Keppel to build South East Asia’s first LNG bunkering vessel

Keppel Offshore & Marine Ltd (Keppel O&M) through its wholly-owned subsidiary, Keppel Singmarine Pte Ltd, has secured a contract from FueLNG, a joint venture between Keppel O&M and Shell Eastern Petroleum (Pte) Ltd, to build South East Asia’s first Liquefied Natural Gas (LNG) bunkering vessel valued at approximately S$50 million.

Scheduled for completion in 3Q 2020, the dual-fuel LNG bunkering vessel will have a capacity of 7,500 cubic metres. FueLNG will receive a grant of up to S$3 million as part of the Maritime and Port Authority of Singapore’s (MPA) LNG Bunkering Pilot Programme (LBPP).

Mr Andrew Tan, CEO of MPA, said, “We are pleased that FueLNG, Keppel and Shell are taking the lead in growing the LNG bunkering infrastructure in Singapore. As the world’s largest bunkering port, it is important that we support the development of LNG bunkering in our port to cater to future demand for LNG as a marine fuel.”

The vessel will be built to the MTD 7500U LNG design, a proprietary design of Keppel O&M’s ship design and development arm, Marine Technology Development (MTD), for greener and safer bunkering activities within the Singapore port. The vessel’s key features include high manoeuvrability which enables bunkering without tug assistance, as well as propulsion and power management systems that optimise fuel consumption.

Mr Abu Bakar, Managing Director (Gas & Specialised Vessels), Keppel O&M, said, “We are delighted to build FueLNG’s first LNG bunkering vessel, which comes on the back of other recently secured contracts for newbuild solutions along the gas value chain. Keppel O&M is able to harness its expertise in newbuilds and LNG to provide customised solutions for clients, and is in a strong position to capture opportunities as the industry adopts greener solutions.”

Mr Lauran Wetemans, Director, FueLNG, and General Manager, Shell Downstream LNG, added, “Shell’s global expertise in LNG bunkering will support this growth in Singapore. This vessel enables FueLNG to provide ship-to-ship bunkering services to customers for cost-effective, cleaner fuel alternatives. The customised design enables FueLNG to operate efficiently and safely within the port of Singapore and we look forward to continuing to work with industry stakeholders to enhance and provide LNG bunkering infrastructure in Singapore.”

Capable of running on both LNG and marine diesel oil, the LNG bunkering vessel is more efficient than conventional bunker vessels. It is able to harness boil-off gas, a by-product of bunkering operations as well as the continuously evaporating LNG in the cryogenic tank, which would otherwise be flared off. It is also designed with a barge-like extended flat surface to maximise vessel compatibility which will enable FueLNG to deliver LNG bunkers to a wide range of vessels.

A twin screw azimuthing propulsion system also allows crabbing manoeuvre during bunkering operations, minimising tug utilisation and in turn reduces fuel consumption and emissions.

As emissions standards tighten globally, the industry is seeing increasing demand for LNG-fuelled ships, with 123 LNG-fuelled ships in operation and 150 on order as of early 20181. To meet this increasing demand, oil majors like Shell are expanding their LNG bunkering capabilities to increase the availability of LNG across the world. Having this capability in Singapore will complement the already established LNG bunkering infrastructure in key ports across the world.

The abovementioned contract is not expected to have a material impact on the net tangible assets or earnings per share of Keppel Corporation Limited for the current financial year.

 

Source : http://www.kepcorp.com/en/news_item.aspx?sid=7819

WEO Analysis: Is natural gas in good shape for the future?

Are we entering a Golden Age of Gas?” – That was the question the International Energy Agency asked in 2011 when examining the combination of market dynamics and policies that might allow natural gas to thrive in the future.

The idea of a “Golden Age” was built on a few pillars. On the supply side, the main thesis was that the abundance of unconventional gas resources would help to bring down supply costs, making natural gas more attractive and accessible worldwide. On the demand side, the main elements were an ambitious policy promoting gas use in China, lower growth in nuclear power and more use of gas in road transport.

Seven years later, most of these pillars are still at least partly in place. Today’s price levels are very much in line with those in the “Golden Age” analysis; China has reserved a strategic role in its energy policy for gas; the outlook for nuclear has indeed faded somewhat; the only area where natural gas has not made much ground is road transport, where electric vehicles have taken the lead.

Yet the mood in the natural gas industry, at least outside the United States, has not always been so optimistic since then. Demand has slowed considerably for most of the period since 2011, from an average of 2.8% per year between 2000 and 2010, to 1.4% per year from 2011-2016; lower prices squeezed revenues; traditional business models have been questioned without anyone being sure what will take their place; and the competitive landscape has become significantly more complex, as the traditional sparring partners for gas – coal and, to a lesser extent, oil – have been joined by the rising forces of renewables and energy efficiency.

 

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Source: International Energy Agency

 

 

WGC 2018

THE WORLD’S LARGEST GLOBAL GAS CONFERENCE


The World Gas Conference is the most important global gas industry gathering of influential leaders, policy-makers, buyers, sellers and experts. Conducted since 1931 by the International Gas Union (IGU), the triennial event aims to raise the voice of natural gas while offering timely updates on strategic, commercial and technical issues facing the entire gas value chain.

The 27th World Gas Conference (WGC 2018) takes place in Washington DC from June 25-29 and offers the most comprehensive and diverse program to date for the natural gas industry. For the first time ever this includes topics for professionals working in sectors including finance, trading, law, sustainability & renewables, policy & Government and many more. View the interactive online program.

WGC 2018 is proud to host over 600 of the industry’s most senior speakers from all over the world, including US Secretary of Energy Rick Perry, and CEOs from global companies including Chevron, ExxonMobil, Qatar Petroleum, Gazprom, BP, Total, ConocoPhillips and Shell to name a few.

 

more info : www.wgc2018.com

IndoGAS 2019 Conference & Exhibition

While IndoGAS conferences provide a deep dive into the local Indonesian gas industry, they also look at international trends and are now considered to be the premier natural gas and LNG industry gatherings in the region. IndoGAS 2019 will be a landmark event that deals with strategic, regulatory, technical and commercial aspects of the gas business for industry leaders, legislators, experts and committed professionals that are regulating, developing, operating and financing Asia/Pacific natural gas, LNG and energy infrastructure.

The demand for natural gas continues to rise in Indonesia and its neighbors, against a backdrop of all the countries in the region strivingto achieve security of energy supply. Amongst the challenges that the industry faces are how to improve the availability, deliverability and affordability of natural gas, upstream and downstream, and how to balance demand and supply through local production, exports and imports in order to achieve the best business outcomes for investors, the best prices for consumers and the best strategic outcomes for the host country. For Indonesia, this critically includes a focus away from Java and Sumatra to other parts of the archipelago that need energy to stimulate economic growth and provide social equity.

New Indonesian Government regulations have been implemented to ease barriers to energy investment, avert energy crises and provide impetus to the energy industry by, for example, encouraging the building of integrated energy infrastructure to connect producers with customers. There is a new focus on village industries, part of President Joko Widodo’s vision of building Indonesia from its outer regions and one of his Government’s nine “key agendas”. In addition to the development of gas industry, there is also a recognation that renewable energy must be developed in parallel as a measure for meeting national energy mix target by 2025..

 

Read more: www.indogas2019.i-eec.com

Global Energy & CO2 Status Report The latest trends in energy and emissions in 2017

The IEA’s first Global Energy and CO2 Status Report – released in March 2018 – provides a snapshot of recent global trends and developments across fuels, renewable sources, and energy efficiency and carbon emissions, in 2017.


Overview

Global energy demand grew by 2.1% in 2017, according to IEA preliminary estimates, more than twice the growth rate in 2016. Global energy demand in 2017 reached an estimated 14 050 million tonnes of oil equivalent (Mtoe), compared with 10 035 Mtoe in 2000.

Fossil fuels met over 70% of the growth in energy demand around the world. Natural gas demand increased the most, reaching a record share of 22% in total energy demand. Renewables also grew strongly, making up around a quarter of global energy demand growth, while nuclear use accounted for the remainder of the growth. The overall share of fossil fuels in global energy demand in 2017 remained at 81%, a level that has remained stable for more than three decades despite strong growth in renewables.

Improvements in global energy efficiency slowed down. The rate of decline in global energy intensity, defined as the energy consumed per unit of economic output, slowed to only 1.6% in 2017, much lower than the 2.0% improvement seen in 2016.

The growth in global energy demand was concentrated in Asia, with China and India together representing more than 40% of the increase. Energy demand in all advanced economies contributed more than 20% of global energy demand growth, although their share in total energy use continued to fall. Notable growth was also registered in Southeast Asia (which accounted for 8% of global energy demand growth) and Africa (6%), although per capita energy use in these regions still remains well below the global average.

Latest trends in natural gas

Global natural gas demand grew by 3%, thanks in large part to abundant and relatively low-cost supplies. China alone accounted for almost 30% of global growth. In the past decade, half of global gas demand growth came from the power sector; last year, however, over 80% of the rise came from industry and buildings.

Natural gas demand grew by 3% in 2017 thanks to abundant and relatively low-cost supplies, as well as fuel switching in key economies, significantly above the average growth of 1.5% of the last five years. China alone accounted for nearly 30% of global growth – with more than 30 bcm out of a total of nearly 120 bcm. This signals a structural shift in the Chinese economy away from energy-intensive industrial sectors as well as a move towards cleaner energy sources, with both trends benefiting natural gas.

As part of the official policy drive to “make China’s skies blue again,” there has been a strong push to phase out the practice of burning coal in industrial boilers (especially those in and around major cities) as well as reduce coal use for residential heating. China’s surging gas demand means that it absorbed much of the slack in LNG markets, pushing up international spot prices for gas in the latter part of the year.

The European Union also saw strong growth in gas demand (continuing the trend from 2016), with consumption up around 16 bcm in 2017. Some of this increase was weather-related, for instance due to a poor year for hydropower. Demand from industry also reportedly picked up on the back of stronger economic activity. Gas consumption in the European Union is still more than 10% below the peak seen in 2010. Gas imports were near historical highs as domestic production tapered off, notably in The Netherlands

In the United States, gas-fired generation in 2017 fell by 8%, or 110 TWh, offsetting half of the increase in gas demand for electricity generation elsewhere. The case of the United States last year highlights the importance of relative prices in determining emissions intensity trends in the power sector: a slight rise in the natural gas price in 2017 saw gas-fired generation squeezed by both renewables and coal.

The composition of gas demand growth is changing. In the past decade, half of global gas demand growth came from the power sector. In 2017, over 80% of the growth came instead from industry and buildings. The power sector remains the largest single component of global demand, but this share is likely to decline gradually.

Source : IEA

Read more: http://www.iea.org/geco/

INDOPACIFIC LNG SUMMIT CONFERENCE, BALI 2018

The IndoPACIFIC LNG Summit (IPLS 2018) provides a great opportunity for LNG players interested in the ASEAN Pacific region to meet with fellow developers, investors, experts and traders to discuss current and future LNG projects and establish or rekindle potential business relationships.

IPLS 2018 fills an important gap – the ASEAN Pacific market needs more opportunities for networking and connecting between suppliers & buyers, and more frank and open discussion of what the future holds for the LNG industry – the prospects for growth, the investment potential and the availability of funding.

This Conference will be held in Bali – Indonesia, the newest of the LNG importing countries. The conference will discuss the outlook for regional and global LNG supply and demand, including current and future LNG projects, LNG portfolio trading, the dynamics of LNG spot pricing and the future trend of long term contract prices as a function of the supply and demand outlook.

The IPLS 2018 platform will bring together experts from all relevant segments of the industry and will provide a deep insight into the future of LNG, while also facilitating the meeting of old colleagues and the establishment of potential business relationships among conference participants, all against the backdrop of the magnificent island of Bali.

 

For further info please visit our website click here