Waller Marine, through its LNG development subsidiaries, Waller Energy Holdings and Waller LNG Services, has initiated activities on its first natural gas liquefaction (LNG) facility to be constructed on a 175 acre site the Company has acquired at the entrance point of the Calcasieu Ship Channel in Cameron Parish in Southwest Louisiana.
Using small-scale liquefaction technology, the Company plans to install nominal 500,000 gallon per day LNG trains in phases as the market and demand for marine LNG fuels inevitably expands. The first trains are planned for the Waller Point™ LNG terminal in Cameron Parish, and additional trains are planned for a second terminal which it is developing through its subsidiary Waller Energy Partners at a site to be secured on the Mississippi River in the first quarter of 2013. These will be the first two of the initial seven small scale LNG terminals the Company plans to install at strategic locations on each US coast.
With the looming regulatory requirement for vessel’s to comply with new ECA emission control regulations when operating in the territorial waters of the United States, the Company’s focus is to supply LNG to the marine fuels market. To enable the supply and distribution of LNG to and from small scale LNG terminals and for bunkering LNG as a marine fuel, Waller has been the first to conceive and design a series of small LNG vessels ranging from its 2,000 to 10,000 cubic meter capacity river transport and bunker barges and its 10,000 to 30,000 cubic meter coastwise ATB LNG vessels. Waller’s innovative concepts are patent pending before the USPTO, and Waller has recently acquired Approval in Principle from the American Bureau of Shipping (ABS).
US vessel owners are faced with increasing costs of operations as the ECA regulations drive decisions on how they should comply; one, by installing scrubbers in the exhausts or two, by using ultra-low sulfur fuels. A third and more cost-effective alternative that will permit compliance with emissions is the use of LNG to fuel their vessels. With strategically located LNG supply facilities, a distribution of the fuel by Waller barges to small-scale LNG storage terminals combined with ship fueling with Waller LNG bunker barges at anchorages, ports and terminals throughout the US, vessel owners will have access to competitively priced LNG. Waller anticipates that substantial savings can be achieved by vessel owners using LNG fuels with payback for conversion costs being as short as six months.
Waller has also initiated a vessel conversion strategy and is working with partners on providing funding for the conversion of ships to be fueled by LNG. Working with engine manufacturers and equipment suppliers, Waller is engineering shipboard LNG fuel storage and supply systems for vessels having a range of horsepower. They are also developing pre-manufactured systems to reduce or eliminate downtime during conversion.
Stephen Doolan, Shell Canada spokesman said: “The exploration and development of shale gas is expected to grow in China and Shell’s investments, largely with Pet-roChina, are reflective of that growth. However, the demand for energy in China and through-out Asia is expected to exceed domestic production. This demand for energy, coupled with the wider demand for LNG in Asia which is likely to grow by more than 80 million tonnes per annum between now and 2020, underscores Shell’s intent to continue to progress the LNG Canada project.”
Apache Canada, Kitimat LNG terminal plan developer, also stated that Shell’s investment decision wouldn’t influence Kitimat LNG plans.
“We are going to proceed with our plans,” said Andree Morier, communications adviser at Apache Canada, the lead company in the Kitimat LNG project.
Kitimat LNG will include natural gas liquefaction, LNG storage and marine on-loading facilities. Natural gas will be delivered via a pipeline lateral of approximately 14 kilometres from the Pacific Trail Pipelines, which will connect to the existing Spectra Energy Westcoast Pipeline system. The proximity of Kitimat LNG to the existing natural gas transmission infrastructure is one of the advantages of this project and ensures supply is readily accessible to the facility.
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The terminal will be part of an all-encompassing logistics solution to bring natural gas to the country.
This will be BW’s first investment in the Caribbean. BW said it strongly believes in the future of the Dominican energy market and in the opportunity to partner with InterEnergy to bring a more economical and efficient fuel solution to the country’s power generators and other consumers of natural gas.
According to Celso Marranzini, Dominican Government Minister and CEO of the Dominican state’s electric sector holding company, Corporación Dominicana de Empresas Electricas Estatales (CDEEE), “This announcement is one of the most important developments in the country’s energy market in the last decade.” Mr. Marranzini also pointed out that “the project confirms the significant and sustained interest by large international groups like BW and InterEnergy to invest in the Dominican Republic and, more specifically, in its power sector.”
The joint venture leverages on BW’s unparalleled knowledge of the gas transportation and storage business, and InterEnergy’s unique power sector experience and extensive footprint in the Dominican Republic. The combination of the two partners has proven to be critical to secure long term gas contracts from multiple suppliers and lock in the most competitive gas rates in the market.
BW Group CEO Andreas Sohmen-Pao says: “BW is very excited to partner with InterEnergy Holdings and its market leading companies in the power sector to bring a compelling energy solution to such an important and growing market like the Dominican Republic.”
For InterEnergy, the venture also has significant strategic value given the group’s investments in the Dominican power generation and distribution segment, including integrated utility CEPM serving the Punta Cana and Bavaro resort regions, 300MW generation facility CESPM and generation company EGE Haina.
Rolando Gonzalez Bunster, InterEnergy’s Chairman and CEO adds: “This project reinforces our long term commitment to bringing reliable and cost-effective electricity to the Dominican market by continuing to deploy significant capital in the country, and partnering with global industry leaders like BW.”
Total investments are expected to surpass US$350 million, and completion is scheduled for 2014. Anchor clients for the new terminal, in addition to companies related to InterEnergy, include the Martí Petroleum Group. Marti’s Tropigás division is a leading propane and natural gas distribution business in the Dominican Republic with over 3,000 industrial, commercial and residential propane clients and nearly two-thirds of the local natural gas distribution market. Martí Petroleum Group is also one of the potential co-investors in the terminal, alongside other anchor clients that have been approached by BW and InterEnergy.
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Sempra Energy has become the sixth US company, and fourth in the US Gulf, with formal intentions to export US natural gas as LNG, having filed a request with US regulators on Thursday to send out 12 million tonnes per annum (mtpa) from its existing Cameron LNG site.
The California-based company asked the US Department of Energy (DOE) for consent to send up to 1.7 billion cubic feet (bcf)/day (0.05 million cubic metres/day) to free-trade-friendly countries for 20 years.
Sempra said the Thursday document was the first in a two-part process, with a request to export to non-free-trade nations to follow.
“The subsequent application to export domestic LNG to non-FTA countries will require an analysis of the public interest, and Cameron LNG will provide additional evidence regarding the public interest as part of that application,” Sempra said in the DOE filing.
Sempra’s export intention brings the total amount of conceived large-scale liquefaction in the lower 48 US states to more than 67mtpa.
Sempra’s DOE application follows the company’s previously announced plans to proceed with a liquefaction facility at its 1.5bn cubic feet (bcf)/day Cameron LNG import terminal in Cameron Parish, Louisiana.
Sempra CEO Debra Reed said during a quarterly earnings call on 4 November that the company had received strong interest from “large, credit-worthy counterparties” seeking liquefaction services from Cameron LNG on a long-term contract basis.
Sempra provided no commercial details in its DOE filing.
Source – LNG World News
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