AMO Currents - Suez Energy commits to U.S.-flagged LNG vessel in deepwater port license application

AMO Currents - Posted: July 24, 2008

Suez Energy commits to U.S.-flagged LNG vessel in deepwater port license application

As part of its liquefied natural gas deepwater port license application, Suez Energy committed to using a U.S.-flagged LNG regasification vessel at the company's proposed Calypso LNG import facility off the coast of South Florida, Maritime Administrator Sean Connaughton announced Monday.

The commitment made by Suez Energy to the Maritime Administration would call for Suez to register a newly-constructed LNG regasification vessel in the U.S. for use in the operation of its proposed deepwater port, and to employ American officers and crew aboard the vessel, Connaughton said in the announcement.

The U.S.-registered and American-crewed vessel, known as a storage and regasification ship (SRS), would remain moored at the deepwater port for continuous vaporization of LNG delivered by LNG carriers. In the event of severe weather, such as a hurricane, the SRS would move to safety under its own power and return to the deepwater port buoy to reconnect and continue operations once the storm has passed, he said.

"The employment of U.S. citizens aboard the LNG vessels serving our natural gas receiving facilities is clearly in the nation's best interest," Connaughton said. "Placing the transportation of LNG under the control of U.S. mariners, who are subject to strenuous background checks, will add an additional layer of safety and security to our energy supply chain."

Calypso filed an application with the Maritime Administration March 1, 2006, for a license under the Deepwater Port Act to build, own and operate an LNG facility. If approved and built, the Calypso facility will be located ten miles off the coast of Ft. Lauderdale, Fla. The establishment of an LNG import facility at this location would facilitate the diversification of the supply of natural gas to the region and satisfy the increased demand for an environmentally friendly source of energy in the Florida market, Connaughton noted.

Calypso's application to build the deepwater port terminal must be approved by the Governor of Florida and the Maritime Administration after vigorous technical and environmental reviews are completed by the Coast Guard and the public comment period has closed, he said.

The Suez flagging and manning agreement mirrors one signed by Woodside Natural Gas for its proposed facility off the coast of California, Connaughton said. Woodside committed to use U.S.-flagged and American-crewed LNG vessels to service its proposed facility.

These commitments are a clear indication of a real public-private effort on the part of both companies to provide the U.S. with a safe, secure and efficient marine transportation system, said Connaughton, who pointed out in the announcement that there are currently no LNG vessels operating under U.S. registry.

American Maritime Officers is well positioned to man LNG vessels under both U.S. and international registries.

Through memoranda of understanding with Teekay Shipping Corporation and Shell Ship Management Limited, AMO members are now sailing in senior positions aboard LNG carriers in the international fleet.

AMO members have access to LNG person-in-charge training certified to the standards of the Society of International Gas Tanker and Terminal Operators (SIGTTO) at STAR Center, a division of the AMO Safety & Education Plan and the primary training provider for AMO officers.

STAR Center is the only U.S. maritime training institution, and one of very few in the world, that offers SIGTTO-certified LNG person-in-charge training. AMO officers also have access to liquefied gas simulation training on MPRI simulators at STAR Center. Both courses are certified by the U.S. Coast Guard.

Additionally, BGT has signed a letter of intent with AMO to establish an observation program with billets for AMO officers as observers onboard two of its ships. This unique agreement will allow AMO members to earn the necessary sea time and STCW endorsement to work in the LNG trades without prior experience. AMO is negotiating similar agreements with other companies.

The SIGTTO-certified LNG training at STAR Center, combined with the unique observation programs under development or negotiation, will give AMO the ability to expand the base of American officers with the necessary qualifications to sail in the LNG trades.