Compressed natural gas (CNG) transportation is an emerging market in the energy sector, allowing for the commercialization of “stranded” or “flared” gas – those natural gas deposits that are too small or remote to currently economically produce.
CNG transportation will target moderate distances, where the source is approximately 150-2,000 nautical miles from market, at production volumes up to 250 MMscf/d. In addition, because CNG represents the commercialization of small amounts of natural gas, where LNG pipelines do not currently exist, it is considered complementary to the LNG transportation industry, rather than competitive.
In 2007, Teekay signed an agreement with Sea NG, a world leader in the development of the patented Coselle™ CNG containment system, and Japanese trading house Marubeni, a global player in implementing major capital projects. Under the agreement, the companies will work together to develop CNG projects worldwide, with the Coselle system offering a low cost, first to market opportunity for Teekay and its partners.
Teekay’s role in the consortium will be to manage the construction and operation of the CNG vessels.
The Sea NG fleet has been designed to effectively accommodate various CNG shipping scenarios, with daily shipping capacity ranging from 15 to 250 MMscf/d and shipping distances ranging from 150 to over 2,000 nm. The primary vessel designs within the Sea NG fleet include: the C16 ship (50MMscf), the C25 Ship (75 MMscf), and the C84 ship (275 MMscf). These three ship designs are illustrated below.
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