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Leif Höegh & Co pursues new concepts of marine gas transportation

Leif Höegh & Co, Statoil and Teekay Shipping, have joined forces to commercialise new technology and develop projects for marine transportation of compressed natural gas (CNG).

Leif Höegh & Co, Statoil and Teekay Shipping, have joined forces to commercialise new technology and develop projects for marine transportation of compressed natural gas (CNG). The new technology has been developed together with DNV Research (Det Norske Veritas) in a joint industry project that started in 2002.

A newly established company - Compressed Energy Technology AS (CETech), equally owned by the three partners, is responsible for promoting the technology. Applications for several patents have been filed.(See separate story)

"- Leif Höegh & Co has decided to pursue the development and commercialisation of new concepts within LNG and natural gas sea-borne transportation and the participation in CETech is a natural consequence of this decision" says Stephan Tschudi-Madsen, President of Höegh LNG, in a comment to the establishment of the company.

Höegh LNG, the LNG (Liquefied Natural Gas) division of Leif Höegh & Co with more than 30 years experience in LNG transportation has established a new section called "Floating Midstream Solutions" (FMS) responsible for developing and pursuing contracts for new marine transportation and terminal concepts for natural gas.

FMS' project development includes LNG solutions in addition to CNG, such as a Floating Storage and Regasification Unit (FSRU) and Höegh LNG's proprietary system, the "LNG Shuttle and Regasification Vessel" (SRVTM). "- The SRV is in reality a modified LNG tanker. These solutions eliminate the need for land-based receiving and port facilities. The vessel's cargo of LNG is vaporised offshore and sent to shore as natural gas via a subsea pipeline. The LNG vaporisation unit has been developed in Norway by HamworthyKSE. The SRV will hook up to a mooring and unloading buoy, discharge its cargo, then go back to pick up a new cargo. A two-buoy system will ensure continuous delivery of natural gas. The buoy system is similar to those used in the North Sea by oil shuttle tankers and has been developed by Advanced Production Loading - APL - in Arendal, Norway. The buoy system can also be used for the FSRU and CNG solutions, giving the "terminal" a unique flexibility as a receiving facility" explains Senior Vice President, Øystein Bruno Larsen who is responsible for the FMS team.
Höegh LNG has since early 2001 focused on developing and promoting floating terminals. It is increasingly difficult for environmental, safety and security reasons to find suitable locations and obtain permissions to build new traditional onshore receiving terminals. New offshore, fixed or floating, receiving systems are therefore under development. "- It is therefore reasonable to assume that a sizeable world-wide potential for such concepts is therefore emerging" says Øystein Bruno Larsen

Leif Höegh & Co's main activities are transportation of LNG and transportation of vehicles and rolling cargo through HUAL. HUAL is among the top five global car operators with a fleet of about 50 Ro/Ro vessels in operation and 9 new vessels on order. The LNG fleet consists of 4 vessels. Next year the company will take delivery of the first of two LNG newbuildings for the Snøhvit LNG project together with partners Statoil and Mitsui OSK Lines.