Tag Archives: liquefied natural gas

Teck Announces LNG Haul Truck Pilot Project

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VANCOUVER, BRITISH COLUMBIA–(Marketwired – Dec. 9, 2015)

Teck Resources Limited (TSX:TCK.A) (TSX:TCK.B) (NYSE:TCK) is piloting the use of liquefied natural gas (LNG) as a fuel source in six haul trucks at its Fording River steelmaking coal operation in southeast B.C. – marking the first use of LNG as a haul truck fuel at a Canadian mine site.

The use of blended LNG/diesel fuelled haul trucks has the potential for significant environmental benefits and cost savings. LNG produces virtually no particulate or sulphur dioxide emissions and reduces Greenhouse Gas (GHG) emissions by up to 20 percent in comparison to diesel alone. There is the potential to eliminate approximately 35,000 tonnes of CO2 emissions annually at Teck’s steelmaking coal operations and potentially reduce fuel costs by more than $20 million annually by adopting LNG and diesel hybrid fuel across the operations. FortisBC is transporting and supplying LNG to the mine site and is making a financial contribution towards the pilot.

The pilot is one of the steps Teck is taking to achieve its long-term target to reduce annual GHG emissions by 450,000 tonnes at its operations by 2030. To date, Teck has reduced annual emissions by 170,000 tonnes as the result of initiatives implemented since 2011.

“LNG is a fuel source that has the potential to lower costs, significantly reduce emissions and improve environmental performance at our operations,” said Don Lindsay, President & CEO, Teck. “We are committed to minimizing our own carbon footprint while at the same time continuing to provide the mining products that are essential to building a modern, low-carbon society.”

“Like British Columbia, Teck is a global leader in finding innovative ways to reduce GHG emissions while continuing to create opportunity,” said Premier Christy Clark. “It’s a concrete example of the difference clean-burning LNG can make in the fight against climate change.”

Teck, with support from FortisBC, has upgraded the Fording River Operations truck maintenance shop, provided engine conversion kits, installed fuelling facilities and implemented a comprehensive safety program in advance of the pilot.

“Teck is demonstrating leadership by adopting natural gas as a cleaner and more cost-effective fuel solution for their operations,” said Michael Mulcahy, President and CEO, FortisBC. “LNG, as a vehicle fuel source, provides both an economic and environmental benefit to industry in our province. Today’s announcement further builds on the diversity of the more than 400 natural gas-fuelled vehicles in British Columbia.”

The pilot is expected to run until mid-year 2016 and will provide more information about the potential of using LNG more broadly across Teck’s haul truck fleet, creating the opportunity for further fleet conversions to LNG in the future.

Cautionary Statement on Forward-Looking Information

This press release contains certain forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information as defined in the Securities Act (Ontario). Forward-looking statements and information can be identified by the use of words such as “potential”, “target”, “is expected”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “should”, “would” “might” or “will” be taken, occur or achieved. Forward-looking statements include statements regarding the potential for significant environmental benefits and cost savings, expectations regarding CO2 emission elimination, cost reductions and improved environmental performance.

Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Teck to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that may cause actual results to vary include, but are not limited to, unexpected operational issues in the pilot program, unexpected efficiency or reliability issues with the blended LNG/diesel system that lead to reduced LNG usage or the increase in the cost of LNG to our sites beyond projected levels. CO2 emission reductions are based on assumptions regarding the amount of diesel consumption that will be replaced by LNG as well assumptions regarding the efficiency of LNG combustion in the process, among other assumptions. Cost reduction expectations are based on assumptions regarding the price of oil, the cost of LNG and the level at which LNG will replace diesel consumption. Certain of these risks are described in more detail in the annual information form of Teck and in its public filings with Canadian securities administrators and the U.S. Securities and Exchange Commission.

About Teck

Teck is a diversified resource company committed to responsible mining and mineral development with major business units focused on copper, steelmaking coal, zinc and energy. Headquartered in Vancouver, Canada, its shares are listed on the Toronto Stock Exchange under the symbols TCK.A and TCK.B and the New York Stock Exchange under the symbol TCK. Learn more about Teck at www.teck.com or follow @TeckResources.

 

 

Buyers Have Upper Hand In Liquefied Natural Gas Market

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(MENAFN – Gulf Times) Next year, on a remote island off Australia’s western coast, the world’s most expensive liquefied natural gas export terminal will start shipping cargoes into a market that has changed vastly since 2009, when the project was approved.

Chevron’s 54bn Gorgon LNG facility, initially budgeted at 31bn, was supposed to have begun operations in 2014. Labour disputes have delayed it, and lower LNG prices have potentially reduced its profitability. LNG producers no longer have the bargaining power they once did.

Weakening demand in Asia combined with an increase in LNG supply is giving the world’s biggest buyers not only cheaper gas but also more say on how contracts are designed.

“The buyers have the upper hand,” says Neil Beveridge, an analyst at Sanford C Bernstein.

LNG suppliers have historically been able to lock customers into 20-year contracts, with clauses that restrict the resale of gas. In Japan, the world’s largest LNG market, two of the country’s largest utilities have teamed up to gain leverage and demand more flexibility. Jera, a joint venture of Tokyo Electric Power and Chubu Electric Power, says it will no longer sign contracts that give producers control over the destination of the product.

If buyers succeed in negotiating better terms, the LNG market could become more like the one for crude oil, where producers, suppliers, and traders all compete for profits through constant buying and selling. That would require a fully functioning spot market, where supplies are traded for immediate delivery, a development that’s still a decade away, Beveridge says.

By then, Australia could be the world’s top LNG exporter. For the first time in eight years, exports from Qatar shrank in 2014. Qatar still provides about a third of the world’s LNG, but customers are also lining up for new supplies from Australia and the US.

Gorgon will join three other LNG megaprojects that have been completed recently along Australia’s east coast and will tap the country’s vast gas deposits.

In the US five LNG projects under construction will export cheap natural gas unlocked by the shale boom. The first will begin exports in 2016. Over the next decade the US is likely to become a net exporter of natural gas and compete with Australia to be the world’s leading LNG supplier.After these projects come online, it may be a while before any others are built.

“LNG is the last of those sectors where we’re seeing a wave of new projects hit the market,” says Daniel Hynes, a commodity strategist at Australia & New Zealand Banking Group.

“It’s coming at a time when demand is weakening across the board. It’s clearly a tough market.”

Source: It’s a buyer’s market as new supplies flow from US, Australia | MENAFN.COM