LNG

Gaztransport and Technigaz (GTT), the French LNG storage technology company, has received another order from Dalian Shipbuilding Industry Co. in Northeast China for the tank designs for three LNG carrier newbuilds.

GTT said the latest order was received from its technology partner Dalian Shipbuilding on behalf of Chinese company China Energy.

The Paris-based company added that the tanks chosen for these three vessels, which will each offer a capacity of 175,000 cubic metres, will be the Mark III Flex membrane containment system.

GTT  said that the delivery of the vessels was scheduled for the first half of 2027 and the first quarter of 2028.

The latest order is the second this month from the Dalian yard after a previous order for two ships from Sea Jade Investment, a joint venture comprising Hong Kong-based shipping company Wah Kwong as well as China Gas and China Ship Leasing.

Capacities

Those two vessels will each have capacity of 175,000 cubic metres and will be fitted with the GTT Mark III Flex membrane containment system.

The delivery of the vessels for the Sea Jade consortium is scheduled between the first and the third quarters of 2027.

GTT has also noted in its most recent newsletter just published that the LNG sector had demonstrated more than 60 years of successful and safe operations. 

The French firm said it had contributed to this success though continuous innovation in new solutions, new design proposals and efficient assistance in the construction of well over 2.500 LNG storage tanks.

Modular tanks

GTT is also advancing marketing propositions for its modular LNG storage tanks that can be delivered by ships or barges, for example, to areas isolated from on the ground engineering expertise.

“Amid rising global energy prices and higher demand, new greenfield onshore projects are running into inflationary headwinds and facing significant challenges to deploy cost-effective LNG storage solutions,” said GTT.

“This is particularly true when accessing remote areas where logistics are complex and skilled manpower is difficult to deploy,” the firm added.

“Moreover, as projects become increasingly modularised, slower erection times inherent to stick-built tanks often drive overall project delivery,” GTT said.

Denmark has become a benchmark nation for measuring pipeline natural gas and power needs in the European Union as a bridge supplier of gas to Poland on the Baltic Pipe and being outside the LNG supply loop unlike Germany.

Höegh LNG Holdings, the owner of 10 floating storage and regasification units (FSRUs) and two conventional carriers, has agreed to grant a purchase option to Lithuania to buy the FSRU “Independence”.

The FSRU has been in operation at the port of Klaipeda since October 2014.

It was expected to be purchased by the Lithuanians from Höegh LNG and has been chartered since being deployed for around $68 million per annum.

The shipping company said that the charterer of the “Independence”, the Lithuanian, energy storage company Klaipėdos Nafta, had notified Höegh that it would like to exercise and option to acquire the FSRU.

“The transfer of ownership is expected to occur in December 2024,” said Höegh.

“Until then, the existing FSRU contract between a subsidiary of Höegh LNG and Klaipėdos Nafta continues unchanged,” it added.

The Klaipėda LNG terminal is still the main source of gas supply to Lithuania which is building up its already well developed gas transmission infrastructure.

Latvia storage

Klaipėda Nafta is expanding its gas supplies and has gas transmission projects with European Union neighbours, helping Latvia to boost its gas storage volumes.

Höegh LNG Holdings in September 2022 finalised the acquisition Höegh LNG Partners, the affiliate company with five ships and listed on the New York Stock Exchange.

The company's two conventional carriers, each with 147,200 cubic metres of capacity, are the “Arctic Lady” chartered to TotalEnergies and the “Arctic Princess”, chartered to Norway’s Equinor.

Both vessels are mostly on shuttle duty delivering cargoes from the Equinor-operated Hammerfest LNG export plant.

Höegh LNG Holdings revealed the initial merger plan in December 2021 and went on to acquire all outstanding common units not already owned by Höegh LNG Holdings in exchange for $9.25 in cash per common unit.

Australia, the largest LNG exporter to North Asia ahead of Qatar and the US, is now taking measures to underpin its own energy security by accelerating seven priority natural gas infrastructure projects and plans to give them government start-up funds to help protect Australia from potential global energy shortages and keep downward pressure on prices.