Project Rivals Keep Their Cards Close to Their Chest

LITTLE confirmed news is emerging on potential marine CNG schemes largely because the ultra-competitive technology proponents are loath to discuss commercially sensitive deals that could give rivals an edge.

Jamaica's authorities and parties to the Egypt-Crete schemes have gone public, while Vietnam's authorities are known to be in talks with TransCNG International, a joint venture of New York-based Overseas Shipbuilding Group and Trans-Canada Pipelines in Calgary about using associated gas from the indigenous Dai Hung field.

However, other schemes could emerge in the coming months and years, particularly when the world's first marine concept is sanctioned.

Industry sources said Polish integrated player PGNiG is in early talks with Norway about marine CNG supplies to three of its key coastal cities, including Gdansk and Gdynia. Another potential project being eyed could take CNG to South Korea from Vladivostok, the terminusof a pipeline taking gas from Sakhalin Island.

This solution, said sources, would negate the need for a gas pipeline crossing the pariah state of North Korea. Gazprom is also interested in the concept to meet part of its domestic demand

In the Americas, Chilean authorities are in preliminary talks to take gas in the form of marine CNG from Peru.

Santiago-based utility Gas-Atacama, said sources, is in talks about buying gas from a stranded onshore field owned by an overseas company.

CNG could be used as an alternative to LNG, which will soon start being imported via the Mejillones terminal by a joint venture of GdFSuez and Chilean mining company Codelco, according to Upstream's sister publication LNGUnlimited.