Caribbean LNG project marks progress; LNG tanker launched

Oct. 20, 1997
The dome for Tank No. 1 of Atlantic LNG's Trinidad project was installed late last month as the 18-month old project moves toward start-up in 1999. [10,854 bytes] The LNG carrier Aman Sendai was launched earlier this year for service between Malaysia and the Japanese city of Sendai. [9,474 bytes] World LNG trade continues to expand as construction of a major LNG project in the Caribbean hits full stride this fall and another LNG carrier was launched earlier this year.
World LNG trade continues to expand as construction of a major LNG project in the Caribbean hits full stride this fall and another LNG carrier was launched earlier this year.

Engineering is nearly complete and construction is nearing midway on Trinidad's Atlantic LNG. In Japan, NKK Corp. launched another LNG tanker that employs the membrane-storage system.

Trinidad tank

Construction of the Atlantic LNG plant at Point Fortin, Trinidad, is on schedule for mid-1999 as completion of the first LNG storage tank form will occur this fall, says Atlantic LNG Co. of Trinidad and Tobago, Port of Spain.

The Atlantic LNG project is a joint venture of Amoco (Trinidad) LNG B.V. (34%), British Gas Trinidad LNG Ltd. (26%), Repsol International Finance B.V. (20%), Cabot Trinidad LNG Ltd. (10%), and NGC Trinidad and Tobago LNG Ltd. (10%; Ngctt).

The first shipments of LNG are expected during the second quarter of 1999. The purchasers are Cabot (60%) and Enagas (40%).

Main contractor, Bechtel International, began clearing the storage tank site in May 1996 and operation is taking shape on the 120-acre site on the southwestern coast of the island, says Atlantic LNG.

Bechtel has responsibility for engineering, procurement, and construction of the 400 MMcfd single-train plant.

The Atlantic LNG project, now 18 months under way, signed a $600 million loan agreement on June 30, 1997, to finance design and construction.

The agreement was signed by Atlantic LNG and its sponsors: Amoco Corp., BG Plc, Cabot Corp., Ngctt, and Repsol S.A.

ABN AMRO Bank N.V., Barclays Bank PLC, and Citicorp Securities Inc. have completed syndication of the credit facility to a group of 29 international banks.

Engineering is more than 80% complete and on schedule, and construction is more than 35% under way, says Atlantic LNG. Progress has been made on the two LNG-storage tanks, the first of which had its dome roof installed last month.

Dredging of an approach channel, turning basin, and construction channel is complete, and piling is well advanced for the 700-m marine loading jetty.

The 50-mile pipeline to move natural gas to the Atlantic LNG facility is also on track for completion by October 1998.

Agreements shape future

On June 29, 1997, National Gas Co. and Amoco Trinidad Oil Co. signed two agreements, one amending the gas-supply contract between the companies and the other covering proposed land and marine pipelines.

The first agreement amends an existing 1991 gas-supply contract which provides for a daily contract quantity of 350 MMscfd.

Under the agreement, Ngctt will increase its obligation to purchase an additional 3.6 tcf of gas from Amoco over the period to Jan. 1, 2019. This additional volume represents a twofold increase over the commitment of 1.85 tcf under the existing gas contract.

The term of the amended gas contract will be extended by 8 years, beyond Jan. 1, 2001. The daily contract quantities can increase from 350 MMscfd to a ceiling of 700 MMscfd after May 1, 1998. And Ngctt will enjoy an improved gas-pricing structure, particularly with respect to quantities exceeding 350 MMscfd.

The second agreement for pipelines governs establishment of a pipeline system consisting of a 40-in. marine pipeline from the East Mayaro field to Beachfield on the southeast coast of the island and a 36-in. land pipeline from Beachfield to the planned LNG plant at Point Fortin.

The agreement deals with issues of ownership, operation, capital contribution, and utilization of the pipelines' capacities between the two companies.

Amoco will build, own, and operate the new offshore pipeline, says Atlantic LNG. Ngctt will make a capital contribution of $53 million (U.S.) and obtain the right to transport up to 450 MMscfd of gas through this pipeline from offshore producing fields to an onshore delivery point at Beachfield. There it will join the company's pipeline network.

The remainder of the pipeline's capacity will be available to provide feed gas to Atlantic LNG Co. of Trinidad and Tobago.

Line capacity will be nearly 1.3 bcfd; construction is expected to be completed by September-October 1998.

A new onshore pipeline will be built by Amoco but owned by Ngctt. It will be leased at a nominal fee to Amoco which will be responsible for its operation and maintenance.

This pipeline's capacity, 825 MMcfd, will be dedicated to supply more gas to Atlantic LNG; construction will be completed by October 1998.

Capital investment

With four other gas-based projects now on stream on the island, including additional ammonia and methanol plants, the Atlantic project has attracted the largest capital investment ever to the Caribbean region, says Atlantic LNG.

Completion of these facilities in conjunction with existing capacity will, by 2000, make Trinidad and Tobago the world's largest exporter of methanol and ammonia.

Trinidad's natural gas reserves are modestly estimated at 21.78 tcf for at least 28 years of domestic and export production.

Gas for the first train of the Atlantic LNG project will be supplied by Amoco which with British Gas has an interest in supplying gas to an expansion. A second train is under consideration.

And in early August, British Gas (Trinidad and Tobago) Ltd. announced that a consortium shared with Agip of Italy and Germany's Deminex had discovered significant natural-gas reservoirs off the north coast of Trinidad.

Another launch

NKK Corp., Tokyo, earlier this year launched its second LNG carrier that uses the membrane-tank system. The 18,800 cu m Aman Sendai was launched from NKK's Tsu, Japan, works and built for Asia LNG Transport Sdn. Bhd. (ALT), Malaysia.

ALT is a shipping joint venture between Japan's Nippon Yusen K.K. and Malaysia's PNSL Bhd. The first vessel, Aman Bintulu, was also built at NKK's Tsu works and delivered to ALT in October 1993.

The Aman Sendai will be chartered by Malaysia LNG Sdn. Bhd. (MLNG) to transport LNG from Malaysia's Sarawak gas fields to Gas Bureau of Sendai, Japan.

The city has concluded a 20-year agreement with MLNG to purchase 150,000 tons (more than 7.3 bcf) of LNG annually from June 1997 and has recently built a new LNG receiving terminal at its port.

Sendai's Gas Bureau is Japan's third medium sized regional city gas utility to supply natural gas by directly importing LNG. Japan's three largest gas companies, in Tokyo, Osaka, and Nagoya, have already switched to LNG from LPG/naphtha.

Cargo containment

To ensure safe transportation of natural gas liquefied by -163° C., LNG carriers must have a highly advanced ultralow-temperature cargo-containment system.

In 1971, NKK concluded a licensing agreement with Gaz Transport & Technigaz S.A. (GTT) of France, formerly Societ? Nouvelle Technigaz, for the low temperature membrane cargo-containment technology.

Since then, NKK has built more than 10 inground LNG storage tanks, for both domestic and overseas customers, incorporating the original GTT Mark I membrane technology.

Also, NKK says it has continued to conduct its own R&D, successfully developing the new Mark III version, which has been applied to both LNG carriers.

The Aman Sendai is the same size as the Aman Bintulu, the world's first oceangoing small LNG carrier using the GTT Mark III membrane tank system. This vessel is currently in regular service carrying LNG from Malaysia's Bintulu port to the Fukuhoku terminal for Saibu Gas Co. Ltd.

In addition, NKK has received a third order from ALT for another LNG carrier. The vessel, also to transport LNG for Saibu Gas, is now under construction at NKK's Tsu shipyards and expected to be completed in September 1998.

NKK says the Aman Sendai was designed to maximize cargo tank capacity (18,800 cu m) given a maximum overall length of 130 m and draft of 6.5 m.

Other particulars include molded breadth of 25.7 m, molded depth of 16.6 m, capacities of 9,220 metric tons (dwt) and 18,928 cu m (cargo tank), gross tonnage of 16,336 metric tons, service speed of 15 knots, and sailing distance of 7,100 nautical miles.

The vessels' length and draft were calculated, says the company, as the greatest common divisor to permit entry into and departure from Japan's five major regional ports, including Sendai. They followed a feasibility study that NKK conducted under contract for MITI and its affiliate, the Center for the Promotion of Natural Gas Utilization.

The Aman Sendai and the Aman Bintulu not only facilitate direct imports of LNG by Japan's regional city gas utilities for economical gas supplies, says NKK, but the vessels can accommodate each other in case of emergency.

This contributes to the Japanese government's energy utilization policy of promoting conversion to natural gas.

Copyright 1997 Oil & Gas Journal. All Rights Reserved.