Sea NG Bullish on Outlook for More Efficient Vessels

Enbridge takes strategic stake at compressed gas developer

Compressed natural gas (CNG) developer Sea NG is hoping to advance newbuilding plans within the next few months after a new strategic partner joined the team.

Chief executive Barrie Wright said several shipyards in South Korea and Japan have been pre-qualified to work on proposals for its new breed of vessel.

At least two of Korea’s big three, Daewoo Shipbuilding & Marine Engineering and Hyundai Heavy Industries, are believed to be among their number.

Wright said that changes in Sea NG’s vessel design have boosted its gas carrying capacity and cut the anticipated cost by around 20%.

This has been achieved by integrating the company’s patented coiled Coselles, in which the gas is carried, into the frames of the hull, he explained.

The pounds per square inch at which the gas is carried has also been increased from 3200 to 4000. As a result, each Coselle can now carry around 23% more gas.

Wright said Sea NG is currently working on at least half a dozen potential projects, each of which has differing shipping requirements ranging from two to seven vessels.

He admitted, however, that its work for Egyptian-Greek joint venture Medcarrier on shipping gas to the Mediterranean island of Crete is “right at the front of the pack”.

Medcarrier, a joint venture between Egyptian Natural Gas Holding Corporation, Arabia Gaz of Egypt and Copelouzos Group of Greece, previously selected the company to conduct a feasibility study into the project.

On Wednesday, Calgary-based Sea NG said Canadian oil and gas pipeline and infrastructure specialist Enbridge has joined with Japanese trader Marubeni Corporation and shipowner Teekay Corporation in its alliance to deliver CNG projects. Enbridge has also taken a strategic stake in Sea NG.

Wright said: “CNG has never been so interesting to the producing world as it is right now.” He said he believes interest has been stoked by companies trying to monetise their gas resources in an environment where LNG projects may appear more expensive.

CNG has been talked up as a concept for more than 10 years and despite some close shaves with projects newbuildings have yet to be confirmed.