US LNG trade in growth mode


LONDON�Reflecting the growing interest in liquefied natural gas trade, energy giant BP Friday became the second big oil company to order new LNG tankers.

BP said it has placed an order worth in excess of $300 million with South Korea's Samsung Heavy Industries Co. for two tankers�and options to buy a further three vessels�as part of a strategy to develop the group's international traded gas business.

Construction of the vessels, which will feature the Technigaz MKIII containment system with a storage capacity of 136,000 cu m, will begin in April 2001. Delivery of the first tanker is scheduled for the fourth quarter of 2002, and the second for the first quarter 2003.

BP said the vessels, which will be classified by Lloyd's Register, have been "specified to allow a high degree of flexibility and utilize the LNG experience of BP's shipping business" in their design, construction, and operation.

BP Gas & Power Chief Executive Richard Flury said the order was "part of a much broader set of investments and initiatives" with respect to natural gas and LNG embarked on by the group. He pointed to a recent deal to supply LNG to the Dominican Republic, the "securing of access to the North American gas market via Cove Point in Maryland," and the decision to invest in the LNG regasification and power station at Bilbao, Spain, as examples.

Shell International Gas Ltd. earlier reported it ordered two LNG carriers from the Mitsubishi Heavy Industries shipyard in Japan. They will be delivered in third quarter 2002 and first quarter 2003. They will also be used to supply Cove Point, where Shell recently secured capacity.

Earlier, Cove Point LNG LP said it executed binding precedent agreements with Coral LNG Inc., a Shell affiliate; El Paso Merchant Energy-Gas LP; and a BP subsidiary. The new service initially will provide 4.25 bcf of storage capacity and 750,000 dekatherms/day of terminal and pipeline capacity to accommodate LNG imports by the three customers.

The deal also provides for a 2.5 bcf vapor-equivalent storage capacity expansion of Cove Point in Lusby, Md. Cove Point LNG officials were expected to file an application with the Federal Energy Regulatory Commission for authorization to provide the LNG tanker discharging service, to recommission Cove Point's marine facilities, and to construct new facilities including the new LNG storage.

Related Articles

Canada Briefs

12/12/2014

Kinder Morgan to deliver natural gas to Corpus Christi Liquefaction

12/11/2014 Kinder Morgan Inc. (KMI) companies Kinder Morgan Texas Pipeline, Kinder Morgan Tejas Pipeline, and Tennessee Gas Pipeline Co. (TGP) have entered in...

Magnolia LNG lets EPC contract to SK E&C USA

12/03/2014 Magnolia LNG LLC parent-company Liquefied Natural Gas Ltd. agreed to an engineering, procurement, and construction contract with SK E&C USA cov...

Pipeline leak dampens Atlantic LNG production

12/01/2014 Atlantic LNG (ALNG) reported a 35% reduction in LNG production because of insufficient natural gas supply from Trinidad and Tobago’s National Gas C...

Real-time monitoring improves LNG inventory measurement

12/01/2014 Kogas has improved the calculation method for determining stocks at its LNG terminals, changing from a sampling method to a real-time monitoring sy...

Watching Government: Greece and energy in Europe

11/24/2014 Amid growing energy supply geopolitics, Greece is a stable anchor within a rapidly destabilizing region, Yannis Maniatis, its Environment, Energy, ...

Freeport LNG nears construction phase

11/19/2014 Freeport LNG Expansion LP expects later this month to close on financing and begin construction on the first two trains of its natural gas liquefac...

Woodside releases draft EIS for Browse LNG project

11/19/2014 Woodside Petroleum Ltd. has released its draft environmental impact statement (EIS) for the proposed Browse LNG project offshore Western Australia.

ANGA president calls for sharper focus on gas transportation issues

11/17/2014 America’s Natural Gas Alliance Pres. Martin J. Durbin called for a stronger focus on transportation as he outlined issues that the US gas industry ...

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected