Huntington Ingalls, Kinder Morgan to study Louisiana shipyard options

Huntington Ingalls (HII +0.5%) says it will explore redeveloping its Avondale shipyard in Louisiana with the help of Kinder Morgan Partners (KMP +0.4%).

Once the study is completed and a redevelopment plan is created, the two companies may pursue a joint venture to convert the site into a new use.

The shipbuilder had struggled to find a partner to redevelop the naval shipyard, which it slated for closure in 2010.

Comments (10)
  • User 353732
    , contributor
    Comments (5161) | Send Message
    Presumably the new use will be as an energy export facility : LNG, LPG, refined petroleum products and eventually crude.......
    11 Apr 2014, 12:52 PM Reply Like
  • JamesPond
    , contributor
    Comments (117) | Send Message
    LNG... A petroleum product with a whole new set of potential problems in storage, transportation, product transfer..but doable.


    Not only doable but a whole new concept of storage, product transfer, storage safety, real estate utility and facility maintenance are possible.
    This somewhat new industry as a commercial enterprise, has and actually ' demands ' new out of the box thinking, especially since we'll be using (nationally) and commercially exporting (Europe) this unique product in unprecedented volumes.
    So, how's this for an out of the box idea:


    In this case why not consider LNG storage units UNDERWATER? When one considers such a scenario:
    1) the potential for fewer accidents is obvious, finding 'leaks' is much easier.


    2) Depending on storage depth, the units automatically receive external supportive surface pressure. High air temperature problems having the potential of stressing or even overpowering the 'engineered' insulation design of the storage units is eliminated, as a matter of fact if storage is underwater, the external (surrounding) water temperature and pressure (depending on depth) provide a much smoother sine wave profile, which has to improve management (safety oversight) and flow characteristics of the stored product.


    3) If an, external to the storage tank, clear water maintenance envelope were constructed that completely surrounded the storage unit and product delivery systems and the water within that space were filtered to the extent that with proper lighting, a commercial diver, with complete easy access, could see clearly, and have complete access as he swum over and around the total structure for easy routine safety inspections.


    4) Storing product for future transport, under water, frees up more expensive 'real estate' above the water ( allowing them to be more adjacent to the storage units) at the site for other support facilities to the system.


    It just seems like a 'no brainer' to make use of the additional space available under water. Sure, there will need to be unique additional engineering required for such and endeavor, but most new concepts usually do.
    ( profession is as a (small) carpet/tile/furniture cleaning business owner
    is a far cry from marine engineering.... I know, I better keep my day job, but hell, great ideas can come from anywhere..right?.


    11 Apr 2014, 04:03 PM Reply Like
  • YCantIRetire
    , contributor
    Comments (565) | Send Message
    Not exactly as you describe, yet you may find this interesting.


    Floating LNG/CNG Processing and Storage Offshore Platforms Utilizing a New Tank Containment System
    12 Apr 2014, 12:42 AM Reply Like
  • YCantIRetire
    , contributor
    Comments (565) | Send Message
    Here is another process that allows offshore liquification of gas from offshore drilling sites.
    12 Apr 2014, 01:32 PM Reply Like
  • YCantIRetire
    , contributor
    Comments (565) | Send Message
    And then there is this video of the first two absolutely huge sections of Shell's Prelude Floating LNG processing facility being joined.


    The Prelude FLNG Project Takes a Giant Step Forward


    Followed by:
    Prelude’s maiden voyage
    12 Apr 2014, 02:32 PM Reply Like
  • Carlos54
    , contributor
    Comments (42) | Send Message
    Interesting thought James--clearly out of the box, but in creating an underwater storage facility how do you handle buoyancy when the tanks are empty? I have no idea of the practicality as such one way or the other


    Most likely KMP is considering Avondale's location as either an ideal site for terminus of a pipeline/transferring product to or from a ship or alternatively they could use the site, and the skilled welders and assemblers around the facility to construct something that they would like to have independently of another manufacturer. Idol speculation, but perhaps they could build submersible or semi submersible rigs there or offshore drilling ships or, more prosaically fixtures and extrusions for KMP's pipes.


    In any event it is intriguing to me. I have a fair knowledge of Louisiana politics and there is no question they could extract mucho dinero from the State given Governor Jindall's ambitions and from the Feds given Mary Landrieu's precarious Senate Seat if they had a half way viable business plan that might promise jobs for laid off shipyard workers.
    11 Apr 2014, 04:45 PM Reply Like
  • omarbradley
    , contributor
    Comments (966) | Send Message
    they could go back to building ships there. Something other than the worst ships ever made in US Navy history I might add.
    11 Apr 2014, 06:59 PM Reply Like
  • njbother
    , contributor
    Comments (1112) | Send Message
    LNG is not a petroleum product. But an never water storage could be utilized.


    As to ships look at TGP. They already have many ships, and some that liquefy and regas.


    But I am long KMP, as well.


    I have faith in their management to continue doing well in new areas related to their core.
    12 Apr 2014, 12:31 PM Reply Like
  • JamesPond
    , contributor
    Comments (117) | Send Message
    In addition to my first comment, a consideration for site security from potential terrorist threats via rocket propelled grenades, planted charges alongside a containment vessel or small shoulder fired missile or even a wayward plane crash would be eliminated by having a sub surface storage venue. As for buoyancy problems....I'll think about it and get back to you. During the WWII the Germans came up with very clever answers to these types of problems, and although I'm not an engineer I can think of two workable systems to keep the underwater 'fessels' in place but that cost would undoubtedly impact the facility of the whole underwater storage concept. The other likely probability is that the whole idea is not worth pursuing except possibly for the 'security' aspect.
    14 Apr 2014, 02:05 AM Reply Like
  • Sumflow
    , contributor
    Comments (3595) | Send Message
    Building and maintaining our fleet makes good sense for a shipyard.
    15 Apr 2014, 09:00 AM Reply Like
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