LNG

TGE Marine Gas Engineering GmbH, the leading provider of liquefied gas systems for cargo-handling and tanks, has won a contract for a 12,000 cubic metres capacity LNG bunkering barge.

The cargo was awarded by Fincantieri Bay Shipbuilding located in Surgeon Bay in the US state of Wisconsin.

The work will be carried out on behalf of US-based shipping company Crowley Maritime, based in Jacksonville, Florida, and after delivery the vessel will operate under a long-term charter with Shell North America LNG.

Scope of the contract includes the design and supply of the cargo-handling system, including two 6,000 cubic metres capacity bilobe Type-C tanks designed to transport LNG.

“The cargo-handling system will enable the barge to load LNG from a supply terminal and transfer the LNG to the clients´ vessels using a ship-to-ship transfer system,” explained TGE.

“During transit the cargo can be kept in its liquid state at ambient pressure through the use of a chiller unit,” the company added.
The company says its design expertise is based on extensive engineering experience within the small-scale LNG carrier, bunker vessel, FSRU and fuel-gas system markets.

US East Coast

The 12,000 cubic metres LNG bunkering barge will be the largest of its kind built in the United States when delivered and is expected to start operations along the US East Coast in 2024.

“The maritime transport sector is quickly moving towards decarbonisation and compared to traditional fuels LNG offers a great opportunity to reduce carbon emissions,” stated TGE.

“The use of LNG as a fuel within the maritime industry has seen significant growth over the last years with around 30 percent of the worldwide order book currently based on LNG as fuel,” added TGE.

The TGE company is based in Bonn, Germany, and has an operational office in Shanghai, China.

It has so far delivered more than 250 projects to a variety of renowned ship owners and shipyards.

Fincantieri Bay Shipbuilding is a full service shipyard for the Great Lakes area specializing in construction, repair, conversion and sustainment of commercial vessels, including articulated tug barge units, barges, dredges, ferries, platform support vessels and other specialty ships.

US LNG plant developer Tellurian issued a limited notice to proceed to Bechtel under its engineering, procurement and construction contract to begin building phase one of the Driftwood LNG export facility near Lake Charles, Louisiana.

Crowley Maritime Corp. has ordered a new LNG bunkering barge to operate on the US East Coast and has signed a long-term time charter with Royal Dutch Shell.

On completion the US-built LNG bunker barge will be the largest Jones Act-compliant vessel of its kind, helping to expand current network capacity and meet demands for cleaner energy for ships calling at US ports.

The LNG fuelling barge will be built at Fincantieri Bay Shipbuilding, located at Sturgeon Bay in the US state of Wisconsin.

“The new bunker barge will extend Crowley’s commitment to deliver cleaner, innovative solutions to help the shipping industry continue on the path to decarbonization,” said Tucker Gilliam, Vice President of Crowley Shipping.

“Orders for ships fuelled by LNG continue to rise and the vessel will provide Shell with an innovative and reliable service to meet demands for more sustainable energy sources,” added Gilliam.

The 416-foot-long barge will feature advanced technologies in cargo-handling capabilities and increased transfer rates, including a bunkering solution from Shell and Crowley Engineering Services for the flexible delivery of LNG to various types of LNG containment systems.

Crowley said the barge design would offer capacity of 12,000 cubic metres of LNG, the equivalent of 3.17 million gallons, and supply equipment to supply the growing LNG-powered fleet.

The US company noted that the vessel becomes the second Jones Act-compliant bunker barge Shell has under long-term charter in the US.

It is expected to be deployed to serve LNG-fuelled ships that call at ports on the US East Coast starting in 2024.

“Shell is dedicated to growing our LNG bunkering network across key trade routes, and this barge supports our commitment to helping provide our customers with the energy solution they are looking for,” said Tahir Faruqui, a general manager for Global LNG at Shell.

“The shipping sector is making progress toward decarbonization, and LNG offers immediate emissions reduction with the potential to become a net zero emission marine fuel given the possible roles of bio-LNG and synthetic LNG,” added Faruqui.

Fincantieri Bay Shipbuilding said the northern Midwest yard was delighted to take up the order.

“This additional LNG barge will serve as another demonstration of our commitment to building and servicing sustainable maritime endeavours, both in the United States and globally,” said Dario Deste, President and Chief Executive of Fincantieri Marine Group.

Tellurian Inc. has finalized yet another liquefied natural gas sale and purchase agreement with Royal Dutch Shell after two previous sealed deals with global commodities firms Gunvor and Vitol.

The Shell SPAs are on a free-on-board (FOB) basis at Driftwood LNG for a combination of 3 million tonnes per annum for a 10-year period, indexed with two indices, the Japan Korea Marker (JKM) and the Dutch Title Transfer Facility (TTF), each netted back for transportation charges.

The agreements mark the third deal that Tellurian has finalized in 10 weeks, totalling 9 MTPA and nearly all of the capacity of Driftwood LNG’s first two liquefaction Trains.

“Tellurian welcomes Shell to the Driftwood project,” said Tellurian President and Chief Executive Octávio Simões.

“Shell manages one of the largest and most diverse portfolios of LNG in the world,” he added.

Steve Hill, Executive Vice President of Shell Energy said the deal suited the Anglo-Dutch company as LNG demand was expected to nearly double by 2040.

“This deal secures additional competitive volumes for our portfolio by the mid-2020s, enabling us to continue providing diverse and flexible LNG supply to our customers. We look forward to working with Tellurian,” stated Hill.

The Houston, Texas-based company is moving ahead after signing firm deals in late May and early June 2021 with Gunvor and Vitol for a combined 6 MTPA from the Driftwood plant.

Each of the firm agreements is also for a period of 10 years with the supply indexed to the JKM and Dutch TTF.

Simões said that Tellurian would now focus on financing Driftwood to give US engineering contractor Bechtel notice to proceed with construction in early 2022.

The Driftwood project has permits for production capacity of around 27 MTPA. The plant will be sited on the west bank of the Calcasieu River, just south of Lake Charles.

Tellurian has also filed a formal application with the US Federal Energy Regulatory Commission to build a new 37-mile pipeline in Louisiana that will originate near Ragley in Beauregard Parish and end near Carlyss in Calcasieu Parish, close to where the Driftwood facility will be located.

Florida Gas Transmission received a regulatory permit for its East-West Project to construct lateral connections to serve demand in the Gulf Coast, including from liquefied natural gas export plants.