Norway: I.M. Skaugen Sees LNG Future

I.M. Skaugen said yesterday it is beginning to transform itself into being more of a LNG infrastructure company.

“With significant investments in, and efforts to develop, technology and design as well as in Business development, this will require us to concern ourselves with virtually every aspect of the LNG value chain, from transportation on sea and land to the design of port terminal facilities. The future belongs to LNG not only because it offers environmental advantages as carbon dioxide emissions are lower than piped natural gas emissions but also based on a number of sound business reasons“, the company said in a statement.

I.M.Skaugen plans to become an integral participant in the LNG or gas infrastructure industry.

“The project we have in Bahrain (BLNG) is our “proof of concept“, the company said.

I.M.Skaugen said that the company has been informed this year that two bidders out of 9 in the tender process have been chosen for final rounds of negotiations to build the shore based LNG terminal needed and it aims to prevail in this competition.

The company is offering to provide constructions and logistics for this project, however, not being a gas supplier as a part of the tender.

This project with terminal will be owned and financed by a special purpose company in Bahrain with Skaugen Gulf Petchem Company partners involved.

The terminal will have a long-term contract with the government if initiated. The ships needed are similar to the vessels in the Norgas fleet.

“This LNG strategy sometimes puts us into head-to-head competition with International Energy and Oil Companies. IM Skaugen must be more nimble and innovative than those companies – at lower cost and with far greater efficiency.   We will offer better, more personalized, services and at a lower price.”, the company said.

In November, one of the company’s Multigas vessels was officially named “Bahrain Vision” by HRH Prince Khalifa bin Salman Al-Khalifa, the Prime Minister of Bahrain. This vessel offers a simple, safe and flexible small-scale LNG transport solution.

Fitted with onboard re-liquefaction facilities, the vessel eliminates the loss of energy associated with the “boil off” gases, a maritime landmark in the transportation of LNG in the GCC region.

The ship itself is a combination of Norwegian technology and Asian workmanship; being built in China, operated by a Singaporean based company that is carrying products from the GCC region, for its clients and to clients in Asia which will be operated from Bahrain.

[mappress]

LNG World News Staff, January 17, 2012; Image: Bahrain LNG