LNG

The PX Group, which operates the UK St. Fergus Gas Terminal and Teesside Gas Processing Plant, has been appointed by North Sea Midstream Partners (NSMP) to run its recently acquired small-scale Risavika LNG liquefaction plant in Norway.

PX Group, which specializes in providing services in the process, energy and chemical sectors, is currently responsible for processing around 30 percent of the UK’s gas supply and operates many of the UK’s key strategic sites on behalf of clients.

“The represents PX Group’s first significant operations contract outside of the UK,” said Chief Executive Geoff Holmes.

NSMP acquired the Risavika LNG plant, located in southwest Norway near Stavanger, in November 2021.

The Risavika facility has a capacity of 300,000 tonnes of LNG per annum and operates predominantly on electricity produced from renewable sources.

The plant was formerly owned by Gasum of Finland and uses feed gas from offshore Norway to supply the LNG maritime fuel and truck transportation markets.

The PX Group said it had set up a new operating entity in Norway, PX Norge AS.

NSMP closed the deal to buy the Risavika plant on November 16.

NSMP agreed with Gasum an extensive tolling agreement under which Gasum would continue to ensure deliveries of LNG and liquefied biogas (LBG) to its customers from the Risavika facility.

The separate bunkering solution, serving maritime customers, is not included in the scope of the NSMP-Gasum transaction and both parties agreed at the time not to disclose the transaction price.

PX Group CEO Holmes added that his company was delighted to be joining NSMP at Risavika.

“It is exciting for PX Group on a number of levels, not least because it represents PX Group’s expanding international footprint. It’s also our first major LNG site, which is in our capability sweet spot,” stated Holmes.

“LNG plays a critical role in the energy mix and is a component in the transition to lower-carbon sources of energy for sectors such as maritime,” said the CEO.

Kanfer Shipping AS, the Norwegian-based company focused on small-scale LNG transportation and LNG bunkering, has signed a construction contract for two newbuilds with the Chinese shipyard Taizhou Wuzhou Shipbuilding Co. and with ambitions to build up a larger fleet of small and medium-scale LNG delivery vessels.

The first two vessels are scheduled for delivery by the second half of 2023, with the option for the Taizhou Wuzhou yard, based in China's eastern province of Zhejiang,  to build additional ships.

Kanfer said the Norwegian firm, CGR Arctic Marine AS, had come up with a concept design for the two LNG bunker and distribution ships, including their specialized cargo and gas processing plants to address industry needs.

The initial two small-scale carriers will have capacity of 6,000 cubic metres and the firm contract followed a letter of intent signed in January 2021.

The CGR design includes mono-tank design, with simple arrangement and minimal boil-off and pure gas-electric power production combined with hybrid battery technology.

The manoeuvrability will come from Azipull thrusters and a bow thruster combined with a joystick operation.

Kanfer said “significant capital expenditure savings’ will come from choosing LNG fuel propulsion over dual-fueled design.

“This is an important step for Kanfer in realizing its goal to provide cost-efficient and environmentally friendly bunker vessels,” said Stig Anders Hagen, Chief Executive of Kanfer.

“Having strong cooperation with blue-chip shipping companies and LNG terminal owners has positioned Kanfer to move forward ith these two new LNG bunkering vessels,” explained Hagen.

“This is just the start. We will be building a large fleet of small-scale and medium-scale LNG distribution and bunkering ships,” the CEO declared.

“We see a rapidly expanding market for LNG bunker vessels as the world maritime industry continues to pivot towards its decarbonisation goals through LNG,” stated Hagen.

Kanfer noted that CGR founder, Captain Bård Nordberg, had already led the design and construction of 10 small-scale gas carriers at the Chinese shipyard, including several LNG vessels.

“Such extensive ship-building experience is unique in this space, and Kanfer is excited to leverage this,” said the company.

Norwegian company Hoglund Marine Solutions has been awarded a contract by shipping company Bergen Tankers to deliver a cargo-handling system for the LNG bunkering vessel “Bergen LNG”.

“As part of a long-term charter with Shell Gasnor, the vessel will be the first LNG bunkering vessel to operate in Norway and will be retrofitted from an existing fuel oil bunkering ship,” explained Hoglund.

“Previously known as ‘Oslo Tank’, the ‘Bergen LNG’ vessel will operate in Bergen harbour from the fourth quarter of 2020 and will serve future LNG-powered cruise ships in the Hurtigruten and Havila coastal routes,” added Hoglund.

Hoglund said it would supply both hardware and automation solutions to ensure safe and efficient operations, including an IMO Type C cargo tank, cargo pumps, bunker manifolds, custody transfer system, and a ship-to-ship transfer system.

“Hoglund has worked on several of the world’s current LNG bunkering vessels, and each project has demonstrated how specialist expertise is needed to integrate and control the systems of these vessels safely and reliably,” said Peter Morsbach, the Director of Projects at Hoglund.

“Retrofits should be an easy way for an owner to benefit from the shift to alternative fuels, but there are complications that can stand in the way that require more than the standard one-size-fits-all solution to overcome,” he explained.

“Unlike a newbuild, which belongs to the yard until delivery, a retrofitted vessel is the property of the owner throughout its refitting,” added Morsbach.

“At Hoglund, we support the owner by drawing upon our dedicated expertise and vast experience to ensure an in-time delivery, installation of our solutions and overall integration of loose ends,” he stated.

Ingemar Tonder Presthus, the Technical & Marine Manager at Bergen Tankers, said that a retrofit was a complex technical challenge from both a hardware and software engineering point of view.

“Hoglund was an ideal choice, based on their track record fitting automation systems for LNG bunker vessels and other vessel types elsewhere in the world, and their ability to execute a retrofit quickly,” he added.