POWERGLOBE introduces ”FSRP” LNG to Power solution

POWERGLOBE, a dominant LNG supplier, introduces its plan for LNG to Power developments, across Mediterranean sea, Indian Ocean, Asia, Middle East and Africa. Based on the latest announcements the company intends to expand across the floating power generation, fueled direct from the Golden Pass LNG project in US, which it is jointly developing between Qatar Petroleum (QP) and ExxonMobil. The facility will have three 5.2mtpa trains, the first of which Exxon expects to come online in 2024. Golden Pass will be QP’s strategic project to serve the European LNG market while freeing up more Ras Laffan volumes for key Asian customers. This will also give the flexibility of having additional supply sources in case geopolitics disrupts LNG flows from the Middle East.

His Excellency, Sheikh Mohammed Al Thani, Chairman of POWERGLOBE and AL FAISAL Holding (Photo: QGN)

Qatar’s decision to expand its liquefaction capacity further is underpinned by greater exploitation of its North Dome acreage. PG new studies, Doha has announced that North Dome’s productive layers extend well into Qatari land in Ras Laffan, which is the reason behind the latest expansion plan. Qatar will immediately start the necessary engineering work for two additional LNG mega trains with a combined liquefaction capacity of 16mtpa.

PG’s development across the LNG to Power, in cooperation with Siemens, Wartsila and Wison initially consists of three units of: a) 300MW and storage 170kcm of LNG, b) 150MW and storage of 50kcm of LNG, and c) 60MW and storage of 20kcm of LNG. The estimated totla power capacity will reach to 600MW by 2022 and 3,600MW by 2026. The FSRP units hold LNG storage facility, cargo handling module, vent, regasification facility, water treatment module, steam turbine room, HRSGs, gas turbines, generators, transformers and HV transmission. Additionally, the large-scale unit and above the 300MW can operate as floating LNG trading hubs, providing additional services to power generation, including LNG loading and offloading, LNG sendout and NG sendout, LNG bunkering and LNG storage for energy security of supply.

POWERGLOBE works closely with Goverments, energy authorities, non-interconnected islands, electricity producers, industrial power users and large-scale corporations in order to install and start operating the FFSRP solutions across Europe, Middle East, Africa, Asia and Far East. Introductory presentations are taking place starting from Doha, Athens, Sofia, Singapore, Mombasa, Manama-Bahrain, Jakarta, Colombo-Sri Lanka, Maldives, Seychelles and across places where floating power generation is needed. Consider that the FSRP (LNG to Power) solutions can provide the power generation at the lowest possible price, with 50% lower CO2 emmission than the coal fuelled power, 30% lower CO2 emmission than the oil fuelled power and zero (0) sulfur dioxide emmission.

The LNG developments and the current state of the industry:

The use of LNG as a marine fuel is the 2020 compliance option least pursued at this point in time despite its environmental advantages and probable economic advantages. There are about 280 LNG-fueled ships in operation or on order, but there are over 600 scrubber-outfitted ships in operation and over 600 ships under construction that have plans to include scrubbers. Analysts predict 300 (lowered from 400 to 600) LNG-fueled ships, compared with 2,000 ships with scrubbers, by 2020. The slow start for building orders of LNG-fueled ships belies the positive long-term view for LNG held by much of the shipping industry. PG’s LNG division, estimates that the proportion of LNG in the global marine fuel mix will rise from the current less than 0.5 percent to over 16 percent by 2030 and 36 percent by 2050. Other consulting and non-governmental organizations have made similar estimates.

The slower rate of adoption of LNG as a path to 2020 IMO compliance compared to scrubbers can be partially explained by the fact that scrubbers can be retrofitted on an existing ship, whereas engineering a ship from oil- to LNG-fueled is more complicated due to the larger size of the average LNG fuel tank. Therefore, unlike with scrubbers, there will be no sudden burst of LNG-fueled ship orders. Shipowners will instead decide their desired newbuild when they need to order new ships, resulting in LNG-fueled ships being phased into the world fleet at a steady pace rather than being converted en masse.

To the extent that shipowners are hesitant about ordering LNG-fueled ships, some observers believe it reflects a “wait-and-see” approach, whereby shipowners might be holding off on new orders until (i) more LNG bunkering infrastructure (the infrastructure used to load LNG on to the ships) is built, (ii) LNG fuel and bunkering technology develops further, (iii) more data points on the price of LNG fuel exist and (iv) more ships in the global fleet are scrapped given that the market is currently oversupplied. We are likely reaching the end of this waiting period, which has been commented on by industry insiders since at least early 2015, in part due to the approaching implementation of the IMO 2020 sulfur regulations and in part due to advances in LNG bunkering infrastructure. PG’s estimates that the FSRP facility will be the next LNG revolution to energy security of supply, low cost power generation and electricity integration with the lowest environmental effect across the power industry, transortation and shipping. NG and LNG could support earth’s climate system as the global warming is the long-term rise in the average temperature with its major aspect of climate change. Invest in LNG today, we invest in our energy future of avoiding various effects of the warming.

Sources: LNGNews, QGN, QGT, QPnews, QANews, The Peninsula, FTNews, CCN LNGnews, Climate Works, PGenergy, BBCClimate, DDN, GulfTimes.