2008 Yearbook
able to compete with Asia importers on price, more so during the crisis in Japan when nuclear power plants were shut down. In March and April in 2007 there were successive monthly records of growth, but unfortunately this has not been repeated and LNG terminals in the U.S. have gone quiet again in 2008. Another contributing factor in determining import cargoes in the US is pipeline domestic natural gas prices, which is a deregulated market. As most of the U.S. LNG imports are spot- or short-term cargoes, the deciding factor in securing an LNG cargo by seaborne to the U.S. markets against pipeline supply is how competitively priced the seaborne cargo is against pipeline. The Gulf Gateway, the first offshore LNG terminal in the Gulf of Mexico, was commissioned in 2005. This terminal is based on subsea pipeline and submerged turret loading (STL) buoy technology, by which gas is sent ashore to the gas distribution network directly. LNG ships with onboard regasification plants are used to serve this terminal. The push towards offshore gas floaters are mainly driven by local environmental issues and strong opposition to the "not-in-my-backyard" (NIMBY) stand. Offshore floaters also make financial sense, as they cost less and construction time is shorter. This has generated a lot more interest these days, and it is expected that many more investors will look into this alternative to a traditional onshore terminal. Another new development emerged recently with Petrobras awarding a 10year term agreement to Golar LNG to convert two of their LNG ships to floating, storage, regasification units (FSRU). These ships are now being converted in Singapore. Of the 383 LNG ships in operation and on order, 124 of these are being classed by Lloyd's Register, which equates to a 32% market share. However, the breadth of a classification society's LNG knowledge cannot be judged purely on the numbers of ships it has classed. There is no substitute for experience, whether that applies to innovation, risk-based services or relationships with the LNG sector's key players. Transporting LNG by sea requires dedicated engineering techniques and contingency measures to minimize the risk inherent in the carrying of this hazardous cargo. Building and maintaining a liquefied gas ship to the classification requirements of Lloyd's Register allows our clients to place a high level of confidence in the safety of their ships and cargo and gives owners the assurance that every practical step has been taken to protect the operator and the environment.
About the Author
Stephen Chan, Global Business Manager - Gas Ships, Lloyd's Register Americas, Inc.
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