Focusing on the development of small-scale LNG supply chains serving off-the-grid markets without access to LNG pipelines.
Stolt-Nielsen Gas focuses on opportunities in the LNG space, mainly the development of small-scale LNG supply chains serving “stranded demand,” where off-the-grid customers lack access to LNG pipelines.
- Stolt LNGaz
- Off-take agreements not progressing as planned due to falling commodity prices
- Sardinia Project (HIGAS)
- First small-scale shipping, storage and distribution project
- Golar Stolt JV
- FRSU/small-scale distribution to stranded customers not connected to pipeline grids
In June 2015, Stolt-Nielsen Limited and Golar LNG Limited (NASDAQ: GLNG) announced the formation of a 50/50 joint venture to pursue small-scale LNG production and distribution opportunities. As part of the agreement, SNL made a strategic investment in Golar LNG representing an ownership stake of approximately 2.3%.
Golar is one of the world's largest independent owners and operators of LNG carriers and FSRUs (floating storage and regasification units). More recently, Golar moved upstream with the conversion of LNG carriers into floating liquefaction units (GoFLNG). Working with Golar, Stolt-Nielsen Gas is developing opportunities for the distribution of LNG to off-the-grid customers, supported by Golar's midstream ocean-based systems.
In October 2015, Stolt-Nielsen Gas purchased 10 percent of the shares in HIGAS S.r.L., with an option to acquire up to 80 percent of the company. HIGAS is a joint venture with plans to build and operate an LNG terminal and distribution facility in the port of Oristano, Sardinia. The planned role of SNG is to source and ship the LNG to the terminal via small LNG carriers, and then distribute the natural gas to customers via and trucks and tank containers. The terminal is expected to be completed in 2017.
A third initiative—StoltLNGaz—is developing an opportunity to supply LNG to remote mining operations in northeast Canada. Progress on the project has slowed due to the impact of the weak commodity market on our target customers. While SNG’s commitments remain in place, customers’ decisions on the capital expenditures needed to make the changeover from fuel oil and diesel systems to natural gas are progressing more slowly than originally expected.
Stolt-Nielsen M.S Limited
London WC2B 6TD
Tel: +44 20 7611 8646
Email: [email protected]