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1 LNG for Lübeck feasibility considerations within the framework of the project „Magalog“ WP5 / WP 6b author: Jörg Sträussler Felix Dencker

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Page 1: LNG for Lübeck - European Commission · When we are talking of LNG for Lübeck, we are talking strictly Small Scale LNG. In these dimensions there are available insulated standard

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LNG for Lübeck feasibility considerations

within the framework of the project „Magalog“ WP5 / WP 6b

author:

Jörg Sträussler Felix Dencker

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table of contentsLNG for Lübeck ........................................................................................................................................ 1 Summary.................................................................................................................................................... 3

Legal regulations of LNG.................................................................................................................... 3 Institutional regulations of LNG ......................................................................................................... 3 Situation in Lübeck and Lübeck-Travemünde .................................................................................. 3

Technic LNG ............................................................................................................................................. 5 Short Introduction................................................................................................................................. 5 Status Quo and recent handling........................................................................................................... 5 Goal: LNG for Shipping ...................................................................................................................... 7 LNG for the regional natural gas grid ................................................................................................. 8 LNG-Terminal ...................................................................................................................................... 8

Requirements for the use of LNG ............................................................................................................ 8 Market Analysis .................................................................................................................................. 10 Prospective Customer for LNG: Shipping....................................................................................... 10

Profil............................................................................................................................................... 10 Technology on Board .....................................................................................................................11 Technology on Land ......................................................................................................................11 Prospective Demand of LNG.........................................................................................................11 lead-in-solutions ............................................................................................................................ 12 Summery Demand of Ships and Outlook .................................................................................... 12

Prospective Customer for LNG: Stadtwerke Lübeck....................................................................... 13 Technic ........................................................................................................................................... 13 Potentally LNG demands.............................................................................................................. 13 special requirements...................................................................................................................... 14 interim solutions ............................................................................................................................ 14 summing up and outlook............................................................................................................... 14

supplier .................................................................................................................................................... 16 Gasnor AS........................................................................................................................................... 16

Lieferpotential für LNG................................................................................................................ 17 Distribution vor Ort ....................................................................................................................... 18

Distributor vor Ort.............................................................................................................................. 19 Potentielle Standorte ............................................................................................................................... 19 Wirtschaftlichkeitsbetrachtungen........................................................................................................... 20 Fazit .......................................................................................................................................................... 20

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Summary In this feasibility study we point out the chances and possibilities provided by the use of LNG for the region of Lübeck. We demonstrate that it is possible to provide the gas grid and the ships of Lübeck with LNG. An analysis of the Stadtwerke Lübeck as supplier for natural gas and of the marine traffic in Lübeck and Lübeck-Travemünde has been made and an estimation for the demand of LNG for both of them is given The feasibility study depicts, that Stadtwerke Lübeck and the ship owners can have very effective synergy effects in using LNG. The Stadtwerke Lübeck would play the very important role as a door opener for LNG. At least Lübeck's market prices for LNG will decide, wether LNG will be competitive compared with common fuels or not. These prices will be a product of negotiations between LNG supplier and LNG distributers. There is an invitation made for such negotiations on the 17th of November and everyone is looking foreward for the results.

Legal regulations of LNG LNG is not dangerous for waters nor it is liable to special legal regulations beyond the regulatons for handling technical gases. Therefore there are no legal regulations for land transport nor for shipping, restraining the handling of LNG.

Institutional regulations of LNG Currently LNG can only be used in pilot projects since its flash point is beyond 60 °C and therefore not allowed as fuel for ships. A harmonization to the regulations which are in force in Norway is in progress but still may last a time. In Norway LNG is common since a few years as an alternative fuel for ships – with great success.

But using the loop-hole „pilot project“ the use of LNG in the first ships could come true in the near future even in Germany. In this way the process of developing german standards for LNG could be accelerated. So LNG with it's environmental advantages could quickest possible be carried into German shipping

Situation in Lübeck and Lübeck-Travemünde

Status Quo

Lübeck as harbour base is facing an enormous boom in the numbers of incoming ships and freight and passenger-traffic. In the 1970s there where about 3 departures a day, nowadays there are more than 30 departures. The international regulations for ship emissions are much too weak and getting stronger much too slow. Most ships are still propelled by heavy fuel oil. Cleaning systems for exhaust gas and clean fuels

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are expense factors which are seldom honored or even noticed by customers ore harbour authorities. Therefore a massive decline of quality of the Lübeck-Travemünder air is the displeasing by-product of the elsewise welcome increasing harbour traffic. Especially Lübeck-Travemünde is especially effected as connecting passage to the other Lubecian harbours. Making this problem even more serious is that Travemünde has made it's mark as a health resort. This complex of problems is very difficult to solve. Projects, which have been brought on their way, like the „Cold Ironing“ (within the Projekt „New Hansa“) does not give full credit to the matter. Adapting the national and international environmental and emission regulations are a very slow tool to move ship owners to real clean solutions. Whereas clean solutions can be acchieved by cleaning the exhaust gas or by using a clean fuel. Vision

The introduction of a new, competetive and sufficient available clean fuel clould be a real quantum leap in shipping. Expensive and room filling exhaust gas cleaning systems or other technical complexity would be dispensable. LNG combines these premises in ideal modality. With LNG as fuel for ships it will be possible, to bring down the emissions of the shipping traffic to a minimum. In this way Travemünde can get rid of the last big source of air pollution. There is the classic hen-egg-problem to solve in the lead in the use of LNG as a fuel for ships: What is to establish first – ships propulsed by LNG or bunker stations for LNG? The LNG infrastructure or the customer for LNG? This vicious circle could be broken through the engagement of the Stadtwerke Lübeck as the local supplier of natural gas. So there is the vision of LNG as a clean fuel for ships to regain clean air for the region of Lübeck on one hand. On the other hand to get a new supply for natural gas for the local gas grid of the Stadtwerke Lübeck on the way for diversification and more indipendence from the common gas supplier.

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Technic LNG

Short Introduction LNG, Liquified Natural Gas, is made by cooling down natural gas below -168 °C . While doing the phase change from gaseous to liquid the volume of the gas shrinks down to the 600th part; the energy density rises the same amount.

In this way natural gas becomes transportable and storable in (insulated) Tanks, comparable to oil. Before usage LNG has to be evaporated again. The phase shift from liquid to gaseous energy has to be feeded – LNG has turned to (C)NG – (Compressed) Natural Gas - again.

LNG can be stored in insolated tanks under low pressure at -163 °C. An active cooling of the tanks is normaly not practable; the ambiant heat streaming through the insulation inside the tanks leads to a continious evaporation, causing so called „boil off gas“. This boil off gas causes an increasing pressure insides the tanks which can be tolerated up to a certail level. Is this level exceeded, boil off gas has to be released to bring down the tank pressure to a save level.

The ideal case would be to use the boil off gas in a energetic usage, in individual cases it may be recooled and liquified again.

In recent times boil off gas often was torched or blown into the atmosphere. The last one needs to be viewed critically, since natural gas consists of methan, which is a highly climate effektive.

Status Quo and recent handling The advantages of LNG are utilized since decades. Complete grids for natural gas, not connected to gas supplying countries are supported by deliveries of LNG via ships. One example of a whole national economy, supported with this clean energy in this way, is Japany. Landscapes with difficult topography, like large regions of Norway, are supported by LNG too, here the gas grids and the LNG Feeder are much smaller, this has lead to the so called „Small Scale LNG“.

LNG feeder are common all over the world; already in the 1970s LNG feeder have been build at HDW, Kiel. These Feeders already used boil off gas for assisting the heavy fuel oil heated steam boiler and steam turbines.

Illustration 1: scale contrast (C)NG vs LNG

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LNG terminals on land are used for buffering and supporting gas grids. For supporting a natural gas grid from an LNG terminal, LNG has to be pumped through an evaporizer; this has to be passively heated by ambiant heat or heated actively by burning fuel. Boil off gas, emerging while storing, can be lead into the gas grid continously, or buffered as CNG.

Hence operating experience with LNG has been made since decades, most of it in Large Scale LNG.

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Goal: LNG for Shipping The energy characteristics of LNG showing that it has an advantage compared with marine diesel in energy per weight, but disadvantages in energy per volume, to be verified in the following table:

The larger volume needed for the use of LNG can partially relativized through no more needed pre-heating (of HFO) or exhaust gas cleaning systems.

Engine Technology:

Namable producer of ship engines adjusted to the new requirements and are launching dual fuel engines. These engines are capable to be switched between two fuels in continious operation. The dual fuel operation affordes chances for smoth change to the new fuel LNG

Pure gas runned engines have been developed es well, but have a very restricted field of assignment, especially before the support of LNG for ships is established area-wide.

Fuel Tanks in Ships:

The bunkering of LNG make high demands on tank and hookup design compared to the bunkering

Abbildung 2: table energy contents of LNG compared with marine diesel

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of marine diesel or HFO. Beyond the technical requirements the particular legal regulations have to be taken into account, which are still in adjustment in Germany.

Several designs are thinkable for tank arrangements and concepts have been worked out in studies by engine manufactures, Wärtsilä, for example.

In general LNG provides an advantage in weight of the factor 1,12 , but a disadvantage of 1,49 in the energy density.

Infrastructure for bunkering: At the moment equipment and experience for loading and unloading of big LNG-feeder is well known. This was developed to support Large Scale LNG. LNG as cargo is therefore common stuff. Throughout positive experience have been made in Norway with Small Scale LNG to provide small gas grids and have lead to standardizations and classifications. Standardizations and classifications for Germany are in prearrangement.

LNG for the regional natural gas grid Worldwide gas grids of complete nations like Japan are feeded by LNG, which is carried round the world by large LNG feeders, since decades.

Norway supports even very small gas grids with the so called Small Scale LNG in through fjords and ridges dissected areas.

Mostly the supporting of regions without connection to gas pipelines is in the foreground. But with increasing world energy problems economical and political reasons are coming into the limelight, like diversification in suppliers and strengthening of the own position in the energy market up to security of supply and freedom of action.

Here are the chances and advantages for the Stadtwerke Lübeck got to be seen.

From the technical point of view a evaporator is needed for making CNG out of the LNG out of the terminal just in time, to provide the local gas net. Such evaporators can used with ambient heat or can be heated artificial. The evaporator is directly connected to the terminal. It's appropriate size and evaporation power is defined by the needed maximal flow rate of gas, to be able to provide power peaks in the gas grid reliable.

Such evaporizers are state of the technology; there is no need of challenging new developement.

LNG-Terminal A LNG-terminal consists as a basic of principle out of a good insolated tank for LNG, a loading- and unloading device (applicable for a road tanker). If a natural gas grid is to be supported, a suitable dimensioned evaporator is needed to regasificate the LNG just in time.

When we are talking of LNG for Lübeck, we are talking strictly Small Scale LNG.

In these dimensions there are available insulated standard tanks, they man be connected modular to the favored terminal size.

One common standard trank for LNG has the size of 750 m³holding capacity.

Requirements for the use of LNG LNG is a high-energy energy carrier. The contained amount of energy can be of great use, but can

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be of great danger when handled careless – like in every case where great amounts of energy is handled. In the use of LNG the pysical and engineering requirements must be developend and checked very carefully. At the same time legal requirements and control mechansims of institutions must be developed to saveguard the use of LNG in the paractise in the best way. Since LNG as a fuel in shipping is a new issue, there are domains, where no guidelines and specifications are made yet. In these domains it is important, to provide a good engineering to make good preperation for usable legal requriements and lead them on a good course.

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Market Analysis At the moment there is not a single customer for LNG in Lübeck. Prospective customer in the commercial launch of LNG may be the Stadtwerke Lübeck as the operator of the local natural gas net, as well as ships, using LNG as an environmental friendly fuel. In this part of the feasibility study these two customers will be analysed.

Prospective Customer for LNG: Shipping The advantages of the use of LNG in shipping are obvious: LNG is the big chance, to lead shipping to a foreward-looking and environmental friendly fuel, adequate available in long therms.

A big restraint is the hen-egg-problem: the lead-in of LNG in shipping without the infrastructure for bunkering LNG or building up a LNG bunker station without the perspective of an adequate degree of capacy utilisation in conceivable times.

Beyond the missing infrastructure the ship owners have to get confidence into a new fuel and it's availability and price stability, before taking the risk of a long term invest in LNG-adapted propulsion systems. With it coming divers questions according to practically, legal and security topics which will be important for commercial shipping.

From the technical point of view adapting propulsion systems to LNG is no big problem, namely producers are ready to go in production or are in production already.

A great facilitation for the lead-in of LNG as a shipping fuel will be the dual fuel technology, allowing a smooth shift to LNG. With this technologie it will be possible to choose the right fuel according to environmental zones and according to varying fuel costs. Even the incomplete supply of LNG while the lead-in time will be no barrier and serious problem any more.

The hen-egg vicious circle can be broken this way – at least for the customer.

Profil Ship owning comanies are under extreme economic pressure nowadays.Therefore it is very important, to keep the running costs, to which count the fuel costs as well, down. At the same time a undisturbed operation has to be ensured, to minimize disruptions and therefore possible profit setback. At the same time environmental requirements are getting tougher; arrangements for avoiding emissions are in strong contradiction to economic interests. Although obvious visible emissions (like black smoke) affect the reputation, experience has shown tat customers did not dignify the effort of different ship owners, caring for a clean operation of their ships. A clean fleet did not lead to an advantage in competition in the near foretime, so that it happened, that ship owners switched back to „dirty“ heavy fuel oil. Laws for the protection of the environment are slowly to promote, tedious international negotiations are necessary. National solo attempts does not work, since ship owners are tending to use switchover facilities then. So it is an extremly difficult callenge to acchieve positive environmental changes in shipping. Alternative technices have to be acchievable and cometitive, or providing good advantages in the near future. LNG can provide these advantages as an acchievable and clean fuel.For ship owners it will be a certain additional expenditure for tank technology and adapting the machinery. In return the exhaust gases will be extensive clean and comparativly CO2 friendly. Complex exhaust gas cleaning

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systems will be dispensable. An environmental friendly reputation comes automatically. Precondition will be that legal requirements for the use of LNG have to be developed and set in force, and that the infrastructure vor developing LNG has to be established. sowie eine Infrastruktur

Technology on Board For using LNG as a fuel, the engine has to be adapted to LNG and the engine room and the inlets have to be gastight. Insolated LNG-tanks on a suitable location have to be provided. Pipes for leading LNG have to be protectet, a security valve for exceeding boil off gas has to be existent.

Alternative to a fixed installation of LNG-Tanks loading and connecting of 40 ft LNG-containers with 31,5 m³ capacity each would be thinkable. This solution for supporting LNG to a ship's engine was already developed in a study of Wärtsila The time-consuming act of bunkering LNG would be displaced by the easy and quick act of loading and connecting containers.

In the study of Wärtsilä 8 containers are necessary for a common roro-ship of the size of the Finneagle; that would mean a total capacity of about 250 m³ LNG.

technology on Land The LNG-terminal has to provide certain facilities to be able to support the bunkering of ships.

Thinkable is a LNG-distribotion via:

− direct bunkering of ships

− pipelines to certain quays

− bunker-barges

− distribution on land via road tanker

Like later discussed in „supplier: distributor on-site“ the distribution of LNG on land with road tanker provides large advantages. Only via land transport different ships on different quays can be supported with LNG that flexable.

Therefore an LNG-terminal has to provide the possebilitys to load even road tankers with LNG

Prospective Demand of LNG One LNG-propulsed roro-ferry in line operation may bunker 250 m³ every 2 days. That means about 750 m³ per week, if one average ferry would operate on LNG. Would round about one third of all of the ferrys, starting form Lübeck, would be supported with

Illustration 3: 40 ft LNG-Container

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LNG, that would mean a roughly estimated demand of 7.500 m³ LNG per week.

lead-in-solutions In Germany it is at the moment for reasons of legal requirements only thinkable, to run a LNG propulsed ship in a pilot project. Because there is no infrastructure for bunkering LNG yet, dual fuel technology with it's ability to switch between LNG and common fuel ideal to reduce barriers for ship owners to switch smothly to LNG and be prepared for inreasing environmental requirements.

Summery Demand of Ships and Outlook 750 m³ LNG meet the energy demand of one roro ferry for one week.

7.500 m³ LNG per week would roughly estimatet support 1/3 of the ship traffic of Lübeck with LNG.

Taking into account the legal requirements which are in force at hte moment, a pilot project with one LNG propulsed ship or mabe one line should be possible. In a LNG project together with the Stadtwerke Lübeck one LNG terminal could be used to capacity immediatly.

With adapting the classification and the approval of LNG as a common fuel for ships, LNG could be established as a clean fuel for further ships. Travemünde can be established as LNG-site and the position as a health resort can be saved.

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Prospective Customer for LNG: Stadtwerke Lübeck For the Stadtwerke Lübeck the advantages of LNG is not as obvious as for shipping. Taking a closer look at the coherences, this new source of Methane has a lot of key benefits: diversification and strengthening in the gas market, be free to react flexible to unexpected demands in the own gas grid.

The Stadtwerke Lübeck may play a key role establishing LNG in Lübeck, since they are running the local gas grid. Implementing LNG simply would mean to open up a new source of methane.

Consequently the Stadtwerke Lübeck could bring foreward implementing LNG in shipping, participating in synergy effects. Expanding the own position in the gas market by running the LNG bunker stations would be conceivable.

Profile The Stadtwerke Lübeck are running the local gas grid, being the local energy supplier.

Technic There are different parts of the grid on differing pressures. Methane is obtained via pipelines by different suppliers. There are long term delivery contracts. These contracts guarantee cheap prices if Stadtwerke Lübeck are able to make precise predictions of their demand of methane: Stadtwerke Lübeck are ordering certain amounts of methane. These amounts have to be approved; mismatching in one ore the other direction leads to high prices: „millions of Euros for minutes of mispredicted demand“. Stadtwerke Lübeck are running a methane storage of 60.000 m³ to get a certain flexibility in sourcing methane. Elsewhere so called Peak-Shaving is done: the gas supplier adds gas out of own reservoirs while times of high request to avoid bying extra amounts of gas on high prices. The peaks of high request are shaved figurative. Because of special contracts Stadtwerke Lübeck have made it seems to be of no importance currently. However, with establishing LNG as a new energy source things could change. in prospective contract negotiations LNG could be a very interesting new instrument. ́

Potentally LNG demands In discussions with Stadtwerke Lübeck three conceivable stages of extension have been highlighted: − unexpected demand − peak shaving − complete supply of Lübeck by LNG

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szenario Unexpected Demand Unexpected demands result out of not (precise enough) predictable criteria. Such cases often happening every few years, more seldom a few times in one year. Long time experience shows, that one case of unexpected demand means an additional demand of up to 80.000 m³ gas under normal pressure. This demand of natural gas could be covered by 133 m³ LNG. 1.000 m³ is a reasonable terminal size, taking into account a factor 7 of safety for several unexpected demands between two dates of delivery and including volume for boil off losses. The boil off losses can be lead into the local gas grid smartly – in fact they are turning out to be no losses at all. Peak Shaving The LNG storage has to be large enough to cover fluctuation in the use of natural gas in the grid and therefore avoiding a fluctuation in obtaining natural gas from outside. Exact numbers are difficult to obtain, Stadwerke Lübeck have to draw a Profile of demand. complete supply of Lübeck 300.000 m³ natural gas under normal pressure are used on an average day in the gas grid of Lübeck. This amount of natural gas can be covered by 500 m³ LNG. The terminal must have a size of 10.000 m³ for a 20-day-storage. Boil off losses are playing no rule in this szenario, they are a part of the continuous gas flow. This would be realistic for a delivery every two weeks. But it have to be taken into account that the demand in winter time will be higher than average.

special requirements Not only the amount of gas is important: The maximum flow rate of natural gas defines the size of the evaporator needed to perform the gas supply for Lübeck. Small evaporators are able to operate atmospherical, they are using the heat of the environment to provide the energy for get over the latent heat. Larger evaporators need an heat supply. This can be provided by process heat or active heating.

interim solutions One have to have an LNG feeder accessable LNG terminal in good location to establish a LNG infrastructre. This location has to be connected to a strong backbone of the natural gas grid of Lübeck. Only this way a sufficient flow rate of natural gas from LNG can cover the complete gas grid. Only doing Peak shaving or providing the whole gas grid from LNG is only a question of dimensioning terminal size and evaporator power. Using modular systems an extansion is possible. But one have to take into account a strong connection to the gas grid, a proper location and enough reserve of space around. Even bunkering ships and LNG cargo cars is possible. Synergy effects can be used and further lines of business can be remaind open.

summing up and outlook The demand of Stadwerke Lübeck is between 1.000 m³ LNG for unexpected demand and about 5.000 m³ per week for covering the complete supply of Lübeck.

With modular architecture of the LNG terminal all stages of extension and all stages of supply are conceivable, like depicted in chapter „interim solutions“

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Additionally it is important to look for synergy effects. In this way the highest benefit and the minimal otlay for running such a plant can be achieved. For evaporising LNG energy is used, which maybe can not be covered by environmental heat in each case; active heating may be required. Here symbiosis with business is thinkable, where cooling is needed or process heat has to be conducted:

cold storage houses

An LNG terminal has to be located at the water side. Cold storage houses could be built beneath, cooled by the latent heat of the LNG. Cold could be sold as a by product of evaporating LNG.

power plants

Process heat has to be conducted in all thermal power plants. Therefore a LNG terminal and a power plant would be an ideal symbiosis. Unfortunatly near the harbours of Lübeck there is no power plant any more. But it would be possible to produce process heat with for example a well designed block-unit heating power plant, providing heating energy for evaporising LNG and selling electricity as a by product. Worthwhile synergy effects could be achieved, especially taking into account the cold ironing project of Stadtwerke Lübeck.

Stirling-power plants

A Stirling engine needs as actuator a temperature difference. One heat exchanger of the engine has to be heated, a scond heat exchanger has to be cooled; herefrom kinetic energy is generated.

Cooling one heat exchanger by LNG on -168°C and heating the other heat exchanger by environmental heat or moderate source of heat would be the consequent continuation of this idea. The obtained kinetic energy could be transformed into electricity.

Vast concurrency of peaks of use of electricity and of natural gas include big advantages of an LNG-evaporating coupled electricity generation.

Therefore the protuced electricity fits perfect to peak shaving concerning electricity. Bying expensive peak load electricity can be avoided; this is of high interest of Stadtwerke Lübeck too. Out of environmental sight electricity, provided at times of peak load, avoids electricity from unefficient peak load power plants; this is a good contribution it climate protection.

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supplier The supplier figures an important role in energy supply. Lynchpin of our modern society is accurate and reliable maintainance with energy. Given status quo of supply guarantee must be hold or enhanced but in no case declined. .

Thus a very capable and reliable partner has to be found to ensure the supply with LNG. This partner should have experience in all fields of using and handling LNG. A strong infrastructure and reliable fleet to safeguard a secure delivery with LNG on schedule should be at hand.

Gasnor AS Source: http://www.eon-ruhrgas-international.com/cps/rde/xchg/SID-0AE1A4B7-43CAABBF/er-international/hs.xsl/2320.htm?rdeLocaleAttr=en

Illustration 4: Part of the operating area of Gasnor AS: orange dots showing (Small Scale-) LNG - terminals

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Gasnor is Norway’s leading gas distribution company. Its customers mainly come from the industrial and services sectors in the southwestern regions of the country. In 2007, gas sales totalled approx. 1.9 billion kWh. Some 200 industrial customers are supplied with gas. In addition to the traditional supply of gas through a more than 100 km distribution network, the main business focus is on LNG/CNG (liquefied/compressed natural gas). The company has its own LNG production facilities on the island of Karmøy and in Bergen. After extension work, a production facility in Kollsnes also went into operation in September 2007. Thus LNG now accounts for more than 10% of total gas sales. Gasnor is above all active in the so-called small-scale LNG business. The company uses small tanker vessels and LNG trucks to supply customers in remote areas and those needing gas at short notice. In 2007, sales volumes increased thanks to the supply of LNG to fuel fjord ferries. In 2008, the capacities will be extended following the commissioning of a new LNG vessel which is expected to have a positive impact on the development of the company’s LNG business.

Therefore Gasnor constitutes a precursor and strong partner in the matter of LNG depending shipping and even stationary application.

capability of LNG supply Gasnor has chartered a new LNG feeder with a payload of 7.500 m³ for the next years for trading LNG. This feeder could come to Lübeck every week according to demand. The demand of natural gas could be completely covered in this way.. The size of the feeder affects the appropriate size of the LNG-terminal since the payload of the feeder has to be well exploited to save costs. A usefull size for a terminal is between 5.000 m³ and 10.000 m³.nvoll sind daher Terminal-Fassungsvolumina zwischen 5.000 und 10.000 m³.

Illustration 5: Coral Methane: Reeder: Anthony Veder, Charter: Gasnor, length: 117,8 m , width: 18,6 m, depth: 7,15 m, payload: 7.500 m³

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local distribution Local distribution of LNG is a very important problem. Locating the terminal near a backbone of the gas grid for Stadtwerke Lübeck this problem is elementary solved.

Several possibilities have to be analysed to be able to reach vessels in a flexible way: is diret bunkering from the terminal appropriate or has one to figure out a more flexible way?

Possible techniques are::

− direct bunkering from the terminal

− using pipelines to the quays

− using bunker-barges

− using landtransport via cargo car

direct bunkering

A bunkering vessel would block the terminal for the whole process for bunkering. Also the terminal has to be called, this would mean additional traffic and demurrage. So this solution could be only an exceptional case.

pipelines

have to be handled with inert gas to avoid the danger of explosion. With each using, serious amounts of boil off gas has to be handled. These kind of pipelines have to be careful insulated, wich makes them very costly. Especially longer pipelines would be very expensive. Building such pipelines would mean to disturb harbour operation in a serious way.

bunker barge

is very flexible and can support vessels while demurrage. Disadvantage are the costs of running a independend ship which means comparitivly high invest and operation costs. Not all quays are capable to give enough space for two ships.

land transport via cargo car

The most flexible and cheapest solution. Cargo cars could reach nearly every harbour of Lübeck (a certain problem may be Schlutup since only in reach using a tunnel). Cargo cars can be loaded directly at the terminal in a convenient way.

local distributor Three institutions are obvious to run the terminal and manage the local distribution of LNG: port aufhority of Lübeck, running the harbours of Lübeck; Stadtwerke Lübeck running the local gas grid or Gasnor, supplying Lübeck with LNG and having high experience handling LNG. But even an investor could run the terminal

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possible locations To get an overview about the harbour situation in Lübeck:

A good location for an LNG terminal for Lübeck has to meet 3 interests: − in reach for the LNG feeder − accessable for the gas grid of Lübeck − possibilities of distribution to other vessels in reach for LNG feeder A suitable quay has to be long enough and provide a certain depth and should be able to be blocked for long loading situations. It would be good if this location would be close to the sea since sailing Trave river costs time. But in principle Trave river can be sailed nearly up to the city center of Lübeck. accessable für the gas grid of Lübeck The location should be near a backbone of the natural gas grid of Lübeck to provide a powerful connection. In the last stage of extension a full coverage of the gas supply should be possible. possibilities of distributions to other vessels A good road connection is very important after discussing that direct bunkering is not very flexible and has many disadvantages. Appropriate areas with enough space for equipment and security distances has to be found, which are still available. Ovnership- and user structure have to be taken into accound. This will make a lot of negotiations necessary. Nordlandkay, Lehmankay 1, 2 and 3 and Skandinavienkay have been discussed. All these quays would have fullfilled the most important criterias. At least Skandinavienquay seems to be highlighted as most appropriate location after lots of discussions with Stadtwerke Lübeck, Port Authority of Hansestadt Lübeck, Harbour Company and a few ship owners.

Illustration 6: Lübeck's waterways and harbours

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This location seems to fullfill all requirements in a very good way. Anyhow Skandinavienkai is one of the most frequented harbours of Lübeck. Lots of interests have to be taken into account.

valuation of investments Wether the use of LNG as a ship fuel or for substituting natural gas from pipelines in the gas grid of Lübeck will be economical possible and reasonable will be a result from price negotiations between LNG providers and users respectively distributors. Hereunto all partys have to come together for negotiations.

conclusion The supply of Lübeck with LNG for shipping and for the regional gas grid is in all stages of extension possible. This has large ökologic andvantages for emission in shipping generally and for the relief of Lübeck and Travemünde in particular. Furthermore there are economic advantages in the sence of diversivication and saveguarding the energy supply.

In establishing LNG there are synergy effects when going for providing the gas grid and bunkering ships at the same time. Especially trom the point of view of the ship owners it is very important to work together with Stadtwerke Lübeck, since they may have the role of an door opener.

A useful terminal size would be at least 5.000 m³ to be able to exploit an LNG feeder profitable. As a suitable location Skandinavienkay was highlightet so far.

The economy of LNG will result from price negotiations between LNG supplier and local distributor.

Illustration 7: Overview: Lübeck-Travemünde with Skandinavienkai Illustration 8: zoomed in: possible location

LNG-terminal