LNG featured news

SHI Unveils LNG Regasification System for FSRUs

South Korea’s shipbuilder Samsung Heavy Industries (SHI) has developed a LNG regasification system for LNG floating storage regasification units (FSRUs). The system, called S-Regas(GI), utilizes glycol to regasify LNG into gas. It was presented to industry leaders on September 21. As SHI’s latest regasification achievement, following the direct sea water regasification system, S-Regas(GI) reduces chance of corrosion from traditional method of heating LNG directly with seawater, and is another energy efficient solution saving energy by 5%, the company informed. “In-house regasification system enables not only cost savings but also improvement in schedule and quality management, further enhancing SHI’s leadership in the LNG-FSRU market,” the builder said. “SHI will continue to lead market by...

Analyzing the LNG industry in BC as another company bails

Last week, another blow was delivered to BC’s LNG industry when the partners behind the $28 billion Aurora LNG project pulled the plug after four years of analysis. The setback is forcing many people to wonder, what is the future of liquefied natural gas in this province? NEWS 1130 put that question to an economist after the companies walked away from the project near Prince Rupert. Werner Antweiler with UBC’s Sauder School of Business wasn’t surprised when he heard the news that Nexen and its partners were dumping the project. He’s also not expecting projects on that scale to go ahead in the short-term given the low price of natural gas. “Clearly, LNG is facing an uphill struggle in British Columbia simply because the market has shifted. The price for LNG is down and that means many other...

ABS grants AIP to Hyundai Heavy Industries FLNG hull design

ABS, the leading provider of classification and technical services to the global offshore industry, has granted Approval in Principle (AIP) to Hyundai Heavy Industries (HHI) floating liquefied natural gas (FLNG) hull design, the company said in its press release. ABS and Hyundai Heavy Industries collaborated with the objective of developing a technically feasible and class compliant FLNG hull design, using the latest industry trends while maintaining high safety standards. The ABS AIP demonstrates the design substantially complies with Class and Regulatory requirements and minimizes risk to project schedules and safe operations, giving regulatory agencies and other key stakeholders confidence in the design. “ABS has a strong history of collaborating with the offshore industry to evaluate n...

Korea to Build 15 LNG Carriers for Russia

A Korean company has received a contract to build 15 ice-breaking LNG carriers for Russia, the President of South Korea Moon Jae-in said while speaking at the Eastern Economic Forum in Vladivostok on Thursday, September 7. The tankers are said to be intended for the transportation of liquified natural gas from the Yamal LNG project. However, the name of the shipyard entrusted with the construction was not revealed. “The Republic of Korea ranks first in the world when it comes to shipbuilding. Korea’s shipbuilding companies account for 64 percent of the total volume of large-capacity tankers. Thus, it would not be an overstatement to say that Korea has the world’s best technology,” Moon Jae-in said. Last month, Rusian shipping company Sovcomflot said that it had hired  South Korean shipbuil...

US DOE Pushing for Small-Scale LNG Exports

The US Department of Energy (DOE) has proposed a rule that will provide for faster approval of small-scale exports of natural gas, including liquefied natural gas (LNG), from US export facilities. The US small-scale LNG export market involves exports of small volumes of natural gas from the United States primarily to countries in the Caribbean, Central America, and South America. Many of the countries in these regions do not generate enough natural gas demand to support the economies of scale required to justify large volumes of LNG imports from large-scale LNG terminals via conventional LNG tankers. “The Trump Administration is focused on finding ways to unleash American energy and providing a reliable and environmentally friendly fuel to our trading partners who face unique energy infras...

HMM Launches USD 580 Mn Shopping Spree

South Korean shipping company Hyundai Merchant Marine (HMM) is moving forward with its plans to modernize fleet and has set sights on adding seven ships with options for five more. Specifically, HMM will acquire two large container vessels at a 10% lower price than the current market price as it eyes to bolster its fleet competitiveness. Hanjin Heavy Industries and Construction based in the Philippines has been hired for the job of building the ships. The price tag for the boxship pair totals USD 162 million. The company said that the two vessels are scheduled for delivery in May 2018 and are expected to be deployed on East Coast South America trade. “HMM bolsters its competitiveness through the early acquisition of fuel efficient & eco-friendly large container vessels at a lower price...

Hyundai Heavy Industries wins FSRU order from India

South Korea’s largest shipbuilder Hyundai Heavy Industries Co. won a floating, storage, re-gasification Unit (FSRU) deal from an Indian company. It is the second FSRU order the company received this year. According to sources from the shipbuilding industry on Wednesday, Hyundai Heavy Industries received an order to build a FSRU with the storage capacity of 180,000 square meters for Jafrabad LNG import terminal from Triumph Offshore, a unit of India’s Swan Energy. FSRU is an LNG carrier that regasifies LNG on the sea to enable distribution by pipeline and road tanker. Compared to LNG import terminal on the ground, it requires fewer affiliated facilities and can halve the construction period. The U.S. invented the FSRU in 2005, but three Korean shipbuilders constructed all of the 18 units cu...

Offshore, Gas Businesses Help SCF Stay Afloat

Russian shipping company PAO Sovcomflot (SCF Group) recorded a net income of USD 15.2 million in the first half of 2017, a 90.8 percent drop from USD 166 million posted in the same period a year earlier.  As explained, a strong performance from the offshore and gas divisions provided a relief against the deteriorating conditions witnessed in the conventional tanker markets, which were most noticeable in the second quarter of 2017. This balance of revenue sources helped gross revenue for the six months ended June 30, 2017, increase by 4.4 percent to USD 710.2 million from USD 680.3 million seen in 1H 2016. “The first half of 2017 was very challenging for global tanker markets, with spot freight rates in all market segments nearing their historic lows. This has impacted severely upon the pro...

S-OIL Seals Long-Term Deal to Directly Import LNG with PETRONAS

S-OIL announced on August 25 that it signed an agreement to purchase 700,000 tons of LNG per year from Malaysia’s PETRONAS. The contract will run for 15 years from April of next year to 2033. The signing ceremony was held at the PETRONAS headquarters attended by Osman Al Gamdi, CEO of S-OIL and Datuk Anuar Taib, CEO of PETRONAS Upstream in Kuala Lumpur, Malaysia on August 24. S-OIL decided to directly introduce LNG for the first time to use it as a fuel for new plant operations and a raw material for hydrogen production. “The long-term contract with PETRONAS, Malaysia’s state-owned oil company enables us to enhance the stability of plant operation by securing the stable supply of LNG used as a fuel and a raw material,” S-OIL CEO Al-Gamdi said. S-OIL will boost its p...

DSME Accelerates Liquidating Subsidiaries for Restructuring

It has been found that Daewoo Shipbuilding & Marine Engineering (DSME) liquidated Pangea LNG B.V., one of its subsidiaries abroad, in June this year. Pangea LNG was established in 2012, fully invested by DSME, to participate in shale gas development projects in the United States and Israel. DSME was planning to obtain more orders for floating LNG production, storage and offloading units for transporting shale gas by working with shale gas developers via Pangea LNG. However, it decided to liquidate Pangea LNG after liquidity problems arose in 2015, which led to its decision to dispose of non-shipbuilding subsidiaries. D&H Solutions AS, another DSME subsidiary for natural resource development, is being liquidated, too. DSME set up D&H Solutions in Norway in 2010 for offshore mini...

Korea’s FTC to Tackle Destination Clauses of LNG Trade Contracts

The Korea Fair Trade Commission (KFTC) is examining the illegality of the destination clauses of LNG import contracts between South Korean gas companies and exporters such as Qatar. At present, the KFTC and LNG importers in South Korea are regarding the clauses as a kind of poison pill. This controversy is basically because the global LNG market is a sellers’ market. Countries such as South Korea, Japan and China have no other option but to rely heavily on those in the Middle East and, as such, have to accept unreasonable conditions in many cases. The destination clauses are to prevent remaining imported LNG from being exported to third countries. Each of South Korea, Japan and China is claiming that the clauses are unfair. The Japan Fair Trade Commission pointed out on June 28 this year t...

Hyundai Vinashin Tied to USD 160 Mn Tanker Deals

Vietnam-based Hyundai-Vinashin Shipyard, a joint venture between Hyundai Heavy Industries and Vietnam Shipbuilding Industry Corporation, has reportedly secured five tanker orders over the past week from three Japanese shipowners. Namely, Fukujin Kisen and Masumoto Shipping are linked to an order for two 50,000 DWT tankers at the yard respectively, a weekly report from Intermodal Research shows. Fukujin Kisen already has three MR2 tankers on order at the yard, according to the data from VesselsValue. Boasting 50,000 in DWT, two of the company’s MR2 newbuilds are scheduled for completion in 2018, and one in 2019. Furthermore, a third Japanese shipping company, Hisamoto Kisen is said to have joined the ordering spree at Hyundai Vinashin booking a 50,000 DWT tanker. Priced at USD 32 million ea...

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