Arkiv 2003
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Press Release 18.12.2003
Co-operating on seaborne transportation of CNG 18.12.2003
Knutsen PNG vessel (3 MMSm3)
Haugaland Gass, Knutsen OAS Shipping and Norske Shell have signed a letter of intent for a joint project for seaborne transportation of Compressed
Natural Gas (CNG). The partners are presenting specific plans for a flexible yet cost-effective transportation system. Purpose-built gas tankers will carry large quantities of natural gas to customers along the coast.
The three companies share a common vision and strategy to establish an effective transport system for CNG. The partners have already conducted an initial study showing that CNG can offer a flexible and competitive alternative for the transportation of natural gas. The parties are currently entering into a more committing phase of cooperation to analyse the commercial assumptions that need to be in place before setting up this transport chain. The final decision on implementation is due in mid-2004.
Establishment of the transport chain requires long-term delivery contracts, and talks with the primary customers are already in progress.
Strong partners
Haugaland Gass, owned by Haugaland Kraft (51%), a power utility, and Tysvær Kommune (49%), a municipal district, is planning to set up a CNG compression and shipment terminal at the Haugaland Industry Park in the municipal district. The natural gas will be diverted via a branch from the existing Statpipe pipeline network at the Kårstø land terminal.
Knutsen OAS Shipping has developed a concept for shipborne transportation of pressurised natural gas called Knutsen PNG. This concept combines advanced gas pipeline technology with the shipowner's long experience operating tankers and optimising ship operation. Knutsen PNG has already received approval as a concept by Det norske Veritas (DnV).
Norske Shell has signed contracts for sale of natural gas with a number of local distribution companies and is the largest supplier of natural gas in Norway with a market share of between 70-80 per cent. This partnership will mean that Shell can now offer natural gas to customers in areas which did not previously have access to this energy.
Technology development
In the long term, the partners also see opportunities to apply CNG technology to unprocessed gas directly from offshore fields. In that way it will be feasible to develop small fields which cannot economically justify their own pipeline system. The technology will potentially add to the value creation and field development of the Norwegian continental shelf.
The partners believe they have found a competitive, scalable, and flexible solution for reliable delivery of natural gas for distribution to Eastern Norway in particular, but in fact anywhere along the coast. Deliveries of natural gas to major industrial areas on the Norwegian Eastern coast may stimulate to improved energy efficiencies, give new impetus to industry, and promote value creation. Natural gas can be used both as a feedstock and a resource in the industry, as well as an energy.
Knutsen PNG vessel (30 MMSm3)
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The Pioneer Knutsen comes off the yard 15.12.2003
- Admittedly the Pioneer Knutsen is a relatively small ship, Project Manager Harald Aarseth concedes. With her 59m length, a 11.8 m width and a depth reaching draft of only 3.3m below the surface of the sea, she is probably one of the world's smallest LNG ships. Compared with the Bilbao Knutsen and NB 103, the two other LNG ships to be delivered to the shipping company in 2004, she is a miniature. - However, even though the ship is tiny, it is packed full of complicated high technology concepts and select choice of material. That is also some of the reason why the yard needed some extra time to complete the project, Aarseth says.
The tanks are in stainless steel, and are isolated in order to transport the liquefied natural gas, which has a temperature of minus 163 degrees Centigrades.
- With a full load, we estimate that around half a percent of the gas will evaporate on a daily basis. The gas is recovered and used for the propulsion of two gas engines. This is adequate to operate the ship, and absolutely nothing of the gas will be emitted into the air, Aarseth ensures us. The Pioneer Knutsen also has a diesel-electric propulsion system which is used when the ship has no cargo.
The Pioneer Knutsen goes straight to start on the contract with company Naturgass Vest. She will carry natural gas from the new LNG facility at Kollsnes, Øygarden outside Bergen to users in Hordaland and along the coast northwards.
- The point of delivery situated farthest away is Hydro Aluminium's facility at Sunndalsøra. The ship will also be delivering natural gas to Søral, Husnes, and to fish fodder factory EWOS, Florø.
The Pioneer Knutsen will have a double crew of six, who will work onboard one month each at the time.
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Newbuilding 604 dedicated to the Siri-field 12.12.2003
The new shuttle tanker will go straight into a contract with Danish state oil company DONG . Under this contract it will carry crude from the Siri field in the Danish sector of the North Sea, Technical Director Hans Tveitaskog tells us. It is not the first time that Knutsen is operating on this field, he says.
– During installation of the offloading system, the Tove Knutsen took part in the testing of the facility, Tveitaskog says.
The offloading system that is used resembles the one used on the Hanze field where the Betty Knutsen operates, and is a so-called SAL-system (Single Anchor Loading).
Production from the Siri field started in March 1999. DONG is operator of the field. The company is also a licensee with a 50 percent ownership. Other licensees are PALADIN with 30 percent and DENERCO OIL with a 20 percent ownership interest.
Knutsen will operate newbuilding number 604 and it will presumably have a manning similar to the Betty.
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ISPS onboard all ships 11.12.2003
Actually, the plan was for the ISPS (International Ship and Port facility Security Code) to be introduced as of 2006. However, the September 11th events made IMO elect to accelerate the process. ISPS is a plan for emergency preparedness onboard in conjunction with acts of sabotage and terrorism. Put briefly, it is a set of rules and procedures to be complied with onboard
"The flag state is in charge of administering the ISPS code. In Norway (NOR and NIS), this has been delegated to the classification societies, in our case mainly DNV, mr. Hanøy says. The process leading up to a certificate is, as usual, fairly long-winded.
CERTIFICATE
Once the ship-owner, perhaps in cooperation with a consultancy firm has organized a review onboard, an Assessment report is prepared, as well as a plan for introduction of physical corrections and procedures onboard. The report and the plan are submitted to the classification society for approval,? mr. Hanøy says.
Once the plan has been approved, the task of completing the physical work and implementing the procedures is initiated. Following an internal audit, the classification society arrives onboard for an inspection and then gives its final approval, as well as the certificate
"It is not always necessary to introduce large modifications and changes onboard. It is mostly question of different requirements for locks on doors and installations intended to prevent outsiders from getting onboard unseen. What is mostly concerned is procedures and rules onboard related to guard-keeping, inspection and emergency preparedness,? the QA manager adds.
Once the code has been implemented, there is to be a separate Ship Security Officer (SSO) onboard, and the intention is for the second officer/mate to gradually assume this role.
LEVELS
The ISPS operates with three different preparedness levels onboard. Level 1 indicates there are no particular, imminent threats and life goes on as normal onboard. Knutsen ships sailing peaceful waters and which are not exposed to special threats, are mostly at Level 1.
Level 2 means tightened emergency preparedness onboard. Doors are to be locked and the entire superstructure shall be closed off to prevent outsiders from having a possibility to get in. Guards are patrolling the ship and special measures such as additional lighting or deployment of fire hoses on deck, are introduced.
Level 3 is a near state of war and the ship is constantly exposed to serious threat(s), for example from a terrorist organization.
"Currently, the IMO does not define a permanent level 3 state to exist anywhere in the world. Level 2 is encountered in several different places, how-ever, including the Strait of Malacca, West Africa, Bangladesh and the South China Sea. These waters are also sailed by Knutsen ships now and again, mr. Hanøy says.
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New LNG tankers with long-term contracts 11.12.2003
The two large LNG tankers to be delivered in the new year are built almost in parallel at the Spanish yards. Building number 321 has been named the Bilbao Knutsen and is being built at Astillero Sestao. NB 103 is being built at Astillero Puerto Real and has still to receive an official name.
The two sister ships are part of a series of five LNG tankers being built by the Spanish IZAR group. The design is based on well-known technological concepts. Co-operation with the yards has been excellent, Project Manager Johannes Brynjulvsen tells us.
ADVANCED
Even though the technology is well known, we are dealing with extremely advanced vessels. State of the art surveillance, a high element of stainless steel in the tank systems and structure, and a complicated tank design make the building time longer than what is the case for ordinary tankers. Naturally, the price of the newbuildings reflects this fact.
- The selected design entails a tank construction based on membrane technology. The ships are built to have a long operating life, i.e. a 40-year fatigue life. Thanks to the design and choice of materials these ships will have an extremely long operating life, Brynjulvsen says.
LONG-TERM CONTRACTS
Naturally, the long operating life and advance design come at a cost. However, both ships are built against long-term charter parties. The shipping company has signed a 20-year contract, plus options, with REPSOL for the Bilbao Knutsen. The ship will operate the waters between Trinidad and Spain, but initially it will go between Trinidad and the US.
NB 103 will operate on a charter party with a 25-year duration, plus options for UNION FENOSA. The ship will mainly sail in the Mediterranean, shuttling between Egypt and Spain.
- These are comparatively large ships, with a 284m length and 42.5m width. Draft is approx.
12m and loading capacity approx 138,000 cubic meter, Brynjulvsen says.
The ships will use evaporated gas from the cargo as source of energy for two steam turbines. Emissions to the atmosphere will therefore be reduced to almost zero. Spanish law dictates that the ships initially will have Spanish officers. The crew will be Philipinos. The ships will carry Spanish flag, and will in terms of crewing be operated by Biscay Ship Management in Bilbao. Technical management and operations will be handled by Knutsen?s main office in Haugesund.
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