Seaports Magazine - Fall 2017 - 10

┬╗ FEATURE

SEIZING LNG
SUPPLY CHAIN

OPPORTUNITIES
By Lori Musser

S

eaports are hopping on the
LNG bandwagon. Welcoming
liquefaction or regasification
plants, marine terminals, bulk
and ISO-container cargo, bunkering operations and LNG fueling stations, ports are
capturing opportunities all along the LNG
supply chain.
A broad approach to targeting LNG business has not been the norm for ports in the
Americas, who have typically addressed

Rotterdam Resolution
Few of the world's ports have tackled
diverse LNG opportunities as wholeheartedly as Rotterdam, which dubs
itself as LNG's European import,
export and regasification hub. Starting
with the arrival of Europe's first LNGpowered inland vessel in 2011, the port
strategically targeted LNG opportunities across the complete supply
chain, according to then vice president
of industry and bulk cargo business,
Bas Hennissen.
Rotterdam goes so far as to promote
the transition from fuel oil to LNG
as a transport fuel for the ocean and
inland vessel sectors: it encourages the
handling of LNG, LNG distribution
options for inland shipping, the development of training facilities, and the
modification of legislation. It also presents shipping companies with financial
incentives to switch to LNG as a fuel.

10

AAPA SEAPORTS MAGAZINE

LNG opportunities in a more ad hoc, tenant-driven fashion, but that is changing.
The comparative appeal of LNG as a clean
fuel, clean cargo and clean tenant provides
good rationale for delving deeper into the
LNG chain.

Five LNG 'Trains' at
Cheniere Corpus Christi
Jarl Pedersen is chief commercial officer
with the Port of Corpus Christi Authority.
He anticipates the onset of robust LNGrelated business.
There is one LNG plant already producing near the port, running LNG exports
by truck into Mexico, but the big news is
the Cheniere Energy project called Corpus
Christi Liquefaction, LLC. This will be an
LNG export terminal at an existing site, on
the northeast side of Corpus Christi Bay,
previously permitted as a regasification terminal. The new liquefaction project is being
designed for five facilities (called trains)
with expected annual production capacity
approaching 25 million tons.
In addition to processing natural gas into
LNG, the plant will procure natural gas
for feedstock, making it one of the largest
buyers of natural gas in the U.S.
According to Pedersen, product from
Trains 1 and 2 could be exported as early as
fourth quarter 2018. He said, "We are already
the biggest exporter of crude oil in U.S. This
would help fulfill the port's goal of being the
Energy Port of the Americas. And adding
LNG is just another way to help the U.S.
become more energy secure in the future."

To begin, product will fill several LNG
carriers weekly, with destinations likely
to include Latin America, but with clear
potential for global movements.
To facilitate the project (as well as
other port business), the port extended
the channel from the "old turning basin
to the new basin." "Without that dredging
and creation of dredged materials placement areas and mitigation, the liquefaction projects wouldn't be there," according
to Pedersen.
The port has invested other resources, as
well. "We are heavily involved in community
relations, ensuring that the developer puts
out the information and informs all stakeholders. If you don't, there will be speculation. We want to ensure the community is
getting the right answers, said Pedersen,
who is grateful for the "U.S. energy renaissance that allows the port to work with
companies with good safety records, good
corporate social responsibility and good
environmental stewardship."
The port also undertook a waterway
planning study, addressing questions about
resource utilization, and about potential
congestion and traffic flow impacts related
to port restrictions on LNG vessels (such
as one-way or daylight-only transits). "This
is a good example of how we want to stay
ahead. We also are waiting to deploy funds
to dredge the channel deeper, and although
draft isn't expected to be a problem for
LNG vessels, a wider channel could facilitate two-way traffic, and other changes
to lessen the impact of currents would be



Table of Contents for the Digital Edition of Seaports Magazine - Fall 2017

AAPA Headquarters
From the President's Desk
Seizing LNG Supply Chain Opportunities
Find Your Niche
The Power of One, Collaboration by Many
Bringing the Outside In
Accelearating the Future
Power Shift: In the Energy Sector, Change Is the Only Constant
Strengthening U.S. Ports to Support Increasing Freight and Transportation
Port Partnerships for Strategic Positioning and Success
Index of Advertisers
Seaports Magazine - Fall 2017 - Intro
Seaports Magazine - Fall 2017 - bellyband1
Seaports Magazine - Fall 2017 - bellyband2
Seaports Magazine - Fall 2017 - cover1
Seaports Magazine - Fall 2017 - cover2
Seaports Magazine - Fall 2017 - 3
Seaports Magazine - Fall 2017 - 4
Seaports Magazine - Fall 2017 - 5
Seaports Magazine - Fall 2017 - AAPA Headquarters
Seaports Magazine - Fall 2017 - 7
Seaports Magazine - Fall 2017 - From the President's Desk
Seaports Magazine - Fall 2017 - 9
Seaports Magazine - Fall 2017 - Seizing LNG Supply Chain Opportunities
Seaports Magazine - Fall 2017 - 11
Seaports Magazine - Fall 2017 - 12
Seaports Magazine - Fall 2017 - 13
Seaports Magazine - Fall 2017 - 14
Seaports Magazine - Fall 2017 - 15
Seaports Magazine - Fall 2017 - 16
Seaports Magazine - Fall 2017 - 17
Seaports Magazine - Fall 2017 - 18
Seaports Magazine - Fall 2017 - Find Your Niche
Seaports Magazine - Fall 2017 - 20
Seaports Magazine - Fall 2017 - 21
Seaports Magazine - Fall 2017 - 22
Seaports Magazine - Fall 2017 - 23
Seaports Magazine - Fall 2017 - 24
Seaports Magazine - Fall 2017 - 25
Seaports Magazine - Fall 2017 - The Power of One, Collaboration by Many
Seaports Magazine - Fall 2017 - 27
Seaports Magazine - Fall 2017 - 28
Seaports Magazine - Fall 2017 - Bringing the Outside In
Seaports Magazine - Fall 2017 - 30
Seaports Magazine - Fall 2017 - 31
Seaports Magazine - Fall 2017 - 32
Seaports Magazine - Fall 2017 - 33
Seaports Magazine - Fall 2017 - 34
Seaports Magazine - Fall 2017 - 35
Seaports Magazine - Fall 2017 - 36
Seaports Magazine - Fall 2017 - Accelearating the Future
Seaports Magazine - Fall 2017 - 38
Seaports Magazine - Fall 2017 - 39
Seaports Magazine - Fall 2017 - 40
Seaports Magazine - Fall 2017 - 41
Seaports Magazine - Fall 2017 - 42
Seaports Magazine - Fall 2017 - 43
Seaports Magazine - Fall 2017 - 44
Seaports Magazine - Fall 2017 - Power Shift: In the Energy Sector, Change Is the Only Constant
Seaports Magazine - Fall 2017 - 46
Seaports Magazine - Fall 2017 - 47
Seaports Magazine - Fall 2017 - 48
Seaports Magazine - Fall 2017 - 49
Seaports Magazine - Fall 2017 - Strengthening U.S. Ports to Support Increasing Freight and Transportation
Seaports Magazine - Fall 2017 - 51
Seaports Magazine - Fall 2017 - Port Partnerships for Strategic Positioning and Success
Seaports Magazine - Fall 2017 - 53
Seaports Magazine - Fall 2017 - 54
Seaports Magazine - Fall 2017 - 55
Seaports Magazine - Fall 2017 - 56
Seaports Magazine - Fall 2017 - 57
Seaports Magazine - Fall 2017 - Index of Advertisers
Seaports Magazine - Fall 2017 - cover3
Seaports Magazine - Fall 2017 - cover4
Seaports Magazine - Fall 2017 - divider1
Seaports Magazine - Fall 2017 - divider2
Seaports Magazine - Fall 2017 - 66
Seaports Magazine - Fall 2017 - 67
Seaports Magazine - Fall 2017 - 68
Seaports Magazine - Fall 2017 - 69
Seaports Magazine - Fall 2017 - 70
Seaports Magazine - Fall 2017 - 71
Seaports Magazine - Fall 2017 - 72
Seaports Magazine - Fall 2017 - 73
Seaports Magazine - Fall 2017 - 74
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