The1990s,especiallythe middle years, witnessed a dramatic turnaround in the growth of liquefied natural gas (LNG) demand, which tracked the equally strong demand growth of natural gas in general (Fig. 1).
Much of this growth was for power generation in Asia, but even U.S. LNG demand in 1996 made a strong recovery.
As 1998 began, however, economic turmoil in Asia began to cloud near-term prospects for LNG in particular and all energy in general. The extent of damage to energy markets was unclear.
Overall, it seemed clear that demand growth in power-generation markets for natural gas, including LNG, would continue through 2000 if more slowly than was evident early in the 1990s.
This trend was underscored late in 1997 by an annual study from the U.S.-based Institute of Gas Technology, "Overview of the Global Baseload LNG Industry."
The study noted that LNG imports worldwide had climbed nearly 8%/year since 1980 and accounted for 25% of all natural gas traded internationally. In the mid-1970s, the share had been only 5%.
In 1996, the most recent year for which complete data were available, world LNG trade rose 7.7% to a record 92 billion cu m, outpacing the growth in overall consumption of natural gas-4.7% in 1996.
By 2015, said the IGT study, natural gas would surpass coal as the world`s second most widely used fuel, after petroleum. Much of this growth will occur in the developing countries of Asia, where gas use is projected to grow 8%/year through 2015.
Similar trends were reflected in another study of LNG trade released at yearend 1997, this from Ocean Shipping Consultants Ltd., Surrey, U.K. The study was not released in time to consider effects of the financial problems roiling Asia.
Global LNG demand will grow significantly through 2010, it said, and result in eventual growth of seaborne shipping capacity.
World trade in LNG will expand to 122.7 billion cu m in 2000 and 155.8 billion cu m in 2005 from 92.5 billion cu m in 1995.
By 2010, LNG trade levels will reach more than 183 billion cu m, equivalent to an expansion of more than 4.5%/year during the 15-year period.
LNG trade expansion will be most dynamic near term, bolstered by expansion projects in Indonesia and Malaysia, along with new ones in Qatar, Oman, Nigeria, and Australia.
LNG imports, exports
Table 1 shows that in 1996, almost 77% of the world`s LNG was delivered to Japan, Korea, and Taiwan. Demand in the region rose nearly 9% that year. Japan remained the world`s largest LNG importer, with 61% of the total, but its market grew only 5%. Since Korea began importing LNG more than 10 years earlier, said IGT`s study, its demand had grown 20%/year; in 1996, Korean imports grew 40% to 13 billion cu m.
The shock of currency devaluations and related economic woes was likely to slow that growth.
Almost all the remainder of world LNG production went to Europe in 1996, where markets were static. That was changing in 1997: Italy completed refurbishing its only terminal at Panigaglia and resumed imports from Algeria. Turkey nearly doubled its imports in 1996 and, said the report, had an enormous appetite being fed by spot market purchases.
For exports, Asia-Oceania accounted for 70% of 1996 LNG production. Indonesia was the world`s largest exporter with 35% of total sales. Algeria regained is second-place standing after revamping its plants.
Exports from Malaysia rose 29% in 1996 with completion of the Dua plant. And at start of 1997, Qatar moved into ninth position as exporter and will likely be exporting more than 12 million tons/year by 2000.
Oman, Trinidad, and Nigeria were close to joining the list of exporting countries, possibly by late 1998.
Ocean Shipping said Japan will import nearly 80 billion cu m/year by 2010, 36% more than in 1995.
South Korea`s commitment to gas use and LNG imports is reflected in a growth of about 314% in trade levels from 1995`s level to 29.5 billion cu m/year by 2010.
Taiwan`s imports will also see more than a threefold increase during 1995-2010, increasing to 14 billion cu m/year. Japan, South Korea, and Taiwan combined, the study said, will account for 70% of world LNG trade in 2010.
New markets in Thailand, India, China, and the Philippines should boost LNG trade medium- to long-term, although their combined share of trade by 2010 will only reach a 10% share-equivalent to 17.5 billion cu m/year.
Ships, routes
In its annual study of LNG shipping, Ocean Shipping found that, when combined with an increasing level of scrapping, worldwide natural-gas demand projections suggest a steady rise in total newbuilding.
Records set
The average newbuilding need, in terms of the prevailing fleet capacity, will rise to 8.2%/year to 2000 from 7%/year. Medium to long-term growth rates will moderate, falling to 5-6%/year by 2010.
With Middle East exports of LNG to the Far East set to expand for 15 years, Ocean Shipping said improved economies of scale were likely with the construction of larger LNG carriers.
Port restrictions will be the main constraint to size expansion, with the construction of 175,000-200,000 cu m vessels considered feasible.
LNG newbuilding prices declined during the early 1990s but recovered by 1996 to within 2% of the peak 1991 level. Additional South Korean yards had entered the LNG market, making first delivery in 1994 and intensifying competition.
Yards in France, Japan, and South Korea by 1997 were tendering for new vessels, although the project-based nature of LNG trading still resulted in the majority of new orders being placed with domestic yards, said the study.
The state of LNG shipping-volumes, vessels, and routes-is published annually by the Society of International Gas Tanker & Terminal Operators Ltd. (Sigtto), London. The most recent issue, LNG Log 22 for 1996 by William DuBarry Thomas, reflects the steady growth of LNG transport by sea.
In 1996, more than 1,750 voyages were completed by 91 vessels (Table 2). Loaded LNG vessels traveled nearly 4 million nautical miles and delivered more than 160 million cu m of LNG to 27 receiving terminals worldwide.
The number of voyages, nautical miles, and total cargoes for 1996 exceeded records set in 1995. Since 1964, said the report, there had been only 2 years (1980 and 1981) when the amount of LNG discharged failed to exceed that of the previous year.
In 1996, LNG transportation of LNG and within the Far East concentrated further. More than 124 million cu m (76.9% of the year`s total volume) was discharged at Asian terminals to which vessels traveled on 1,129 voyages and during which they steamed 3.35 million miles, representing 84.4% of the worldwide total.
The number of vessel entries into Tokyo Bay, said the Sigtto report, increased to 429, equal to an arrival on average every 20.4 hr. In total since the maiden arrival of Polar Alaska at Negishi late in 1969, no fewer than 6,737 LNG carrier arrivals (27.2% of the 24,788 worldwide voyages logged to the end of 1996) had been recorded at the entrance to Tokyo Bay.
The cumulative amount of LNG landed had nearly doubled in the 7 years ending in 1996. Total number of voyages the study projected to have been completed by yearend 1997 was approximately 26,000.
Newbuildings, new routes
Five vessels made their initial cargo-carrying appearances in 1996, said LNG Log 22.
The fourth of five ships built at Chantiers de l`Atlantique for Petronas Tankers Sdn. Bhd., Puteri Zamrud, equipped with four Gaz Transport tanks of 130,568 cu m capacity, completed nine voyages from Bintulu to various terminals in Japan, South Korea, and Taiwan.
Another Korean vessel, the Hyundai Greenpia, made her initial appearance late in the year and completed two voyages. She has a capacity of about 130,000 cu m contained in four Kvaerner spherical tanks.
Two new Liberian-flagged carriers for National Gas Shipping Co., Abu Dhabi, began service in 1996.
Mubaraz, the first vessel from the Kvaerner Masa yard in Finland, completed 10 voyages from Das Island. Mraweh, the second of four vessels on order, made six deliveries.
Two more ships were to be delivered in 1997, at which time the National Gas fleet would consist of eight units. Four earlier vessels were built in Japanese yards, said LNG Log 22.
Also in 1996, the 19,474-cu m Surya Aki left the Kawasaki Heavy Industries yard at Sakaide, Japan. The Bahama-registered ship, owned by MCGC International and managed by P.T. Humpuss Sea Transport, Indonesia, has three Kvaerner spherical tanks and a 12,000-hp (8,827-kw) steam-turbine propulsion plant. The Surya Aki opened two new routes during the year.
There were seven routes in 1996 over which LNG was carried for the first time. Four were to Japanese destinations, including three newly opened receiving terminals. Two others were in Spain and the last, to the U.S.
In Japan, the three new terminals were the following:
- At Hatsukaichi, west of Hiroshima, the site of an installation of Hiroshima Gas Co. Ltd. and at which LNG from Bontang will be discharged. The Surya Aki completed five voyages over the Bontang-Hatsukaichi route in 1996.
- At Kogoshima, at the extreme southern end of the island of Kyushu, the terminal owned by Nippon Gas Co. Ltd.
- At Sodeshi, near Shizuoka, approximately midway between Tokyo and Nagoya, the terminal owned by Shizuoka Gas Co. Ltd.
In Europe, Spain`s Enagás added two new port pairs to its network with routes between Marsa-el-Brega and Huelva and Das Island and Huelva.
Das Island was source of one cargo in 1996 for Everett, Mass., for Cabot LNG; another followed in 1997. The first of these voyages, made by Khannur under charter to Cabot, marks the first call at a U.S. terminal since the Golar Freeze under charter to El Paso, arrived at Cove Point, Md., in March 1980.
Future vessels
Set to join the world`s LNG fleet in 1997 were several to serve Far Eastern receiving terminals.
Among these were the first of 10 vessels to carry Qatar LNG from Ras Laffan to a new Japanese terminal at Kawagoe. Chubu Electric Corp., buyer of the gas, also has terminals at Chita and Yokkaichi in the Chubu region around Nagoya.
The first two of these vessels, handed over by the building yard before yearend 1996, are Al Zubarah and Al Knor, 135,000 cu m ships built by Mitsui and Mitsubishi, respectively, and to be operated by Mitsui OSK Lines and NYK.
Equipped with five Kvaerner spherical tanks, both are owned by a consortium of Mitsui OSK, NYK, Kawasaki Kisen, Showa Line, and Iino Kaiun.
These were followed in 1997 by Al Rayan, from Kawasaki Heavy Industries, and Al Wajbah, from Mitsubishi. Later, six more vessels were to join the Qatar fleets. LNG Log 22 said that still more would serve the Ras Laffan plant in future.
The last two vessels for Abu Dhabi`s National Gas Shipping Co., Alhamra and Umm Al Ashtan, were to be delivered by the Kvaerner Masa yard in Finland.
NKK Corp.`s Tsu, Japan, shipyard in mid-1997 launched Aman Sendai (Fig. 2), the second LNG carrier NKK has launched that uses the membrane-tank system. The 18,800-cu m Aman Sendai was built for Asia LNG Transport Sdn. Bhd. (ALT), Malaysia.
ALT is a shipping joint venture between Japan`s Nippon Yusen KK and Malaysia`s PNSL Bhd. The first and sister vessel, the 18,800-cu m Aman Bintulu, was also built at NKK`s Tsu works and delivered to ALT in October 1993.
The Aman Sendai was to be chartered by Malaysia LNG Sdn. Bhd. (MLNG) to transport LNG from Malaysia`s Sarawak gas fields to Gas Bureau of Sendai, Miyagi Prefecture, on the Pacific Coast about 350 km north of Tokyo.
The city concluded a 20-year agreement with MLNG to purchase 150,000 tons (more than 7.3 bcf) of LNG annually from June 1997 and built an LNG receiving terminal at its port.
Sendai`s Gas Bureau is Japan`s third medium-sized regional city gas utility to supply natural gas by directly importing LNG. Japan`s three largest gas companies, in Tokyo, Osaka, and Nagoya, had already switched to LNG from LPG and naphtha.
The Aman Bintulu is the world`s first oceangoing small LNG carrier using the GTT Mark III membrane tank system. It is in regular service carrying LNG from Malaysia`s Bintulu port to the Fukuhoku terminal for Saibu Gas Co. Ltd.
In addition, NKK received a third order from ALT for another LNG carrier. The vessel, also to transport LNG for Saibu Gas, was under construction at NKK`s Tsu shipyards and expected to be completed in September 1998.
LNG Log 22 reported that the last of the five "princesses" for Petronas Marine Sdn. Bhd. was to be delivered in 1997 by Chantiers de l`Atlantique, of St. Nazaire. She is to be named Puteri Firuz.
Korea Gas Corp. had six ships on order for 1999 delivery, split among Hyundai, Samsung, Daewoo, and Hanjin. Moreover, seven additional vessels to be built by the same shipyards will follow in 2000 and later.
Western Hemisphere action
Attention in 1997 turned to developments in Canada, the U.S., and Trinidad as increasing natural-gas demand supports more LNG projects.
U.S. role leaps
Early this year, Oil & Gas Journal reported that LNG imports to the U.S. jumped in 1996 as Algerian base-load plants resumed operations following major revamps. Exports from Alaska to Japan grew by nearly 4% over 1995.
Total LNG imports to the U.S. in 1996 were 40.27 bcf, compared with 17.92 bcf in 1995.
Algeria supplied 35.32 bcf; Abu Dhabi, 4.95 bcf. About 82.3% of the imported LNG was received at Distrigas Corp.`s terminal north of Boston. The remaining LNG was received at the Pan National terminal in Lake Charles, La.
LNG imports during 1995 fell to such a low level not because of depressed U.S. demand but because of limited supply. Algeria`s state-owned oil and gas company Sonatrach was the sole supplier of LNG to the U.S. before 1996. In 1994, it started a major renovation project to restore its LNG plants to their original capacities. The project resulted in LNG-export curtailments to all customers, including Distrigas and Pan National.
As the renovations of certain facilities were completed, Sonatrach was to increase its LNG exports.
In 1996, as each LNG plant came back on stream, LNG shipments to the Distrigas terminal increased. Also, Sonatrach`s shipments to Pan National`s terminal increased during the first half of 1997.
Total value of LNG imported by the U.S. was $112.6 million in 1996 at a yearly average price of $2.80/Mcf. The 1995 average price was $2.30/Mcf.
The Distrigas terminal started receiving LNG in 1988 after being shut down in 1987.
The terminal received 33.23 bcf (13 shipments) during 1996. Eleven shipments (28.28 bcf) were received from Algeria, and two shipments (4.95 bcf) were received from Abu Dhabi. June was the only month in which no shipment of LNG was received at the terminal.
The terminal received 19.55 bcf (8 shipments) during the first half of 1997.
Pan National`s LNG terminal at Lake Charles reopened in 1989 and received one shipment of LNG from Algeria in December 1989.
The terminal received 7.04 bcf (three shipments) during 1996. It received 12.80 bcf (six shipments) during the first half of 1997.
The terminal is able to move vaporized LNG into many major natural-gas trunk lines serving customers along the middle and upper East Coast and in the central Great Lakes regions.
In recent years, the natural-gas pipeline serving the expanding gas markets in Florida was expanded in deliverable capacity. Vaporized LNG from the Lake Charles terminal was to supplement the Florida market.
Even with a 15%/year growth rate for importing LNG for the lower Atlantic market, the Lake Charles LNG receiving terminal would be utilized at 27.5% of capacity by 2002.
Producers for U.S. markets
Algerian LNG base-load plants were assumed to supply LNG through 1998 and into mid-1999, when current supply contracts expire.
Spot cargoes of LNG entered the U.S. during 1996 from sources other than Algeria for only the second time since LNG imports by the U.S. began in 1968.
About 4.95 bcf equivalent of LNG was imported from Abu Dhabi during September and November 1996, received at Distrigas`s terminal. Also, a spot purchase of LNG from Australia was received in May 1997, also at Distrigas`s terminal.
As of early 1998, the LNG base-load plant in Trinidad was moving ahead as the engineering, procurement, and construction contract was signed in mid-1996. The LNG plant was to be operational by mid-1999. The LNG will be sold in New England and Western European countries such as Portugal and Spain.
The first train of the planned LNG base-load plant in Nigeria was scheduled to be operating in 2000. Of the first train`s output, 3% is contracted to Distrigas`s U.S. Northeast operations. The remaining LNG output is slated for various West European customers.
The Phillips Petroleum Co. and Marathon Oil Co. joint-venture operation at the Port Nikiski base-load LNG plant in Cook Inlet of southern Alaska exported 67.65 bcf to Tokyo Gas Ltd. and Tokyo Electric Power Co. Inc., Yokohama, during 1996. The 1995 volume was 65.28 bcf. An expansion of the LNG facilities was performed by Bechtel during 1992-1993, making the increase in exports possible from the past average rate of 53 bcf/year.
Total LNG sales revenue to Phillips and Marathon was $246.6 million in 1996, compared with $222.9 million during 1995.
In 1996, six countries supplied LNG to Japan: Australia, Brunei, Indonesia, Malaysia, the U.A.E., and the U.S.
Indonesia was the major supplier at 40% of Japanese imports; the U.S. accounted for 2.8%.
Canadian developments
What has been called the largest LNG project in North America-a 3.5-million ton/year liquefaction complex and 300-mile pipeline-was moving ahead in 1997 for Kitimat, B.C. Phillips Petroleum Canada Ltd. will operate a $1.4 billion (Canadian) liquefaction complex and hold a 35% interest in the project.
Participants include Daewoo Corp., Seoul, 25%; Bechtel Enterprises Inc., San Francisco, 10%; and Pac-Rim LNG Inc., Calgary, 20%. Korea Gas Corp., also of Seoul, was expected to acquire the remaining 10%.
Deliveries to South Korea were to begin late in 1999.
The project, using Phillips`s Optimized Cascade process, consists of the liquefaction complex and the 24-in., 750-MMcfd pipeline connecting with Vancouver`s Westcoast Energy Inc.`s main trunk line at Summit Lake, B.C.
Also in British Columbia, a new LNG scheme was to address anticipated increases in gas demand during peak winter heating periods in the province`s southern areas.
Westcoast Energy Inc., Vancouver, B.C., proposed to build and operate a short-term LNG liquefaction, storage, and regasification complex in remote southern British Columbia, east of Sechelt.
The Westcoast complex, to be operated by Westcoast unit Westcoast Gas Services Inc., would connect with Centra Gas British Columbia Inc.`s Vancouver Island gas pipeline.
The $120 million (Canadian) complex was slated to go on line in May 2000, ahead of expected peak winter heating season demand. It includes a single LNG storage sphere with a capacity of 3 bcf-or about 8-10 days` supply of gas for peak-use periods-and would be capable of delivering a maximum 300 MMcfd of gas to respond to upward swings in demand.
Gas would be liquefied at a rate of 16 MMcfd and stored in the sphere. When needed, it would be vaporized at the complex and injected into the pipeline system.
At yearend 1997, engineering was complete, and construction had reached the midpoint on Trinidad`s Atlantic LNG plant.
Construction of the plant at Point Fortin, Trinidad, was on schedule for mid-1999 as the first LNG storage tank form had been completed by yearend (Fig. 3).
The Atlantic LNG project is a joint venture of Amoco (Trinidad) LNG BV 34%, British Gas Trinidad LNG Ltd. 26%, Repsol International Finance B.V. 20%, and Cabot Trinidad LNG Ltd. and NGC Trinidad & Tobago (Ngctt) LNG Ltd. 10% each.
The first shipments of LNG were likely during second quarter 1999. The purchasers are Cabot (60%) in the U.S. and Enagás (40%), Spain.
Bechtel International has responsibility for engineering, procurement, and construction of the 400 MMcfd single-train plant.
A 50-mile pipeline to bring natural gas to the Atlantic LNG facility was on track for completion by October 1998.
At midyear 1997, Ngctt and Amoco Trinidad Oil Co. signed two agreements, one amending the gas-supply contract between the companies and the other covering proposed land and marine pipelines.
Under the first agreement, Ngctt increased its purchase obligation. The second agreement governs establishment of a pipeline system consisting of a 40-in. marine pipeline from the East Mayaro field to Beachfield on the southeast coast of the island and a 36-in. land pipeline from Beachfield to the planned LNG plant at Point Fortin.
Amoco will build, own, and operate the new offshore pipeline. Ngctt was to make a capital contribution of $53 million (U.S.) and obtain the right to transport up to 450 MMscfd of gas through the pipeline from offshore fields to an onshore delivery point at Beachfield. There it will join the company`s pipeline network.
The remainder of the pipeline`s capacity will be available to provide feed gas to Atlantic LNG Co. of Trinidad & Tobago. Line capacity will be nearly 1.3 bcfd; construction was expected to be completed by September-October 1998.
A new onshore pipeline was to be built by Amoco but owned by Ngctt. It will be leased at a nominal fee to Amoco, which will be responsible for its operation and maintenance. This pipeline`s capacity, 825 MMcfd, will be dedicated to supply more gas to Atlantic LNG; construction was to be complete by October 1998.
Completion of these facilities in conjunction with existing capacity will, by 2000, make Trinidad & Tobago the world`s largest exporter of methanol and ammonia.
Trinidad`s natural-gas reserves in 1997 were estimated at 21.78 tcf.
Gas for the first train of the Atlantic LNG project will be supplied by Amoco, which with British Gas has an interest in supplying gas to an expansion. A second train was under consideration.
In late 1997, British Gas (Trinidad & Tobago) Ltd. announced that a consortium shared with Agip of Italy and Germany`s Deminex had discovered significant natural-gas reserves off the north coast of Trinidad.
World focus
As Fig. 4 shows, most of the world`s LNG attention has for some time been on developments in the Middle East and Asia. By far most of the world`s LNG moves within and to Asia.
Middle East
Oman in 1997 marked progress in its LNG-export project based on gas reserves under development in the central region. LNG production will start in first quarter 2000 from a plant at Qalhat, 125 miles southeast of Muscat and just south of Sur.
The liquefaction plant will have dry-gas-inlet capacity of 34 million cu m/day and LNG capacity of 6.6 million tons/year from two trains of equal size producing into two storage units of combined capacity of 120,000 cu m. The liquefaction plant will use a propane-precooled mixed-refrigerant process.
Gas will come from 60-70 wells in Saih Rawl, Saih Nihayda, and Barik fields, gathered at Barik. First phase development involved 31 wells.
A new gas-processing complex at Saih Rawl will use low-temperature separation to extract as much as 25,000 cu m/day of condensate and 110 tons/day of LPG fractionated on site. Dry-gas outlet capacity will be 40 million cu m/day.
A new 45-km, 16-in. pipeline will carry liquids to a connection with Oman`s main oil pipeline at Qarn Alam.
Dry gas from Saih Rawl will flow through a 356-km, 48-in. pipeline to the liquefaction plant. The line will have no compression stations at first, although plans include a provision for future installation of a station at the pipeline`s midpoint.
Oman`s Ministry of Petroleum & Minerals estimated project cost at $4 billion, divided equally between the upstream and downstream parts.
Oman LNG LLC, a joint venture of the government (51%) and private shareholders led by Royal Dutch/Shell Group with a 30% share, is building and will operate the liquefaction plant, raise financing, and handle transportation and sale of LNG. Downstream financing is to be 80% commercial bank loans and 20% equity.
Petroleum Development Oman, owned 60% by the government and including a 34% interest of Shell, will build and operate the upstream production facilities on behalf of the government. PDO`s private shareholders are financing the upstream investment.
South Korea Gas Corp. signed a 25 year fob contract to buy 2 million tons of LNG in 2000 and 4.1 million tons/year from 2001.
Indian plans
India took a major step in 1997 toward making up an anticipated shortfall in electric-power capacity by launching an initiative to use LNG as fuel for future power- generation projects.
Official estimates of future electric-power demand for the country placed its installation power-capacity needs at nearly 57,000 Mw. But the Ministry of Power estimated only 34,000 Mw was possible-leaving a gap of 23,000 Mw.
Officials in 1997 approved formation of a joint-venture company to import and create infrastructure for LNG projects throughout India.
The JV consists of Indian Oil Corp. Ltd. (IOC), Oil & Natural Gas Corp. (ONGC), Bharat Petroleum Corp. Ltd. (BPCL), and Gas Authority of India Ltd. (GAIL).
With authorized capital of about $480 million, the JV will seek to advance LNG projects and pursue a partner with upstream project interests. The JV will have an equity position of 50%, and the balance of the equity will be offered to private parties, either Indian or foreign.
Numerous Indian and foreign concerns had plans or had shown interest in advancing LNG projects in India.
The Tamil Nadu government was establishing 10 power plants that would be based on imported LNG, and an Enron Corp. unit was building a combined-cycle power complex in Gujarat state that would rely on LNG.
But other companies, including Indian firms, had shown interest in or planned LNG projects at some point.
Total SA and Hindustan Petroleum Corp. Ltd. (HPCL) had invested more than $1 billion in setting up LNG terminals in India.
An initial capacity of 2.5 million tons/year was slated for Andhra Pradesh, with an ultimate objective of 6-7 million tons/year.
Seventeen foreign concerns, including Enron, Mobil Corp., BG, and Royal Dutch/Shell Group, had submitted bids to join in projects with the Indian companies throughout the country.
The Indian group planned to build two LNG terminals with a capacity of 2.5 million tons/year each. One will be built at Ennore in Tamil state, the other at Mangalore in Karnataka state.
Amoco Corp. was planning a 5-million ton/year terminal at Hazira, Gujarat state. The complex will handle importing, liquefaction, regasification, and supply.
Shell, through its Shell India Pte. Ltd. unit, identified a future power project in Tamil Nadu that would use LNG.
BG in 1997 was studying LNG importation, liquefaction, and supply and said it planned an investment of $1 billion in the Indian group projects.
More Australian developments
In northern Australia, a 7.5 million ton/year LNG-export project could be built near Darwin under a scheme proposed in 1997 by Woodside Petroleum Ltd., Perth, and Shell Development (Australia) Pty. Ltd.
The companies agreed to study feasibility of a two-train LNG export plant and a domestic gas-supply project, for first LNG delivery in 2005. LNG sales will be targeted at Asian markets.
Shell said the partners have gas reserves estimated at more than 5 tcf in the Sunrise, Troubadour, Loxton Shoals, and Evan Shoal offshore discoveries.
Woodside and Shell also intend to discuss with third parties development of other discoveries in the vicinity.
In addition to this proposal and possible expansion of the existing North West Shelf LNG export project, Australian operators were considering plans for adding to the country`s LNG export capacity.
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The LNG carrier Aman Sendai was launched in 1997 for service between Malaysia and the Japanese city of Sendai (Fig. 2).
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The dome for Tank No. 1 of Atlantic LNG`s Trinidad project was installed late in 1997 as the project moved toward start up in 1999 (Fig. 3)
