Liquified natural gas gains currency
Tanker builders float the idea
This spring, Shell spokeswoman Catherine Aitken reported the company is “looking closely at a number of potential floating LNG development concepts globally. Floating LNG solutions support Shell’s strategic ambition to maintain or grow market share in the LNG business. They are particularly well suited to tap into difficult-to-reach or smaller-scale deposits…they are complementary to conventional on-shore LNG.”
Shell called for bids from shipyards to build a floating LNG facility in mid-2008. Offers have been received and were being evaluated this spring.
“We’re really trying internally to get all our [exploration and production] colleagues juiced up about this to look all over the world,” Eisbrenner said. “It just so happens that we have a very fortunate position offshore Australia, Shell does, so it drives us to look there but definitely we’re looking all over the world.”
Last year Houston-based Excelerate Energy developer of a method for offshore conversion of LNG into natural gas called Energy Bridge announced plans for floating liquefaction with shipping partner Exmar NV and technology firm Black & Veatch. Excelerate has constructed two offshore LNG receiving terminals in U.S. waters. Its Gulf Gateway Energy Bridge Deepwater Port, located offshore Louisiana in the Gulf of Mexico, received its first LNG cargo in April 2005. It was the world’s first offshore receiving facility and the first new LNG regasification facility in North America in more than 20 years. In May last year Excelerate’s Northeast Gateway terminal off the coast of Massachusetts received its first LNG cargo. Excelerate also owns and manages the Teesside GasPort in the United Kingdom.
“We think because of our downstream asset base with the regasification technology, our buyer network and our ability to access downstream markets, Excelerate together with Black & Veatch and Exmar provides the capability to really advance a source-to-market solution,” said Anthony Schiller, Excelerate director of upstream development. “We do indeed have a solid history of creating proven floating solutions. As part of that there is the downstream network and a group of buyers out there.”
Excelerate FLNG vessels would be capable of liquefying anywhere from 1.5 to four million tonnes per year. The economic “sweet spot” is about three million tonnes, Schiller said. “We’ve had prospective customers who have expressed interest in solutions for up to four million…we think the three million tonnes probably puts us in the position to commercialize most of the reserves we’re looking at.” Excelerate is looking at opportunities around the globe. Schiller named Australia, West Africa, South America and Southeast Asia as prospects.
Joe Fisher is a Houston correspondent of Intelligence Press, Inc.Project. ; 703-318-8848; Intelligence Press publishes news on natural gas and power markets at intelligencepress.com.
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