Working togetherfor a safer world

LNG as fuel

OTMW-Module 5

Monday 23rd of November 2015

University of Piraeus

What is LNG?

Economical Drivers – Regional

- US LNG export dynamics

- ECA-NOx area

- USCG policy to LNG as Fuel

- Strong Private Equity investing on Gas Market

- Panama Canal – new ports

- Asia LNG price pressure to the economy

- Australia exports growing

- Public perception of going back to nuclear energy

- China LNG demand growing

- LNG strong imports in Korea and Japan

- LNG Bunkering Hubs

- LNG initiatives

- Future ECA-NOx

- Norwegian funds

- EU LNG funds

- Developing strong LNG bunkering hub

- Growth in LNG imports

- Technology innovation

European ECAs

American ECAs: Regional emission control

5

Future ECAs – ??

Emission Control Areas (ECA’s) and more…

LNG vs Fuel Oils

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

NOx SOx CO2

LNG

Oil Fuels

• Low Temperature (-163°C)

• High expansion ratio of 600:1

Physical Properties

• ~60% increase in fuel volume

Storage Requirements

What are the choices?

• LSFO

• HFO with emissions abatement

• LNG

• Alternative fuels

8

“Why start with a dirty fuel

and then clean it?”

Longer term oil prices are

expected to continue to increase What other reasons are there

for looking at alternative fuels?

The alternatives

Non-conventional energy:

• Solar, Wind, Nuclear, Fuel Cell

Combustible fuel:

• DME

• Highly flammable

• Processed onboard

• Precursor to Methanol

• Methanol

• Normal fluid

• Toxic

• Invisible flame

• Waste product or derived from NG• Hydrogen

• Containment

• Very highly Flammable

• Cryogenic (larger installations)

• Feedstock reformed onboard?

Working togetherfor a safer world

LNG as fuel and LNG Bunkering

OTMW-Module 5

Monday 23rd of November 2015

University of Piraeus

What is currently out there?

Global Fleet:

• ~37 LNG powered vessels in service

• Majority small ferries and off shore support

• 70% built/converted since 2009

• ~ 30 more in next 2 years

Lloyd’s Register:

• Oldest dual fuel vessel (1982)

• First dual fuel IWW tanker (2011)

• Largest LNG fuelled vessel to date – Viking Grace (2013)

• Largest and most complex LNG passenger vessel

• First LNG Safe-Return-to-Port

• 10+ other LNG projects

• Cargo & Passenger

11

Bunkering Methods

Gas-Fuelled

Vessel

Truck to Ship

Ship to Ship

Pipeline to

Ship

12

Truck to Ship (TTS)

• Small volume bunkering (100m3/hr maximum transfer)

• ISO tank = 40m3

• Bunkering same side of vessel as other operations

• Low infrastructure cost

13

Ship to Ship (STS)

• Mature technology from LNG tankers

• Larger transfer rates

• Bunkering opposite side – safety exclusion zones

• Cost of bunker vessel

• Compatibility

14

Pipeline to Ship (PTS)

• Regular routing

• Larger volume & transfer rate

• Direct from terminal or re-fillable shore storage tanks

• Infrastructure cost

15

What are the Issues and Design Considerations for LNG

Bunkering

• Risk Management

• Compatibility

• Control of operations

• Safety and Communications

• Cryogenic protection/leak prevention

• Flexible hoses

Risk management

• Complex operation

• Risk assessments as part of pre LNG Bunkering procedure

Vessel

Compatibility

Location &

Environment

PersonnelEquipment

Emergency

Planning

Regulations

17

Compatibility

• Physical connection:

• Bunker / Vapour / IG

• Manifold heights

Bunker Vessels should have a defined list of gas fuelled ships that it can safely

bunker.

The different types of ships should form part of the bunker vessel Risk Assessment

• Hazardous areas

• Overlap between bunker vessel/truck/shore facility and ship

• Ventilation etc.

• Emergency systems

• ESD & communications

18

Control of operations

Master(s)

• In charge of manoeuvring

Person(s) in Overall Advisory Control (POAC)

• In charge of bunkering operations on each vessel

• Agree mooring arrangement

• Supervise connection & disconnection

• Ensuring safe procedures – purging & leak testing

• Monitoring fuel transfer / Vapour management

Security (ISPS)

• Exclusion zone according to local regulations

• Suspend and separate upon breach of security

19

Flexible hoses

• Alternative to marine loading arm

• Should be sized for application & fully supported

20

Where and When to bunker?

Estuary Terminal & Port :

Class / Flag / Port/ Land

Regulatory Authorities

Bunkering

& RegasLightening

In-shore Waters:

Class / Flag / Port Authority

/Coast Guard

FLNG

Offshore Location:

Class / Flag/ National Field

Authority21

• Weather

• Terminal restrictions

• Simultaneous operation subject to port constraints

• Opposite side?

• Dependent on surrounding vessels?

What is the current regulatory framework for LNG as a fuel?

Rule and Regulation Development

SOLAS II-2 regulation 4.2.1 limits the flashpoint of oil fuels to 60℃ or higher

Resolution MSC 285(86) Interim

Guidelines on Safety for Natural

Gas-Fuelled Engine Installations in

Ships (2009)

IGC – Safe carriage by sea of bulk

liquefied gasses

Lloyd’s Register Rules for the

Classification of Natural Gas

Fuelled Ships

(July 2012)

Draft IGF Code

SOLAS II-2 regulation 17: Alternative Design and

Arrangements

Lloyd’s Register Rules for the

Carriage of Liquefied Gasses in

Bulk

Lloyd’s Register Rules for

the Classification of Natural

Gas Fuelled Ships

(July 2014)

IGF Code

22

Current designs must comply with

SOLAS, MSC.285(86) and National

Administration requirements

1. This is not just about compliance, it is about

building the right, safe and efficient operation,

2. Engagement is of paramount importance, ship-

owners, designers and class must actively work

together since day one

3. LNG as marine fuel is feasible from technology

aspects but much will depend on robust concept

and right scale

Concluding, Take aways…

Lloyd’s Register and variants of it are trading names of Lloyd’s Register Group Limited, its subsidiaries and affiliates.

Copyright © Lloyd’s Register Group Limited. 2015. A member of the Lloyd’s Register group.

Anna ApostolopoulouMarine Strategy and Implementation Manager

E: anna.apostolopoulou@lr.org

Yvonni-Effrosyni DamianidouBusiness and Technical Support Specialist

E: yvonni-effrosyni.damianidou@lr.org

Hellenic Lloyd’s SA

Akth Miaouli 87

Piraeus, Athens-Greece

Working togetherfor a safer world