Sempra Energy and Shell Propose to Develop Mexican LNG Receiving Terminal
Shell International Gas Limited (Shell) and Sempra Energy LNG Corp., an affiliate of Sempra Energy, (NYSE:SRE), today announced their intention to form a 50/50 joint venture to build, own and operate a $600 million liquefied natural gas (LNG) receiving terminal in Baja California, Mexico. The terminal is to be located in Costa Azul on the west coast of Mexico, approximately 14 miles north of Ensenada and will be capable of supplying 1 billion cubic feet (Bcf) of natural gas per day. Shell and Sempra Energy LNG Corp. will share the investment costs of the terminal equally and each will take 50 percent of the capacity in the terminal. Approximately 500 million cubic feet per day of natural gas from the terminal will be used to meet the growing energy demands in western Mexico.
Thor-Lube Bearing Receives Orders
Thordon Bearings Inc. of Canada recently received orders for environmentally friendly Thor-Lube sealed stern tube bearing systems for three LNG carrier newbuild projects in Korea and Japan. Daewoo Shipbuilding & Marine Engineering Co. Ltd ordered systems for two ships, one for Shell International Gas Limited and the second for the Australian LNG Ship Operating Co. (ALSOC). Mitsubishi Heavy Industries (MHI) of Japan ordered the third system for a second Shell newbuild. All three vessels are due to be delivered in 2004.
Shell Orders Two LNG Tankers
The gas and power division of Royal Dutch/Shell ordered two additional liquefied natural gas (LNG) carriers to support its growing global LNG business. Shell International Gas Limited ordered a membrane-type carrier from South Korea's Daewoo Shipbuilding & Marine Engineering and a moss spherical tank carrier from Japan's Mitsubishi Heavy Industries. Shell did not disclose the price for the orders, but industry sources said the market level for a typical LNG carrier was around $175 million. The two new vessels have been secured against the background of a growing portfolio of Shell LNG projects around the world which require shipping capacity and will help supply growing demand for LNG.
Frozen Gas Market Heats Up
While seemingly miniscule in terms of deadweight tons ordered and delivered per year as compared to the shipbuilding business as a whole, the production of gas tankers, LNG and LPG, are high-value, high prestige orders that are likely to rise significantly in the coming years. Consistently high oil prices have effectively forced the production and processing of gas, and the current trend is towards increased usage of this valuable commodity. Late last month, the gas and power division of Royal Dutch/Shell ordered two additional liquefied natural gas (LNG) carriers to support its growing global LNG business. Shell International Gas Limitedā¦
