LNG

Production companies seeking efficient and cost-effective methods of increasing their output are forecast to increase spending by almost 20 percent in 2023 to total $58 billion for additional oil and natural gas resources to satisfy global demand for energy such as LNG and pipeline gas and for necessary activities like petroleum refining and chemicals production to make products such as pharmaceuticals.

Abu Dhabi National Oil Company (ADNOC), the oil and gas company and LNG producer in the United Arab Emirates, has awarded three framework agreements valued at 14.68 billion UAE dinars ($4 billion) for integrated drilling services to support the ongoing expansion of its oil and natural gas production activities.

Norwegian company Høglund Gas Solutions has signed a contract to provide a turnkey retrofit with LNG fuel capability for a Base Marine Norway-owned ship, the bulk and general carrier “Hannah Kristina”, which has US oil services company Halliburton as the end-charterer.

“The project aims to improve the vessel’s environmental footprint by converting the marine diesel oil-fuelled vessel into dual-fuel by supplying an LNG Fuel Gas Supply System (FGSS) alongside an upgrade with shore power connection,” said Høglund.

The project, led by Høglund, will require extensive collaboration between numerous stakeholders, including naval architects, engineering teams, a retrofit shipyard, various suppliers, the class society flag state and the vessel owners and operators.

“Høglund will therefore collaborate with long-time partners HB Hunte Engineering GmbH and Fiskerstrand Verft AS for the naval architecture and shipyard elements of the project, respectively. The entire project will be classed by DNV,” explained the Norwegian company.

The scope under the contract consists of a 250 cubic metres capacity FGSS with a dedicated Gas Control and Safety System to serve the already installed dual-fuel system with natural gas.

“In order to implement the appropriate safety measures following the requirements of the IGF-Code and improve the safety credentials of the ‘Hannah Kristina’, Høglund will be combining its extensive knowledge in gas, power and automation solutions with HB Hunte’s outstanding expertise in naval engineering to perform further modifications on the vessel,” the company explained.

“These will include the adjustment of the mooring arrangement in the LNG tank area and an upgrade to the ventilation system, among other conversions,” added Høglund.
The delivery of the retrofitted vessel is expected to take place in March 2022.

“The goal of this project is to upgrade a 20-year-old vessel with modern environmental credentials. With the use of LNG and battery power, the vessel will significantly reduce its carbon-dioxide and nitrogen oxides (NOx) emissions both while at sea and during harbour stays,” said Høglund.

Høglund said it would ensure that the complex stakeholder management aspect of the retrofit works will be run effectively and that this will result in a well-executed project.

“The technological and environmental transformation of shipping over the coming years is one of the biggest challenges facing our industry,” said Philipp Ulrich, Senior Project Manager at Høglund.

“To achieve this transformation in a commercially viable and minimally disruptive way, meaningful and well-coordinated collaborations are essential,” he added.

Jean-Marc Lopez, Vice President of Halliburton in Norway, explained the reasoning for the move.

“By utilizing ‘Hannah Kristina’, Halliburton has moved huge amounts of goods from road to sea, reducing the emission of CO2 and NOx,” he said.

“With the conversion of ‘Hannah Kristina’ from diesel to LNG and shore power, we take the reduction of CO2 and NOx a step further, in line with our strategy to continue to reduce the environmental footprint of our activities,” declared Lopez.

Bahrain is moving forward with development of its discovery of extensive tight oil reserves amounting to 200,000 barrels per day and deep natural gas resources of between 10 and 20 trillion cubic feet, though the Gulf kingdom still intends to become an LNG importer by 2019.

May 9 (LNGJ) - Halliburton Co., the US energy services company, said that in connection with the previously announced termination of the merger agreement between Halliburton and US peer Baker Hughes, it will redeem the entire outstanding principal amount of senior notes due in March 2020 and 2022 for an aggregate amount of $2.5 billion.