LNG

Wood Mackenzie, the energy and LNG consulting firm, has acquired another UK consultancy, the privately-held Roskill, a leading player in fields of metals and materials supply chain intelligence for the energy transition.

“Combining Roskill’s capabilities with Wood Mackenzie reinforces our ability to provide comprehensive, integrated analysis across the energy, and metals and mining value chain,” said Neal Anderson, President of Wood Mackenzie.

“In particular, Roskill adds market-leading analysis, data, and insight on battery raw materials metals, which are an integral component of the energy transition,” stated Anderson.

Wood Mackenzie is based in Edinburgh in Scotland and was itself acquired by Nasdaq-listed US firm Verisk in 2015.

Verisk said that Valerie Purvis has expanded her leadership remit and will be assuming the role of Global Head of Metals and Mining, including Roskill.

This appointment is in addition to her current responsibility as Global Head of the Chemicals business, which she has led for the last three years.

Commenting on the addition of Roskill, Purvis said that in her opinion said the “green” growth stimulus packages and commitments to net carbon neutrality by many of the major economies and major companies are increasing the pace of the energy transition.

“Integrated, in-depth analysis of the value chain for these metals and materials is crucial to understanding the transition,” added Purvis.

“I’d like to welcome the Roskill team as we add to the depth and breadth of the analysis, data and insight we provide for our customers as they evolve,” she stated.

Wood Mackenzie said in its most recent presentation at a conference in Australia that Australian producers should be at the forefront of “green LNG”, a form of cargo trading that includes offsets for environmental projects.

Wood Mackenzie senior analyst Daniel Toleman said that countries with carbon neutrality pledges now account for 30 percent of the global gas demand and 75 percent of LNG demand.

The list includes some of Australia’s largest LNG customers such as Japan and South Korea.

“In addition, faced with new and lower-cost LNG supply coming online over the next decade from Qatar and Russia, Australian producers must do more to avoid losing market share,” explained Toleman.

“As the world’s largest LNG supplier in 2020 and a jurisdiction leading the push to decarbonise, Australia can be a frontrunner in green LNG,” he stated.

However, other analysts have noted that faddish “green LNG” cargoes accounts for only a small share of the global LNG market, less than 1 percent of delivered cargoes, including in 2021. 

Golar LNG Ltd, the operator of conventional carriers, floating import and export terminals and a power affiliate backed by its fleet of 27 ships, is expanding its floating LNG relationship with US processing technology firm Black and Veatch into activities such as “green” LNG and hydrogen.

Golar offers its experience of delivering and operating low-cost floating LNG infrastructure while B&V, based in Overland Park in Kansas, is a leading provider of LNG technology, particularly for topsides of floating LNG production hulls.

“Within 2020, Golar and B&V intend to jointly publish a ‘thought leadership paper’ on our first area of interest for collaboration, floating ammonia production with carbon capture and storage (Floating Blue Ammonia),” said a statement.

Golar also operates with its Golar LNG Partners affiliate whose fleet comprises 10 vessels, including conventional carriers, FSRUs and the converted floating liquefaction hull the “Golar Hilli Episeyo” operating offshore Cameroon. Another hull of an older LNG carrier is being converted for an FLNG project offshore Mauritania and Senegal in West Africa.

In subsequent months, Golar and B&V intend to focus on the technical and commercial viability of the most prospective floating applications of the green and blue technologies and areas of interest they intend to investigate.

Any project development and implementation that followed the initial studies would be subject to a separate commercial agreement between the two companies.

“Replacement of coal, fuel oil and diesel with cleaner burning LNG represents one of the easiest and most cost-effective near-term steps to decarbonize the worlds energy mix,” explained Golar Chief Executive Iain Ross.

Golar, whose shareholders include more than 15 major global investment banks and funds, many based in New York, also has a joint venture, formerly known as Golar Power but now called Hygo Energy Transition, with the fund Stonepeak Infrastructure Partners.

Its activities are centred on northeast Brazil, including a project in Sergipe, the smallest Brazilian state.

Hygo Energy has also signed an accord with the Brazilian state government of Pernambuco to develop an LNG import terminal in the Port of Suape.

Additionally, Hygo Energy recently appointed a new Chief Executive to replace the previous incumbent who decided to step down after being caught up in a Brazilian corruption investigation.

Hygo Energy subsequently named Paul Hanrahan, the former President and CEO of power producer and LNG terminal owner AES Corp. from 2002 to 2011, as the new CEO to replace Eduardo Antonello.

Golar LNG CEO Ross explained that the shipping company and Hygo Energy were well positioned to expand on their quick delivery infrastructure solutions and emerging use of bio LNG, made from waste flows.

Ross added that his company has a history of championing and delivering solutions to problems in its industry, and he cited the Environmental, Social, and Corporate Governance (ESG) agenda, which is the mantra that is now part of the investment creed of the “green” banking community on Wall Street.

“Golar looks forward to working with a likeminded and equally capable partner, in the field of floating ammonia and hydrogen production, carbon capture, and other decarbonisation initiatives,” stated Ross.

Hoe Wai Cheong, President of Black & Veatch’s oil and gas business, said the new collaboration builds on years of delivering commercial and technology innovation with Golar in monetizing natural gas reserves.

“Given hydrogen and ammonia’s use in many energy-intensive industries we can make meaningful progress in lowering the carbon footprint and help these industries meet new sustainability commitments,” stated the head of B&V oil and gas.