Released September 23, 2024 | SUGAR LAND
en
Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Following similar trends in the shipping industry, Finnish maritime services company Wartsila (Helsinki) will work to retrofit a floating regasification terminal with technology that will lower its emissions, Excelerate Energy (The Woodlands, Texas) said Friday.
Excelerate said it reached a deal with a gas division at Wartsila to retrofit a floating storage regasification unit (FSRU) to re-liquefy some of the so-called boil-off gas, a type of venting, and returning it back to the tanks.
This not only improves the overall cargo capacity, but reduces emissions at the same time.
"We are committed to reducing the environmental footprint in all our operations, and this project is a substantial part of that commitment," said David Liner, the chief operating officer at Excelerate.
Floating regasification units are far more flexible than fixed-port facilities that would turn liquid gas back into the gaseous form onshore. Rather than build up the expensive port facilities such as those dotting the U.S. Gulf Coast, some importers are turning to these specialized vessels to ensure adequate gas supplies.
European countries such as Germany were quick to adopt floating terminals as its economy looked for alternative gas supplies in the wake of the Russian invasion of Ukraine. Russia was once the primary gas supplier to the European economy, though Western-backed sanctions limited availability after the war began.
FSRU's process liquefied natural gas (LNG) shipped from the likes of Qatar and the United States, the largest LNG exporter in the world. In March, Venture Global LNG (Arlington, Virginia) agreed to supply 0.7 million tonnes of LNG per year to Excelerate for 20 years.
The LNG will be supplied to Excelerate from Venture's Plaquemines LNG facility in Plaquemines Parish, Louisiana on a free-on-board basis. To that end, Excelerate said the retrofit equipment from Wartsila will be available for the existing LNG vessels in its fleet.
Net income improved sequentially for Excelerate during the second quarter by 18% to $33.3 million, "primarily due to the drydocking of the FSRU Summit LNG, which was incurred and expensed in the first quarter of 2024," it said in its quarterly statement.
Its gas sales revenue, however, declined by nearly 4%, presumably because of lower market prices for natural gas. An annual report on LNG demand from Shell plc (NYSE:SHEL) (London, England), however, finds that the global appetite for super-cooled gas is expected to increase by more than 50% by 2040, when compared to current levels.
Global trade in LNG increased year-on-year by about 2% between 2022 and last year.
Offering more flexibility than piped gas, LNG is not without its issues, however. Critics note that leaks of methane, a main component of natural gas as well as a potent greenhouse gas, are likely up and down the supply chain.
Early this week, Wartsila signed an agreement with the shipping division of Chevron Corporation (NYSE:CVX) (San Ramon, California) to work to convert one engine on six LNG carriers from dual-fuel to a spark-gas operation.
The partners explained that spark ignition is a more efficient way to initiate combustion, which in turn improves efficiency and lowers the amount of methane emissions coming out of LNG.
"As a market leader in types of cryogenic gas applications, Wartsila Gas Solutions has demonstrated to the market for many years that we have the technology to contribute to greener shipping operations," Walter Reggente, a vice president at the gas division, said Friday.
Delivery of the retrofit is scheduled for early 2026.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Excelerate said it reached a deal with a gas division at Wartsila to retrofit a floating storage regasification unit (FSRU) to re-liquefy some of the so-called boil-off gas, a type of venting, and returning it back to the tanks.
This not only improves the overall cargo capacity, but reduces emissions at the same time.
"We are committed to reducing the environmental footprint in all our operations, and this project is a substantial part of that commitment," said David Liner, the chief operating officer at Excelerate.
Floating regasification units are far more flexible than fixed-port facilities that would turn liquid gas back into the gaseous form onshore. Rather than build up the expensive port facilities such as those dotting the U.S. Gulf Coast, some importers are turning to these specialized vessels to ensure adequate gas supplies.
European countries such as Germany were quick to adopt floating terminals as its economy looked for alternative gas supplies in the wake of the Russian invasion of Ukraine. Russia was once the primary gas supplier to the European economy, though Western-backed sanctions limited availability after the war began.
FSRU's process liquefied natural gas (LNG) shipped from the likes of Qatar and the United States, the largest LNG exporter in the world. In March, Venture Global LNG (Arlington, Virginia) agreed to supply 0.7 million tonnes of LNG per year to Excelerate for 20 years.
The LNG will be supplied to Excelerate from Venture's Plaquemines LNG facility in Plaquemines Parish, Louisiana on a free-on-board basis. To that end, Excelerate said the retrofit equipment from Wartsila will be available for the existing LNG vessels in its fleet.
Net income improved sequentially for Excelerate during the second quarter by 18% to $33.3 million, "primarily due to the drydocking of the FSRU Summit LNG, which was incurred and expensed in the first quarter of 2024," it said in its quarterly statement.
Its gas sales revenue, however, declined by nearly 4%, presumably because of lower market prices for natural gas. An annual report on LNG demand from Shell plc (NYSE:SHEL) (London, England), however, finds that the global appetite for super-cooled gas is expected to increase by more than 50% by 2040, when compared to current levels.
Global trade in LNG increased year-on-year by about 2% between 2022 and last year.
Offering more flexibility than piped gas, LNG is not without its issues, however. Critics note that leaks of methane, a main component of natural gas as well as a potent greenhouse gas, are likely up and down the supply chain.
Early this week, Wartsila signed an agreement with the shipping division of Chevron Corporation (NYSE:CVX) (San Ramon, California) to work to convert one engine on six LNG carriers from dual-fuel to a spark-gas operation.
The partners explained that spark ignition is a more efficient way to initiate combustion, which in turn improves efficiency and lowers the amount of methane emissions coming out of LNG.
"As a market leader in types of cryogenic gas applications, Wartsila Gas Solutions has demonstrated to the market for many years that we have the technology to contribute to greener shipping operations," Walter Reggente, a vice president at the gas division, said Friday.
Delivery of the retrofit is scheduled for early 2026.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
