As exploration of natural gas assets offshore Australia and New Zealand continues to attract industry attention, ABS is highlighting its liquefied natural gas (LNG) expertise and its experience with innovative transport technologies as it expands its activities in the area.

“Setting the standards for selecting, developing and implementing safe new energy concepts while optimizing technology development and business investment requires dynamic communications and effective risk-management," says William J. Sember, ABS vice president of Energy Development.

Sember will address these issues at a two-day Houston conference hosted by the Australian, New Zealand and American Chambers of Commerce (ANZACC). Themed “Three Nations—A World of Opportunity,” the event will build on shared business interests, including prominent energy issues, such as global LNG export and import.

For the United States alone, industry has proposed some 40-plus new-build LNG import terminals, both onshore and offshore, with up to four terminals anticipated by 2010. Australia, with gas reserves estimated at 159 trillion cubic feet of gas, provides an ample source of feedstock for fueling U.S LNG import.

The recent signing of the U.S.-Australian Free Trade Agreement will remove tariffs on 99 percent of American exports, creating further business advantages and opportunities for investment.

“The reliable, stable environments of Australia, New Zealand and the United States make the three countries strong partners for continued energy development, particularly in the area of LNG,” said Sember.

Companies and organizations participating in the conference include ABS; ANZ Bank; Bechtel; BHP Billiton; ChevronTexaco; California Energy Commission; Department of Energy Office of Fossil Energy; DKRW Energy; Geodynamics Limited; INTEC Engineering; Kellogg Brown & Root; King & Spalding; MC International Research; Petrogen Group; Wood Mackenzie; Woodside Petroleum.

> AUSTRALIA, NEW ZEALAND, NORTH AMERICA CONFERENCE

The global market for LNG is growing at more than three times the accepted growth rates for oil or traditional gas markets. As the safe transport of LNG becomes a parallel concern, ABS expertise with emerging technologies and evolving regulatory structures is drawing unprecedented industry interest, says William J. Sember, ABS vice president of Energy Development.

As energy companies seek to maximize stakeholder return and capitalize on stranded hydrocarbon assets, they are finding that the goal of safe and efficient LNG transport is generating global challenges,” said Sember.

Sember will address these challenges at the Hart Global LNG Outlook Seminar, Oct 13 – 14, in New Orleans. Sember will participate as a panelist in a technical session discussing how LNG transportation challenges can be transformed into opportunities. Also participating on the panel will be top executives from INTEC Engineering and Excelerate Energy.

Other questions concerning the current global LNG picture to be addressed at the conference include:

· Will Atlantic and Pacific basin pricing converge?
· What parts of the value chain provide the most attractive returns?
· Where is the risk and does it pay off with higher overall rewards?
· How will rapidly expanding LNG supply affect US gas markets?

For full details of the New Orleans conference, visit www.hartenergyconferences.com/lng/GlobalLNGBrochure.pdf

ABS is providing a unified approach to the marinization of traditionally land-based technology as the offshore industry expands into the liquefied natural gas (LNG) transportation sector, says William J. Sember, ABS vice president of Energy Development.

“Classification societies help operators develop viable solutions to meet the numerous technical challenges of moving natural gas from offshore sources to onshore markets, including systems for liquefaction, storage, loading, unloading and regasification,” said Sember.

Sember will address the demand for LNG and the role that class plays in LNG transport at the 14th Annual Offshore Symposium of the Society of Naval Architects and Marine Engineers (SNAME) on Nov. 10 in Houston. ABS also will provide conference participants with more technical details concerning sloshing impact loads and the strength of membrane-type LNG containment systems in large LNG carriers.

The demand for LNG is driving the development of larger vessels, often 50 percent larger than the carriers of the past, says Yung Shin, ABS technical advisor, Research and Product Development.

“Recent analytic and experimental efforts to identify the design sloshing load and impact strength of LNG containment systems is aiding oil companies and shipbuilders to design larger LNG vessels that meet market demands,” said Shin.

For more information on the SNAME conference in Houston, visit http://www.sname.org/sections/texas/meetings04/LNG_Conference.htm

Highlighting the importance of safety and compliance with standards in the development of offshore liquefied natural gas (LNG) facilities, ABS’ Phillip Rynn, senior staff consultant, addressed the Zeus Development Corporation’s LNG conference “Moving Offshore” this month in Houston.

His presentation, titled “From Gas Carriers to Offshore Re-gasification - How the Classification Societies and Administrations Intend to Promote Safe and Environmental yet Economic Offshore LNG Facilities,” discussed ABS’ lessons learned from containment systems on LNG carrier vessels.

Rynn outlined the ABS approval in principle and classification processes as applied to new types of terminals, converted platforms and re-gasification ships. Rynn also addressed how classification societies work with the administrations, focusing on the United States Coast Guard, with particular emphasis on the Gulf Coast.

Today’s technological challenges for the application of floating production, storage and offloading (FPSO) systems in frontier environments require international cooperation and experienced leadership. Classification societies are providing critical technical assistance, facilitating FPSO improvements and readiness for deeper water and diverse environments, says James C. Card, ABS senior vice president, Technology.

“From well-proven tanker experience, and through historical and site-specific analysis of environmental severity factors, ABS has developed a coordinated offshore approach to classification that is unique to new FPSOs,” he said.

Speaking at the Offshore Mechanics and Arctic Engineering (OMAE) Specialty Conference in Houston on Aug. 30, Card delivered the keynote address for a symposium focusing on the integrity of FPSOs. Approximately 150 attendees from around the world discussed these ship-shaped structures as the most economical development system for many offshore oil and gas fields worldwide.

The conference also featured ABS technical updates: FPI Guide Rule Change: FPSO Fatigue and Strength Assessment. Authored by Ernesto Valenzuela, Jer-Fang Wu, Haihong Sun and Tuanjie Liu, all of ABS, the paper provides information about recent rule changes regarding the classification process for FPSO conversions.

“These updates apply ABS expertise with a new spectral fatigue approach and bimodal wave application for fatigue assessment and new buckling and ultimate strength criteria. FPSOs are considered offshore structures as well as vessels, so other ABS Rules and Guides also are referenced,” he said.

Classification issues addressed at the conference included:
· Managing safety and environmental risks in ultra-deepwater
· Managing site-specific challenges while understanding ABS Guide Rule changes for evaluating FPSO strength and fatigue assessment
· Applying risk methodologies to consider novel concepts as an alternative means of compliance with prescriptive classification Rules
· Applying reliability-centered maintenance programs to facilitate greater flexibility in early decision-making while offering long-term operational efficiencies
· Applying regulatory standards, including International Maritime Organization (IMO) requirements and coastal state requirements, such as U.S. Minerals Management Service and U.S. Coast Guard standards
· Integrating both maritime and offshore cultures to create a successful project
· Facilitating vessel compliance with classification Rules for the life of an asset