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Briefs -- Carnival Corp., Shell | Transcontinental Gas Pipe Line Co.

Carnival Corp. has struck an agreement with Shell Western LNG B.V. to be its supplier of marine liquefied natural gas (LNG) to power what it claims are to be the world's first fully LNG-powered cruise ships. Shell will initially supply Carnival's AIDA Cruises and Costa Cruises brands with fuel for two new LNG-powered ships expected to launch in 2019 with itineraries visiting popular northwest European and Mediterranean ports. The ships will use Shell's infrastructure in cruise ports to refuel with LNG throughout their itineraries. The vessels, equipped with dual-fuel engines, are the first of a new generation of cruise ships fully powered by LNG both while in port and at sea -- an industry first, Carnival said (see Daily GPISept. 7). As part of the framework agreement, Carnival Corp. and Shell have the opportunity to partner together on supplying marine LNG fuel to future LNG-powered vessels or additional itineraries. The overarching agreement enables each Carnival brand to negotiate individual LNG supply contracts with Shell as new LNG-powered cruise ships begin to launch in coming years.

Transcontinental Gas Pipe Line Co. LLC (Transco) began construction activities for its New York Bay Expansion Project on Monday (Oct. 3), according to a filing with FERC [CP15-527]. The New York Bay Expansion would allow Transco to provide an additional 115,000 Dth/d of firm service to National Grid NY, also known as the Brooklyn Union Gas Co. The project entails construction of new facilities and the abandonment of minor existing facilities, which would be replaced, the pipeline told the Federal Energy Regulatory Commission when it initially filed in mid-2015 (see Daily GPIJuly 10, 2015). It would include compressor station modifications and additional horsepower at three existing stations, minor pipeline replacements on Transco's Lower New York Bay Lateral (LNYBL), a pressure uprate of the LNYBL, modifications at the Narrows, Morgan and Downingtown meter and regulating stations, and construction or modification of related appurtenant underground and aboveground facilities. The project, which received a favorable environmental assessment from FERC staff in April, has been hampered by delays in its review timeline (see Daily GPIApril 5). Transco is aiming for an in-service date in November 2017.

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