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B.C.’s clean LNG touted as important decarbonization tool, and economic tool in reconciliation with First Nations.

The first Canada Gas and LNG conference to take place in person in three years kicked off today at the Vancouver Convention Centre with a low-key demonstration from environmentalists and a recap of LNG projects underway or proposed in Canada, including two in which First Nations would be owners or major partners.

The projects range from a small operator – Cryopeak – that supplies liquefied natural gas (LNG) to mines and remote communities, to a new project in Newfoundland, LNG NL, that proposes to source natural gas from the Jeanne d’Arc Basin near the Hibernia oil fields, and pipeline it to Grassy Point Newfoundland for liquefaction and export it to Europe.

The project could also see a second pipeline built to return CO2 captured at Grassy Point back to the Jeanne d’Arc Basin for deep sea sequestration.

The Canadian LNG industry has taken a back seat to the U.S., which has dramatically eclipsed Canada as a major LNG producer. But there was some sense Tuesday at the three-day conference that the Canadian natural gas and LNG sectors could be having a moment, thanks to an energy crisis in Europe, exacerbated by war, which has underscored the importance of natural gas in energy security and the energy transition.

Anyone looking at gasoline prices today may be suddenly thinking about energy and energy security, said Bryan Cox, president of the Canadian LNG Alliance.

“We’re starting to feel that, and we’re starting to think about energy in a whole different way,” Cox said.

In a press release, Stand, Dogwood and the Wilderness Committee accused Bruce Ralston, minister of Energy, Mines and Low Carbon Innovation, of “peddling myths about clean LNG.”

“In reality, pumping more super-polluting methane gas out of the ground will prevent B.C. from meeting its climate targets and condemn all of us to more deadly extreme weather,” Dogwood campaigner Alexandra Woodsworth said in a press release.

But independent studies, including from St. Xavier University, have confirmed that the natural gas produced in Northeast B.C. has some of the lowest GHG intensities anywhere, partly due to low methane leakage, and a number of LNG projects in B.C. propose to use electric drive, which would make it, again, some of the lowest intensity LNG produced anywhere.

“Right now, today, people are building new coal-fired power plants in Asia,” said Jason Klein, the new CEO of LNG Canada, which is building a $17-billion plant in Kitimat.

“This industry has the opportunity to displace that coal with natural gas…and we have some of the cleanest LNG in the world. LNG Canada, when it’s in operation, will be the lowest GHG intensity of any currently operating LNG plants. It’s 35% lower greenhouse gas intensity of any facility operating today, and 60% lower than the global weighted average.”

The Intergovernmental Panel on Climate Change says switching from coal power to natural gas could reduce GHGs emission by 50%, provided fugitive methane emissions are managed. This has proven true in the U.S., which has achieved some of the most dramatic decreases in GHGs from the power sector in the western world, thanks largely to fuel switching from coal to gas.

“With our CleanBC Roadmap to 2030, we continue to demonstrate we are one of, if not the most, responsible natural gas producing jurisdiction in the world,” said Ralston. “We are bringing forward stronger targets to reduce methane emissions from the oil and gas sector by 75% by 2030, and nearly eliminate all industrial methane emissions by 2035.”

B.C.’s natural gas and LNG not only would be some of the cleanest in the world, it also could be the springboard for the next generation of even cleaner fuel – hydrogen. Hydrogen can be produced from natural gas, and some of the pipeline infrastructure and export terminals could eventually be used to transport hydrogen.

“Hydrogen alone has the potential to reduce the province’s emissions by 30% of the 2050 Clean BC target,” Ralston said.

The biggest LNG project in B.C. that’s under construction is the $18-billion LNG Canada project. Next in line is the smaller $1.6-billion Woodfibre LNG project in Squamish, which just recently got the notice to proceed.

FortisBC is working on an expansion of its Tilbury LNG plant, and two First Nations are partnered with oil and gas industry players on two new projects – the Haisla’s Cedar LNG and the Nisga’a-backed Ksi Lisims LNG project.

“Were going to be the largest First Nations investment in Canadian history,” Haisla Chief Crystal Smith said of the $3-billion Cedar LNG project, which is currently in an environmental review process.

Paul Sullivan, senior vice president of Global LNG for Worley, said a 40-year-old natural gas and LNG business model in Europe has been “shredded” overnight by Russia’s invasion of Ukraine. He said European leaders are now deeply concerned about the cost of energy, and now asking themselves if they can afford to dispense with coal.

He said Canada is blessed with a “massive amount of natural resources, including natural gas.” The question for Canada is whether it is willing to share those resources with countries trying to secure supplies of low carbon energy.

The first LNG facility built in B.C. has been around for quite some time – the FortisBC Tilbury Island plant, which originally produced LNG as a backup for pipeline gas. It has expanded its production capacity to start supplying LNG as a transportation fuel for both trucking and the marine sector. Some LNG produced there has been shipped to Asia in ISO containers.

Because it is largely powered with clean BC Hydro power, the LNG it produces is 30% less carbon intensive than LNG produced elsewhere in the world, said FortisBC CEO Roger Dall’Antonia.

“That’s a massive advantage, when you think about a premium low-carbon LNG product, Canada’s leading the way on that front,” he said.

FortisBC plans to expand its Tilbury plant, with an additional storage tank, additional liquefaction and a new marine terminal for marine LNG bunkering.

FortisBC has also been investing in renewable natural gas (RNG), which when blended with natural gas lowers its emissions intensity even more. Dall’Antonia said Tilbury LNG could reduce GHGs from shipping in B.C. by 27%, compared to other marine fuels.

In addition to providing a possible new source of low carbon energy to Asia and Europe, the nascent LNG sector in B.C. is also proving an important economic tool in reconciliation with First Nations.

Despite what some news headlines might suggest, the fact is a number of LNG projects are wholeheartedly supported by First Nations. Sixteen along the Coastal GasLink pipeline corridor have signed option agreements to take up to a 10% equity stake in the pipeline, and the Haisla First Nation has leveraged its partnerships with the LNG Canada and Coastal GasLink to proposed their own LNG project – Cedar LNG.

The Nisga’a First Nation are also partnered up with Alberta oil and gas producers on the Ksi Lisims LNG project.

Vancouver Is Awesome by Nelson Bennett, May 13, 2022

A project is getting underway to explore the feasibility of converting product tankers to shore-based power in ports. As chemical tankers are required to comply with higher safety standards than many other types of vessels, the project is viewed as significant in ports’ efforts to expand the use of cold-ironing as the ports work to meet new environmental regulations. 

While other segments of the shipping industry have been exploring the use of shore power, so far its application has been applied mostly to cruise ships and ferries as well as some general cargo ships. Recently a few ports have begun to study the expansion, for example in Sweden and the Port of Gothenburg which supported the first tanker to use battery power for in-port navigation and shore power while on dock.

The latest program exploring shore power for chemical tankers is launching at the Port of Rotterdam. Stolt Tankers signed a memorandum of understanding with the Port of Rotterdam Authority and Vopak Botlek to conduct a six-month feasibility study for the use of shore-based power for chemical tankers calling at Vopak’s Botlek terminal.

As chemical tankers are required to comply with higher safety standards than many other types of vessels, Stolt believes the results of the study will be important for the whole chemical tanker industry.

“We have identified several ships with the potential to take part in the trial, which if successful will also present opportunities for our ships calling at ports to plug into power from renewable sources,” said Lucas Vos, President of Stolt Tankers. The goal is while in port to have ships be able to switch off their diesel generators and connect to onshore power, potentially from renewable sources.

The project poses several significant technical hurdles, which make it unique, according to the partners. The feasibility study aims to discover effective solutions to these challenges that can be used to form the basis of an agreed international standard.

The installation of shore-based power for chemical tankers will only be a viable solution if the industry can agree on a single standard says Stolt. Shipowners will need confirmation that their ships can safely and reliably connect to shore power in multiple ports before investing in the necessary ship adjustments, which is why it is essential to design a standardized industry solution in partnership with other leading organizations.

“The availability of shore-based power for our ships has the potential to greatly reduce the use of onboard diesel generators while ships are in port, resulting in a significant reduction of greenhouse gas emissions,” said Vos. “This supports Stolt Tankers’ ambition to reduce its GHG emissions intensity by at least 50 percent by 2030 compared to 2008 levels.

Late in 2021, Stolt Tankers highlighted that it had already reduced its fuel consumption and the resulting CO2 emissions by six percent compared to 2020. Stolt achieved the savings in bunker consumption by improving operational and technical efficiencies and fleet optimization. Speed and trim were optimized according to weather conditions and enhanced maintenance programs, including additional hull and propeller cleaning, which also reduced fuel use. In addition, on several ships, Stolt also installed advanced power-saving propeller fins.

Industry providers of shore power equipment reported in the past few years a resurgence in demand as more ports look to install the connections required to provide shore power. In some ports, for example PortMiami, the implementation of shore power has been slowed by the lack of infrastructure to link the port to the power grid and the power generation capabilities. By

By The Maritime Executive, May 9, 2022

The Port of Zhoushan on Saturday (7 May) said it has digitalised information regarding commercial oil storage capacity at the port.

The development was a result of a joint project between the  Port of Zhoushan, the Zhoushan Port Association, and the Zhejiang International Oil and Gas Trading Center.

It covers commercial storage capacity currently available for lease by the 10 major oil storage companies in the city, including six main storage types such as crude oil and low-sulphur fuel oil. 

The information has been released on the official website of Zhejiang International Oil and Gas Trading Center.

This innovation follows the launch of the comprehensive price information for the storage of oil products at Zhoushan facilities, making it convenient for cargo owners to grasp the current available storage capacity information which improves operational efficiency. 

This will also further enhance the competitiveness of Zhoushan’s bunker fuel storage industry, states the port.

By Manifold Times, May 9, 2022

Independently-held oil product inventories in the Amsterdam-Rotterdam-Antwerp (ARA) area rose on the week to reach six-week highs during the week to 4 May, according to the latest data from consultancy Insights Global.

Gasoil stocks were up and reach their highest since the week to 31 March, but remained well below the five-year average for this time of year. Tankers carrying gasoil arrived in ARA from Russia, the UAE and the US, and departed for Brazil, France, the UK and west Africa.

The trade in spot cargoes within the northwest European market was limited and barge flows to destinations along the river Rhine remained steady at a low level.

The trade in finished-grade gasoline and components was more brisk, amid keen demand for European gasoline from across the Atlantic. Tankers departed the ARA area for the US, Mexico, Canada, Puerto Rico, Bulgaria and west Africa. Inventories rose on the week to reach five week highs.

Naphtha stocks were down by 3.5pc on the week amid keen demand particularly from gasoline blenders producing export cargoes. There were no outgoing cargoes, as the eastward arbitrage to Asia-Pacific was firmly closed throughout the week. Tankers carrying naphtha arrived from Algeria, Finland, Norway, Russia, Spain and the US.

Jet fuel stocks fell on the week to eight-week lows, as air travel in Europe continues to pick up. Tankers carrying jet fuel arrived from Malaysia and departed for Norway and the UK.

Fuel oil stocks rose to their highest since the week to 10 February, supported by the arrival of cargoes from Algeria, Bulgaria, Georgia and Russia with departures for west Africa.

Reporter: Thomas Warner

McDermott’s storage business, CB&I, will design and build two 500 000 gal. double-wall liquid hydrogen spheres for Plug Power Inc.’s new green hydrogen production facility in Genesee County, New York, US. The production facility, leveraging Plug Power’s proton exchange membrane (PEM) electrolyser technology, is expected to produce 45 tpd of green liquid hydrogen, making it one of the largest green hydrogen facilities in North America.

The turnkey engineering, procurement and construction contract for both spheres also includes insulation, testing and painting, with field erection taking place at Plug Power’s 30-acre site at the Western New York Science, Technology and Advanced Manufacturing Park, also known as WNY STAMP.

“There are countless companies talking about liquid hydrogen storage, but CB&I leads the industry in the timely mechanical completion for projects of this scale and significance,” said Cesar Canals, Senior Vice President, CB&I. “Plug Power is the single largest purchaser of liquid hydrogen in the world, and we are excited to be supporting them on this significant project.”

The stainless-steel inner sphere, which holds the liquid hydrogen, will measure nearly 52 ft in diameter with an internal design pressure of 30 lb/in.² and a design temperature of -423°F. The outer sphere, which acts as an insulation container, will be fabricated using carbon steel with a diameter of nearly 60 ft.

“Insulation is a critical component of any double-wall sphere and CB&I is one of the only contractors in the country with an Insulation Betterment Center dedicated to achieving the best designs for the quality and longevity of any insulation system,” said Canals. “Our insulation technology experts are involved from the start of any liquid hydrogen storage project to ensure that these systems achieve optimal thermal performance.”

The project has passed Final Investment Decision (FID) stage, and is currently under construction.

HYDROCARBONENGINNEERING, by Bella Weetch, April 4, 2022

Mexican wants to build new gas liquefaction facilities to export excess gas and will put the plants out to tender if he does not get commitments for their construction within a month, President Andres Manuel Lopez Obrador said on Friday.

Lopez Obrador urged U.S firm Sempra, which has a liquefied natural gas (LNG) facility by the northwestern port of Ensenada, and other companies to sign up the plan to build the facilities in the Pacific ports of Topolobampo and Salina Cruz, as well as another in Coatzacoalcos in the Gulf state of Veracruz.

Sempra had already said in November it was developing an LNG export plant in Topolobampo in the northwestern state of Sinaloa, but Lopez Obrador on Friday said it was urgent to get moving with the plants worth $3 billion to $4 billion each.

“If Sempra and other companies don’t respond in a month, we’re going to put them out for bid, because there are going to be interested companies,” he told a regular news conference.

The president said it was vital that Mexico become more self-sufficient on energy, and pointed to the importance of being able to export more gas to Asia, the Americas and Europe, amid supply disruptions caused by the war in Ukraine.

Interested companies would have a month to reach agreements on plans for the facilities with the Comision Federal de Electricidad (CFE), Mexico’s state-owned power utility, he said.

The president said he spoke about the LNG export plan on Thursday with U.S. officials, including climate envoy John Kerry, when discussing U.S. concerns over Mexico’s proposals to give more market power to its state-run energy companies.

In a document detailing points that Mexico said it shared with U.S. officials, the government also proposed joint accords to modernize wind turbines, dams and the installation of floating solar panels in the reservoirs of the dams.

By Reuters, April 28, 2022

The company to also expand its existing export pipeline network to Cochin Port Trust for products shipments

BPCL Kochi Refinery is betting big on petroleum products exports to shore up its revenue. The company has earmarked an investment worth ₹70 crore to expand its existing export pipeline network from the refinery premises to Cochin Port to enable more flexibility in the supply of products for shipments.

The company had looked beyond the domestic market and targeted exports following a drop in demand during pandemic times.

Overseas markets

In the current year, BPCL has made shipments of diesel and motor spirit to countries such as Bangladesh, South Africa, South Korea, Singapore and Malaysia by utilising the facilities at Cochin Port Trust, said TV Karunanidhi, General Manager, Oil Movement and Storage, BPCL, at a function organised by the Cochin Port Trust on PM Gati Shakthi National Master Plan on multi-modal connectivity.

Later, while talking to BusinessLine on the sidelines of the event, he said, “We now have an opportunity to ship more products to overseas destinations thanks to the infrastructure facility and connectivity by pipeline between the oil jetties and the refinery. This will give the company an opportunity to export products in case of requirements in the future.”

The prevailing situation has given the company more opportunities to explore overseas markets and the expansion of the pipeline network was based on emerging market trends. Work in this regard has already started and the expanded facility will be ready for operations by next year, Karunanidhi said. 

Domestic demand back up

However, Karunanidhi went on to add that with the dropping of Covid cases, there is a revival in domestic demand by 95 per cent and so presently the company is now focussing on meeting the requirements.

It is also exploring measures to extend product pipeline from the Cochin Oil Terminal to the proposed Multi-User Liquid Terminal of Cochin Port Trust at Puthuvypeen as its commissioning will open the scope to handle various other petroleum products. This will pave the way for BPCL to handle more ships of exports and coastal cargoes when the Cochin Oil Terminal is occupied. BPCL is also exploring a crude oil handling facility at MULT which can be used to receive crude oil in Puthuvypeen shore tank farm at the time of adverse weather conditions at Single Point Mooring of BPCL in the outer sea, he added.

The Hindu Business Line, by V.Sajeev Kumar, April 28, 2022