Sea NG Gets Cracking on CNG Carriers

Yards have been prequalified to work on the company’s rejigged design.

By Lucy Hine

Compressed natural gas (CNG) developer Sea NG hopes to advance newbuilding plans within the next few months as a new strategic partner joins its team.

Sea NG chief executive Barrie Wright says a number of shipyards in South Korea and Japan have been prequalified to work on proposals for its new breed of vessel. At least two of Korea’s big three yards – Daewoo Shipbuilding & Marine Engineering Co. and Hyundai Heavy Industries – are believed to be among them.

Wright adds that changes in Sea NG’s design have boosted their gas-carrying capacity and cut the anticipated cost of each ship by around 20%. He explains that this has been achieved by integrating the company’s patented coiled Coselles, in which the gas is carried into the frames of the hull, and increasing the pressure at which the gas is carried from 3,200 pounds per square inch (psi) to 4,000 psi. As a result, each Coselle can now carry around 23% more gas.

Wright says Sea NG is currently working on at least half-a-dozen potential projects, each of which have different shipping requirements ranging from two to seven vessels. But he admits 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 partnership between Egyptian Natural Gas Holding Corp., Arabia Gaz of Egypt and Copelouzos Group of Greece, previously selected Sea NG to conduct a feasibility study for the project.

Meanwhile, Calgary-based Sea NG announced this week that Canadian oil and gas pipeline and infrastructure specialist Enbridge Inc had joined up with Marubeni Corp and Teekay Corp in its alliance to deliver CNG projects. Enbridge also becomes a strategic investor in Sea NG.

Wright said: “CNG has never been so interesting to the producing world as it is right now.” He believes the new interest in the business has been prompted by companies trying to monetize their gas resources in an environment where competing LNG projects may appear more expensive. CNG has been talked up as a concept for over 10 years but despite some enthusiastic developers and some close shaves – in 2008 CNG secure three newbuilding slots in South Korea and planned to finalize orders by the end of that year – newbuildings have yet to be confirmed.

Another project involving Trans Canada and shipping partner Overseas Shipholding Group (OSG), as well as Columbian gas supplier Pacific Rubiales Energy, is also rumoured to be close to signing off on its first CNG project.