November 2013 - Issue 3

Nikos K. Doukas Publicatios12, Karababa str., Agios Dimitrios 173 43 - Athens - Greece 210 4286606 - nafsgreen@nafsgreen.gr - www.nafsgreen.gr

MONTHLY FREE REPORT FOR THE LNG, OIL & GAS INDUSTRY

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NAFSGREEN.GR

Oil and gas is part of the sustainable

energy future

New ABS Guide provides

specific notations for FPSOs

Lloyd’s Register:What’s driving

gas as a bunker fuel?

EU supports Rotterdam-Gothenburg

LNG initiative

DNV GL to class LNG Powered

Helgoland Ferry

Liquefied Natural Gas Terminal at Revythousa

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The Liquefied Natural Gas Terminal has completed thirteen years (13) of operation, proving that it con-stitutes a National infrastructure with strategic character to ensure the country’s energy supply, a mod-ern and innovative project for the energy sector and for a smooth and competi-tive operation of the Natural Gas System.

During the thirteen (13) years of the station’s operation, a continuous effort is made to upgrade and evolve the facilities and their capacity, plan-ning and implementing large investment projects that fur-ther enhance the station’s role in the country’s energy map.

The LNG Terminal on Revithoussa Island is one of the fourteen delivery and gasification stations of liquefied natural gas operating at present in Europe and in the Mediterranean basin. It is situated at Pachi Bay, Megara at 10 nautical miles west of Piraeus and at forty kilometers from Athens. The is-land’ surface is approximately 1,8 square kilometers. The liquefied natural gas terminal has been designed to carry out delivery procedures of natural gas in liquid state from tankers, its storage, its conversion from liquid into gaseous state (vaporization) and its injection into the National Natural Gas Transmission System. Natural gas in liquid state is trans-ported to the LNG Terminal in tanks; the Terminal is one of the three main entrance points of natural gas into the National Transmission System. The 1:600 ratio of the liquid state of the gas compared to the gaseous state enables transmission and storage of large quantities of gas in the LNG Terminal. DESFA LNG Terminal constitutes a great energy asset for Greece as it offers safety of supply, op-erational flexibility in the transmission sys-tem and increased capacity to meet the peak demands of the NG market and to balance load.

Significant investment projects in the LNG TerminalMany events marked the LNG Terminal operation and confirmed its immense contribution to ensuring smooth operation of the Natural Gas System. Based on the reliability and the uninterrupted operation of the

Natural Gas System, the ongoing improvement of the LNG Terminal facili-ties is being planned and implemented.

In April 2009, the LNG Terminal strategic role is further strengthened following completion of installation and operation works of the high efficiency Cogeneration of Heat and Power (CHP) Unit.

The Terminal is now able to host larger tankers and be delivered the double quantities of gas quickly and effectively. The uninterrupted gasifi-cation capacity tripled from 271 m³ LNG per hour before its upgrading, to 1.000 m³ LNG, enabling it to process triple quantities of liquefied NG and supply the National Transmission System with 5,2-5,3 bn m³ NG annually. The Cogeneration of Heat and Power (CHP) Unit has two gas-fired internal combustion engines, ensures power autonomy and efficiency of 13MW at the LNG Terminal. The capacity of thermal energy recovery of 14ΜW and its use in the liquefied natural gas gasification process increases the unit’s output rate by 89%, contributes to saving energy resources and environmental protection, offering significant econom-ic and environ-mental benefits. DESFA participates in our country’s energy balance and in the power generation sector, by selling the surplus power to the Operator of Electricity Market, bringing in for the company additional revenue.

The project cost 20,6 mn. Euros and was partly co-financed by the Operational Programme ‘Competitiveness’ (EPAN) of the 3rd CSF and partly by the NSRF 2007-2013. The LNG terminal upgrading and com-petitiveness enhancement constitutes the primary concern of DESFA that keeps on planning new large projects. The elaboration of the technical feasibility study for the construction of the third LNG storage tank and the gasification capacity increase has been completed.

The Third Tank shall be of 95.000m3 L.N.G capacity and shall increase the terminal’s total storage capacity to 225.000m3 from 130.000m3 L.N.G at present. The continuous gasification capacity shall rise to 1.400m3 LNG/hour from 1.000m3 LNG/at present. The project is set to have been com-pleted by the end of 2015 and its budget stands at 147 mn.€.

Liquefied Natural Gas Terminal at Revythousa

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Liquefied Natural Gas Terminal OperationThe LNG introduction and gasification in the last years has increased sig-nificantly and the LNG Fa-cility necessity and contribution to the smooth and competitive operation of the NG System is be-ing confirmed daily.

The international developments and the preservation of high opera-tion specifications of such a facility require continuous monitoring and revision of systems management and upgrading practic-es in order to maintain a high service rendering level.

Since 2007, the rising LNG demand has led to the search of diversified supply sources, approaching thus larger vessels.

The cooperation with large companies of load management and vessels of high standards and specifications does prove on a daily basis that the LNG facility is a competitive energy center and an important National energy infrastructure.

During the thirteen years of operation, more than 386 loads of liquefied natural gas (LNG) have been delivered, arriving in Greece on tankers. The Terminal has managed tankers from 30.000m3 to 177.000m3 and with maximum length of 300m. The loads are stored temporarily in the two tankers of 130.000 m3 LNG total capacity and subsequently in the special gasification facilities of the Terminal; the LNG is converted again into gas and supplies the Natural Gas System. During the thirteen years (13) of operation it participates by circa 20% in the total NG balance in the Na-tional system.

Revithoussa LNG Terminal, after the deregulation of natural gas market and the introduction of spot loads by new Users, participates actively in formulating the global LNG market and contributes to the shaping of the global energy market. International energy magazines dwelled on the market deregula-tion in Greece and the introduction of spot loads in Revithoussa.

The natural gas market deregulation in the Greek system was practi-cally put in place with the introduc-tion of new Users’ LNG loads to Revithoussa terminal. The first new User load was uploaded to the Fa-cility on 11/5/2010. The use of the Facility almost tripled with the access of new Users to the Natural Gas System in the same month and for the months May and June 45% of the total LNG gasified and injected into the NG Transmission System was introduced by new Users (excluding DEPA). For the quarter May, June and Ju-ly 2010, the LNG rate in the overall Natural Gas System balance reached 35% for the first time. Demand for the cer-tification of new vessels rose significantly and the number of accepted vessels for uploading on the LNG facility exceeds 60 vessels.

The terminal’s jettyThe jetty has been constructed in the southern part of the islet to ensure safe approaching and mooring of vessels and to guarantee swift capacity to hit the high seas in the event of an emergen-cy. The jetty’s position was also selected in order to protect vessels moored thereto from N-NW winds being increasingly more frequent in the region.

The facility’s jetty can host only one vessel at a time, with maximum length of 300 meters and maximum draught of 11,5 meters.

It is equipped with all suitable systems for safe closing on of the ship, such as radars with signaling light and audio signal for the vessel’s distance and speed, system of buffers to absorb impaction energy on the jetty and a system for mooring lines attachment with the possibility to activate the ship’s automatic mooring lines casting off.

LNG Storage TanksThe terminal’s tanks constitute a truly unprecedented construction for

Greek standards and par-ticular emphasis was placed on such a critical part of the terminal. The tanks were constructed within cylinder trenches of 75 meters resulting from extended excavation works that were con-toured with concrete coating. The two cylinder tanks are underground, with double shell and they were chosen based on the maxi-mum safety degree and the minimum visual intrusion due to the big height. The inter-nal diameter of tanks is 65,5m and the height of the internal tank is 22,8m.

The internal shell/casing of tanks coming to contact with the cryogenic material is steel with 9% con-tent in Nickel. The external shell/casing is made of reinforced concrete and binds to the base and roof of the tank. The external shell is constructed in such a way so as to be able to retain the cryo-genic material in the event of a failure of the internal casing. A 1m-distance exists between the inter-nal and external casing and insu-lating material has been placed in this cylinder space to preserve the cryogenic temperature of the liquefied natural gas. For the same reason, the base and the roof of each tank have particularly reinforced insulation.

The double casing tank is placed in a special system of 212 bearings in each tank, enabling the tank to move 30cm to all directions, for the pro-tection of tanks from earthquakes. The entire construction is designed for resistance up to 0,5g. The geometrical volume of each tank is 77.451 m3 and the total available capacity of tanks is 130.000m3 LNG.

Re-condensation of GasesTo preserve the pressure of tanks at low levels at the LNG facility, a system has been put in place to remove and recover the gases from the tanks. This system consists of gas compressors, the re-condenser of gases and the appropriate piping network.

Pumping and gasification systemThe pumping and gasification system of the stored L.N.G consists of low pressure pumps up to 12bar, being submerged in the LNG storage tanks driving the pumped LNG to the re-condenser.

The re-condenser also operates as a suction container of high pressure pumps. The high pressure pumps raise the LNG pressure and send it to gasifiers for gasification.

The gasifiers are facilities serving the purpose of giving the LNG the required temperature to be gasi-fied and additionally to heat the pro-duced NG at a temperature of at least 3,50C prior to its introduc-tion in the National Natural Gas Transmission System.

Two technologies are used at the Facility to gasify LNG. The first, being the most cost-effective and en-vironment-friendly, utilizes sea water as heat-ing medium in state-of-the-art technology heat exchang-ers. Sea water is pumped from the sea and returns to the sea. The second technology utilizes water bath as heating medium being heated by the exhaust NG being burnt in a combustion burner sub-merged in the bath. The two above technologies are the most widespread ones in LNG gasification giv-en that their output exceeds 98%.

Connection with the National System of Natural Gas TransmissionThe LNG facility is connected with the Natural Gas System through 2 subsea pipelines of of 24΄΄ di-ameter each and of 510m and 620m length, up to Agia Triada constituting an input point to the Nat-ural Gas System.

Environment, Quality and Safety at the LNG TerminalAdhering to the high responsibility of environmental protection, in addi

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tion to the fact that the LNG Terminal is managing the cleanest fuel out of the list of conventional fuels, the liquefied natural gas processing technol-ogy utilized is absolutely friendly to the environment rigorously abiding by the Greek and European legislation.

The terminal applies the Environmental Management System by ISO 14001 certified by the Austrian Or-ganization of Inspection TUV Austria. The preservation of high environmental protection standards is ensured through regular internal audits and certification inspections by indepen-dent bodies.

Based on the Joint Ministerial Decision 54409/2632/27-12-2004: ‘Greenhouse Gas Emissions Trading Scheme’, in compliance with the provisions of directive 2003/87/EC, the LNG Terminal participates in the Greenhouse Gas Emissions Trading Scheme. For the legislation enforce-ment, DESFA applies an emissions monitoring system approved by the competent service of the Ministry of Environment and Climate Change. The annual emissions are verified on annual basis by a third independent body before being declared to the ministry. On 5/7/2010 the terminal was granted the first emissions permit for the period 2008-2012 and on 24/12/2010 emission allowances were allocated for this specific period. For the new emissions monitoring period 2013 – 2020 the terminal was granted a new emission permit on 31/12/2012 while soon the final emis-sion allowances allocation for the same period is anticipated.

Moreover, DESFA applies a quality management system encompassing all its activities which is certified, following an audit and a positive evaluation by a group of inspectors of the Third Independent Office TUVRheinland, pursuant to the specifications of the international quality management standard EN ISO 9001:2008.

The LNG Terminal has been designed and operates in line with the most rigorous safety standards both for the employees on the island and the inhabitants of surrounding areas; the terminal falls under the facilities that must comply with the European Directive SEVESO II and preserve updat-ed safety studies maintaining high safety specifications of the equipment and the procedures followed at the terminal.

The Terminal has an established occupational health and safety man-

agement system of the personnel employed at the facilities, com-plying with and being certified by the international standard OHSAS 18001 by ELOT (Hellenic Organization for Standardization) from 2006 to 2012 and since then by the in-ternational house Moody’s Intertek S.A. Focusing primarily on personnel safety but also on the personnel, special emphasis is placed on ongoing education and readiness of the personnel in dealing and man-aging emergencies. Annual exer-cises for emergency management are carried out jointly with public authorities and bodies, such as the Fire Brigade, the Unit Dealing with Disasters (EMAK) in order to ensure effective coop-eration of parties in case of an emergency.

A fire extinguishing field of exer-cises exists and operates at the LNG Terminal for training reasons.

The field of exercises is used for the controlled LNG and liquid fuel fire extinguishing with the use of extinguishing equipment being available at the terminal. The terminal’s experienced personnel has offered theoretical and practical training to the personnel of external bodies and companies regarding fire extinguishing and the use of fire fighting means.

Since 2004, the international regulations have been fully applied at the LNG facility regarding Safe-ty of Port Facilities from external threat. (SOLAS 74, Ch. XI-2, ISPS Code).

A big energy investmentDESFA is planning and implementing a large investment plan through-out Greece aiming at the devel-opment and upgrading of the National System of Natural Gas. In the international arena, where ener-gy singles out as a key factor for growth and quality of life, DESFA is strengthening one of the most significant energy infrastructure in Greece in order to meet its current and future energy needs.

The LNG introduction and gasification in the last years has been increased significantly and the LNG Facility necessity and contribution to smooth and competitive operation of the Natural Gas System are being daily confirmed.

International developments and the preservation of high operation stan-dards in such a facility re-quire ongoing monitoring and revision of sys-tems’ management and upgrading practices in order to maintain a high service rendering level. Therefore, without compromising the reliability and uninter-rupted operation of the National System of Natural Gas, the continuous improvement of the LNG Terminal Facilities is being planned and implemented.

The cooperation with large international companies operating in the management of loads and high standards and specifications vessels does illustrate constantly that the LNG facility constitutes a com-petitive energy center and a great National energy infrastructure.

Source (Text & Photos): DESFA

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DSME Wins First Jack-Up Rig in 30 Years | DSME has been awarded its first Jack-up rig contract after a 30 year hiatus. DSME signed the contract with Maersk Drilling, a Denmark based company, for one Jack-up Rig. The value of this contract is approxi-mately 530 million USD. It is scheduled to be deliv-ered in the middle of 2016 and will provide service to the Norwegian Coast. It is able to drill down to a maximum of 12km in water up to 150m in depth and operate in the bad weather and intense cold of the North Sea. DSME won this contract based on its construction experience in drilling facilities operated in the North Sea. DSME hopes that this contract will enable it to make further inroads into the Jack-up market.

7th LNG Carrier booking for Damen Shiprepair Brest | Damen Shiprepair Brest (France) received her seventh LNG booking for the drydocking, maintenance and repair of the LNG carrier ‘Bachir Chihani’. The Hyproc Shipping owned and managed vessel will arrive at November 25th.

Jos Goris, managing director of Damen Shiprepair Brest, says: “We are very pleased with this order, since it ensures the continuation of our LNG activities with our highly appreciated client, Hyproc Shipping.”

The work scope on the Bachir Chihani is extensive and reaches close to 30,000 man-hours. The vessel is expected to stay close to a month in drydock nr 3.

DSB is a well-established repair yard with modern facilities. The yard employs over 200 staff and has three graven dry docks and sufficient repair berths. The biggest dry dock measures 420 x 80 metres and is one of the biggest in Europe, allowing the yard to accommodate almost any ship in the world.

The shipyard offers a broad range of services for any vessel type, including LNG tankers, oil tankers, semi-submersibles, shuttle tankers, FPSO’s, offshore construction vessels, jack-up rigs, RoRo vessels and ferries. The highly skilled workforce is particularly well-known for its LNG tanker expertise.

Lloyd’s RegisterPeople have demand-ing needs, for cheaper, cleaner energy to fulfil their living standard requirements. The Lloyd’s Register Global Marine Trends 2030report forecast the surge in middle classpopulation expected in super-populatedcountries like China and also India, and in highly populated countries likeIndonesia, and the sub-sequent need forgovernments to fulfil people’s demandsfor cheaper energy. In an era of economicturmoil not fully arrest-ed yet, and whilequestions about the future appetite fornuclear take-up remain, governments are switching to a gas policy in order to fulfil their people’s demand for sustainable and ever better living standards

MHI-MME Receives Orders from HHI for Ultra Steam Turbine Plants For Four (4) LNGC

Mitsubishi Heavy Industries Marine Machinery & Engine Co., Ltd. (MHI-MME), a group company of Mitsubishi Heavy Industries, Ltd. (MHI), has received orders from Hyundai Heavy Industries Co., Ltd. (HHI) of Korea for four Ultra Steam Turbine (UST) plants to be installed in four LNG (liquefied natural gas) carriers HHI is to con-struct for Petroliam Nasional Berhad (PETRONAS), the state-owned oil and gas provider in Malaysia. The orders, which were received with an option on additional USTs for four more carriers, marks the first time the MHI group has sold USTs outside Japan. Delivery is scheduled for 2015. one of our very important deliveries.” The

four UST plants on order consist of four marine turbines and eight boilers. The technology incorporated into the UST was developed by MHI independently. The adoption of a reheating cycle, a field in which the company has a strong track record in onshore commer-cial power generation plants, results in a near 15% improvement in fuel efficiency compared to conventional steam propulsion plants, making MHI USTs more economical and environmentally compat-ible. The USTs on order from HHI will serve as the main engines of PETRONAS’s four new LNG carriers, which will play a major role in transporting LNG produced in PETRONAS’s future LNG projects.

HHI is one of Korea’s leading corporations active in all heavy indus-try areas. The company operates the world’s largest shipyard, and in addition to ships it also produces a broad scope of products including industrial robots, power generation plants and equip-ment, heavy machinery, construction machinery and special-purpose vehicles.

MHI-MME is an MHI group company launched this October tak-ing over MHI’s former operations in the development, engineer-ing, sale, after-sale servicing and licensing of marine machinery and marine engines. The company has the world’s most diversi-fied lineup of marine machinery and marine engines, including 2-stroke low-speed engines, MET turbochargers, marine boilers and turbines, propellers, deck cranes, deck machinery and steering gears. MHI-MME is currently undertaking the manufacture of USTs for eight ships under construction by MHI. Leveraging that experi-ence plus receipt now of its first overseas order, going forward the company aims to more proactively pursue UST marketing in a quest to secure a solid position within the global market.

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BP gas discovery in Egypt’s East Nile DeltaA major gas discovery in Egypt underlines BP’s long-term commit-ment to the North African country despite this year’s civil unrest and political developments.

Just as a number of expatriate staff and their families returned to the capital, Cairo, for the start of the new school year, follow-ing a temporary partial evacuation, the company confirmed the Salamat discovery offshore in the East Nile Delta.

One of the deepest exploration wells ever drilled in the country, the Salamat well reached nearly seven kilometres, in a water depth of 649 metres. It is the first well to be drilled in the North Damietta offshore concession, granted to BP and partners in early 2010. BP has all of the equity in the Salamat discovery.

Striking gas at Salamat is important, not only for BP Egypt’s hydro-carbon portfolio, but also as a demonstration of the company’s continuing investment in the country during challenging times, according to regional president for Egypt, Hesham Mekawi.

“This was a very complex well to drill, with the operations taking more than a year to complete, making it one of the deepest and capital intensive wells in Egypt,” he says. “I believe the operation reflects our long-term commitment to the country during this period of change and challenges.”

Five decades of operations

This year marks BP’s 50th anniversary of business in Egypt – start-ing out through its heritage company, Amoco, and continuing as BP. Despite the many changes in the country’s political and social landscape during those decades, the company has never halted its operations there, including during the 2011 revolution.

“We take great pride in our presence here and in our partner-ship with the country – Egypt continues to face some challeng-ing times, yet we are maintaining our activities in a sustainable manner,” Mekawi adds. “We believe that partners work together

through both difficult and good times, and although we’re pass-ing through a more testing period, we are always working with a view to the future. We continue to be committed to Egypt for the long term.”

Discoveries such as Salamat indicate that Egypt’s energy industry has a bright future and offer renewed confidence in the potential of the East Nile Delta’s geology.

High pressure and temperatures

BP’s North Africa exploration director, Ahmed Hagras, says: “Oligocene reservoirs, a geological period dating back some 30 million years, targeted by the Salamat well are much deeper than our typical producing Pliocene and Miocene reservoirs in the Nile Delta.”

“To drill these complex and deep wells, we need the highest quality seismic data so we acquired a multi-azimuth 3D survey to cover the same area several times in different directions, enabling best illumination for the subsurface.” “With that data in hand, the team managed to build a quality prospect inventory in the area and selected Salamat as the first exploration well. Despite the complexity of these high pressure and high temperature wells, we reached our objective safely.” The presence of gas and condensate at Salamat was determined by wireline logs that take a continuous measurement of the formation’s properties with electronic instru-ments. Additional pressure data and fluid samples confirmed the presence of hydrocarbons. Further appraisal is still required to bet-ter define the field resources and to determine the best options for developing the discovery.

With the well located just 35 kilometres to the north west of the Temsah offshore facilities, in which BP has a 50% interest, one option could be to tie the Salamat field back to the existing infra-structure.

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Lloyd’s Register:What’s driving gas as a bunker fuel?

Qatargas delivers a commissioning cargo to Tangshan Caofeidian LNG Terminal in the People’s Republic of China |DOHA On 15 November Qatargas delivered the first cargo of Liquefied Natural Gas (LNG) to China National Petroleum Corporation’s (PetroChina) Tangshan Caofeidian LNG terminal located in the Hebei province. The cargo was delivered onboard the Q-Flex class LNG vessel Al-Gharrafa and it will be used to commission the third LNG terminal owned and operated by PetroChina in the People’s Republic of China.

Khalid Bin Khalifa Al-Thani, Qatargas Chief Executive Officer said:

“This is an important milestone for Qatargas. We are very pleased that LNG from Qatar continues to contribute towards meeting the growing demand for energy in the People’s Republic of China. This achievement highlights Qatargas’ capability to supply LNG to customers around the globe safely and reliably. This delivery will further strengthen the relationship between both companies over the long-term.”

He further stated that: “Under the guidance of His Excellency Dr. Mohammed Saleh Al Sada, Minister of Energy and Industry of the State of Qatar and Chairman of the Board of Directors at Qatargas, Qatari LNG has a key role to play in contributing to countries around the world in improving their diversity of energy supplies.

The commissioning of PetroChina’s Tangshan Caofeidian LNG terminal will help meet the growing demand for energy in the People’s Republic of China, and we at Qatargas are very proud to have played a contributing role.” Qatargas is the world’s largest LNG producing company with a production capacity of 42 MTA. The State of Qatar, as the world’s leading LNG producer, antici-pates that the People’s Republic of China will become one of the world’s largest gas markets. The Tangshan Caofeidian LNG ter-minal, located in China’s Hebei province, will have the first phase receiving capacity of 3.5 MTA adding to PetroChina’s operating LNG terminals in Jiangsu and Liaoning provinces thus maintain-ing its position as the second largest LNG importer into China.

Canadian ferry services, a US containership operator and a work boat owner have all already invested in newbuildings while one Great Lakes trader is considering converting a lakes bulk carrier to burn gas. We are now expecting to see more ferry operators in North America go for LNG and it is highly likely that the Great Lakes will see significant investment in LNG-fuelled newbuildings as new ships are acquired for St. Lawrence Seaway and lakes sea-borne trades.

Reflecting this interest, a consortium of North American west coast players has produced a very significant investigation into the potential for LNG as a marine fuel. The report by the West Coast Marine LNG Supply Chain Project is well worth reading. Prepared for Transport Canada, one of its most significant conclusions is that, in North America, attractive pricing of LNG is going to be a major positive force to drive adoption of gas as fuel. Whether any price benefit is available globally remains the big question for the rest of the world.

So, in this report we review a major Canadian ferry operator’s decision to go for gas and we share the answers to questions we put to Transport Canada about their approach as a regulator. And what about the deep sea trades? Singapore is continuing to make investments in developing the capability to be an LNG hub, including provision of LNG bunkers. Lloyd’s Register recently com-pleted a significant piece of work to assist Singapore in getting to the point where gas bunkering could be a reality. Major contain-

ership operator UASC has said that 18,000 teu newbuildings they have on order will be made ‘gas ready’ although their comments are still short of committing to gas-fuelled operations. Generally, developments so far reflect our views of a likely trajectory for gas-fuelled investment: take-up focused on niche trades, trades located in emission control areas (ECAs) and point-to-point trad-ers predominantly in ECAs, such as ferries and small containership operators. The global expansion of LNG into the deep sea trades remains a relatively distant prospect – although large container-ships, such as UASC’s, on fixed routes needing one or two strategic bunkering opportunities remain the likely first movers: if a small network of facilities in Singapore, the middle east gulf and either Antwerp or Rotterdam can supply gas bunkers, the pieces could fall rapidly into place. The technology is ready – as LR’s Clean Sky bulk carrier project with Golden Union and COSCO

Shipyard has demonstrated. What has yet to be developed is the infrastructure and a global market for gas. For now the fast moving action is in North America where they have pricing and can take advantage of existing or developing infrastructure at key locations. This is where we are seeing real evolution now across multiple ship types and conditions. But, as we demonstrated in our Global Marine Trends 2030 Report issued in April, future macro-economic, political and social drivers could change any-thing – different future global development scenarios will shape future global take-up of LNG. Watch this space – we’ll have more on this soon.

Oil and gas is part of the sustainable energy future

“The big question is therefore how to make production cleaner than today, and make consumption more efficient. This is not simply a task for politicians and world leaders, although they play a major role. Industry and the private sector need to be commit-ted and to contribute,” Lund says.

In the 2013 World Energy Outlook, the International Energy Agency (IEA) presents a central scenario in which global energy demand rises by one-third in the period to 2035. Today’s share of fossil fuels in the global mix is 82%, the same as it was 25 years ago. The strong rise of renewables only reduces this to around 75% in 2035.

“Those who argue that we should stop exploring, harvest existing fields and block new opportunities are, at best, preparing for a future that doesn’t exist - or which will be sustainable for very few. At worst, it is a way forward that will prevent a better and brighter future for millions of people,” says Lund.

If the world comes together in a response to meet the IEA’s 2-degree scenario, there is still need for new production. To deal with the decline of production from existing fields we must replace some 4 times the level of Saudi Arabia’s production of oil. We also need to add approximately 10 times the gas production capacity from the NCS to meet the demand of such a low-carbon future.

“Some take the view that extraction of finite resources almost by definition is unsustainable. That they create more harm than

good. I beg to differ. Our industry is not issues-free. There are benefits as well as burdens. We need therefore to continue to increase the first and minimize the latter. How we respond to the climate challenge is at the core of that debate,” says Lund.

China is the main driver of increasing energy demand in the cur-rent decade, but India takes over in the 2020s as the principal source of growth.

“As industry players, we also carry a responsibility to meet our common challenge, look for solutions, and implement and improve our Co2 footprint. We do not have all the answers. There is not one single solution. Our efforts cover a range of areas on which our progress still varies,” he says.

Statoil points to the importance of framework conditions that better incentivise consumers and the energy industry to make the right decisions. The company calls for a global price on carbon reflecting the real impact of emissions. A global price on carbon will stimulate technologies that can deliver energy with minimum carbon footprint.

Statoil also points to the increasingly important role of natural gas – as more gas at the expense of coal in the energy mix con-tributes to reducing emissions by around 50 %. Secondly, the company works to reduce methane emissions.

The third effort is to reduce natural gas flaring and finally Statoil is building on its carbon capture and storage experience to posi-tion for a future commercial CO2 business.

By Helge Lund Statoil´s chief executive

Featured article

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Helge Lund -

Photo Trond Isaksen - Statoil“We have to live with fossil fuels

as the dominant part of the energy

mix for decades,” says Statoil’s

President and CEO Helge Lund at

the 2013 Autumn Conference.

Oil and gas is part of the sustainable energy future

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Gazprom starts developing design documentation on Vladivostok-LNG project

The Gazprom Management Committee Chairman Alexey Miller held at the Company’s headquarters a meeting dedicated to the Vladivostok-LNG proj-ect.

It was noted that the project was progressing rapidly and on schedule – the first train of an LNG plant will be commissioned in 2018.

As of today, a special-purpose company – Gazprom LNG Vladivostok – is set up to implement the project. The design documentation is being developed with a view to be completed in the third quarter of 2014. Gazprom expects to receive an envi-ronmental approval next autumn, and a positive feedback from the Russian State Expert Evaluation Department – by the year end. Project investigation works are underway on the Lomonosov Peninsula (Portovaya Bay) – the proposed location of the LNG plant and surrounding infrastructure. In particular, engineering surveys are ongoing with a purpose to design LNG plant facilities and an export terminal. It is expected to carry out a whole set of the detailed investigations, including geotechnical, hydrome-teorological, environmental, seismological and seismotectonic research. It is also planned to conduct an area survey to detect any explosive objects or archeological sites. The findings will help to work out the proper location for new facilities.

The meeting participants were particularly focused on an issue of

defining future partners for joint implementation of the

Vladivostok-LNG project. Several big international companies have already expressed the interest to the project, and their experts viewed some parts of the Investment Rationale between August and November this year. In addition, some potential LNG buyers, including Japanese companies, showed their interest as well.

The meeting resulted in assigning tasks aimed at the timely execu-tion of the Vladivostok-LNG project.

Background

Gazprom aims to speed up new LNG projects intended to increase the Company’s share in the global gas market. Vladivostok-LNG is one of such projects.

In February 2013 the project entered the investment stage. March saw the approval of an Action Plan regarding the LNG plant near Vladivostok as well as an Action Plan regarding the resource base of the project.

The start of supplies from the first train of the plant is expected in 2018, from the second train – in 2020, with the capacity of each train amounting to 5 million tons a year. In future the LNG plant may be further expanded.

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EU supports Rotterdam-Gothenburg LNG initiative• European Commission grants 34 million euro for the develop-ment of a small-scale LNG chain in Rotterdam and Gothenburg, accommodating LNG supply for cleaner maritime transport• The collaboration between the ports for the infrastructure enables shipping companies to switch to Liquefied Natural Gas (LNG)-powered vessels• LNG allows the shipping industry to meet the stringent 2015 emission requirements for the North Sea, English Channel and Baltic Sea

The LNG Rotterdam-Gothenburg project has been acknowledged by the European Commission as a priority project for European transport infrastructure development. The Commission grants 34 million euro (SEK 305 million) to develop small-scale infrastructure for liquefied natural gas (LNG) as an efficient and cleaner alter-native for fuel oil and diesel in the North and Baltic Sea region. The Dutch-Swedish LNG collaboration involves the ports of Rotterdam and Gothenburg, together with gas infrastructure companies Gasunie (the Netherlands) and Swedegas (Sweden) and the international tank storage provider Vopak. The decision of the Commission represents a clear support for the realization of this initiative, which aims at creating a new supply infrastructure for LNG in the maritime region of North Sea and Baltic Sea by 2015. LNG Rotterdam-Gothenburg is considered to be one of EU Commission’s most prioritised ‘Motorways of the Seas’ projects.

There are essential environmental benefits to be gained from using LNG in transport and industry. For shipping, LNG as fuel poses lower sulphur oxide, nitrogen oxide, carbon dioxide and particle emissions than conventional fuels. With LNG, shipping companies are able to meet the strict requirements of the Sulphur Emission Control Area (SECA), which prohibits any sulphur emis-sion exceeding 0.1 per cent in the North Sea, English Channel and Baltic by 2015.

The LNG initiatives in the port of Rotterdam and in the port of Gothenburg form a north and west European chain for maritime LNG supply. In Rotterdam, Gasunie and Vopak own the Gate ter-minal, where large shipments of LNG from all over the world arrive. Both companies are planning to extend the Gate terminal site with LNG break-bulk facilities, allowing the export of smaller parcels of LNG for redistribution to satellite terminals, such as the planned terminal in Gothenburg.

Vopak and the Swedish gas infrastructure company Swedegas are planning a small-scale LNG terminal in Gothenburg to serve as key supply location for both shipping and industry in Scandinavia. The collaboration creates an LNG connection between the largest port in Europe and the largest port in the Nordic region. Realization of the project will secure LNG supply facilities for the shipping com-panies, which is an important condition for shipping companies considering to invest in new LNG-powered vessels.

About Port of Rotterdam Authority

The aim of the Port of Rotterdam Authority is to enhance the port

of Rotterdam’s competitive position as a logistics hub and world-class industrial complex. Not only in terms of size, but also quality. The core tasks of het Port Authority are to develop, manage and run the port in a sustainable way and to maintain a speedy and safe service for shipping.

About Port of Gothenburg

The Port of Gothenburg is the largest port in the Nordic region with 11,000 visits by vessels each year. One-third of Swedish for-eign trade passes through the Port of Gothenburg as well as 65 per cent of all container traffic. The Port of Gothenburg has the broadest range of shipping routes within and outside Europe. The 25 rail shuttles that depart each day mean that companies throughout Sweden and Norway have a direct, environmentally smart link to the largest port in the Nordic region. The Port of Gothenburg has terminals for energy, cars, ro-ro, containers and passengers.

About Vopak

Royal Vopak is the world’s largest independent liquid bulk tank storage service provider by capacity specializing in the storage and handling of liquid chemicals, gasses and oil products. The company operates 83 terminals with a combined storage capacity of more than 30 million cubic meters in 31 countries. Vopak’s ter-minals are strategically located for users along the major shipping routes. The majority of its customers are companies operating in the chemical and oil industries, for which Vopak stores a large vari-ety of products destined for a wide range of industries.

About Gasunie

Gasunie is a European gas infrastructure company. Its network ranks among the largest high pressure gas pipeline grids in Europe, consisting of 15,500 kilometres of pipeline in the Netherlands and northern Germany. Annually we transport about 125 bcm of natural gas. Gasunie serves the public interest in the markets in which it is active and works to create value for its stakeholders. Gasunie is the first independent gas transport provider with a cross-border network in Europe. The company offers transport services via its subsidiaries Gasunie Transport Services B.V. (GTS) in the Netherlands and Gasunie Deutschland GmbH in Germany. Gasunie aims for the highest standards in safety, reliability, effi-ciency and sustainability.

About Swedegas AB

Swedegas is an infrastructure company that invests in smart energy systems. The company owns the gas grid, which extends from Dragör in Denmark to Stenungsund in Sweden. Each year, Swedegas transmits energy equivalent to 15 TWh to distributors and directly connected customers. The gas grid supplies natural gas to 33 municipal areas and several combined heat and power plants and companies. Swedegas is currently investing in the development of an infrastructure for biogas and liquefied natural gas (LNG).

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WSF is one step closer to Liquefied Natural Gas propulsion

Official proposal submitted to U.S. Coast Guard

Washington State Ferries is another step closer to significantly reducing fuel costs and transportation emissions by switching a class of vessels from diesel fuel to liquefied natural gas.

After more than three years of study, WSF has a plan to safely convert six Issaquah Class vessels to run on cleaner-burning LNG. The proposal was officially submitted to the U.S. Coast Guard on Nov. 18 in a formal letter of intent (LOI) and waterways suitability assessment (WSA). The submission of the LOI and WSA marks the official starting point of the Coast Guard’s review process. WSF expects the Coast Guard to issue a finding regarding the LNG conversion proposal in 2014.

“Fuel is WSF’s fastest growing operating expense,” said David Moseley, assistant secretary for the Washington State Department of Transportation, Ferries Division. “Replacing diesel with LNG on the Issaquah Class ferries could result in very substantial savings on fuel over the remaining 30 years of their service life. This will also mean a cleaner, more efficient future for our fleet by significantly decreasing emissions.”

The average Issaquah Class vessel carries up to 124 cars and 1,200 pas-sengers, serving on some of the state’s busiest ferry routes. Converting the fuel systems from ultra-low sulfur diesel to LNG would significantly reduce emissions according to WSDOT’s Air Emissions Model, including:

89 percent reduction in particulate matter61 percent reduction in nitrous oxide28 percent reduction in carbon dioxide59 percent reduction in sulfur dioxide

For the proposed LNG conversions, WSF would install main propulsion engines to use natural gas and retrofit LNG fuel tanks on the top decks of the six vessels. The proposal calls for a phased approach for conversions to avoid schedule changes or delays. Once vessels are converted and back

in service, they would begin a routine overnight, out-of-service refuel-ing process similar to current diesel refueling. Since 2010, WSF has been studying the benefits of alternative fuels and evaluating the feasibility and safety of using LNG to fuel its vessels. The process included the U.S. Coast Guard, multiple agencies at the state and local level, private industry organizations, the Washington State Joint Transportation Committee and consultants including Cedar River Group and Det Norske Veritas, the world’s leading authority on LNG-fueled passenger ferries. WSF concluded its study process by issuing the final waterways suitability assessment, which includes a safety and security assessment and a risk-management plan. The study found that the LNG proposal is inherently safe with risks as low as reasonably practicable. Use of LNG to power passenger ferries has been proven technically and operationally feasible worldwide for more than a decade, with Norway operating LNG-fueled passenger vessels since 2000. LNG is also fast becoming an efficient alternative fuel for buses and semi-trucks.

Next stepsPending U.S. Coast Guard approval and funding, WSF could begin the first conversion of an Issaquah Class ferry as early as 2016. Below is the status of two key, parallel efforts:

Safety and security assessments – The submission of the WSA marks the official starting point of the U.S. Coast Guard’s review process. WSF expects the Coast Guard to issue a finding regarding the LNG conversion proposal in 2014.

Design/build LNG propulsion system – In Fall 2012, WSF issued a request for proposal (RFP) for the retrofit of its six Issaquah class ferries. The RFP requires the contractor to purchase and install all the required equipment and get all the required approvals to allow the vessel to obtain a certificate of inspection from the U.S. Coast Guard for operation with LNG as a fuel. Proposals are presently being evaluated.

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One of the key hurdles to the increased global use of ships fuelled by Liquefied Natural Gas (LNG) is the lack of harmonisation of bunkering opera-tions. “DNV GL is therefore today launching a Recommended Practice for authorities, LNG bunker suppliers and ship operators which provides guid-ance on how LNG bunkering can be undertaken in a safe and efficient man-ner,” says Lars Petter Blikom, DNV GL’s LNG director.

LNG-fuelled ships have logged over 130 ship-years of operation in Norwegian waters and LNG’s attractiveness and stabil-ity as a fuel have been thoroughly demonstrated. Globally too, operators, suppliers and regulators have gained significant experience in all aspects of LNG-fuelled ship operations in recent years. However, the process for developing the required infrastructure has not been standardised – leaving the industry with many open questions.

Currently, 83 LNG-fuelled ships are in operation or on order worldwide. These range from passenger ferries, Coast Guard ships and cargo vessels to tankers and platform supply vessels. Estimates put the global LNG-fuelled fleet at 3,200 by the year 2025. With the EU poised to invest in helping to equip 139 seaports and inland ports with LNG bunker stations by 2025, the time was ripe for standardising development processes, designs and operations.

“An ISO committee brought together the experience and know-how of more than 30 industry professionals in 2011 and its draft guideline was published in June 2013. The ISO guideline defines the overall philosophies of designs and opera-tions relevant to LNG bunkering and suggests a list of 24 functional requirements. However, it is not intended to be con-crete and descriptive about how to achieve the requirements’ objectives,” states Mr Blikom.

BP Adds 2 Drilling Rigs in Deepwater Gulf of Mexico|BP announced it has added two drilling rigs to the deepwater Gulf of Mexico, bringing its fleet to a company record nine rigs as it continues to develop its strong portfolio of assets in the key U.S. offshore basin. One of the rigs is a new ultra-deepwater drill-ship known as the West Auriga that is under long-term contract to BP from Seadrill Ltd, a leading international offshore drilling con-tractor. The vessel, capable of operating in up to 12,000 feet of water, has begun development drilling work at BP’s Thunder Horse field. The other is a recon-structed drilling rig on BP’s Mad Dog oil and gas production plat-form. It replaces the original rig on the plat-form that was badly damaged and left inop-erable by Hurricane Ike in 2008. With the new, state-of-the art rig, the platform recently resumed development drilling at the massive Mad Dog field com-plex.“The addition of these two new rigs reflects the vital importance of the deepwater Gulf of Mexico to the future of BP,” said Richard Morrison, Regional President of BP’s Gulf of Mexico business. “It also clearly demon-strates BP’s commit-ment to the American economy and U.S. energy security.”

DNV GL recommends ways to make LNG bunkering safe and efficient

It was noted that the project was progressing rapidly and on schedule – the first train of an LNG plant will be commissioned in 2018. As of today, a special-purpose company – Gazprom LNG Vladivostok – is set up to imple-ment the project. The design documentation is being developed with a view to be completed in the third quar-ter of 2014. Gazprom expects to receive an environmental approval next autumn, and a positive feedback from the Russian State Expert Evaluation Department – by the year end. Project investigation works are underway on the Lomonosov Peninsula (Portovaya Bay) – the proposed

location of the LNG plant and surrounding infrastructure. In particular, engineering surveys are ongoing with a purpose to design LNG plant facilities and an export terminal. It is expect-ed to carry out a whole set of the detailed investigations, including geotechnical, hydro-meteorological, environmental, seismological and seismotec-tonic research. It is also planned to conduct an area survey to detect any explosive objects or archeological sites. The findings will help to work out the proper

location for new facilities. The meeting participants were particularly focused on an issue of defining future partners for joint implementation of the Vladivostok-LNG project. Several big international companies have already expressed the interest to the project, and their experts viewed some parts of the Investment Rationale between August and November this year. In addition, some potential LNG buy-ers, including Japanese companies, showed their interest as well. The meeting resulted in assigning tasks aimed at the timely execution of the Vladivostok-LNG project.

Gazprom starts developing design documentation on Vladivostok-LNG project

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RasGas Welcomes New Gas Market Developments| The development of new tech-nologies for the extraction of natural gas along with gov-ernment policies favouring gas are positive steps towards recognising natural gas as a cleaner energy source in the global market, said RasGas Company Limited’s (RasGas) Chief Marketing and Shipping Officer, Khalid Sultan R. Al Kuwari, at the CWC World LNG Summit, currently being held in Paris, France. In his opening keynote address titled ‘Key Drivers of the Global LNG Business Today’, on the first day of the four-day summit, Al Kuwari emphasized natural gas’ inherent reliability, storability and environ-mental benefits when compared to other primary energy sources. These are all factors that will drive the growth in demand of pipeline sales gas and liquefied natural gas (LNG) going forward. In his speech, Al Kuwari cited govern-ments’ regulatory policies that encourage the integration of sophisticated gas infrastructure in Europe. Addressing other key markets, he noted that while the gas industry has harnessed the latest technologies for shale fracking in the USA, it may witness another shift with the growing possibility of gas production from methane hydrates. “The need for clean gas continues to mature and evolve and the ‘Shale Gale’ could turn out to be a breeze relative to the ‘Hydrate Hurricane’ if commercial exploitation techniques are developed. As a global energy supplier, RasGas remains focused on providing a secure, safe and reliable supply of LNG to meet changing demands,” said Al Kuwari.

2013 SHIPPINGInsight Fleet Optimization Conference a Success | NORFOLK, VA. More than 100 delegates from 11 countries attended the second annual SHIPPINGInsight Fleet Optimization Conference, which was held Oct. 22-24, 2013 in Stamford, Conn. The organizers are already starting to make plans for next year’s conference, which is tenta-tively scheduled for mid-October 2014 in Stamford.

Participants and delegates represented all segments of the international maritime industry. They included 20 senior executives from major shipping companies, many of whom served as moderators and panelists, as well as major classification societies, industry experts and solution suppliers. “The conference provided valuable insight into the various topics associated with LNG as a fuel,” said Joe McKeown, fleet director of V Ships (US). “I have already shared conference information with a number of V Ships staff, and I look forward to participation next year.” “The shipping industry is struggling to pull itself out of a deep and abiding slump, and faces difficult challenges in a mar-ketplace characterized by persistent overtonnage, weak demand, depressed freight rates, rising fuel costs and high capital investment for regulatory compliance,” said Jim Rhodes, conference co-director. “In this business climate, it’s imperative for shipowners to reduce operating costs and improve efficiency. The Fleet Optimization Conference is the premier forum addressing technical solutions and best practices for efficient ship operations.”

SC Klaipedos Nafta... The prelimi-

nary sales revenues for September 2013 amounts to LTL 9.3 million (EUR 2.7 mil-lion); or less by 4.1 percent less if com-pared to September 2012 (i.e. LTL 9.7 million or EUR 2.8 million). During September 2013 the Company reloaded 326 thousand tons of oil products into its storage tanks, i.e. less by 39.7 percent com-paring to September 2012 (541 thousand tons). The reduced transshipment is influ-enced by the ongoing overhaul of Mozyr Oil Refinery and accord-ingly delivered less fuel oil in the terminal;

CNOOC Limited to examine LNG development in British Columbia | HONG KONG CNOOC Limited (the “Company”, NYSE: CEO, SEHK: 00883, TSX: CNU) announced that its wholly-owned subsidiary Nexen Energy ULC (Nexen), has entered into an exclusive agreement with the Government of British Columbia, Canada to examine the viability of constructing a liquefied natural gas (LNG) plant and export terminal at Grassy Point near Prince Rupert, British Columbia, Canada. The agreement with the Government of British Columbia, represented by the Ministry of Forests, Lands and Natural Resource Operations, grants Nexen and its joint venture partners INPEX Corporation and JGC Corporation, the exclusive right to pursue long-term access to Crown land at Grassy Point.“LNG export is the most attractive option for maximizing the value of our Canadian shale gas business,” said Li Fanrong, CEO of CNOOC Limited. “With robust financial capacity, a track record of efficient, innovative and responsible develop-ment and significant LNG expertise, Nexen and our joint venture partners are well positioned to pursue this opportunity.”

Overview of CNOOC Limited’s Canadian shale gas holdings and proximity to Grassy Point site in British Columbia, Canada.

HOUSTON ABS, the leading provider of classification services to the global offshore and marine industries, has released the ABS Guide for Enhanced Fire Protection Arrangements, as guidance for improved safety on offshore vessels and installations as well as oceangoing vessels.

“Protection against fires on board vessels and offshore installations is critically important,” says ABS Chairman and CEO Christopher J. Wiernicki. “This new Guide represents another significant step taken by ABS toward safer operations.”

According to ABS Director of Marine Technology Christina Wang, one of the primary goals of this new Guide is to provide criteria for notations that increase the level of protection against fires on board vessels, mobile offshore drilling units (MODUs), mobile offshore units (MOUs) and offshore installations. Another objective is to reduce the consequences of an onboard fire through specific measures for prevention, detection and fire extinguishing.

“Current rules and regulations identify certain fire safety arrangements that must be provided on board a vessel, drilling unit or offshore installation,” Wang explains, noting even though the rules and regulations have mandated such “mini-mum” requirements for many years, fire and explosion continue to remain one of the top safety hazards for any vessel and its crew.

While other classification societies provide fire safety notations, ABS is the first to address the industrial portions of off-shore units to this extent. The Guide for Enhanced Fire Protection Arrangements is the first such document to provide requirements to protect against the unique fire risks associated with the industrial areas of floating production, storage and offloading (FPSOs) units, Wang says.

The optional Enhanced Fire Protection notations in the Guide include EFP-A and EFP-A+ for accommodation areas, EFP-M for machinery spaces, EFP-C for cargo areas and EFP-IA for industrial areas. “Combinations of these notations can be awarded as well,” Wang says.

The new Guide is available for free download at www.eagle.org.

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Singapore moves ahead in develop-ment of LNG bunkering standards |Singapore has taken a significant step for-ward in the develop-ment of the practical operational proce-dures and standards for Liquefied Natural Gas (LNG) bunkering operations.

The Maritime and Port Authority of Singapore (MPA) and its appointed consul-tant, Lloyd’s Register, have completed its study on the Technical Standards and Procedures for LNG bunkering in the Port of Singapore. The study consoli-dated information that needs to be addressed before LNG bunkering can take place into five key areas as follow:LNG Bunkering Standards and Procedures within the Port’s lim-its Technical. Requirements and Specifications for LNG bunker tankers and receiving vessels with regard to trans-fer system, fittings and safety equip-ment.Safety Standards for LNG Bunkering oper-ations Identification of Safety Exclusion Zones and Emergency Procedures.Competency Standards for Personnel handling LNG bunkering

New ABS Guide provides specific notations for FPSOs

DNV GL to class LNG Powered Helgoland FerryThe new Fassmer built Helgoland ferry for AG EMS, will be constructed under the supervision of classification society DNV GL. The nearly 80m long vessel will be the first German flagged newbuilding to be equipped with an propulsion system designed to operate primarily with liquefied natural gas (LNG) as a fuel.

Using LNG as fuel allows the vessel to make significant cuts to its emissions to the air, bringing it into compliance with incoming regulations to protect the environment. Virtually eliminating particulate matter and significantly cutting sulphur oxide (SOx) and nitrogen oxides (NOx) emissions, the switch from conventional fuel also results in up to a 30% reduction of carbon dioxide, making the ves-sel especially suited to environmentally sensitive coastal areas. The new ship also meets the “Blue Angel” standards for Eco-friendly ship design. “At DNV GL we have pro-moted the use of LNG as a ship fuel for many years and it is very gratifying to see that there is a growing realisation of the potential of this technology to help the shipping industry demonstrate its commitment to acting as respon-

sible steward of the environ-ment,” said Henning Pewe, DNV GL LNG expert. “We have been working for some time on the development of these technologies, especially in the area of bunkering, to ensure that as more owners look to take advantage of these innovations they have the support they need to be

confident in the safety of their investment.”

Both the primary and auxiliary engines are dual fuel designs, but the vessel will operate primarily on LNG, while retaining the ability to switch to conventional fuels if so required. The hull has been specially designed to enable a cruising speed of some 20 knots, with a dynamic stabiliza-tion system in place to ensure passenger comfort.

Delivery is scheduled for April 2015 the ship will have a passenger capacity of 1000, while also boasting an onboard crane and room for up to ten 10ft reefer contain-ers. The new ship will operate year round between the ports of Cuxhaven and Helgoland.

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GAIL C&MD conferred ‘Best LNG Executive Global Award’ at World LNG Summit| INDIA Shri Tripathi, who was pre-sented the award at a glittering ceremony in the French capital last evening, was recognized for his outstanding contribution in the development of global LNG industry and in recognition of his dynamism and leadership skills to steer GAIL forward, which are reflected in the company’s landmark achievements in LNG sourcing in the recent past.

Accepting the award, Shri Tripathi said, “this award belongs to my people back home in my company GAIL in India, Houston and Singapore. It belongs to our suppliers, con-tractors, customers and industry partners like you who have reposed their faith in us and helped us to grow and move forward.

Centrica signs a £4.4bn gas deal with Qatar to secure further LNG supplies for the UK| UN. KINGDOM Centrica plc, the parent company of British Gas, today announced it has entered into a 4 ½ year LNG supply agreement with Qatargas for the purchase of up to 3 mil-lion tonnes per annum of liquefied natural gas (LNG). The £4.4billion deal builds on Centrica’s existing agreement with Qatargas, signed in February 2011, and could provide gas to meet approximately 13% per cent of UK annual resi-dential gas demand, enough to meet the needs of around 3 million households. The previous contract Centrica signed with Qatargas comes to an end in June 2014. With increasing global competition from emerging economies for LNG, and declining North Sea production, this trans-action secures important gas supplies for Centrica and the UK to December 2018. Centrica Chief Executive, Sam Laidlaw said: “We are delighted that we continue to deep-en our relationship with Qatargas and continue to build our LNG business by integrating our positions along the gas value chain. It is vital that the UK has a diverse range of sources of supply to meet its energy requirements. In a competitive international market, contracts like this under-pin the UK’s access to global LNG supplies for the benefit of customers.” Energy Minister, Michael Fallon, who was this week in Qatar, welcomed the news saying:

“Long term deals of this kind with reliable suppliers like Qatar are vital for our future energy security.”

BG Group

announced first gas production from the Jasmine field in the UK North Sea, in which the company has a 30.5% interest. The successful start-up of the field marks the delivery of another of the Group’s key mile-stones for 2013. The Jasmine development comprises a 24-slot wellhead platform with bridge-linked accommodation. The field is a high pressure, high temperature gas-condensate reser-voir, which is located in Blocks 30/6 and 30/07a of the Central North Sea, approxi-mately six miles (nine kilometres) west of the Judy platform.

Eni sells its stake in Severenergia to Novatek-GazpromNeft Joint Venture | RUSSIA Eni signed an agreement to sell its 60% stake in Arctic Russia to Yamal Development, a joint venture equally owned by Novatek and GazpromNeft. Artic Russia owns 49% of Severenergia, which holds four licenses for the exploration and pro-duction of hydrocarbons in the region of Yamal Nenets. The transaction is subject to receipt of necessary approvals. The sale price is 2.94 billion dollars, which will be paid in cash at closing. Following the closing of the transaction, Eni will no longer hold a stake in Severenergia.With this sale Eni monetizes its investment in Siberian upstream assets, which have been significantly matured, coherently with its objective of creating value for shareholders. Eni will continue to have a sig-nificant presence in, and strong relations with, Russia both in strategic and commercial terms. Eni is the biggest buyer of natural gas from Gazprom and a major buyer of oil from Rosneft, with whom it also has a joint venture to explore promis-ing assets in the Black Sea and the Barents Sea. Moreover, Eni partners Gazprom in the South Stream project which, once completed, will deliver 63 bln cubic meters of gas per year, contributing substantially to the European security of supply.

With this sale Eni monetizes its investment in Siberian upstream assets, which have been significantly matured, coherently with its objective of creating value for shareholders

www.gl-group.com

Germanischer Lloyd.

Reliability.

You need ships that operate on schedule – as well as a global partner, always available on time, who supports you in running operations at highest effi ciency. As a classifi cation society, we develop state-of-the-art rules and guidelines for the shipping industry. Moreover, we are also a provider of innovative software solutions and consulting for increasing your ship’s effi ciency.