory authorizations to develop necessary infrastructure.
The port also is seeking grants to help incentivize the use of LNG as a marine fuel. It would also work with Cleancor to attract customers and others that already use LNG as a marine fuel.
A proposed expansion outside St. Bernard Parish in Louisiana to build a $1.5 billion container terminal is also expected to support the LNG bunkering initiative. The port’s expansion is aimed at handling rising container volumes and attracting more international container business.
Demand for LNG bunker fuel is growing, particularly among shipowners overseas. International regulators have tightened emis-sions standards, and the maritime industry has increasingly turned to LNG as a fuel source because of its lower emissions profile and cost competitiveness. The International Maritime Organization has estab-lished the goal of reducing greenhouse gas emissions from shipping by at least 50% by 2050 compared to 2008, and many LNG-fueled ships are expected to be produced going forward.
LNG bunkering infrastructure is expanding as shipowners look to displace dirtier fuels. LNG can now be delivered to vessels at 96 ports across the world. Another 55 ports are in the process of facilitating LNG bunker-ing investments and operations, according to the trade group SEA-LNG.
The Gulf Coast’s first dedicated LNG bunkering port is advanc-ing off Pelican Island, TX, in Galveston Bay. Only one tank-to-ship bunkering service is in operation in the United States at Port Fourchon in Louisiana, according to SEA-LNG. Others are being developed in California, Florida, New York and Washington. n