LNG

JGC Corp., the overseas engineering, procurement and construction business of Japan’s JGC Group, said it would head a consortium with South Korea’s Samsung Heavy Industries for construction of a nearshore floating liquefied natural gas (FLNG) project in Malaysia planned by Petronas.

Italian energy company Eni said the “Coral-Sul FLNG” production vessel offshore Mozambique shipped its first cargo from the Rovuma Basin to launch the southeast African nation as an LNG exporter.

The leader of the Haisla First Nation in British Columbia, Chief Councillor Crystal Smith, along with Pembina Pipeline Corp. Interim President and Chief Executive Scott Burrows and the Cedar LNG CEO Doug Arnell have spoken with optimism about the future development of the Cedar LNG project as it awarded an engineering contract.

Chief Councillor Smith and Pembina's Burrows said the 50-50 partnership’s joint venture had reached critical points in developing the floating LNG export plant near Kitimat in BC.

The FLNG project will be located in the Douglas Channel  and is expected have a liquefaction capacity of up to 4 million tonnes per annum of LNG.

Feed gas for Cedar FLNG will be sourced from the prolific Montney natural gas resource play in northeast BC.

Cedar LNG said it was pleased to announce an agreement with liquefaction technology firm Black & Veatch and South Korean shipbuilder Samsung Heavy Industries (SHI) for the front-end engineering and design (FEED) of the project's proposed floating liquefaction, storage and offloading units.

“Cedar LNG is rooted in meaningfully creating a low-carbon, Indigenous-led business that respects local values and protects the environment,” said Cedar's CEO Arnell.

“The project's low-carbon footprint, coupled with the use of Black & Veatch and Samsung's expertise and technology will result in a state-of-the-art facility the Haisla Nation, British Columbia and Canada can be proud of,” he stated.

FID in 2023

Cedar LNG expects to make a final investment decision in 2023 following completion of the environmental assessment process.

Subject to additional factors, including regulatory and other approvals, the expected in-service date for the project is 2027.

Both Smith and Burrows said their venture was strategically positioned to leverage Canada's abundant natural gas supply and “provide a critical, Indigenous-partnered solution” to support the global clean energy transition.

With recent advancements in the project's regulatory and engineering development, Smith outlined what it meant for the region.

“The Cedar LNG project will be the largest First Nation-owned infrastructure project in Canada, creating jobs, contracting and other economic opportunities for the Haisla Nation, the community of Kitimat, neighbouring Indigenous Nations, and the local region,” stated Smith.

“Cedar LNG represents long-term growth for our region in a way that protects our land and environment, and we are excited to see the project move forward in its environmental assessment process with innovative technology and reduced environmental footprint,” she explained.

Review phase

The application for an Environmental Assessment Certificate (EAC) was recently submitted to the British Columbia Environmental Assessment Office, moving the project into the 180-day application review phase.

This key landmark follows detailed engineering studies and engagement with Indigenous and local communities.

“The submission of our application for an EAC represents another significant step forward in exporting Canadian LNG to overseas markets, while supporting long-term prosperity for the Haisla Nation and the region,” explained Pembina’s Burrows.

“Each time we've returned to our design, whether to include community input or account for leading technology, we've made important improvements that have resulted in a superior project that respects the values of the local community and minimizes environmental effects,” declared the Pembina Interim CEO.

The American Bureau of Shipping, the US maritime classification society, has awarded approval for the design of a one-side spread mooring system for a floating liquefied natural gas facility to South Korean shipyard and offshore equipment-maker Samsung Heavy Industries.

The Approval in Principle (AIP) for SHI will see the FLNG system being safely spread-moored on one side, enabling LNG carriers to berth and load on the opposite side free from obstructions.

“With more than 150 floating oil and gas facilities in the ABS-classed fleet, ABS is the market leader in classification of offshore production units, which includes FLNG assets,” said the Houston, Texas-based company.

Matt Tremblay, ABS Vice President for Global Offshore, explained that the US class society was well placed to understand the unique requirements of these units, with a focus on safety.

“I’m proud to be able to support SHI with this innovation,” stated Tremblay.

Wang K. Lee, Vice President of SHI’s Offshore Business Division, said the one-side spread mooring system is a patented technology that can replace complex turrets in a mild offshore environment.

“It will be the optimized solution for shipping companies looking for economical FLNG models,” he added.
ABS has expertise on the whole of the LNG engineering, shipping and bunkering sector.

One of its 2021 approvals was for a new design by Finnish company Deltamarin and French LNG storage tank firm GTT for an LNG-powered Aframax oil tanker.

The vessel was developed by Deltamarin, a designer of ships and offshore platforms for the energy industry, to increase autonomy and carbon-emission reductions for the Aframax-type vessel, which is a crude oil tanker with a deadweight between 80,000 and 120,000 metric tonnes.

That design is intended to meet current and future environmental targets by introducing GTT membrane-type LNG tanks with LNG fuel stored at atmospheric pressure and designed to ABS Class.

The AiP from ABS certifies that the onboard integration of the membrane fuel tank solution is technically feasible for an LNG-fuelled tanker and that it complies with all safety regulations.

Compared with a conventional oil-fuelled tanker, the LNG-powered design reduces CO2 emissions by at least 20 percent.

Malaysian energy company Petronas, the world leader in floating liquefied natural gas output, said its second liquefaction hull, the “PFLNG Dua”, had entered production and confirmed that the state energy company of Thailand has debuted as an equity LNG producer.