LNG

Chart Industries, the US LNG equipment-maker and industrial gases market player, has held a formal opening ceremony for a “jumbo” cryogenic tank manufacturing facility in Theodore in the southern US state of Alabama.

This plant is the second built by Chart in Theodore and will manufacture the world’s largest shop-built cryogenic tanks with capacity of up to 1,700 cubic metres.

“The tanks manufactured at this site will be used for propellant storage for the aerospace industry, hydrogen and LNG storage for marine and power, gas by rail and for many other applications in the sciences and decarbonization industries,” explained Chart.

The facility, known by Chart as “Teddy 2”, has direct access to waterways and railways, providing customers with lower freight costs and faster transportation to site.

Jobs creation

Chart added that this expansion also contributes significantly to local job creation and economic development efforts for the state of Alabama.

“We’re thrilled to officially expand our presence in Theodore, Alabama with our ability to offer the world’s only shop-built cryogenic tanks of this scale,” said Jill Evanko, Chart’s Chief Executive and President.

“This expansion further supports our customers through increased capacity and scale as well as lower freight costs and shorter lead times,” Evanko added.

“We look forward to continuing to hire from the strong, skilled workforce in Alabama,” stated the CEO.

Alabama Governor Kay Ivey was a guest at the ribbon- cutting ceremony and praised Chart for its contribution to the further economic development in Mobile County.

“Chart Industries recognizes both the strength of local engineering expertise as well as our advanced manufacturing and workforce capabilities,” Ivey said.

“We’re looking forward to Chart’s expansion in south Alabama, creating new jobs for our region,” the Governor declared.

Maritime and aerospace

Mobile Chamber President and CEO, Bradley Byrne, said he was delighted by the Chart expansion in Theodore.

“With the capacity to fabricate the world's largest shop-built cryogenic tanks, Chart’s Teddy 2 facility brings significant job creation and economic development for Mobile County,” said Byrne.

“Chart's investment not only highlights our skilled workforce, but it positions Mobile as a hub for innovation in aerospace, maritime and the clean energy industries,” Byrne stated,

In its most recent earnings Chart said global end-market demand continued to be strong in 2024.

Atlanta, Georgia-based Chart reported in its fourth-quarter and annual earnings that there were more than $21 billion in identified potential orders in its commercial pipeline for the next three years.

Chart issued the forecasts in the fourth-quarter and annual earnings statement as it also outlined the growing benefits of the takeover of the UK engineering group Howden.
Chart’s earnings statement showed a record fourth-quarter backlog of $4.28Bln, supported by record quarterly orders of $1.21Bln. 

US attorneys general in Democratic Party-ruled states and cities have started a new campaign against hydrocarbons by trying to force the government regulatory agency, the Pipeline and Hazardous Materials Safety Administration (PHMSA), to ban for ever all transportation of liquefied natural gas by rail.

A coalition of 14 state attorneys general have urged the PHMSA to turn a suspension order on allowing bulk transport of LNG in specialized rail-car tanks into a total ban.

The rule opening the way for LNG transportation in rail cars was created after a 2019 executive order by the Trump Administration, which prompted the Department of Transportation to regulate LNG the same “as other cryogenic liquids and permit LNG to be transported” in approved rail-car storage tanks.

The PHMSA has noted that LNG is allowed to be transported by rail in Canada, Europe and in Japan.

“LNG is permitted to be transported by rail in Europe in specially designed tank cars and in Japan, LNG has been authorized to be transported by rail since 2000, in specially designed freight railcars and container railcars,” the agency said.

However, the Democratic Party AGs also brought in anti-hydrocarbon arguments by stating that allowing companies to transport LNG could “potentially create more greenhouse gases from LNG production and from liquefaction” plants.

The coalition of AGs is led by the state of Maryland’s Brian Frosh and New York’s AG Letitia James.

Policy confusion

The federal agency in the initial suspension of rail transportation of LNG had referred to public concerns about transporting the fuel and ordered a suspension pending further studies.

The PHMSA said at the time that its move was necessary to help companies interested in shipping LNG by rail to suspend investments in infrastructure that would be facing further regulations.

However, instead of enacting more thorough regulations, the coalition called for the “prompt suspension” of the final rule indefinitely.

The AGs claimed that the go-ahead for transporting LNG by rail was based on “flawed safety assessments” by officials of the former Administration.

“While repeal of the 2020 rule would be the most durable corrective action, the states support prompt suspension of those regulations in the meantime,” the coalition of AGs wrote in comments to the Biden Administration.

Many of the same AGs submitted comments against the final rule when it was proposed in January 2020. The AGs also had joined a lawsuit against the rule in August 2020.

No LNG was transported by rail between the final rule’s approval and the PHMSA’s November suspension. 

The PHMSA said it was aiming to ensure shipments did not occur before the new rules were in place, which is expected by June 2024. 

US federal regulators have issued a final rule allowing the bulk transport of liquefied natural gas in specialized tanks on rail cars to help boost the small-scale LNG projects sector across America.

Chart Industries, the US supplier of equipment for the industrial gas, energy and liquefied natural gas sectors, reported an almost 24 percent rise in orders to a record $1.41 billion combining LNG fuel, rail, trucking and plant equipment.

A total of 16 US states, including New York, California and Maryland are opposing proposals to transport liquefied natural gas by railcars because of what they see as the risk of potential accidents.

Jan 24 (LNGJ) - Polskie LNG, the operator of the Polish import terminal at the Baltic port of Swinoujscie, said it had received environmental permits for its planned expansion of regasification capacity, storage and loading, allowing it to complete contract tenders. The Polish terminal began operations in 2009 and can currently receive almost 4 million tonnes per annum of LNG. Two tender procedures are currently in progress for the terminal. “The objective of the first is the selection of the contractor for three key components, construction of the third storage tank, process installations to increase regasification capacity and the LNG-to-rail transhipment installation along with a dedicated railway siding,” said the company. The deadline for the first tender has been extended to February 19. A second tender with a February 26 deadline is for the building of an additional jetty in cooperation with the Szczecin and Swinoujscie Seaports Authority.