New FEED-contract marks a breakthrough in the small scale LNG logistic chain
18 Feb 2011
On January 14th fellow group company Gasfin Development SA signed an agreement with EDF Group (Electricité de France) for the development of a project to supply natural gas to EDF’s power generation facilities in Martinique and Guadeloupe. EDF and Gasfin will proceed with the front end engineering design (FEED) and permitting of LNG and gas delivery infrastructure to support the transportation, storage and regasification of approximately 400,000 tonnes of LNG per annum required for the two facilities.
Gasfin signed a contract with TGE Marine Gas Engineering to supply the FEED package to support the permitting procedure with local authorities. The project envisages the use of a new mid-scale LNG carrier and two purpose built LNG floating storage and regasification units (FSRUs). LNG sourced from one of the regional LNG terminals will be delivered by the LNG carrier to the FSRUs moored in the vicinity of the power plants. The LNG will be stored and regasified on the FSRUs, and then sent to the respective power generation facilities via a short subsea pipeline. The project will allow existing diesel engines to switch from burning HFO to burning natural gas. In addition to realizing material cost savings, this switch will mean a reduction in CO2 and NOX emissions from the plants of up to 30% and 85% respectively. When implemented, this project will be the world first in terms of using integrated, right-sized, floating LNG infrastructure to facilitate economically viable international deliveries of LNG and supply natural gas to markets of this size, which presently do not have a viable means of accessing international LNG markets.
TGE Marine has developed the necessary tank technology and gas handling systems for the small scale LNG market for several years. The successful operation of the world’s first combined 7,500 m³ LNG/LEG-carrier “Coral Methane”, which TGE developed in close co-operation with Anthony Veder Group, proves the viability of the adapted and upgraded technology for this specific new market segment. Additionally, TGE has received an approval in principle from BV for a new LNG-carrier design with capacities of up to 35,000 m³.
Manfred Küver, CEO of TGE Marine AG, commented:
“We are delighted to work with Gasfin and EDF on this groundbreaking project. Based on our extensive experience gained from being the world leading EPCS-contractor for Ethylene-carriers, we have further developed and upgraded these technologies for several years in order to transfer them to LNG systems. We see a new market for small scale LNG supply solutions emerging; first, for isolated power stations as a substitute for HFO and MDO and second, due to new MARPOL regulations, for ship owners considering LNG as an economic and environmentally friendly alternative fuel for merchant ships.”