CNG not LNG
created: 27 Sep 2010 09:03
tags: cng lng sea-ng
I have seen a number of references in news stories about CNG being an alternative to LNG, and this struck me as a little odd. After all, LNG is able to reduce the volume of gas by 600 times, which is why it is such a useful technique. Aside from that, the risks associated with CNG would seems to be prohibitive, when transported in a large volume.
Well apparently I am wrong.
Sea NG is a Canadian company specializing in the marine transportation of compressed natural gas (CNG) using its proprietary Coselle™ technology.
What this company have done is two things.
- Understood that LNG has its limitations
- Designed a better way to transport CNG
LNG is especially ill suited to smaller scale, due to its very large capital requirements. So where the volumes of production or consumption as small, unit costs are potentially prohibitively high. Traditional LNG terminals also have a large footprint, and thus face much resistance.
By storing the cng in a coil of pipe, Sea NG have come up with a method that is both cheap (standard components) and safe (leaks would be small). A description of the technology can be found here.
Whilst there are a number of developments that promise to make LNG work better on a smaller scale, Excelerate Energy being a good example, CNG seems to offer an alternative. If unit costs are low enough, then a multiple of terminals can serve even small markets, enabling competition, and securing energy security.
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Total in Angola
created: 23 Sep 2010 06:12
tags: angola fmc seadrill total
Last month, Total announced that it was launching its CLOV project in Angola. It is a major development for Total, which already has a big presence in Angola.
This project is the fourth development pole in Angola’s deep offshore Block 17, after Girassol, Dalia and Pazflor. Drilling will start in 2012 and first oil is expected in 2014.
Located approximately 140 kilometres from Luanda and 40 kilometres northwest of Dalia in water depths ranging from 1,100 to 1,400 metres, the CLOV development will lead to the four fields - Cravo, Lirio, Orquidea and Violeta – coming on stream. The proved and probable reserves are estimated at approximately 500 million barrels of oil.
Such major investments always create opportunities for others, and the news of whom that is has been released in the last couple of days.
FMC Technologies, Inc. (NYSE: FTI) announced today that it has signed an agreement with Total Exploration & Production Angola for the manufacture and supply of subsea production equipment for the CLOV development project. The award has a value of approximately $520 million in revenue to FMC Technologies.
This deal was widely expected, as FMC is already working on Total's other developments in Angola.
Today we have the news of the delivery of Ultra-deepwater drillship "West Gemini" to Total's Angola operations
Seadrill's new ultra-deepwater drillship West Gemini has commenced operations for Total in Angola. West Gemini, which was delivered from the Samsung Heavy Industries in South Korea end of June 2010, arrived offshore Angola in West Africa end of August and has since arrival prepared for start-up of operations. The drillship is chartered to Total under a two-year contract and is the third deepwater newbuild from Seadrill that has been contracted by Total.
Althought the whole of West Africa seems to be a hot area for exploration, Angola has been in the business longer than most. Under developed due to a long running civil war, we are only now getting to see the real potential. Unlike most other OPEC members, this is one with big growth potential.
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Free Pricing in The Sub Continent
created: 20 Sep 2010 09:07
tags: india pakistan prices
One of the biggest problems in doing business in the oil sector is the direct political interference in the business in some countries. This can have an impact even for those in other jurisdictions. For example, how does one predict demand trands, when many consumers prices are shielded from market conditions.
In 2008, we saw how subsidies and fixed prices, enabled demand in some countries to grow despite eye watering oil prices. Thus, the existence of price controls, even makes oil price forecasts impossible.
So the news that various markets are being liberalised is good news. In july, it was India, and now it is Pakistan.
With Punjab and remote areas in other provinces facing a severe shortage of petrol, mainly because of transportation problems and lack of storage, the government is expected to deregulate oil pricing on Tuesday and allow refineries to fix prices of petroleum products, except diesel, to improve their financial position.
Governments are being forced to act, to reduce holes in their budgets. They also need to take advantage of the current oil price situation. The most likely scenario for oil prices is a period of relatively stable prices followed by rising prices, perhaps once again to levels seen in 2008. The need to cut huge budget expenses would then clash with the sheer impossibility of doing so.
If only the gas guzzlers of the Middle East would follow suit, it would guarantee that oil has a longer and more positive future.
