Arkiv 2005

 

Full speed in Sestao 12.08.2005


When the M/T Tove Knutsen was delivered from the Sestao yard in Bilbao in December 1989, hardly anyone involved could have foreseen how extensive the co-operative relationship between Knutsen OAS Shipping and the Spanish yard would turn out to be.
True enough, work on the sister ship M/TDicto Knutsen had already at that point proceeded quite far. It was towed down the river from the yard to the Bay of Biscay and handed over about half a year later or so. These days the yard is starting on the construction of its building number 331, and it is the twelfth ship that the yard is building for Knutsen. It is the sister ship of LNG tanker Bilbao Knutsen which was handed over in January last year. Building number 331 is scheduled for delivery in December 2007.

With the exception of the Dicto Knutsen and M/T Marie Knutsen, both of which have been sold, all ships are still sailing for Knutsen OAS Shipping. The Sestao vessels thereby constitute nearly a third of the company’s fleet. What is more, the ship owner has also built 12 ships in other locations in Spain. It is therefore safe to say that bonds are strong between the Haugesund based shipping company and the Spanish shipbuilding industry.

Smooth working relations

- The customer relationship has lasted for many years, and we are naturally familiar with the people who work there. However, the yard is now in the middle of a restructuring phase, where a number of well known faces are disappearing from the yard, if they have not already disappeared. This will demand that new relations be built up. Working relations are businesslike but pleasant, and we have a constructive dialogue, Johannes Brynjulvsen says.
- In this phase, the approval of drawings and suppliers and such matters take up a lot of our time. The yard has begun to cut steel for the ship, and some of the structural blocks will soon be ready for inspection. Generally summer is a quiet time, but we expect activity to pick up in the autumn. And toward the end of the year it will definitely be full speed ahead, Brynjulvsen says.


Advanced vessel

- A LNG tanker is a very advanced vessel, and therefore it has a long building time. According to plans building number 331 is not to be handed over until late 2007. This means it’s still another two and a half years until it will carry gas for its customer, Spanish energy company Gas Natural.
- What is it that makes a LNG vessel more complicated to build than other ships?
- It’s primarily the cargo that these ships will carry that makes the building more complicated. The cargo is methane gas cooled to minus 163 degrees Centigrade. This means that the cargo tanks must be isolated in order for the cargo to remain cool during transportation to the terminal. Methane gas boils at this temperature, and then produces steam in the same way as a pan with water produces steam. Additionally, special metal alloys area applied which tolerate the low temperatures.
Moreover, the evaporated gas is used to operate the ship. The gas evaporating from the cargo is burnt in boilers, and produces water vapour for the turbines that propel the ship forward, Brynjulvsen explains.

Entering the Canadian sector 10.08.2005


The hand-over of the two new shuttle tankers, the Heather Knutsen and Jasmine Knutsen in South Korea marked the passing of a new and significant milestone for Knutsen OAS Shipping, i.e. the company’s entry into the Canadian sector.

The two oil tankers will be engaged in a different trade for some months before they can pick up their first oil cargoes on the White Rose field off Newfoundland. The Knutsen tankers will be operating in rough ocean areas where Norwegians have been sailing for over 1000 years.
Similar to the Norwegian Continental shelf the Canadian shelf holds large reserves of gas that have not been fully exploited. Increasing demands for gas on the Atlantic side of the US and Canada have led to more focus on the gas potential that the provinces offshore Newfoundland and Labrador offer.

 

Fishing and hunting
For the past two hundred years Norwegian hunters have hunted for whale and seal in the waters east of Canada. The abundance of cod off Newfoundland also tempted Norwegian fishermen to leave home.
The exploration for oil and gas off the American east coast opened up new possibilities for Norway. To develop the huge Hibernia field, Norwegian concrete technology was selected to build a platform that could withstand a collision with an iceberg. The platform was towed out to the field where oil production started in 1997. Hibernia is located 50 km from White Rose, and produces 120,000 barrels of oil a day.

First oil, then gas
The recoverable oil reserves on White Rose are estimated at between 200 and 250 million barrels. After the field has become on-stream, which expectedly will be at the turn of this year,  shuttle tankers Heather Knutsen and Jasmine Knutsen will fetch the oil from a large production vessel permanently stationed on the field. In addition to the oil, White Rose holds approximately 2300 billion cubic feet of gas.

Husky Energy, the operator on White Rose, has set a goal to start production of gas within 10 years, and has made a study showing that both sub sea gas pipes to shore, and facilities for sending CNG by ships from the field are relevant development options.
CNG transported by ships directly from White Rose to the areas where the customers are found, will have to use new technology to be viable. The assessment of whether the White Rose gas is to be sent through a pipeline to shipping facilities on land, or shipped as CNG directly to the users, includes a number of factors that may make CNG vessels more attractive than a pipeline.

New technology
The CNG-technology is familiar from being used in cars and buses on land, but it is a new concept within transport of natural gas at sea. Knutsen OAS Shipping is among the companies that have developed technology for CNG transport at sea through its PNG solution.
A large boost in the demand for natural gas on the eastern coast of the US, combined with a decline in the US’ own gas reserves, has really brought momentum back into the natural gas debate in Canada.
The country needs solutions that can bring the huge gas reserves outside Newfoundland and Labrador to the markets. The great gas reserves on the Canadian shelf, coupled with the hunger for natural gas in the eastern states of the US, may lead to the final breakthrough for CNG. And as in the past, Norway may come to play a leading role when the resources outside Newfoundland are to be refined.

Maritim industry on Haugalandet 10.08.2005


- “The maritime cluster” has become an institution when we’re talking of the companies within shipping, manufacturing industry and other suppliers who directly or indirectly have shipping as their basis of existence.
Maritime Forum for Haugalandet and Sunnhordland is an umbrella organization for these companies. According to the annual surveys that we have compiled on these companies, they have a total turnover of around 16 billion NOK, General Manager Sverre Meling jr. says.
As spokesman for the industry in the region, Meling and his forum are fronting strategic issues such as relocation of the Maritime Directorate from Oslo til Haugesund, the struggle to get the Norwegian Coast Directorate to the town, and the issue relating to maritime education at Haugesund.
The fact that the member companies carry a certain weight in terms of turnover and number of heads definitely gives the organization a certain clout and helps it to win through with its points of view.


- The numbers for 2004 show that total turnover last year amounted to 16.68 billion NOK. This is an increase of 1.18 billion NOK from the year before. The ship owner industry alone stood for 6.18 billion of these earnings. Their increase was 1.1 billion NOK from the previous year, according to Meling jr.
In other words; the ship owners have stood for most of the growth in turnover within the maritime cluster, while there is stagnation within the contractor and the ship building industries.
Total number of employees within the industries in the region was 11.144, which is a small progress from 2003. However, the numbers conceal a strong growth in employees within the shipping companies, while the number of workplaces within the contractor industry has fallen sharply.
- As the mouthpiece for the district in the issue relating to relocation of the Maritime Directorate to Haugesund, we felt that we have a chance of winning through because of this region’s strength when it comes to maritime activities. The Maritime Directorate in Oslo has a staff of 225. However, in recent months we have seen a tremendous flagging-out from Norway in general. Until now, our region has not been as hard hit as others, since a large portion of our ships is part of the offshore fleet engaged in North Sea activities. For the supply fleet and shuttle tankers we have managed to ensure a continuation of the net wage arrangement. But in a situation when total activity is declining we cannot expect the Maritime Directorate to have the same need for personnel in future, Meling says.
The Maritime Directorate is not the only localization battle that the district has been involved in on the maritime arena.
As it turned out, Ålesund drew the longest straw in the battle for the Coast Directorate, but one of 5 Norwegian regional offices was located to Haugesund.
Probably, this will turn out to be a strong hand as Haugesund now launches its candidacy for one of the five European safety centres, where fierce competition is expected.
The European Maritime Safety Agency (EMSA) will divide Europe into five safety zones where vessel traffic will be monitored by a safety centre. The idea is that all ships in European waters will be monitored around the clock on a computer screen, in the same way as air traffic is monitored.
- For Maritime Forum for Haugalandet and Sunnhordland this represents a challenge. We believe that Haugesund should be well placed to get such a centre since the maritime industry is so strong in our region, Meling jr. says.
Contacts between the Coastal Administration at Haugesund and maritime Europe have already been established. Some time back the top manager of the European Maritime Safety Agency visited Haugesund to familiarize himself with the conditions. While here, he did not rule out the possibility of Haugesund being selected as one of the five safety centres. Norway is a member of EMSA through the EEA agreement, and therefore it does not necessarily matter that Norway is not a EU member. According to plans the safety centres will be in place by 2008.
The strong position of Haugesund wihtin EMSA is demonstrated by the role that the Coast Administration in the western region plays in a trial project being launched these days.
There are currently 122 single-hull tankers carrying heavy grades of oil in European waters. According to plans these tankers are to be phased out during 2005. As a trial arrangement, tankers without double hull operating on the Norwegian coast will be monitored for two months this summer. During the same period, Finland will perform a similar monitoring of tankers in the Gulf of Finland. The results from the Norwegian part of the project are compiled at Haugesund, to be transferred to Brussels.
The trial project was initiated by the EU Commission, and its goal is to get control of the traffic of single-hull tankers. If the trial is successful, it may be introduced to larger areas.

Knutsen OAS attracts international attention 09.08.2005


- Being nominated for the Thor Heyerdahl’s prize, an international maritime environmental prize, represents a recognition to the highest degree of our efforts to develop KVOC. Besides the recognition that comes with it, the nomination helps us to attract the attention of decision makers in the international, specialist environments where we operate, says Project Manager Per Lothe.


- It’s an international expert committee of prominent experts who have assessed all the candidates for the Heyerdahl prize. Next to ourselves, they chose to nominate one of the world’s largest ship owners, the Japanese NYK Line. They own or operate 600 ships, so we are small in comparison. However, we do operate the world’s largest fleet of dedicated DP class (dynamic positioning) shuttle tankers, and therefore have large competence within this specific field.

We are the first in line to congratulate the Japanese. We are also pleased that the nomination has given the KVOC system the international recognition that we have strived to obtain, Lothe tells us.
The lectures, which besides Japan were also given in the Netherlands, have led to interest in the fact that documentation on the effects of KVOC is now forthcoming.

- Through the operation of our shuttle tankers we not only have the best assumptions for developing such a system. We are also capable of testing the effect by comparing results from two of our vessels. From before we have the Ragnhild Knutsen which has operated with KVOC onboard over a number of years. KVOC has also been installed on the Sallie Knutsen. By installing measuring equipment onboard the Sallie Knutsen and sister ship the Karen Knutsen, which does not have KVOC installed, we are in a position to compare emissions from these ships over a longer period of time. Since these two ships are identical, largely carrying crude from the same fields, there is every reason to place confidence in this way of documenting the effects. The results have also been a contributing factor to the Maritime Directorate and the Station Pollution Control Authority (AFT) now having reported a case to the UN’s International Maritime Organization (IMO) concerning the new possibilities that exist for cutting emissions, Lothe says. He admits that the project has met with some resistance from skeptics.

- While other, more expensive systems handle the VOC gases that are released, and return them back to the crude, our system is based on preventing the vapor from developing in the first place.  It goes without saying that it’s more difficult to measure emissions that have not developed. However, it can be done. So far, the measurements from Karen and Sally suggest that VOC emissions at best can be cut by up to 80-90 per cent by utilizing KVOC. Direct comparisons between Karen and Sallie which are now underway may give us a final answer. Typically, on the Karen Knutsen we see that 100 tons of VOC is released from the crude in connection with loading, transportation and offloading. On the Sally Knutsen on the other hand, we only get around 10 to 20 tons from a similar cargo, Per Lothe concludes.
By crossing the Pacific Ocean on the raft Kon Tiki in 1947, the young Thor Heyerdahl gained fame, and made him the best known Norwegian abroad.

M/T Jasmine Knutsen delivered from Korea 24.05.2005


23. May 2005 at 11.35 Norwegian hours, M/T Jasmine Knutsen was delivered, after the naming ceremony, from the Samsung Heavy Industries in South-Korea.
Jasmine is the sister vessel of M/T Heather Knutsen whish was delivered March this year.
The vessel will be trading on the White Rose field in Canada for Husky Energy and Petro-Canada, following a t / c of about 6 months for British Petroleum.

Left to right: Master Peter Elwood Richards, Tom K. Knutsen, Liss Bente Knutsen, Tove Seglem, Godmother Jorunn Seglem, Knut Rasmussen, Trygve Seglem, Kristin Rasmussen and Hans R. Tveitaskog. 

Naming ceremony in Korea 31.03.2005


The naming ceremony of the first of the two new Knutsen shuttletankers being built in Korea was held Wednesday 23.03 at the Samsung Koje shipyard in South Korea.
The ship was given the name Heather Knutsen after her godmother Heather Lau. Mrs Heather Lau cut the rope with an axe, wich is the traditional Korean way for ship naming ceremonies. Attending the naming ceremony was the president and Chief Executive Officer of the shipyard, Mr. J. W Kim, and representatives from Husky Energy and Knutsen OAS Shipping.
The Heather Knutsen was delivered from the shipyard 31.03.05 and will be operated by Canship-Ugland Ltd under a management agreement between Knutsen and Canship-Ugland.
The new vessel will transport oil to the market from the White Rose field off the coast of Newfoundland and Labrador, Canada.

M/T Turid Knutsen participated in safety drill 21.03.2005


M/T Turid Knutsen participated in the middle of March in a joint drill between The Norwegian Coastal Administration and The Norwegian Coastgard. The drill was held to test out emergency preparedness for tugs along the coast of Northern Norway.

The scenario: Outside Troms a fully loaded Turid Knutsen on her way from Arkhangelsk in Russia, was taken under emergency towing after having lost the engine power.
The Norwegian Coastal Administration says in a press release that the drill was very useful. The goal was to prevent an abandoned drifting tanker loaded with oil to strand at the coastline, causing oil pollution. Turid Knutsen was connected to a towline, and pulled by the coastgards tug ”Connector” with an emergency towing system.
This is the third time in 18 months a drill like this takes place outside the norwegian coast. One week earlier the norwegian tanker “Fjord Champion” grounded at the coast outside Kristiansand. “Fjord Champion” had no engine power after a fire in the engine room, and the nearest tug big enough to handel the vessel was in Stavanger, 14 hours away.
In the drill outside Troms Knutsen OAS Shipping and Fortum Shipping let The Norwegian Coastal Administration use Turid Knutsen free of charge.


MT Turid Knutsen connected with a towline to the
Norwegian Coastguards vessel “Connector”.
Photo: The Norwegian Coastguard.

New Knutsen vessel: The M/T Rita Knutsen 10.03.2005


Knutsen OAS Shipping has acquired the shuttle tanker Nordic Sarita, and she was delivered from Teekay Navion Shuttle Tankers the 9th of March. The ship was build in 1986 at Daewoo Yard in South Korea. She is 124.472 dwt, has double hull, and the classification society is DNV. Her name under Knutsen ownership will be M/T Rita Knutsen.
The new vessel will trade in the Knutsen Shuttle Tankers Pool mainly in the North Sea.
The technical management and crewing will be handled by IUM Shipmanagement in Grimstad, Norway.


























The M/T Rita Knutsen was formerly owned by Teekay Shipping Corporation. 

Cádiz Knutsen opened the new LNG-highway to Spain 31.01.2005


The Knutsen OAS Shipping LNG-tanker Cádiz Knutsen opened the new “LNG-highway” between Egypt and Spain when she delivered the first LNG-shipment from Egypt to Spain. The 136.000 m³ cargo of liquefied gas was the very first shippment from the new Damietta-plant at the Nile-delta, and the gas arrived at the Palos de la Frontera (Huelva) regasification terminal on the 27 January 2005.

The Damietta LNG-plant is developed, operated and owned by Seagas (80% UNION FENOSA Gas, 10% EGPC and 10% EGAS). The capacity is 7.5 billion cubic metres/year, and the investment has been approximately US $ 1.2 billion.

The Cádiz Knutsen became operational in July following completion of sea and gas trials. The ship is used to transport liquefied natural gas at low temperatures (–163ºC); it has a nominal capacity of 138,000 m3, measures 284.4 metres in length and attains a cruising speed of about 20 knots. It was built at IZAR Shipyard in Cádiz. Cádiz Knutsen  is on a 25 years chart with Union Fenosa Gas.
 

Egypts LNG-adventure starts with Cadiz Knutsen 18.01.2005

The first shipment of liquefied natural gas (LNG) from Egypt marks the inauguration of the new compression gasplant in Damietta.  The Knutsen OAS Shipping owned LNG-carrier “Cadiz Knutsen” will leave for Spain with 136.000 cibic metres of LNG. This is the first gas shipment from Egypt, and marks the beginning of Egypts export of LNG to overseas markeds. The only gas export so far has been transported in a pipeline to Jordan.

The new plant is situated at the Mediterranean coast 200 km. north of Cairo, between Zues and Alexandria. Egypts oil reserves are dropping fast, and LNG export will be crucial for the country in the years to come.

The gas is owned by the Spanish energy company Union Fenosa, which is also one of the partners in the joint venture that buildt the Damietta-terminal. Union Fenosa will buy 4,4 billion cubic metres of  LNG from Egypt each year for the next 25 years, and The Knutsen OAS Shipping will transport the LNG to energy consumers in Europe.
Egypts reserves of natural gas is estimated to 1.87 trillion cubic metres. Egyptian General Petroleum Corporation will in addition to the spanish marked also supply markeds in France and USA.

The new harbour of Damietta was opened by President Hosni Mubarak in desember 2004.
 






























The front page headline in a local newspaper in Egypt tells that “Egypt is lightning Europe”. The picture shows Cadiz Knutsen in Damietta to pick up the the first LNG-shipment from Egypt.

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