Tag Archives: LNG

Business, Finance, Occupation & Industry

U.S. LNG Supply for Natural Gas Vehicles Set to Double

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By Dan Dzombak, The Motley Fool

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Shell recently announced it would build two new liquefied natural gas (LNG) fuel plants to supply all types of heavy-duty natural gas vehicles. Shell’s general manager for the America’s, James Burns, estimated these will double the liquefied-gas manufacturing capacity in the U.S. and Canada.

LNG is not to be confused with compressed natural gas, or CNG, which is used in cars and light-duty trucks. LNG is used in large-scale trucks, boats, and industrial uses. It is better for large vehicles to use LNG as it is much denser than CNG, requiring less storage space on board. With CNG or LNG, the big draw is cheaper refueling costs. A gallon of CNG ranges in price from $0.80 to $1.70.

Challenges
As my colleague Arjun Sreekumar wrote recently, there are two challenges holding back natural gas vehicles:

1. High up-front costs.

2. Limited refueling capacity.

For truckers and other heavy users of fuel, the cheaper refueling costs easily make up for the high up-front costs in around a year. It’s really the limited refueling capacity that is holding truckers back from making the switch.

The limited refueling capacity is being worked on by the likes of Clean Energy Fuels and TravelCenters of America to make LNG a viable option for truckers in the future. Clean Energy Fuels, with financial backing from Chesapeake Energy , is developing a network of 150 LNG stations at Flying J truck stops across the county. For its part, TravelCenters of America signed a memorandum of understanding with Shell in June 2012 to build natural gas refueling lanes at around 100 TravelCenters of America truck stops around the country.

When Shell announced on Monday its new liquefaction plants, it also announced that these would be the basis for two new natural gas refueling networks. The first would be in the Gulf Coast Corridor (Texas and Louisiana) with the liquefaction unit at its facility in Geismar, Louisiana with distribution provided by a subsidiary of Martin Midstream Partners .

The second network would be in the Great Lakes Corridor with the liquefaction unit at its facility in Sarnia, Ontario, Canada. This facility will provide LNG to all five Great Lakes as well all the bordering U.S. states and Canadian provinces.

Once these networks are complete we should see more and more truckers begin using LNG for fuel, hopefully starting a virtuous cycle of refueling stations deciding on their own to add LNG and CNG refueling options.

Foolish bottom line

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

GE Wins $333 Million Service Contract Extension for Sakhalin-2 LNG Plant in Subarctic Russia

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By Business Wirevia The Motley Fool

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GE Wins $333 Million Service Contract Extension for Sakhalin-2 LNG Plant in Subarctic Russia

  • Plant Operates in Some of the World’s Harshest Weather Conditions
  • GE’s Strong Performance under Current Agreement Leads to 16-Year Extension
  • GE Also Announces MOU with Sakhalin Government to Develop Power Projects

MOSCOW–(BUSINESS WIRE)– GE Oil & Gas (NYS: GE) has received a 16-year service contract extension valued at $333 million for Sakhalin-2, one of the world’s largest integrated oil and gas projects that operates in the harsh subarctic environment of Sakhalin Island in the Russian Far East. The agreement underscores GE‘s commitment in local resources and a local workforce for the facility, which delivers economic benefits for both the Sakhalin region and all of Russia.

The service agreement was announced today during the Russia Power event in Moscow, where GE also announced the signing of a memorandum of understanding (MOU) with the Sakhalin provincial government to work together in developing power generation projects to meet the future energy needs of Sakhalin Island. The MOU covers a wide range of GE technology options, including aeroderivative gas turbines, gas engines, coal gasification and wind power.

The service contract extension covers four GE Frame 7EA gas turbines that drive the process trains for Sakhalin’s liquefied natural gas (LNG) plant—the first of its kind in Russia—and five GE Frame 5 gas turbines that are used for electricity production at the site.

Sakhalin Energy, a partnership that draws upon global oil and LNG expertise and experience, operates the project under a production sharing agreement with the Russian Federation. LNG is produced using technology that was developed by Shell to ensure maximum production during severe Sakhalin winters. The production capacity of the plant is 9.6 million tons of LNG per year, most of which is exported to Korea and Japan.

The extension to the Sakhalin Energy–GE contractual services agreement (CSA) for maintenance and services on Sakhalin Energy‘s LNG plant gas turbines has been approved by Sakhalin Energy‘s shareholders and Russian stakeholders. This …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Foster Wheeler to Participate in the UBS Engineering & Construction Spring One-on-One Conference

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By Business Wirevia The Motley Fool

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Foster Wheeler to Participate in the UBS Engineering & Construction Spring One-on-One Conference

ZUG, Switzerland–(BUSINESS WIRE)– Foster Wheeler AG (NAS: FWLT) announced that Scott Lamb, the company’s Vice President of Investor Relations and Corporate Communications, will represent the company in investor meetings at the UBS Engineering & Construction Spring One-on-One Conference in New York, New York on March 12, 2013. Mr. Lamb will provide an overview of the company and its recent financial performance.

The slides to be used by Mr. Lamb will be posted in the Investor Relations Presentations/Updates section of Foster Wheeler‘s web site (www.fwc.com) at or before the start of the conference.

Foster Wheeler AG is a global engineering and construction company and power equipment supplier delivering technically advanced, reliable facilities and equipment. The company employs approximately 13,000 talented professionals with specialized expertise dedicated to serving its clients through one of its two primary business groups. The company’s Global Engineering and Construction Group designs and constructs leading-edge processing facilities for the upstream oil and gas, LNG and gas-to-liquids, refining, chemicals and petrochemicals, power, mining and metals, environmental, pharmaceuticals, biotechnology and healthcare industries. The company’s Global Power Group is a world leader in combustion and steam generation technology that designs, manufactures and erects steam generating and auxiliary equipment for power stations and industrial facilities and also provides a wide range of aftermarket services. The company is based in Zug, Switzerland, and its operational headquarters office is in Reading, United Kingdom. For more information about Foster Wheeler, please visit our Web site at www.fwc.com.

Foster Wheeler AG
Media
Julie Stanisz, 908-730-4047
julie_stanisz@fwc.com
or
Investor Relations
Scott Lamb, 908-730-4155
scott_lamb@fwc.com
or
Other Inquiries
908-730-4000
fw@fwc.com

KEYWORDS:   United States  Europe  North America  New Jersey  New York  Switzerland

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Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Is This Natural Gas Play Undervalued?

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By Tyler Crowe, The Motley Fool

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Whenever a company is in the midst of a major transformation, there are lots of risks along the way that could potentially turn sour. So, as investors, we try to mitigate this risk by digging deep into these respective companies so we have as clear a picture as possible. InterOil  has flown under the radar for a while, but it has big plans to capture the Asian natural gas market. Is InterOil an unspoken gem that the market is undervaluing? Or are its ambitious plans too big for the company to handle? Let’s take a better look at these questions to get a clearer picture.

Undervalued?
One of the reasons InterOil doesn’t get much attention is its location. The entirety of the company’s natural gas assets are on the island nation of Papua New Guinea. This doesn’t make them any less valuable, though. The company owns leasing rights to almost 4 million gross acres in the country. A study done by GLJ Petroleum Consultants estimates that the company’s acreage has as much as 6.0 trillion cubic feet of recoverable reserves.

If the company’s estimates are correct, it is quite possibly one of the most undervalued assets around. This would give the company a market cap value of about $0.62 per thousand cubic feet equivalent of reserves. Compare that with Linn Energy‘s  4.7 Tcfe of proven reserves and market cap value of about $1.87 per thousand cubic feet equivalent of reserves. 

Here’s the catch: Not all of InterOil’s 6.0 Tcfe are proven. Since its inception, InterOil has spudded 14 exploratory wells on all of its its holdings. While some of the initial production rates on these wells have been exceptionally high, they were immediately shut in. It is difficult to determine metrics such as the decline rate and the estimated ultimate recovery for these wells without their having produced for some time. It’s also hard to determine the full potential of a 4 million-acre site based on a dozen exploratory wells and seismic mapping. While the potential for something great is there, it’s still too early to give a final verdict on Interoil’s prospects.

Overreaching?
InterOil currently has two business segments that generate revenue for the company: its midstream and refining segment, and its retail and marketing operations. So far, almost all of the profits from these segments have gone into exploration and production. It has also used the sale of interest stakes in some of its upstream assets to help finance both its upstream operations and its initial efforts to build an LNG export facility. Unfortunately for the company, the proceeds from these operations aren’t enough to fund its plans at a very rapid pace. This is why the company has for quite some time sought out partners to execute this strategy. It found two last year. Both the Papua New Guinean government and Colombian E&P company Pacific Rubiales took minority interest stakes in some of its exploration fields.

Still, this isn’t quite enough. The company will need a large injection of capital …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Foster Wheeler Awarded Contract for Circulating Fluidized-Bed Steam Generator in the Philippines

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By Business Wirevia The Motley Fool

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Foster Wheeler Awarded Contract for Circulating Fluidized-Bed Steam Generator in the Philippines

ZUG, Switzerland–(BUSINESS WIRE)– Foster Wheeler AG (NAS: FWLT) announced today that a subsidiary of its Global Power Group has been awarded a contract by Daelim Industrial Co., Ltd. for the design and supply of one circulating fluidized-bed (CFB) steam generator for the SM200 Phase 1 Coal Fired Power Station for Sarangani Energy Corporation, a joint venture company between Alsons Consolidated Resources, Inc. and Toyota Group.

Foster Wheeler has received a full notice to proceed on this contract. The terms of the agreement were not disclosed and the contract value will be included in the company’s first quarter 2013 bookings. Commercial operation of the new steam generator is scheduled for 2015.

Foster Wheeler will design and supply the 100 MWe (net megawatt electric) CFB steam generator plus auxiliary equipment for the project which is located in the province of Sarangani on Southern Mindanao, Philippines. The CFB steam generator will be designed to burn coal while meeting applicable environmental regulatory requirements.

“We appreciate the opportunity to showcase our fuel-flexible and environmentally friendly CFB which will provide power to the local residents in the Philippines,” said Gary Nedelka, Chief Executive Officer of Foster Wheeler‘s Global Power Group. “Foster Wheeler‘s CFB technology is an important part of the solution to meet energy needs while addressing environmental concerns.”

Foster Wheeler AG is a global engineering and construction company and power equipment supplier delivering technically advanced, reliable facilities and equipment. The company employs approximately 12,000 talented professionals with specialized expertise dedicated to serving its clients through one of its two primary business groups. The company’s Global Engineering and Construction Group designs and constructs leading-edge processing facilities for the upstream oil and gas, LNG and gas-to-liquids, refining, chemicals and petrochemicals, power, mining and metals, environmental, pharmaceuticals, biotechnology and healthcare industries. The company’s Global Power Group is a world leader in combustion and steam generation technology that designs, manufactures and erects steam generating and auxiliary equipment for power stations and industrial facilities and also provides a wide range of aftermarket services. The company is based in Zug, Switzerland, and its operational headquarters office is in Geneva, Switzerland. For more information about Foster Wheeler, please visit our Web site at www.fwc.com.


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Source: FULL ARTICLE at DailyFinance

News, Politics, Government

Shell to buy Repsol LNG assets for $6.2 billion

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Royal Dutch Shell says it has struck a deal with Spain‘s Repsol SA to buy Repsol’s liquefied natural gas assets in Peru and Trinidad & Tobago in a deal worth $6.2 billion.

Shell said it would pay $4.4 billion in cash and assume $1.8 billion in Repsol debt and other obligations.

The deal also includes a gas-fueled power plant in Spain.

For Shell, Europe‘s largest oil company, the deal builds on an already strong specialization in LNG. More than half of Shell’s production comes from natural gas, rather than oil, and it has stakes in LNG facilities across the world.

Repsol said separately it would book a $3.5 billion gain on the deal and significantly strengthen its balance sheet, cutting net debt by half to around €2.2 billion ($2.9 billion).

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Source: FULL ARTICLE at Fox World News