OTC: El Paso unveils shipboard LNG regasification system

Sam Fletcher
Senior Writer

HOUSTON, May 8 - El Paso Global LNG Co. has unveiled an innovative concept featuring LNG tankers that could also regasify their cargoes and deliver as much as 400 MMcfd into pipelines from miles offshore.

El Paso unveiled its EP Energy Bridge system at a general session on offshore gas development at the Offshore Technology Conference late Tuesday.
As envisioned by EP officials speaking at the session, the system eventually could create a global spot market for stranded gas, with a fleet of Energy Bridge tankers moving those supplies to various markets "like a floating pipeline." The offshore station typically would have two offloading buoys to ensure uninterrupted delivery, said Kathleen M. Eisbrenner, chief commercial officer for El Paso Global LNG.
Unlike a pipeline or a land-based LNG terminal, the Energy Bridge system would allow El Paso to target markets as needed. "We could bring LNG into New York in the winter and Florida in the summer," said Eisbrenner.

NIMBY-inspired alternative
The concept was developed by El Paso over the last 18 months as an alternative to three onshore LNG terminals that it previously had proposed to build in the US. Although several are still proposed by others, construction of new land-based US LNG terminals "is not likely," said Eisbrenner.
The usual NIMBY (not-in-my-back-yard) opposition to such projects has been stiffened by heightened security concerns in the wake of the Sept. 11, 2001, terrorist attacks in New York and Washington, DC, making it even more difficult and expensive to obtain sites and permitting for LNG terminals in key market areas, she said.
The Energy Bridge offshore station, however, would be miles offshore, out of sight, and, it is hoped, out of the minds of potential opponents, Eisbrenner said.

The first delivery system is expected to be operational and in service by 2005, probably in the Gulf of Mexico, although El Paso officials also are looking at a US East Coast site. Eisbrenner would not provide further information on the potential gulf site, although she did acknowledge that El Paso would prefer to deliver into a growing gas market (such as Florida) than into major gas producing states (such as Texas and Louisiana).

With US gas production flat and demand growing, LNG imports "will economically contribute" to filling in an imbalance between conventional gas supplies and demand that is projected to grow to 2.9 bcfd in 2005, 9.4 bcfd in 2010, and 15.3 bcfd in 2015, Eisbrenner said.
"LNG can compete very favorably," she said. "We see sustained gas prices above $3.50/Mcf going forward." Although El Paso's Energy Bridge system would be viable at market prices of $2/Mcf, Eisbrenner said, "The US market is more attractive than the European market and should trade at a premium to Europe for the next 5-12 years."

How it would work
Regasification equipment is to be installed on three of the four LNG tankers already under construction by Daewoo Shipbuilding & Marine Engineering Co. Ltd., South Korea, for Belgian company Exmar Offshore Co. and under long-term charter to El Paso. Exmar will own and operated the Energy Bridge tankers.

The total cost of the initial Energy Bridge system, including the original cost of the three LNG tankers, would be "close to $700 million," said El Paso officials.

An Energy Bridge tanker would remain on site 6 days as it delivers natural gas at sufficient pressure to be received into new or existing pipelines or at a customer's facility onshore without additional compression. The vessels would be moored to a submerged-turret loading system, designed by Advanced Production & Loading AS of Norway, that has been proven in the harsh waters of the North Sea, officials said.
When not in use, the offloading station would remain submerged at a depth where it would not be a hazard to vessels.

Meanwhile, El Paso officials are looking at other potential delivery sites and talking to producers with stranded gas reserves around the world. El Paso also is continuing its plans to build two LNG terminals in Mexico and another in the Bahamas.

Related Articles

WAFWA: Aerial survey finds lesser prairie chicken population grew

07/06/2015 A recent range-wide aerial survey found the lesser prairie chicken population rose 25% from 2014 to 2015, the Western Association of Fish & Wil...

Buru awarded onshore Canning licenses

07/06/2015 Buru Energy Ltd., Perth, and Mitsubish Corp. have been granted two production licenses for Ungani oil field in the onshore Canning basin of Western...

Cenovus sells royalty business for $3.3 billion

07/06/2015 Cenovus Energy Inc., Calgary, inked an agreement to sell its wholly owned subsidiary Heritage Royalty LP to Ontario Teachers’ Pension Plan for gros...

CERI: Energy, operational efficiencies possible in Canadian oil, gas

07/06/2015 Measures can be taken by operators in the expanding resource-intensive Canadian oil and gas sector to improve both energy efficiency and operationa...

AGL Energy to scale back upstream gas operations

07/06/2015

Gas retailer AGL Energy Ltd., Sydney, says it will exit the oil business and massively scaling back its upstream gas operations.

Woodside lets contracts for Browse LNG project

07/06/2015 Woodside Petroleum Ltd. has let more contracts for the Browse floating LNG project offshore Western Australia. The contracts, awarded to a Technip-...

Macondo settlement seen ‘positive’ for BP

07/06/2015 BP Exploration & Production Inc.’s recent agreement to settle federal and state claims related to the 2010 Macondo blowout and spill improves t...

Emerging producers offered guidelines for governance

07/06/2015 Like most worthy endeavors, governing oil and gas activity at the national level is easier said than done-especially where oil and gas never before...

Nelson-Farrar Quarterly Costimating Indexes for selected equipment items

07/06/2015 The Nelson-Farrar refinery construction index rose to 2,475.6 by December 2012 from 2,467.4 in January of the same year. The index continued to ris...
White Papers

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by
Available Webcasts


The Resilient Oilfield in the Internet of Things World

When Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.

register:WEBCAST



On Demand

Taking the Headache out of Fuel License and Exemption Certificates: How to Ensure Compliance

Tue, Aug 25, 2015

This webinar, brought to you by Avalara, will detail the challenges of tax document management, as well as recommend solutions for fuel suppliers. You will learn:

-    Why it’s critical to track business partner licenses and exemption documents
-    The four key business challenges of ensuring tax compliance through document management
-    Best practice business processes to minimize exposure to tax errors

register:WEBCAST


Driving Growth and Efficiency with Deep Insights into Operational Data

Wed, Aug 19, 2015

Capitalizing on today’s momentum in Oil & Gas requires operational excellence based on a clear view of what your business data is telling you. Which is why nearly half* of oil and gas companies have deployed SAP HANA or have it on their roadmap.

Join SAP and Red Hat to learn more about using data to drive process improvements and identify new opportunities with the SAP HANA platform running on Red Hat Enterprise Linux. This webinar will also show how your choice of infrastructure impacts the performance of core business applications and your ability to achieve data-driven insights quickly and reliably.

*48% use SAP, http://go.sap.com/solution/industry/oil-gas.html

register:WEBCAST


OGJ's Midyear Forecast 2015

Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Emerson Micro Motion Videos

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