LNG

Exmar, the Belgian shipping company with a fleet of more than 40 gas carriers and floating terminal expertise and assets, posted strong first-quarter 2024 earnings helped by the performance of LNG assets in the Netherlands and Africa as Exmar also worked on other FLNG ventures.

Italian major Eni said it had begun to introduce feed gas into the “Tango FLNG” floating production plant ahead of the shipping of the first cargo in a project located offshore the Republic of Congo in West Africa.

Belgian shipping company Exmar reported improved annual results amid key floating liquefied natural gas charter and sales deals for its LNG barges that left the Antwerp-based operator free of net debts.

Italian energy company Eni has signed a contract with China’s Wison Heavy Industry shipyard for the construction and installation of a floating liquefied natural gas production unit offshore the Republic of Congo and the second proposed FLNG venture for the West African nation.

New Fortress Energy Inc., the expanding LNG terminals, production, shipping and power assets owner, plans to hold a floating LNG investor day at the Kiewit Offshore Services shipyard near Corpus Christi in Texas.

New Fortress has chosen the energy subsidiary of Omaha, Nebraska-based construction giant Kiewit as its partner for the building of FLNG units on the US Gulf Coast and the presentation event will be held from 10:00 am Central Time on November 22.

“Specializing in the fabrication and integration of offshore projects, the 555-acre KOS facility is home to NFE’s ‘Fast LNG’ program and the ongoing conversion of marine infrastructure into floating liquefaction units,” explained NFE in a filing with the Securities and Exchange Commission.

Wes Edens, Chairman and Chief Executive of NFE, said he looked forward to hosting the event at the Texas facility.

“We expect to achieve mechanical completion of our first FLNG unit in March 2023 and deploy FLNG 1 into operation by mid-year, with additional units to follow soon thereafter,” explained Edens.

Skilled workforce

“Utilizing a highly skilled workforce on the US Gulf Coast, we have developed an efficient and repeatable construction process - essentially an FLNG factory - that substantially reduces the cost and time to build incremental liquefaction capacity to meet the urgent needs of the global energy markets,” declared the NFE CEO.

New York-based NFE also recently signed an agreement with Mexico’s national energy company Petróleos Mexicanos (Pemex) to form a strategic partnership including a floating LNG project in the Gulf of Mexico.

The agreement involves the joint development of the Lakach deepwater natural gas field for Pemex to supply natural gas to Mexico’s onshore domestic market and for NFE to produce LNG for export to global markets.

The US company will produce the LNG using its “Fast LNG” vessels to be built at the Kiewit yard.

NFE’s “Fast LNG” pairs modular, midsize liquefaction technology with jack-up rigs or similar floating infrastructure to enable a lower cost and faster deployment schedules.

Louisiana FLNG

The US company is additionally involved in other FLNG ventures, including one offshore the US Gulf state of Louisiana and another offshore the Republic of Congo in West Africa.

NFE is additionally advancing LNG-for-power projects in nations like Mexico, Nicaragua and Brazil as well as in the Caribbean.

NFE also said recently that it had entered a joint venture valued at $2 billion with New York-based asset management firm Apollo relating to floating storage and regasification units (FSRUs) in the LNG sector and this opened up a long-term financing arrangement.

The July 2022 deal involves NFE selling LNG infrastructure vessels it owns to the newly formed joint company whereby 80 percent would be held by Apollo funds and 20 percent by NFE.

That transaction would create a global marine infrastructure platform underpinned by long-term contracts, benefitting from NFE's LNG downstream operations and development activities, as well as Apollo's leading investment and maritime experience.

LNG FSRUs

Outwith the Kiewit Offshore Services shipyard plans NFE has an existing fleet that came from its acquisition in 2021 of Golar LNG Partners and its assorted FSRUs and LNG carriers.

The 11-vessel portfolio of the venture consists of six FSRUs, two conventional LNG carriers and three floating storage units (FSUs).

As part of the Apollo transaction, NFE has agreed to charter 10 of the 11 of the vessels from the Apollo-controlled venture for a period of up to 20 years.

Apollo is a high-growth, global alternative asset management business focusing on select investment strategies.

Belgian shipping company Exmar reported improved first-half earnings in 2022 compared with the same period in 2021 as rates rose and the business was heading for the future benefits of a key charter deal signed for an LNG regasification barge in The Netherlands and the sale of a liquefaction barge.

New Fortress Energy Inc., the New York-based LNG-for-power project company with LNG production plans offshore the United States and Africa, said that the US Coast Guard in coordination with the Maritime Administration had affirmed the completeness of NFE’s deepwater port license application.

NFE said that both US security and regulatory bodies would proceed with the preparation of an environmental impact statement as part of the environmental review within the 356-day application process.

NFE’s application proposes the ownership, construction, operation of an offshore natural gas export deepwater port, known as New Fortress Energy Louisiana FLNG.

The project will be located in Federal waters about 16 nautical miles off the southeast coast of Grand Isle, Louisiana in a water depth of 30 metres.

NFE said that the deepwater port would allow for the export of about 145 billion cubic feet of natural gas per year, equivalent to 2.8 million tonnes per annum of LNG.

“This is a significant step forward for our effort to build the first ‘Fast LNG’ facility in the United States,” said Wes Edens, Chairman and Chief Executive of NFE.

The NFE “Fast LNG” design pairs modular, midsize liquefaction technology with jack-up rigs or similar floating infrastructure.

While analysts note that NFE equipment would enable a much lower cost and faster deployment schedule than floating liquefaction vessels, the industry has still to be persuaded that the NFE technology will pass safety and operational tests.

Equipment

Under the NFE plan, a permanently moored floating storage unit (FSU) would serve as an LNG storage facility alongside the floating liquefaction infrastructure, which can be deployed anywhere where there is abundant and stranded natural gas.

“With rapid deployment, this project can help address the energy crisis in Europe and support our efforts to reduce energy poverty by providing more affordable, reliable and cleaner fuel to our growing portfolio of customers,” explained CEO Edens

Subject to the receipt of all required permits and approvals, NFE targets beginning operations offshore Louisiana in the first quarter of 2023.

NFE and Italian energy company Eni are also advancing a “Fast LNG” project in the Republic of Congo in West Africa.

The first African floating LNG joint venture would have capacity of over 3 million tonnes per annum once fully operational.

NFE is additionally continuing to advance LNG-for-power projects in nations like Mexico, Nicaragua and Brazil as well as in the Caribbean and in Sri Lanka in Asia.