Category: Nieuws

The Biden administration, under its view that climate change is an existential threat, has taken action on an LNG dilemma. On January 26, 2024 President Biden paused all approvals to permit new LNG export projects.

The U.S. Department of Energy (DOE) says it needs to update its approval process which includes domestic supply, energy security, and greenhouse gas (GHG) emissions. The order calls for a pause that is temporary and will be followed by a period for public response, and will not likely be resolved until after end-of-year elections. This has caused consternation within the oil and gas industry. Here are some facts that may clarify the government’s actions.

Leaky footprint of natural gas and LNG.

When oil and gas are around, methane leaks abound – from wellheads, storage tanks, pipelines, and refineries. This is important to the U.S. government because methane heats the atmosphere up to 80 times more than its big greenhouse gas sister, CO2.

The UN highlighted worldwide methane emissions in a comprehensive report. Worldwide, 60% of methane emissions come from man-made sources. Fossil fuels contribute a third of this (20%) and oil and gas makes up two-thirds of that (13% of total man-made methane emissions). An independent estimate is 7%. Oil and gas is only responsible for 7-13% of all global methane emissions. But methane’s warming effect on the atmosphere is disproportionately high, causing 25% of global warming, according to EDF.

For comparison, in the U.S. oil and gas is responsible for about 30% of all man-made methane emissions. This is a much higher fraction than the global number, and must reflect the huge role of the oil and gas industry in the U.S.

The EDF Contribution.

Nobody has contributed more to make the world aware of the methane danger than the Environmental Defense Fund (EDF).

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EDF unwrapped the science. “The amount of warming over the long term is important, but so is the speed of warming,” said Dr Ilessa Ocko, senior climate scientist of EDF. “By overlooking the near-term warming from methane, we’re missing an opportunity to make a real difference right now, in our lifetime. This truly is the methane moment.”

The UN picked up the baton and carried it all the way to COP27 in Scotland. More recently, COP28 in Dubai has also formalized the methane issue. Fifty oil companies pledged to achieve net-zero methane emissions by 2030 and to end routine flaring from active oil or gas wells. These fifty oil companies amount to half of global production of oil, so their agreement is highly significant. If the pledge succeeds, it will avoid a rise of 0.1 C degrees, equivalent to about 5 years temperature rise under present conditions.

Satellite surveillance and super-emitters.

EDF’s emphasis on measurement of methane emissions has been invaluable to the oil and gas industry who had been flying blind. Ground-based and satellite detectors have provided numbers, locations, and sources of emission plumes. The plume in Figure 2 enabled the operator to confirm and repair the leak.

A new study, based on measurements of methane emissions from the European Space Agency’s Sentinel-5P satellite, listed eight countries that have methane intensities of 5-25%, much higher than the global average of 2.4%. The countries are Venezuela, Turkmenistan, Uzbekistan, Angola, Iraq, Ukraine, Nigeria and Mexico. This cries out for better regulation to lower methane leaks which are eminently fixable.

MethaneSAT, a subsidiary of EDF, is planned to be launched by SpaceX in early 2024. It will concentrate on emissions from the oil and gas industry, especially lower emissions from many sources that can add up to a serious overall level.

How fed actions may affect the golden age of LNG.

The golden age of LNG has come about because of the need for energy security for the EU after Russia’s war on Ukraine, as well as LNG displacing coal-fired power plants in Southeast Asia and China. An insightful article by Bloomberg epitomizes this LNG boom. QatarEnergy and its backers are investing $45 billion (yes that’s billion) to expand the country’s LNG exports, although its already one of the top three LNG exporters in the world – along with Australia and the U.S. A Japanese firm building the expansion has enlisted 30,000 workers from 50 countries.

Four other huge LNG expansions are planned in Louisiana and Texas: Plaquemines, Rio Grande, Port Arthur and Golden Pass. In a few years, by adding 80 million tons of capacity, the U.S. will separate as the top LNG exporter.

Can the fed pause in LNG impact the LNG industry? Yes, according to Bloomberg. The development of an LNG project is fraught with uncertainties, especially the lengthy timeframe of LNG. LNG developers in the U.S., such as Cheniere, try to get contract commitments from customers that last 10 years or even longer – before they go about finding investors in a new project. But they understand if they expand too fast they risk a glut in the market. If they move too slow, they risk the market switching to coal. The fed pause kicks in a new uncertainty about the future of LNG.

Can the fed pause reduce greenhouse gas emissions? IEA has estimated emissions from all existing LNG facilities, including burning of the LNG, and come up with 1.5 billion metric tons per year of CO2 equivalent, Bloomberg said. This is 3.8% of total global emissions. For 300 million tons of new LNG permitted facilities, this would raise the stakes by an extra 1.2 billion metric tons of CO2 equivalent, or 3.0% of global total. The grand total of LNG emissions would then be almost 7% of global. This needs to be rationalized.

Bill McKibben, famous for his opposition to the Keystone XL oil pipeline, has protested the LNG expansion. “No one can sign a paper that says it’s time to transition from fossil fuels and then permit” new U.S. projects that will add to global emissions, McKibben said.

This is a dilemma for governments. On one hand, LNG provides energy security and reduces emissions by displacing coal-fired power plants. On the other hand, LNG causes carbon emissions, first, from methane leaks in LNG production and distribution and, second, from CO2 when LNG is burned.

By Forbes NEWS / Ian Palmer , 02.02.2024

LNG Terminal (or Liquefied Natural Gas Terminal) is a facility that is used for the storage and loading or unloading of liquefied natural gas (LNG). These facilities are typically located at ports or along coastlines and are used to transfer LNG from ships to storage tanks, and then to pipelines for distribution to customers.

LNG terminal technology has experienced significant advances in recent years, driven by the need to meet the growing demand for liquefied natural gas (LNG) as a fuel source. The technology has evolved from simple storage tanks to sophisticated terminals that are capable of receiving, storing, and regasifying LNG. The key trends in LNG terminal technology that are driving this evolution include increased safety, efficiency, and flexibility.

Safety is a key consideration in the design of any LNG terminal. To ensure the highest levels of safety, terminals must be designed with robust containment systems that are able to protect against leaks, fires, and explosions. This is achieved through the use of advanced materials such as stainless steel and special insulation, as well as by incorporating a range of safety features such as pressure relief systems, fire suppression systems, and emergency shutdown systems.

Efficiency is also an important consideration in the design of LNG terminals. To maximize efficiency, terminals must be designed to minimize energy losses during the liquefaction, storage, and regasification processes. This is achieved through the use of technologies such as advanced heat exchangers, vaporizers, and insulation. In addition, terminals must be designed to minimize the amount of time needed for loading and unloading LNG, as well as to minimize the cost of the process.

Flexibility is another important trend in LNG terminal technology. To meet the changing needs of the market, terminals must be designed to be able to quickly and easily adapt to different types of LNG. This requires the use of advanced automation and control systems that are capable of handling different types of LNG with minimal human intervention. In addition, terminals must be designed to be able to receive LNG from a variety of sources, including ships, barges, and pipelines.

These key trends in LNG terminal technology are driving the evolution of the technology and allowing terminals to become more efficient, safe, and flexible. This is enabling terminals to better meet the growing demand for LNG as a fuel source, while also reducing the costs associated with the process. As the technology continues to evolve, it is likely that these trends will continue to be important drivers of the development of LNG terminals.

The global Liquefied Natural Gas (LNG) terminal market is driven by a number of factors, including an increasing demand for natural gas, a growing need for energy security, and the emergence of new technologies. As the world’s population continues to grow, so does the need for energy. As a result, natural gas is becoming increasingly important, as it is a more efficient and cleaner burning fuel than other fossil fuels. This has led to an increased demand for LNG terminals, as they are the primary means of transporting natural gas from one place to another.

The need for energy security is another key driver of the LNG terminal market. With the rise of geopolitical tensions, and the increasing prevalence of natural disasters, countries are looking to secure their energy supply. LNG terminals provide a secure, reliable, and cost-effective way to transport natural gas from one place to another. This has led to an increased demand for LNG terminals, as countries seek to ensure their energy supply is not disrupted by external factors.

The emergence of new technologies is another key driver of the LNG terminal market. Technologies such as floating storage and regasification units (FSRUs) have allowed for the construction of smaller and more efficient LNG terminals. FSRUs allow for the offloading of LNG from a ship directly into storage tanks, which can then be used to supply gas to the local market. This has made LNG terminals more cost-effective and easier to construct, leading to an increase in demand.

Finally, the increasing demand for natural gas in emerging markets is another key driver of the LNG terminal market. As countries in the Middle East, Africa, and Asia continue to industrialize, their demand for natural gas is increasing. This has led to an increased demand for LNG terminals, as these countries look to secure their energy supply.

In conclusion, the global LNG terminal market is driven by a number of factors, including an increasing demand for natural gas, a growing need for energy security, and the emergence of new technologies. These factors have led to an increased demand for LNG terminals, as countries look to secure their energy supply and meet their growing demand for natural gas.

The LNG terminal market has been facing several key restraints and challenges in recent years. The most prominent of these include the high capital cost of setting up an LNG terminal, the need for increased safety and security measures, and the difficulty of finding suitable locations to build the terminal.

The high capital cost of setting up an LNG terminal is a major challenge. The cost to build a single LNG terminal can range from $500 million to $2 billion, depending on the size and complexity of the terminal. This is a significant amount of money for any company or government to invest, and it often takes several years for the terminal to begin generating revenue. Additionally, the cost of operation and maintenance of the terminal can be high and require significant investment over time.

The need for increased safety and security measures is another key challenge. LNG terminals are large-scale industrial facilities that handle and store highly explosive materials. As such, they require extensive safety and security measures to ensure the safety of workers, the environment, and the public. These measures can include physical barriers, monitoring systems, and security personnel. However, these measures can be difficult to implement and can add to the cost of establishing and operating an LNG terminal.

Finally, finding suitable locations to build the terminal is another challenge. LNG terminals are large facilities that require access to deep, sheltered waters for berthing and storage of LNG vessels. Additionally, the terminal must be close to existing infrastructure such as gas pipelines, power lines, and roads. Finding a suitable location can be difficult and often requires extensive research and negotiations with local governments and communities.

Overall, the LNG terminal market is facing several key restraints and challenges. These include the high capital cost of setting up an LNG terminal, the need for increased safety and security measures, and the difficulty of finding suitable locations to build the terminal. However, with the increasing demand for LNG and the development of new technologies, these challenges can be overcome and the LNG terminal market can continue to grow in the future.

By- Tank Terminals, Linkewire / 02.01.2024 

Deep dive into regulation changes, safety best practices and digitalisation at this year’s StocExpo. Curated by the team at Tank Storage Magazine, the two conference tracks at StocExpo on 12 & 13 March will cover the hottest topics in tank storage, energy security and terminal safety.

Want to stay up to date with the regulations that impact you? In the FETSA Tank Storage Conference at StocExpo, Martin Reuvers, Senior engineer at Vopak, will give an update on revisions to PGS 12. Along with industry partners, Vopak has successfully developed a new Dutch standard for safe large scale ammonia storage. Reuvers will present the challenges posed by upscaling ammonia storage as an energy carrier, covering topics including tank design and inspection.

And in the Terminal Operations & Safety Conference taking place on the show floor, Kena Jolley, technical manager at EEMUA will be updating attendees on EEMUA 244. This regulation addresses the management of rectangular metallic tanks, through their complete life cycle, including specification, inspection, and maintenance. It provides practical, pragmatic guidance for owners and operators of such tanks which will help reduce the risk of failure in service and enable the extension of service life where appropriate.

When it comes to the energy transition, StocExpo is your opportunity to engage with industry leaders, expand your network and gain a comprehensive understanding of the evolving landcape of the tank storage sector.

Mathias Potvin, Terminal Manager at LBC Terminals Rotterdam, Barend Van Schalkwyk at OCI HyFuel, Tamme Mekkes, Business Development Director at Koole Terminals and Jammes Elgen, Head of Port Energy Solutions at Hamburg Port Authority are just some of the speakers covering this topic at the event. They will explore how terminals can reach net zero, what the ‘terminal of the future’ looks like and providing an outlook on what the energy transition looks like from a global perspective.

Euro Tank Terminal in Rotterdam is undergoing improvements in its energy use and emissions, which will enable the terminal to reach net zero by 2042.

The day before StocExpo, on 11 March, ETT will be hosting an exclusive terminal tour of the facility.

‘ETT is a versatile and diverse terminal, however with a compact footprint that is efficiently managed and operated,’ says Hellenthal on what to expect on the tour.

Want to hear how how market leaders have tackled the digital transformation? Over the course of the event, representatives from Evos, Argent Energy and Fujairah Oil Terminal will cover how IoT can be used to improve efficiencies and share their own digital journeys.

When it comes to safety, are you striving for an impressive lost-time incident free operation record? The easiest way to achieve this is to learn from others.

Lai Siang Yeong, Senior Manager Assets & Operations at Advario Asia Pacific will be helping you achieve safety excellence at the terminal. Advario uses HSSE leading and lagging indicators to improve safety at the terminal. He will also be sharing his experiences in creating a reporting, informed and learning culture.

Other noteworthy experts including Gavin Salmon, HSEQ at Oikos, Pol Hoorelbeke, VP Major Risks decision at Total Energies, Gestur Guðjónsson, Environmental and safety manager at Olíudreifing (Iceland) and David Tassadogh at GRESB will tackle topics including learnings from a refinery fire, the value of ESG reporting at the terminal and the risks natural hazards pose to the storage sector.

By Tank Storage / Molly Cooper 01.31.2024

Shell Deutschland GmbH has taken a final investment decision (FID) to convert the hydrocracker of the Wesseling site at the Energy and Chemicals Park Rheinland into a production unit for Group III base oils, used in making high-quality lubricants such as engine and transmission oils. Crude oil processing will end at the Wesseling site by 2025 but will continue at the Godorf site.

Huibert Vigeveno, Shell’s Downstream and Renewables Director, said: “The repurposing of this European refinery is a significant step towards serving our growing lubricant customer base with premium base oils. This investment is part of Shell’s drive to create more value with less emissions.”

The high degree of electrification of the base oil plant, as well as the ceasing of crude oil processing into fuels at the Wesseling site, is expected to reduce Shell’s scope 1 and 2 carbon emissions (those which come directly from our operations and those from the energy we buy to run our operations) by around 620,000 tonnes a year. Shell’s target is to become a net-zero emissions energy business by 2050.

The new base oil plant is expected to start operations in the second half of this decade. It will have a production capacity of around 300,000 tonnes a year, equivalent to about 9% of current EU demand and 40% of Germany’s demand for base oils.

By Shell / Hamburg , 01.29.2024