HorizonsNews and Information for the Marine Industry. A Lloyd’s Register magazine

Is LNG the fuelof the future?– STS transfer

– Regasification

– World’s largest LNG ferry

– Major terminals

In this issue:–When the sloshing had to stopPage 20–The fish that flies on a cushion of airPages 26–29

May 2011

Our more complex world

Contents

Horizons is the journal for Lloyd’s Register Marine clients and staff, delivering news and analysis on our global activities.

The Horizons team are:

Editor: Chris BrowneE: chris.browne@lr.orgT: +44 (0)20 7423 2654

Marine Communications Manager: Nick Brown

Staff photographer: Mat Curtis

Design and production: Columns Design

Horizons is produced by Marine Communications. Care is taken to ensure the information it contains is accurate and up to date. However Lloyd’s Register accepts no responsibility for inaccuracies in, or changes to, such information.

Front cover: Excelerate Energy-operated LNG tanker Excelsior performs a regasification operation, transferring LNG to the UK national grid, at Teesside’s GasPort near Middlesbrough, North-East England. Equipment type approval and operational risk analysis and simulation studies were performed by Lloyd’s Register. Excelerate Energy, a developer of LNG transportation and regasification infrastructure, has just performed its hundredth ship-to-ship transfer of LNG.

A recurring theme in our analysis of the challenges and changes that the shipping industry and world trade will have to manage is that of complexity. The tragic events in Japan have drawn attention to the potential fragility of global supply chains as well as halting, for the time being, the potential expansion in the use of nuclear power as an almost zero carbon source of energy, writes Nick Brown, Lloyd’s Register’s Marine Communications Manager. We are closely following developments in the global supply chain. Lloyd’s Register is involved from oil well to fuel tank and from farm gate to the breakfast table in helping commodity players, industry and society manage risk and complexity. There is a growing realisation that the model of all manufacturing being offshore, a long way from consumption, may not necessarily be the future. Future efforts to reduce carbon emissions from both industry and shipping may lie in adjustments to our supply chains and changes in patterns of consumption. Some companies may soon no longer feel it is necessary to manufacture in China – it may, for example, be no more expensive to manufacture in the United States. Such a development would have a significant impact on global shipping. Future fuelsThere are many competing approaches and agendas as the world struggles to plan for the future balancing a requirement for increased amounts of energy with the need to reduce environmental impact. The dramatic introduction of shale gas as a source of affordable, ‘clean’ energy might be viewed as bolstering those pushing gas as a fuel of the future – and not just in shipping. But there is a growing realisation that while LNG can be used to mitigate SOx, NOx and particulate emissions, its contribution to reducing greenhouse gas emissions is unproven. Across the supply chain, from well to flue emissions, there may in fact be legitimate concerns that LNG does not reduce CO

2 emissions on a like-for-like

basis with other fossil fuels. There’s a lot more work to be done here and hopefully we throw some light on the role gas will play as a fuel of the future with our focus on LNG in this issue of Horizons. Scrubbing or distillates are increasingly looking like the mainstream, pragmatic route to complianceWith the huge bulge in the orderbook still being delivered into the market and no likelihood of LNG applications for either retro-fit or the vast majority of newbuildings, heavy fuel oil (HFO) remains the fuel of today and of shipping’s medium-term future.

Logically, therefore, we are going to see either the widespread adoption and fitting of exhaust gas scrubbing technology or the use of distillates. We are not going to predict what that balance will be, but we are ready to support the industry in helping ensure safe installation and safe operations predicated on our extensive technical competence. The longer termWe feel that the longer-term future for ship propulsion is still wide open. Despite Fukushima we cannot altogether dismiss the potential of nuclear power, but its use is primarily a socio-political issue rather than a problem for engineers. LNG has local uses and may have wider relevance if CO

2 abatement technologies emerge but perhaps,

as Maersk Line’s Jacob Sterling has suggested in our most recent publication Shipping and the environment, it could be a stepping stone to using biogas from renewables. The world has to decide what risks it wants to manage. For instance, is global warming – and the prospect of a dramatic rise in sea levels – more of a threat than nuclear power?

The nuclear debate has demonstrated very clearly that the risks posed by our demand for energy, the damage we are doing to the environment and the potential solutions remain all too poorly understood by governments, those that they govern and the mainstream media.

Nick BrownLloyd’s Register’s Marine Communications Manager

Introduction: Our more complex world 1

Changing faces 2

News: Pilots of the Caribbean gain recognition 4Trimming the fuel bill 4Dragging ships into saving fuel 5Power talk 5Show time 5Winning combination 5Shipping and the environment 5

Cover story: LNG – fuel of the future? 6

Viking builds the world’s first large LNG passenger ferry 10

Why it’s good to talk about LNG projects 12

How GTT and Lloyd’s Register tackled a membrane problem 14

Failure investigation solves exhaust duct problem 17

Companies craft carbon capture carriers 19

When the sloshing had to stop 20

Greek stories: Day the ship came in 21Hellenic environment group tackles major green issues 21

STS transfers – the LR way 22

Flight of the gas-driven fish 26

Regulatory round-up: ECAs are more than just a sea change 30

Enhancing organisational integrity 34

1

Horizons May 2011 Introduction

1 Houston Tim ProtheroeHead of Energy and MarineCurrently Regional Marine Manager (Americas), Tim is to combine the role with leading Lloyd’s Register’s Houston-based energy business from July 1 this year. “Our Houston operations are building on our 100-year history in the USA by becoming a more active member of the community through local sponsorships and community-support projects,” he said.

2 London Katharine PalmerEnvironmental Subject Matter Team (SMT) Manager, Marine Product DevelopmentKatharine, who was Environmental Manager at BP Shipping responsible for policy, strategy and framework is the new head of environmental marine product development. Katharine has represented BP Shipping on environmental groups at the Oil Companies International Marine Forum (OCIMF) and the UK Chamber of Shipping. She is Chair of the Executive Committee of Shipping Emissions Abatement and Trading (SEAaT), which encourages the reduction of harmful emissions from ships.

3 Copenhagen Brian Sørensen Client Relationship Manager for the A.P. Moller-Maersk accountBrian is returning to the Copenhagen office after two years as Senior Surveyor in charge of Lloyd’s Register’s Abu Dhabi office. He joined us in 2007 as a surveyor, later becoming a senior surveyor. Brian has been a project manager with Maersk Ship Design

4 LyonPierre de Chateau Thierry Marine Business Development Manager, FranceSince joining Lloyd’s Register’s graduate scheme eight years ago, Pierre has worked in the UK and spent seven years in Asia, moving from the Ulsan site office and Busan DSO in Korea to the Shanghai BDT in China.

5 Dubai Willem MoëlkerArea Business Development Manager for the Middle East and AfricaWillem has been General Manager of the China Marine Business Development Team (BDT) in Shanghai for almost three years helping Lloyd’s Register win 30% of Chinese newbuilds – or 249 ships – and making us top Chinese classification society in 2010. Willem, who will move to his new post on July 1, will be responsible for a new area from Morocco to South Africa and Iran and Pakistan.

6 Vung TauLee Tuan Phong Country and Marine Manager for Vietnam Formerly Office Manager and Marine Business Development Manager at Vietnam’s Vung Tau office, Lee is the new Country and Marine Manager for Vietnam. He reports directly to Nigel Worsley, Marine Senior VP for South East Asia.

7 ShanghaiThomas KlenumGeneral Manager of the China Marine Business Development Team (BDT)Thomas, who was Manager of the Marine Business Development Team in Copenhagen, Denmark, replaces Willem Moëlker as General Manager, China Marine Business Development Team (BDT). He has spent 17 years with Lloyd’s Register in Copenhagen, Shanghai and London and has been a Principal Surveyor and Manager since 2004.

Changingfaces

2

3

4

5

1

7

6

32

Changing facesHorizons May 2011

Trimming the fuel bill A novel – and inexpensive – way for owners to trim their fuel bills has been devised by Lloyd’s Register’s Technical Investigation Department (TID) after trials with pure car carriers (PCCs) operated by Höegh Autoliners.

A poster on the vessel’s bridge shows the master or first officer the optimum trims* they can use in varying sea and weather conditions on a voyage – in some cases reducing fuel costs by up to 8%. The concept was achieved using a Computational Fluid Dynamics (CFD) system instead of the traditional, and more expensive, method of model and test tank trials.

ᏵᏵ You can find out more about Lloyd’s Register’s trim optimisation and other CFD-based fuel saving services from Dejan Radosavljevic (dejan.radosavljevic@lr.org)

* Every ship has an optimum trim which

usually stems from its draught and speed

Bottom: Lloyd’s Register’s Marine Client Manager Matt Treadwell and Hoegh Fleet Services Vessel Performance Engineer Hans Anton Tvete

Top: A Höegh pure car carrier

Show time

Lloyd’s Register’s Senior Design Support Surveyor Joseph Morelos gave a talk entitled “LNG Powered Ships” at the Gastech exhibition and conference in Amsterdam from March 21 to 24.

Joseph (centre, see picture above) later visited the DSME stand and met W. G. Sagong, DSME’s Head of Outfitting Design (left), and JungHan Lee, DSME’s Executive VP. Ship and Ocean R&D Institute (right).

Winning combination

The “Life Matters” team from Lloyd’s Register won a special awareness award in the Royal National Lifeboat Institution (RNLI) Brawn Lifeboat Challenge recently.

Pictured (left to right) are Jack Lewis, Spyros Hirdaris, Tom Boardley, Latifat Ajala, Ross Brawn, Ian Williams, Morgan Le Callet, Harry Blanchard (top), Ron Bishop (bottom), Paul Dilley.

Ross Brawn was owner of the Brawn team that won the F1 constructor’s and driver’s championship in 2009. The Lloyd’s Register team made just over £28,000 and was cited for “finding innovative ways of reaching new audiences for the RNLI”.

The Brawn Challenge raised a total of £360,000 for a new Thames lifeboat.

Power talk

An animated talk on the challenges owners, operators and legislators face on ECA compliance was given by Peter Catchpole, Lloyd’s Register’s Marine Environmental Services Manager, at the Green Ship Technology conference in Oslo from March 21–23.

In a highly attended breakfast briefing session, Vince Jenkins and Tim Walters, Lloyd’s Register’s Marine Risk Adviser and FOBAS Product Manager respectively, discussed the merits of alternative energy sources ranging from fuel cells, LNG and biofuels to nuclear, wind-farm and solar energy.

An insightful look at the environmental issues that are affecting the shipping industry.Issue 02 / Spring 2011

Shipping and the environment

Shipping and the environment

The latest edition of Lloyd’s Register’s Shipping and the environment publication is out now. Read about the regulatory and commercial factors driving environmental change in today’s Marine industry and the key operational and technical solutions. You can also find out how we and our clients are responding to these challenges, through research, technology development and involvement in emerging legislation.

Once again the publication features an environmental ‘roadmap’, which shows the forthcoming regulations from the IMO up to the end of 2017.

ᏵᏵ You can download a copy at www.lr.org/sate

The future is emerald

A 35,000 dwt bulker design known as Emerald that exceeds all previous fuel efficiency targets has been devised by Lloyd’s Register and Shanghai-based Bestway Marine Engineering Design.

The concept is a performance-beater in several key areas. It reduces a Handysize bulker’s steel weight by 12% (the target was a 10% reduction), freeing up space for more revenue-generating cargo without increasing fuel consumption. It also reduces fuel consumption by 19.5% (the target was 15%). Both companies are going back to the drawing board to seek out further environmental and fuel-efficiency gains with 35,000 dwt bulkers and other ship designs.

Professor Liu Nan, Bestway’s Chairman and General Manager, said: “I am sure that with more co-operation our Emerald series and other bulk carrier ship-types will be optimised, and all these ship-types will satisfy a growing demand from the global shipowner community.”

Lloyd’s Register (China), supported by our Strategic Support Group, is working with Bestway to provide training on the application of our classification rules and rule-change updates, as well as providing Bestway staff with technical training on the operational impact these changes will have on ship design.

Dragging ships into saving fuelA joint project between Lloyd’s Register’s UK & Ireland Marine Business Team and our Technical Investigation Department (TID) has achieved considerable fuel savings for a London/Greek client.

The team used Computational Fluid Dynamics (CFD) to model the air flow and assess wind drag on a 95,000 dwt bulk carrier. The tests included examining the effect of adding fairings and repositioning deckhouse appendages.

The test findings showed that large reductions in wind drag of up to 20% were possible by attaching well-designed fairings to the ship and altering appendages on the deckhouse and funnel. This equated to an estimated fuel saving of 2.5% when sailing at 14 knots into a 22-knot headwind. Smaller, but still significant, fuel reductions were also estimated for lower wind speeds.

We have since repeated the study on a 59,000 dwt bulk carrier. This achieved a similar fuel consumption reduction and showed that by applying the same techniques to classic bulk carrier designs there was potential for consistent fuel savings and a lower overall Energy Efficiency Design Index (EEDI) on vessels of the future.

ᏵᏵ For further information contact TID@lr.org.

Image shows airflow around a bulk carrier’s deckhouse

“It also reduces fuel consumption by 19.5%

“Peter Catchpole

Pilots of the Caribbean gain recognitionA group of marine pilots from Trinidad and Tobago recently qualified for a new industry standard, the International Standard for Pilot Organisations (ISPO), which was developed by Lloyd’s Register and the Dutch Pilots Association.

The Caribbean archipelago’s pilots are the fifth group to be awarded the standard, joining teams from Belgium, Bulgaria, the UK and the Netherlands. Lloyd’s Register and DNV are the only class societies authorised to certify pilots against the ISPO which is a relatively new safety and quality standard based on the ISM code and the ISO standard.

The certification development is carried out from our Rotterdam office and ISM/ISPO auditors can carry out the audits with very little extra training. The recent audit was used to help train Lloyd’s Register’s Trinidad surveyor Wendel George.

ᏵᏵ For further information contact mms.rotterdam@lr.org or maarten.veenstra@lr.org.

Top: Lloyd’s Register’s Auditor Jan de Boaer (right) handing the ISPO certificate to Kurt M. Duncan, Pilot Master of the Trinidad and Tobago Pilots Association

“The ISPO is a relatively new safety and quality standard based on the ISM code and the ISO standard

“

Horizons May 2011

4 5

News

LNG – fuel of the future?Interest in LNG is being driven by a need to comply with ECA regulations to reduce SOx and NOx but with the growing availability of the gas many are also looking at whether LNG offers global potential to power shipping beyond limited applications in areas like the Baltic. Lloyd’s Register’s Senior Surveyor Jesper Aagesen looks at some of the realities of LNG as a fuel. ▶

Lloyd’s Register’s LNG track record Lloyd’s Register has led the classification of LNG ships since their inception in the late 1950s. Notable classification firsts for Lloyd’s Register include:

– First series built LNG ships (Shell Brunei “G” Class ships, since renamed “B” Class, built at Chantiers de L’Atlantique, La Ciotat and CNIM, delivered from the early 1970s)

– Northwest Shelf ships – groundbreaking four-tank design Moss ships (Mitsubishi, Mitsui & Kawasaki, from 1989)

– First LNG ship built in Korea (Moss, Hyundai Heavy Industries, 1994)

– First LNG ship built in Finland (Moss, Kvaerner Masa Yards, from 1996)

– First GTT NO96 vessel built in Japan (Mitsubishi & Mitsui, from 2002)

– First conventional-sized MkIII ships built in Japan (Koyo Dockyard, from 2007)

– First DFDE LNG ships built in Asia (HHI, from 2007)– First Q-Flex size ships (NO96, DSME, from 2007)– First Q-Max size ships (MkIII, SHI, from 2008)– FEED stage of first very large FLNG terminals (MkIII, SHI,

first unit planned for Prelude field off Western Australia, due to start production from around 2016)

LNG ship at the Bontang electrical power plant in East Borneo, Indonesia

6 7

Horizons May 2011 LNG – fuel of the future?

One of the key factors behind the drive to LNG as fuel is the approach of year 2015 when stricter rules under MARPOL Annex VI enter into force in the world’s Emission Control Areas (ECAs).

Approximately 80–90% of merchant vessels will enter an ECA during their lifetimes and, what makes the onset of LNG even more relevant, is that more ECAs are expected – particularly in the Mediterranean and the Far East – in the future.

Shipowners with vessels operating in these areas must get their priorities absolutely right. From 2015, the maximum allowable sulphur content in ship fuels is 0.1%. From 2020, a global requirement of 0.5% maximum will apply to all areas outside the ECAs which currently lie in northern Europe and around North America.

The LNG optionWith fossil fuels there are three main options that comply with ECA rules. They are:

– Operating on low sulphur fuels/distillates

– Operating on heavy fuel oil (HFO) with a scrubber installed

– Operating on LNG – ‘LNG fuelled ships reduce the emission of NOx by 85–90% and SOx by almost 100%’

We at Lloyd’s Register believe that all three of the above options are feasible and some are more appropriate for certain vessel types than others. In other words, LNG operation is considered a solution; not the solution for everybody.

But LNG is indeed an option especially for newbuild short-sea vessels and those operating in trades with more-or-less fixed ports.

Operation on LNG opens up different possibilities. One option is to operate on dual-fuel engines, where the engines can be switched to LNG fuel when operating in ECAs and then operating on HFO outside ECAs. This is a very flexible solution enabling vessels to operate globally. The newbuild price will of course increase but the flexible option may have a positive influence on the second-hand value.

Another option is pure LNG operation with no heavy fuel back-up. This will mean a simplified engine-room and tank layout compared to the dual-fuel concept, though with less flexibility. The latter has been introduced for very short trades such as inland water ferries.

at IMO and is planned to be introduced together with the next revision of SOLAS in 2014*. An IACS project team will work with the IMO on the Code chaired by Lloyd’s Register’s Stuart Carpenter, Senior Surveyor, LDSO Electrotechnical Systems.For now, IMO Res. MSC 285(86) is being used for ongoing projects. Lloyd’s Register is also working to replace the current provisional rules with a new rule set in 2012.

* The working group involves specialists from many industries including SIGGTO, Class, EUROMOT, IEC, Flag Administrations etc.

It will of course be very difficult to predict the future fluctuations of bunker prices. However most experts agree that the price of fossil fuels in general will increase in the future. But the increase of LNG will be less than the increase of HFO (and distillates) and therefore the expected future pricing will be in favour of LNG. An important aspect is also the “end bunker cost” meaning the bunker cost the operators will have to pay. This will be very sensitive and will depend on the number of suppliers of LNG in the port or place where bunkering takes place.

The bunkering questionAnother key consideration for LNG is the whole infrastructure and supply chain as it is seen as a significant barrier to a wider adoption of LNG as fuel. As many in the industry are aware, there has been a kind of chicken-and-egg situation. The gas providers/oil majors are not too keen to invest in the infrastructure needed to supply the merchant fleet if demand from shipowners is not there and will wait to invest until sufficient demand is there.

On the other hand shipowners will not wish to invest in LNG-operated vessels if the LNG is too difficult to buy. This is also why Lloyd’s Register regards LNG operation as most relevant for shortsea

vessels with operation to and from port is in a regular schedule.

It is highly unlikely that we will see the adoption of LNG applications in mainstream worldwide trading of tankers and containerships. Even Maersk Line’s new 18,000 teu ships are retaining HFO.

Today ships burning LNG are being bunkered by a tank truck or a shore-based tank plant, although LNG terminals for small-scale bunkering are expected to be introduced in strategic ports in the foreseeable future.

Furthermore, rules and standards for bunkering arrangements are lacking and there is a strong demand in the industry to develop standards for the bunkering, interface, hose connections, couplings and overall safety.

Lloyd’s Register’s roleLloyd’s Register is currently involved in the design approval of a newbuild for Viking Line. This is a 57,000 gt cruise ferry intended for service in the Baltic Sea between Stockholm and Turku and being built by STX Finland (see overleaf). This vessel will be equipped with dual-fuel engines for LNG operation. In addition to this, Lloyd’s Register is involved in a number of other projects involving LNG-operated vessels. Some of them are joint industry projects with shipyards and manufacturers.

We see a potential in LNG-operated vessels in the next five to 10 years, mainly in shortsea operations and developing from a very local fuel to a more regional one. What happens thereafter we still wait to see but the Viking application is an excellent approach for the operator’s needs.

In order to share knowledge and help our clients to keep updated on the development within this field, Lloyd’s Register is facilitating a series

of global joint industry “LNG as Fuel” seminars with internal and external speakers from all sectors of the industry.

ConclusionThe conclusion is that on a short- and medium-term basis LNG is expected to become a more significant fuel for shortsea shipping in certain conditions and will fulfil the regulatory requirements on SOx emissions in ECAs and also contribute to a significant reduction of NOx and particulates. Lloyd’s Registeris pleased to be at the forefront of this development and we are working with a number of industry partners to make this happen. But the industry should be cautious about claims for LNG as a global solution to the balance between a growing demand for energy and reductions in CO

2.

“The result of this “unscientific” vote was that more than 75% – or three-quarters – of attendees expected LNG as the fuel likely to make the most progress during the next 10 years.

”

“We see a potential in LNG-operated vessels in the next five to 10 years, mainly in shortsea operations and developing from a very local fuel to a more regional one.

”A very hot topicIf you make an internet search on LNG-driven vessels, you will find not less than three million hits have been logged, so this is indeed a very hot topic. A number of shipowners are considering the LNG option very seriously indeed. Up to now about 20–25 vessels are operating on LNG and a number of vessels are in the order-book with more expected to follow.

A vote on future fuels was polled among delegates who attended the Green Ship Technology Conference in Oslo in March. The result of this “unscientific” vote was that more than 75% – or three-quarters – of attendees expected LNG as the fuel likely to make the most progress during the next 10 years.

One of the key merits of LNG operations is the virtual elminination of harmful emissions at a local level. “LNG as fuel produces no SOx, particulate emissions are low and NOx emissions are reduced with the added advantage that control technologies can be more readily applied to produce yet further reductions. CO2 is reduced by over 10% – or to around 2.75 tonnes for every tonne used – compared to heavy fuel oil (HFO),” said Alasdair Anderson, Technical Manager of Lloyd’s Register’s LDSO Electrotechnical Systems.

But LNG’s potential to reduce carbon dioxide (CO

2) emissions is doubtful.

The combination of methane escape during extraction and methane slip during combustion as well as the overall energy needs of the LNG supply chain need to be further investigated to adequately claim that the LNG can reduce greenhouse gas emissions on a like-for-like comparison with HFO.

Rules for LNG as fuel already exist for gas ships within the IGC Code currently under review at the IMO. A new Code for LNG and similar fuels is also under development

Jesper Aagesen Lloyd’s Register’s Design Support Senior Surveyor

Horizons May 2011

8 9

LNG – fuel of the future?

The result will be the world’s first large ferry to use liquid natural gas as its main source of power. The 56,850 gt ferry will be built at Finland’s STX Turku shipyard, one of Europe’s largest yards and the source of the world’s biggest cruise liners, Allure of the Seas and Oasis of the Seas. One of the options in the newbuild contract is for a sister LNG ferry to be built.

The huge ferry which is due to be delivered at the start of 2013 will be the world’s most environmentally-friendly passenger ship with minimal CO2 and virtually nil SOx and NOx emissions. Wave formation and noise generation on the 210m-long vessel will also be negligible.

With a maximum speed of almost 22 knots, the ropax will be able to carry 2,800 passengers and will have a hoistable car-deck with a vehicle capacity of 1,100 lane-metres (lm) and 1,300 lm of truck capacity. It will operate between Turku and Sweden’s Stockholm and is being designed to cope with the comparatively sensitive and shallow waters of the Finnish archipelago.

“LNG tends to suit ferries better than other types of vessel as they follow fixed routes between ports with LNG terminals in the neighbourhood which makes them easy to bunker. The same bunkering facilities aren’t yet available for other ships including cruise ships,” said project manager Matti Niskala, LR’s Finnish Marine Country Business Manager.

However with the innovative groundwork that is being achieved on the current project, Niskala and his team believe other vessels should be able to make the switch to LNG in five to 10 years’ time.

“The ropax will be the first newbuild to comply with our provisional rules for LNG propulsion although we’ve overseen and applied the same set of rules to a number of other vessels, notably the Accolade bulk carrier which is the world’s first LNG-fuelled ship. Since the STX-Viking contract was signed, we have also provided the STX technical team with assistance on issues such as developing LNG storage facilities and process piping,” said Niskala.

“We carried out a detailed risk analysis for Viking Line on the bunkering process to identify and minimise risks associated with the movement of the bunker barge and ship within the confines of the port, the risks associated with the simultaneous loading of passengers, cars, lorries and LNG, and to help ensure compatibility between bunker barge capacity and the ship’s systems.”

The ropax ferry project poses many technical challenges for both owner and builder. “As well as ensuring the safety of the LNG system, a key issue will be the integration of both LNG and oil fuel installations and compliance with the new IMO ‘safe return to port’ requirements, a procedure on which Lloyd’s Register is a world leader,” said Niskala.

“With a maximum speed of almost 22 knots, the ropax will be able to carry 2,800 passengers and will have a hoistable car-deck with a vehicle capacity of 1,100 lane-metres (lm)

“

Viking builds world’s first large LNG passenger ferryWhen Finnish owner-operators STX Finland and Viking Line sought a technical partner to help design and classify a new ropax ship fuelled by LNG, they approached Lloyd’s Register with its renowned expertise in LNG-as-a-fuel.

Main ParticularsLoa 214mB 31.8mGT 56,850Speed, service 21.8 knLSA 2,800 peopleDE power plant 4x8L DF, abt.30MW

CabinsPassenger 882Total 1,083

Lane MetresTrailers on Deck 31,275 lmCars on Deck 5 535 lm

Horizons May 2011

10 11

Viking LNG ferry

“Contacting third parties and local organisations is absolutely essential and can be pivotal to whether a scheme succeeds or not,” said Scandpower’s Vice President, Liane Haeffler. And Liane should know. Her company has just acted as the chief risk, safety and environment adviser on Sweden’s first-ever LNG terminal, owned by AGA Gas and based at Nynashamn, which opens for business on May 27, 2011.

Liane, whose company carried out the quantitative risk analysis on the terminal’s design and advised on permit procedures and environmental court proceedings, explained: “Too many companies underestimate the need to involve neighbours and other interested parties when planning potentially high-risk facilities [in certain countries including Sweden such activities are required by law].

“Very few people like having large-scale industrial facilities in close proximity and will often emphasise the potentially high risk these represent in arguments against construction. And in Sweden, most members of the public and stakeholding authorities are unfamiliar with LNG as it does not have the status of petrol and other fuels,” said the Scandpower executive.

“Don’t just send out invitations and papers about LNG pointing out that it is not dangerous. It is very important to forge good personal relations and to arrange face-to-face meetings and discussions with local associations and companies to show that you value their opinions and interests. You must also present detailed analyses of the situation and try to answer all the important questions,” she said.

Failing to communicate early could lead to serious problems – and in some cases cancellations – in the earlier as well as the later stages of projects. Sweden’s first LNG project proposal was forced to an abrupt halt due to the “impact of public opinion”, said Liane.

It was up to companies to canvass and speak to as many third parties as possible so they could find out about important local factors, the layout of the surrounding area and any key environmental concerns that could affect the proposed LNG scheme, she said.

There was no substitute for effective public relations campaigns. “Companies should calm the sceptics by investing money in good public relations or hiring PR companies. By doing this, projects have a good chance of going ahead as planned with no delays and without incurring extra costs and problems,” she said.

Why it’s good to talk

Liane Haeffler Vice President of Scandpowerlha@scandpower.com

Waterside view: Sweden’s Nynashamn LNG terminal which opens for business on May 27 this year

about LNG projects

Communications and raising public awareness should be the key priorities for companies planning LNG projects. That is the view of Liane Haeffler, Vice President of risk assessment company Scandpower.

Photography by Gösta Rising

Horizons May 2011

1312

Scandpower

How GTT and Lloyd’s Register tackled a membrane problem

It follows GTT’s earlier recommendation to increase the previous 1.5m level to 2m. Although even this was considered inadequate. “Such a low filling level caused problems to some owners, especially those undertaking longer ballast passages with dual fuel ships, so this was always going to be a temporary measure,” said Jim MacDonald, Principal Surveyor of Lloyd’s Register’s London Design Support Office.

After a full-scale investigation by GTT and several meetings with Mk III shipowners and the four class societies involved including Lloyd’s Register, a HAZID safety assessment was made and GTT now recommends a 2.75m filling level for ships under 155,000 m3.

Meanwhile for conventional NO96 vessels of 138,000 m3 or more, the lower filling liquid level in the tanks can be maintained up to a level of 10% of the tank’s

height. Within weeks of the discovery of deformed membranes in the LNG tanks of a Mark III ship in 2008, similar deformations were found in the tanks of several other Mark III vessels.

A key concern was whether the tank filling levels should be adjusted to reduce the sloshing that was clearly at the root of the problem. Another issue was whether it was acceptable to allow permanent deformations to exist for a ship in service and if so what limits should be put on the size of deformations that should be allowed to remain.

After consultations with Lloyd’s Register, GTT issued a temporary recommendation to limit the tanks’ lower filling level to 1.5 metres heel (depth of cargo remaining during ballast voyages). The company then launched an investigation which included fatigue tests on deformed membranes.

After two years of problem-solving and research into deformed membranes in LNG tanks on ships, Lloyd’s Register is backing a GTT decision to relax recommended lower tank filling levels to 2.75m on Mark III vessels of 138,000 m3–180,000 m3 capacity.

It was then that GTT relaxed the lower filling level to 2m from 1.5m for Mark III ships of up to 180,000 m3 capacity, a move supported by Lloyd’s Register. However this led to problems for some owners (see second paragraph above). Further investigations – including a review and some parallel check investigation by Lloyd’s Register – were completed by the end of 2009. The key issues of GTT’s findings were:

1. The deformation of the corrugation was not a strength or fatigue issue and hence not critical;

2. Under very high sloshing impact loads, it is possible for the reinforced polyurethane foam (RPUF) insulation panels to suffer permanent crushing or cracking and this can lead to loss of support of – and possible fatigue cracking in – the primary membrane. This was considered a critical issue;

3. The level of deformation of the membrane gave a good indication of the sloshing impact load that had been experienced and could be used as a precursor for investigating whether crushing of the panel had occurred.

Jim MacDonald Principal Surveyor, Lloyd’s Register’s London Design Support Officejim.macdonald@lr.org

View from the bridge: Sweden’sNynashamn LNG terminal Photography by Gösta Rising

Scandpower, a member of the Lloyd’s Register group, has advised on at least 150 international oil and gas LNG projects, and was involved in all stages of the assessment of the Nynashamn terminal’s planning and construction. “ The environmental court proceedings and permit-related processes with the Swedish authorities went smoothly and we carried out the quantitative risk analysis for design improvement purposes and as part of the final safety report,” said Liane

Scandpower’s expertise covers onshore and offshore production, transport, storage and re-gasification. Since completing its first LNG project for Statoil in 1984, the company has supplied services to a wide range of customers, including owners, operators, engineering companies and vendors. In a number of projects, the company has been involved in the entire project life cycle, from pre-conceptual phases to operation and modification.

Mark III membrane shipsHorizons May 2011

1514

Lloyd’s Register concluded that the findings of GTT’s investigations were valid, although there was some debate about the conclusions on the allowable magnitude of deformations – particularly in the second finding. “We accepted GTT’s proposal to further amend their filling level recommendation to 2.75m for ships up to 155,000 m3 with a proviso that continued deformations should be expected when the tanks were filled to levels approaching this value. The GTT findings also showed that crushing of the insulation panel was highly improbable at this fill height,” said Jim.

GTT decided, however, that they did not wish to amend their previous filling level recommendation until it had been accepted by the other class societies with Mk III ships (ABS, BV and DNV) of not only the new filling level, but also the permissible magnitude of the deformations, and a procedure for measuring them. Agreement between all four class societies and GTT on deformation magnitudes proved to be a difficult task, and the Mk III owners set up a meeting in June 2010 with a view to progressing this (and other matters).

A HAZID safety assessment attended by GTT, the four class societies including Lloyd’s Register and shipowners established that no major hazards had been missed in the earlier investigations and there was no credible risk of rapid failure from the deformations. “Closer agreement was forged between the different parties on the permissible deformation magnitudes,” said Jim.

“Because there is a level of sloshing pressure when the insulation can fail beneath the primary barrier, it was necessary to set two sets of criteria, a lower set in relation to insulation damage and a higher set that could be tolerated by the corrugations themselves if it could be shown that the insulation remained undamaged,” he said.This has led to the development of methods, currently being reviewed by Lloyd’s Register, that can check out both the insulation and the corrugations remotely – so that they can be used throughout the tank including the inaccessible upper regions – using photometry and laser scanning techniques.

This is described in a procedure being prepared by GTT, the first and second revisions having been comprehensively reviewed by Lloyd’s Register. We expect the permissible deformation magnitudes in the measurement procedure to align closely with the values that owners of recently surveyed Lloyd’s Register classed Mk III ships will already be familiar with based on our recommendations to GTT more than a year ago – as derived from the investigation’s findings.

On March 18, 2011, GTT issued a statement recommending a new lower filling limit of 2.75 metres for Mk III vessels in the capacity range of 138,000 m3 to 180,000 m3 and for ships greater than 180,000 m3 the filling “should be maintained presently below 1.5 metres”.

These recommendations, which Lloyd’s Register supports, are expected to be long term for ships up to 18,000 m3 and we intend to adopt them by inclusion in the approved loading manuals and any other class approved documents that refer to filling levels on Lloyd’s Register classed ships.

The inside of a Mark III LNG carrier’s membrane tank

“A HAZID safety assessment attended by GTT, the four class societies including Lloyd’s Register and shipowners established that no major hazards had been missed in the earlier investigations.

”

When a piece broke off the exhaust duct wall of the Åsgard B platform in the Norwegian Sea, venting 5,000 hot exhaust gases into the nearby area, it was just the latest in a series of repetitive fatigue failures on the floating platform’s exhaust ducts. The incident prompted Norway-based operator Statoil to carry out a full investigation of the problem.

As part of Statoil’s troubleshooting team, Lloyd’s Register ODS carried out a mechanical failure analysis to identify and describe the physical mechanism at the root of the problem and to ensure the new design wouldn’t experience similar failures.

For this project, the ODS team took its failure analysis through five interconnecting stages in just four short months. These were: initial measurements; modelling & analyses; design evaluation; design improvement; and final measurements.

The nature of the failure indicated that it was caused by excessive vibrations in the duct walls. Our job was to find out what had caused the duct to vibrate. A number of tentative failure hypotheses were proposed, relating to structural integrity, direct excitation by flow and excitation by pressure waves (sound) generated in the gas turbine. These hypotheses were used to motivate a field measurement campaign on the exhaust duct.

The measurements ruled out the hypotheses related to pure structural excitation and excitation by noise as the frequencies

of the duct vibrations didn’t match the frequencies we would have expected if these hypotheses were valid.

This left us with the hypothesis that the exhaust duct vibrations were excited by fluctuations in the flow at low frequencies exciting a natural (resonant) frequency of the duct walls.

Anatomy of an exhaust stack:The gas turbine exhaust stack directs hot gases from the gas turbine and power turbine upward to the waste heat recovery unit or the bypass duct (dependent on diverter valve setting). The geometry of the stack is complex due to the arrangement of the gas turbine and the existing ductwork and the need to minimise flow separation of the high velocity gases.

Fluid Structure Interaction (FSI) modelling and analysesThe measurements exposed a very complex problem, and to solve it we needed a deeper understanding of the physical mechanisms behind it. First of all, we wanted to model the exhaust duct to know how the flow and structure were behaving in the current design. The ODS team did this in three stages:

– We carried out a set of 3D CFD analyses, both steady and unsteady, of the flow in the exhaust duct. These gave a clear indication of large, unsteady fluctuations at relatively low frequencies;

– We used FEM to model and analyse the

Failure investigation solves exhaust duct problem Repetitive fatigue problems on one of the world’s largest floating gas platforms led operator Statoil to carry out a full mechanical failure investigation and a redesign of the installation’s gas turbine exhaust ducts.

Exhaust Duct Layout

Diverter valve

Diverter cone

Silencer

Upper cone

Lower cone

Exhaust collector

PowerTurbine

GT

CFD image showing unsteady flow velocity distributions in an Åsgard B platform exhaust duct

Horizons May 2011

1716

ODS exhaust duct

structure of the exhaust duct in relation to stress distribution, mode shapes and natural frequencies. This showed that part of the duct walls had low natural frequencies within the same range as the frequencies of the unsteady flow fluctuations.

– We combined these two models in a coupled FSI calculation. By using this technique we were able to transfer the unsteady fluid loading onto the vibrating duct structure. This gave us a clear picture of exactly how and where the flow affected the structure.

The team then carefully verified and calibrated the FSI model with the measurement results to make it as accurate as possible. Our model confirmed our initial hypothesis that large fluctuations in the flow were exciting natural frequencies of the duct walls. The consequent high vibration levels led to correspondingly high levels of stress which in turn caused the fatigue failure.

Design evaluationHaving created a model that accurately predicted how the flow and structure behaved in the current exhaust duct, we then used this to predict how they would behave for the new design proposals to ensure that the chosen design would in fact prevent future failures. Statoil was considering two different design proposals for the new exhaust duct.

Based on the information from our model, we were now able to evaluate

the design proposals and recommend the one best suited. In the end Statoil chose the Mjørud design as this reduced both the large and unsteady fluctuations in the flow and showed much fewer problematic low frequency structural modes. However, our analysis had shown a low frequency resonance problem that required further design modifications of the lower part of the exhaust duct.

Design improvement We considered several design features to solve the low frequency resonance problem. Our main focus was to increase the lowest natural frequencies of the duct walls so they wouldn’t be excited by the low frequency pressures created by the unsteady fluctuations in the flow. This was done by introducing a top circular section of the lower transition core. We also discovered a new way of improving the structural damping, namely by compressing the thermal insulation material that was used on the cone. This reduced the amplitude of the vibrations and thereby helped to reduce the stress on the duct walls.

Final measurementsAfter evaluating and improving the final design, the exhaust ducts were finally installed on the Åsgard B Platform. To make sure the new design was in fact behaving as predicted, we carried out a final measurement campaign on the exhaust ducts, similar to the initial measurement campaign. The results showed that not only had the damping improved, but there had also been a very large

reduction in the vibration levels and, most importantly, the vibration levels at the natural frequencies were dramatically reduced by a factor of more than 30.

ᏵᏵ For further information, please contact info@lr-ods.com or www.lr-ods.com.

Over the past five years Lloyd’s Register ODS has performed noise prediction work on more than 10 FPSOs, which are now in operation in various locations including the North Sea, Angola, Nigeria and Brazil, or else under construction. Our clients have been major operators and EPC contractors. Typically the design- phase prediction work is followed by verification measurements during equipment Factory Acceptance Tests and vessel commissioning.

“The results showed that not only had the damping improved, but there had also been a very large reduction in the vibration levels.

”

Custom-built ships are being planned to carry CO2 waste from power stations and other major industrial plants to underground storage facilities.

Lloyd’s Register has worked on a number of projects with owners and shipbuilders. “The ships will need to be newbuilds as very few existing ships can carry CO2 efficiently,” said Jim MacDonald, Principal Surveyor at Lloyd’s Register’s London Design Support Office.

The cargo tanks on LPG ships are built for carrying lesser specific (SG) liquids than CO2, which can only exist as a liquid under pressure (which must be higher than 5.3 bar to avoid snowing up at a carrying temperature of around -500ºC). “Its liquid

SG of 1.155 is significantly higher than most other liquefied gases carried at sea, so existing LPG ships would not be able to carry CO

2 efficiently as it would have to

be a part cargo to avoid the vessel’s tank supports being overloaded,” said Jim.

The ship designs LR has been working on would be able to carry CO

2 and other

types of liquefied gases. The vessels may be designed to carry the other cargoes on the return legs of voyages or as part of triangular voyages.

“We encourage owners and shipbuilders to contact us so that we can extend our services to companies exploring the potential of building CO

2 ships,” said Jim.

Companies craft carbon capture carriers

CO2 carriers will resemble LPG carriers – like this one

“We encourage owners and shipbuilders to contact us so that we can extend our services to companies exploring the potential of building CO2 ships.

”

Horizons May 2011

1918

Membrane tanks

When the sloshing had to stopLloyd’s Register’s Technical Investigation Department uses cutting edge technology to predict problems in the tanks of LNG carriers.

Above: 3D sloshing simulation gridRight: Image of a pump tower tank

Sloshing and its effects on the hydrodynamic loads of large LNG tankers is the theme of a series of design appraisal studies by Lloyd’s Register Technical Investigation Department (TID).

Rising demand for larger LNG tankers and the need to accurately predict loads made the studies particularly timely as they were aimed at helping marine architects and ship designers to adapt the design of vessels’ liquid containment systems and pump towers to the sloshing caused by a ship’s motions.

Although the traditional way to predict these loads has been via experiments on scale models of cargo tanks, there has been much debate about how to adjust sloshing loads from model to full scale and on the coupling effect of sloshing and ship motions.

Aided by advanced computational techniques and state-of-the-art hardware, increasing numbers of scientists are using Computational Fluid Dynamics (CFD) to predict sloshing loads. In support of the design appraisal studies for the new, large LNG tankers, Lloyd’s Register initiated its own model tests to determine cargo sloshing motions, membrane impact pressures and pump tower forces resulting from ship motions.

In the TID studies, a tank model was constructed with a vertical cylinder representing the pump tower. Forces at various locations on the pump tower model cylinder were measured along with impact pressures at selected locations on the model tank’s walls.

Results from the model tests were then used within Lloyd’s Register’s design appraisal procedures and as validation data for CFD applications. The studies investigated the feasibility of estimating fluid forces on a pump tower within a cargo tank resulting from sloshing using CFD techniques. These techniques were successfully validated by the model test results which confirmed that it is now possible to use CFD techniques to predict pump tower loads with confidence.

ᏵᏵ For further information, please contact TID@lr.org

Lesson: Using Computational Fluid Dynamics to predict fluid forces acting on a pump tower provides a technically viable and cost-effective alternative to model testing.

Horizons May 2011

2120

Energy efficiency and Ballast Water Management (BWM) systems were the twin themes of the third Lloyd’s Register Hellenic Technical Environmental Sub-Committee (HTESC) meeting in Piraeus on March 14 this year.

Dr Zabi Bazari, Lloyd’s Register’s Ship Energy Services Manager, gave an overview of the technical and regulatory aspects of IMO energy efficiency initiatives including the Energy Efficiency Design Index (EEDI), the Ship Energy Efficiency Management Plan (SEEMP) and the Efficiency Operational Indicator (EEOI). Mr Bazari also launched a new Lloyd’s Register course on ship energy.

Another speaker George Ousantzopoulos, DPA of Greece-based Almi Tankers S.A., discussed BWM treatment systems, while Stelios Symvoulides, Senior Project Manager at our Piraeus Design Support Office gave a briefing on recent IMO requirements on bilges and sludges following the recently enforced IMO Resolution MEPC.187(59).

The meeting, which was chaired by

Sokratis Dimakopoulos, HSQE Manager of Maran Tankers Management, proposed some innovative ideas about information-sharing and closer co-operation between members for the benefit of the Greek shipping community.

Chairman Mr Dimakopoulos commented: “The meeting covered some of the most significant challenges that the shipping industry faces at the current period such as the GHG reduction measures and the ballast water treatment systems.”

The HTESC was originally launched by Hellenic Lloyd’s S.A., the Greek subsidiary of Lloyd’s Register in January, 2010 to be an effective forum of promotion of two-way knowledge transfer with the Hellenic maritime industry in order to enhance the industry’s profile in the areas of environmental achievement and sustainability.

Theodosis Starnatellos, Marine Business Country Manager for Greece, comments: “Facilitating cross-industry discussion and debate at the very highest level,

the sub-committee aims to tackle some of the major challenges faced by the shipping community since its inception. Critical challenges in the environmental sphere faced by the Hellenic shipping community will be addressed by members, covering strategic issues surrounding operational, technical, and commercial performance, and providing critical feedback to Lloyd’s Register’s environmental strategy and focus.”

Memories of Karteria, the world’s first steamship to go to war, were revived at the 2011 Vassilopita “cutting the cake” party to celebrate the Greek new year at Lloyd’s Register.

One of the traditions of this ancient ceremony is to carry a model boat as a symbol of Greece’s maritime legacy and during the cake-cutting a group of carol singers carried a model of the 1825-built ship specially sent over for the day by London’s Baltic Exchange. The ceremony which was attended by a large group of our friends and colleagues in London’s Greek shipping community marked one of the first appearances of Lloyd’s Register’s new chairman Thomas Thune Andersen.

The Karteria, which was built as a paddle steamer in an English shipyard with the launch name of Perseverance, also has two more notable firsts to its name. It was not only the first Greek steamship ever built but the first of its kind to be classified by Lloyd’s Register.

The ship went to war during the 1821–1829 Greek War of Independence and, commanded by an Englishman Captain Frank Abney Hastings, won a significant victory in the Gulf of Itea against a vastly superior force of Turkish ships in 1827.

Three of the nine Turkish ships were sunk, four were set on fire and two taken as hostages. The Turkish shore guns were destroyed and a garrison of 700 troops fled. Hastings and Karteria went on to win two more battles. However during the second the intrepid English captain was killed in action at the age of 34 and given a state funeral in Greece. As Dimitri G. Capaitzis said in a paper and talk he gave to the Royal Institute of Naval Architects (RINA): “It was said that never probably was a braver man more sincerely mourned by a veteran band of strangers who, in a foreign land, grieved more deeply for his untimely loss.”

Dimitri’s paper, which was sponsored by the Society of Hellenic History of Athens, was later published by RINA.

Sokratis Dimakopoulos Hellenic Technical Environmental Sub-Committee Chairman

Hellenic environment group tackles major green issues

Above: The scale model of Karteriathat was lent to Lloyd’s Register by London’s Baltic Exchange

Left: A copy of Lloyd’s Register’s 1825 entry for the Greek steamship Karteria

Greek stories

Day the ship came in

As shipowners and operators seek faster and more flexible solutions to LNG- carrying and vessel refuelling operations, the benefits of ship-to-ship (STS) transfers are winning over the market.

Recent techniques like LNG lightering enable larger ships to transfer LNG via smaller ships to terminals in relatively shallow ports, estuaries, rivers and inshore locations. While shuttle LNG carriers are able to supply regasification vessels (FRSUs) with spot market gas and so extend the export of LNG in remoter or less developed areas for long periods. It won’t be too long before the vessels that are able to carry LNG will range from some of the world’s largest vlccs to the smallest coastal ferries.

Recently-issued guidelines from the Society of International Gas Tankers and Terminal Operators (SIGTTO) are designed to help companies involved in STS operations. SIGTTO’s Technical Adviser Craig Jackson told Horizons: “Our previous guidelines were mainly related to LPG carriage as LNG wasn’t commonplace then. Now that it has been accepted as an environmentally-friendly alternative, it has become a commercial consideration again. The new guidelines [issued at the end of March] are aimed to help newcomers to the industry and existing companies carrying out STS

operations for the first time and enable them to focus on what they can and cannot do.”

Lloyd’s Register is the only classification society to have served on SIGTTO’s LNG STS working group and has led the Risk Analysis and Emergency Shutdown (ESD) sub-groups. “We are are very experienced at evaluating and risk assessing STS operations, activities that have given us direct involvement with LNG regasification terminal projects and also with the safety evaluation of current bunkering operations,” said Thanos Koliopulos, Lloyd’s Register’s Special Projects Manager for Energy.

The challenges and solutions: 1. Port requirements– individual projects need to identify

port authority requirements and potential limitations.

2. Sloshing– in case of emergency disconnections,

cargo plans are required for LNG carriers to prevent the effects of sloshing due to partial filling;

– individual projects will establish the best loading sequences to avoid sloshing effects – with input from GTT and class societies;

– operations aimed to maintain tanks in partial load sloshing/barred filling zones should be as short as possible.

3. High tank pressure– high vapour pressure within tanks has

an adverse effect on loading;

– operations and speed of transfer has to be drastically reduced;

– operating safety and a thorough understanding of how an LNG vessel works;

– must be key priorities in LNG transfers in port and terminal environments.

4. ESD system upgrades– ESD equipment needs to be updated

to address the interconnection and operation of ESD systems for both FSRU and shuttle LNG carriers.

Lloyd’s Register’s STS capabilities:Lloyd’s Register has carried out evaluation and classification services for some of the world’s first LNG-related systems and overseen the transformation of ships into FRSUs and bunkering vessels. We are currently working with clients Qatargas and STASCO to review and assess their Q-Max and Q-Flex fleets.

STS transfer – the LR wayAs the leading classification society for LNG shipping, Lloyd’s Register is right at the forefront of ship-to-ship (STS) transfer technology. STS is an increasingly important operation for the LNG trade – and Lloyd’s Register is leading the industry in helping ensure safety throughout the process. Thanos Koliopulos and Chris Browne report.

Horizons May 2011

Excelerate Energy’s regasification vessels Expedient and Express performing an LNG STS gas-up and cool-down operation off the coast of Dubai

STS transfer

2322

65,000Estimated number of ships needing ballast water treatment systems retrofitting

20.8Rise in LNG cargo volumes (December 31, 2009–December 31, 2010)

50Percentage of the fleet fitted with NOx certified engines

Data sources: LNG Carriers statistics by IHS Fairplay; LNG Forecasts provided by MSI. Analysis compiled by Latifat Ajala, Lloyd’s Register’s Marine Market Analyst (latifat.ajala@lr.org)

%

%

Nautical numbers

Current LNG carrier fleet sizes

and numbers

<125k Cu.M 48 125k–200k Cu.M 270 200k–250k Cu.M 31 250k+ Cu.M 14

Rest of world 154 Marshall Islands 55 Bahamas 48 Bermuda 40 Panama 37 Malaysia 29

Korea 186 Japan 99 France 32 USA 13 China 7 Rest of world 26

Top five LNG classification societies – (number of ships)

Top five LNG shipowning countries

num

ber

of

ship

s

num

ber

of

ship

s

LR JapanABS MalaysiaBV NorwayClassNK QatarDNV UKRest ofclass

Rest ofworld

Rest ofworld

140120100806040200

180160140120100806040200

Top five LNG flag registries (number of ships)

Top five LNG countries

of build (number of ships)

85

122

29

78

29

54

26

5235

51

159

6

Thanos Koliopulos at the launch of the world’s first regasification port on Teesside

What are the advantages of STS:– STS transfers can be adapted to the

specifications of different vessels (ships other than tankers are being adapted to store and bunker LNG);

– Operations can be tailored to the varying needs of owners. “We are developing the operating procedures for these activities with our clients and helping them understand the risks presented,” said Hector Sewell, Lloyd’s Register’s Head of Sales and Marketing;

– STS transfer is a very flexible system which can be performed offshore and outside ports and terminals;

– STS transfers and bunkering will enable more ships to carry LNG which is virtually emission-free and can be carried in environmentally sensitive areas like the Baltic Sea and North Sea;

– STS will enable operational ‘hubs’ for bunkering to be established within/or close to port areas making bunkering turn-around times more efficient

– It enables LNG to be transferred from Floating LNG vessels to conventional LNG vessels

Our equipment role: – type-approval and class certification

for cryogenic hoses and other specific equipment integrated with a ship’s structure/systems.

Our operational role:– navigation simulation studies conducted

to address approach manoeuvring and docking with real-time failure scenarios. This also addresses potential failures and safety;

– mooring simulation studies addressing wind/current load impacts onto double banked mooring arrangements and ensuring the mooring load requirements do not exceed limitations;

– risk analysis. Because STS transfers are not standard ship operations, they require special safety measures and Lloyd’s Register can undertake HAZID and HAZOP studies which are invaluable tools for identifying specific hazards and their mitigation. This can be easily seen from the scope of a typical STS HAZID/HAZOP that follows:

– identify potential hazards associated with the STS double banked berthing, mooring, connection and overall operation of the STS LNG cargo system;

– assess the adequacy of the proposed

marine equipment, hose/piping systems, checklists, procedures and contingency measures for ensuring the integrity of the cargo transfer operations;

– assess the consequences of unstable conditions including flow, temperature and pressure and identify potential

– hazards associated with all aspects of the LNG containment system).

– assess the adequacy of the existing isolation, control and operating procedures to prevent or control the potential hazards and establish additional measures to enable safe operations at all times;

– establish compliance requirements with class and international codes and standards and compliance with local port requirements. Establish adequacy

of emergency procedures/disaster management to satisfy requirements.

“It is important that existing safety, fire and gas protection, escape and evacuation systems are upgraded to address the new risks identified in STS transfer operations. Lloyd’s Register can assist by addressing this integration within the ship’s system,” said Thanos.

“Processing and transporting liquefied gas at sea or onshore requires special engineering techniques and contingency measures to minimise the inherent risks. Lloyd’s Register’s methodology for validating new technology has proved to be invaluable for both owner/operator and yard because it gives the necessary confidence to all parties involved and enables ‘round the table’ resolution of the technical issues at hand.

“We are also there to clarify important issues between port authorities and operators and between yard and engine manufacturers switching to LNG fuel operations” added Thanos.

Horizons May 2011 Nautical numbers

2524

ᏵᏵ WIG flying objectFlight of the gas-driven fish

Is it a bird? Is it a plane? No, it’s a boat. Or, more specifically, it is the M/V Airfish 8-001, a Wing-In-Ground Effect – or WIG – vessel owned and run by Wigetworks in Singapore.

The Airfish rides a few metres above the sea on an aerodynamic cushion of high-pressure air created between its wings and the sea, hence the name – “wing in ground”. This technology allows it to cruise at almost 100 knots (kn), the same speed as a basic turboprop aircraft but at a fraction of the cost.

When compared to planes or helicopters, the Airfish is far cheaper, greener and easier to operate and maintain. It runs on a conventional V8 car engine, uses standard 92 octane gasoline and is operationally straightforward. Its engine is mounted on

top of the vessel (unlike a conventional boat that has its engine hidden below decks, it is easy to access), it can land anywhere in the sea and in less than a minute, and is thus never more than a few metres away from its landing strip.

The Airfish is made of high-strength composite carbon fibre reinforced plastic, has a range of 300 nautical miles and can typically carry eight people (or the equivalent in cargo). And, perhaps most crucially, the Airfish successfully registered as a commercial maritime vessel with the Singapore Registry of Ships after complying with the IMO guidelines on WIG vessels that was adopted by the Maritime and Port Authority of Singapore – a key requirement for its technical and operational aspects on top of the other criteria of being registered as a Singapore vessel.

The Airfish’s international maritime classification means it can operate on a marine licence in any waters in the world. And all the classification work was carried out by Lloyd’s Register.

“Lloyd’s Register has been just fantastic,” says Kenneth Tan, General Manager of Wigetworks, with his trademark warm and wide smile. “We knew right from the beginning that getting it internationally classified as a marine vessel and then getting it registered and flagged in Singapore as a commercial vessel was paramount to our long-term success. It means the operator/owner has the option to register the WIG vessel with Singapore Registry of Ships.”

Tan continues: “Lloyd’s Register – with their reputation, professionalism and technical knowledge accumulated over 250 years – was the obvious choice and we have not been disappointed. Cleary there were rewards but also risks with this project and a Classification Society needed guts to come in here. It was not a clear path. Far from it. I am very appreciative of the work that Lloyd’s Register has put in here.”

The Lloyd’s Register team included: Tim Hall, South Asia Design Support Manager, working together with the London Design Support Services team, Frans Verbaas and Ranko Petkovic in the Rotterdam Design Support office, David Gan, Marine Business Development Manager SEA, and Kelvin Teng, MMS Manager SEA. The M/V Airfish 8-001 received its maritime registration a year ago, just in time for it to be paraded in front of the world’s maritime press – complete with its freshly painted Singaporean maritime ensign – at a harbour-front naming ceremony held during Singapore’s Maritime Week in April, 2010.

Since then the tests and trials have continued with further work on a second prototype, which is a lighter, slicker and refined version of the Airfish 8-001. This prototype will be trialled and commissioned before going into limited commercial production later in 2011. Lloyd’s Register has already started plan approval work in preparation for classing this second vessel.Continued ▶

A reinforced plastic aeroplane that cruises on a cushion of air? It sounds too odd to be true, but it exists, cruises at the same speed as a turboprop aircraft, lands anywhere in the sea and was classified by Lloyd’s Register, discovers Richard Cook, our Corporate Communications Manager for Asia.

“We knew right from the beginning that getting it internationally classified as a marine vessel and then getting it registered and flagged in Singapore as a commercial vessel was paramount to our long-term success.

”

“This prototype will be trialled and commissioned before going into limited commercial production later in 2011.

”

The Airfish can hover over the sea on a cushion of air

Richard Cook Lloyd’s Register’s Corporate Communications Manager for Asia

Horizons May 2011 Airfish 8-001

2726

The technology that underpins the WIG, it must be said, is not exactly new. It has been used in various guises for more than 50 years, most notably by German aeronautical engineer Alexander Lippisch and Russian ship designer Rostislav Alexeev, who designed the 550-ton, 300 kn Caspian Sea Monster used by the Soviet military in the Cold War. And, while there have been many versions, none have made it into successful commercial application. That is, until now.

“We have not been in a hurry,” says Tan emphatically. “We are convinced of the commercial opportunity here and we want to ensure we get it right.” We have linked all components: funding, regulation, training and product development. We have the right backers and we have worked closely with Singapore government agencies such as the Maritime Port Authority of Singapore and Economic Development Board. In meeting the relevant standards and operating under the appropriate regulatory framework.

“We have learnt to appreciate the dilemmas involved in granting approvals and supports on novel convergence of aviation and maritime transportation design from the regulators’ aspect. Wigetworks is looking to position Singapore as the centre of excellence for WIG in the area of ship

registry, port regulations and operations, manufacturing, sales and marketing, research and development, crew training, maintenance repair and overhaul etc.

We are working on the WIG Captain training program with the Singapore Maritime Academy-Singapore Polytechnic, where we already have a working simulator that will provide training for future WIG Captains, and Wigetworks has active research programs running with the National University of Singapore where we are looking at product development and scalability.

“Once the second prototype is up-and-running and into commercial application, then we will look at bringing in 20- or 40-seater craft, probably in six or seven years time,” added Wigetworks’ General Manager.

Tan says that when they took the Airfish onto the water at Singapore Maritime Week last year, there were a lot of press there and, soon after, as pictures appeared on the internet, then so started the enquiries. “One was from a Middle Eastern prince who wanted to buy the Airfish on the spot. He asked me how much I wanted for it. I told him it is not yet for sale. Another was from a small private island that has 12 very fancy villas. Presently their guests take six hours by boat to get there.

On the WIG they could do the journey, from any jetty to their own jetty, in 45 minutes.” Mr Tan quickly lists a number of possible users. “Tour operators, exclusive resort owners, offshore crew transfers for the oil and gas industry, military, tourist agencies, disaster response and rescue teams, coastguard patrols, sea-ambulance personnel and fresh seafood collection groups .… the list goes on.

“I reckon, all told, I could have sold 300 of them so far. Even if I am 50% out in my calculations, we will still do very well.” Kenneth Tan smiles his wide smile once more.

“Once the second prototype is up-and-running and into commercial application, then we will look at bringing in 20- or 40-seater craft, probably in six or seven years’ time.

”(l-r) Kelvin Teng, Lloyd’s Register Marine Management Systems Manager for South East Asia (SEA); Kenneth Tan, General Manager, Wigetworks; Ken Huian Poh, test pilot of the Airfish; David Gan, Lloyd’s Register Marine Business Development Manager SEA

29

Ready-for-take-off: The Airfish mingles with some more conventional types of vessel

Horizons May 2011

28

Airfish 8-001

Notable legislation which has recently been adopted:

1 Wider Caribbean Region special area for garbage discharge

The “Wider Caribbean Region” was designated as a Special Area under MARPOL Annex V back in 1991. The aim was to place stringent requirements on ships within the area for discharge of garbage, but its introduction was conditional on adequate reception facilities at ports within the Special Area, so that ships could discharge their garbage ashore.

Only at MEPC 60 last year was it judged that the criteria had been met for provision of adequate reception facilities. It was therefore agreed that the Special Area came into effect on May 1, 2011. The requirements apply to all ships, but are likely to have a particularly high impact on general cargo ships, bulk carriers and cruise ships.

For general cargo ships and bulk carriers, cargo hold washing water will have to be kept onboard while the ship is navigating within the area, if it contains harmful substances. For cruise ships in particular, it should be noted that reception facilities may not yet be sufficient in Belize, Jamaica and Nicaragua for large volumes of garbage. It may be necessary to investigate in advance the availability of reception facilities.

MARPOL 73/78, Annex V, adopted by Resolution MEPC.191(60)

Environmental protection is arguably the strongest driving force behind international legislation at the moment. As fuel costs continue to rise steeply – and sometimes unpredictably – the pressure for ships to be more energy-efficient has never been greater, hence the growing interest in gas as fuel. Water emissions are another significant area of environmental focus, with a particular emphasis currently on ballast water management and overboard garbage discharge.

MARPOL Annex VI sets limits on NOx and SOx emissions. It allows Emission Control Areas (ECAs) to be established to control both types of emission. This map shows existing and future ECAs – and more are expected in future. A US-Caribbean ECA for both NOx and SOx is currently being considered at IMO.

ECAs are more than just a sea change

“The requirements of the special area for garbage discharge apply to all ships, but are likely to have a particularly high impact on general cargo ships, bulk carriers and cruise ships.

”

Horizons May 2011

3130

Regulatory round-up

2 Carriage requirements for new navigational watch equipment

Requirements are being introduced for two new items of navigational watch equipment to be carried. These are a bridge navigational watch alarm system (BNWAS) and an electronic chart display and information system (ECDIS).

A BNWAS is a device which triggers an alarm if an officer of the watch becomes incapable of performing his or her duties. A type-approved BNWAS will be required for new ships with a keel laying date on or after July 1, 2011. Existing ships will also require a retrofit, with a phased timescale from one to three years later than new ships, depending on the size and type of vessel.

Some ships have already installed a BNWAS voluntarily, so the IMO has granted flag administrations the discretion to exempt these existing systems from full compliance with the new standards.

ECDIS is currently an optional alternative to paper charts, for planning and displaying the ship’s intended route, and plotting and monitoring positions throughout the voyage. It will now be mandatory for new ships in 2012 (passenger ships and oil tankers) or 2013/2014 (other ships). Existing ships will also be required to retrofit it between 2014 and 2018 according to their size and type. Deck officers will require appropriate training and familiarisation with this new system.

SOLAS 1974, Chapter V, Regulation 19, adopted by Resolution MSC.282(86)

3 Ballast water managementThe problem of harmful aquatic organisms being transferred via ships’ ballast water was first raised at the IMO in 1988. At first guidelines were developed, then in 2004 a new mandatory convention was adopted. This has yet to enter into force as the ratification criteria have not been met, but there is still a need to pay attention to its requirements now.

When it enters into force, the convention will require all ships to install and use an approved ballast water treatment system. They will be required to:

– manage ballast water and sediment;

– have on board an approved ballast water management plan;

– maintain a ballast water record book;

– hold a valid ballast water management certificate; and

– initially exchange ballast every voyage with limited exceptions; eventually treating all ballast using an approved ballast water treatment system.

The delay in global ratification is partly due to concerns about the availability of the systems needed to treat ballast water. The IMO granted a period of grace to ships built in 2009 with a ballast water capacity of under 5,000m3 until their second annual survey, but no later than December 31, 2011, because approved treatment technologies were not available. Nonetheless, the IMO concluded in 2010 that there are now sufficient type-approved ballast water treatment technologies available to ships.

This leaves the requirements in an unusual position. While the convention is not yet in force, ballast water management systems installed on ships constructed from 2010 onwards will have to meet the requirements of the convention once it enters into force.

ᏵᏵ For further information, visit www.lr.org/bwm

1 Lifeboat release hooksThere have been a number of incidents where crew members have been seriously injured while taking part in drills for lifeboats using on-load release gear. The IMO has been looking at ways to improve this for both new and existing hooks, including the mandatory application of existing voluntary guidance, and more stringent requirements for hook design.

After many years of discussion, the IMO’s Ship Design and Equipment (DE) Sub-Committee has finalised “Guidelines for Evaluation and Replacement of Lifeboat Release and Retrieval Systems”. These guidelines require a multi-stage evaluation:

– initial design assessment of each release mechanism type by the manufacturer;

– a design review by the Administration and/or Recognised Organisation against relevant parts of the LSA Code, followed by a performance test;

– reporting of the results of the evaluation to the IMO; and

– additionally, an onboard verification will be carried out (one-time follow-up overhaul examination) for every operating mechanism on every ship.

Subject to the decision of MSC 89 in May 2011, it is expected that the requirements will be implemented on July 1, 2014 for new ships, and the first scheduled dry docking after that date (but before July 1, 2019) for existing ships. However it should be noted that verification work including design appraisal of hooks should be completed well before that date. These requirements are expected to be adopted at MSC 89.

SOLAS Regulation III/1.5 and the LSA Code Chapter IV

2 Mandatory code for ships using gas as fuel

Technological advances and environmental and financial pressures are generating increasing interest in the use of gas as fuel for many types of ship. Work is currently underway at the IMO to develop a mandatory code for gas fuelled ships (the IGF Code).

Recent discussions have led the code to be renamed as the “International Code of Safety for Ships using Gases or other Low-Flash Point Fuels.” This change reflects an agreement that the code will cover all fuels with a low (i.e. below 60°C) flashpoint.

While the details of the code are still under development, various safety-related requirements which would affect the design and build of affected ships are expected. These include emergency shut-down arrangements and the location of storage tanks for low flashpoint fuel.

There has been an agreement that the IGF Code will not apply to ships which are already subject to the IGC Code, i.e. ships carrying gas as cargo.

3 New generation intact stability criteria

The IMO has recognised that the traditional intact stability calculations do not adequately address all intact stability failures. Its Stability, Load Line and Fishing Vessels (SLF) sub-committee has therefore been investigating some intact stability phenomena, with a view to developing criteria for identifying at the design stage which ships are likely to suffer from them, and thus reduce their incidence. The phenomena under consideration are dead ship stability, parametric rolling, surf-riding and broaching, pure loss of stability, and excessive acceleration.

It is expected that three levels of assessment will be developed, with both complexity and accuracy increasing through the levels if extra assurance is required. A pass at the first or second level, with simpler criteria, would mean that the more complex remaining levels are automatically passed.However, in general, it is expected that the design stage for a ship will require more, and potentially more complex, stability calculations to be performed.

The final criteria and the date of entry into force have not yet been finalised, but the new intact stability criteria are expected to apply to all new ships which are required to comply with SOLAS or the Load Line convention.

Further information:To find out more about these or any other upcoming regulatory changes, please contact your local Lloyd’s Register office, or use the links below.

ᏵᏵ For reports of each IMO meeting: http://www.lr.org/sectors/marine/Compliance/LRIMO.aspx

ᏵᏵ For RuleOutlookLive, our interactive online service for keeping you updated on the regulatory environment: http://www.lr.org/sectors/marine/Compliance/RuleOutlookLive.aspx

ᏵᏵ For information on legislation which has been adopted or is under discussion: http://www.lr.org/sectors/marine/documents/203196-ruleoutlook-live.aspx

“There have been a number of incidents where crew members have been seriously injured while taking part in drills for lifeboats using on-board release gear. The IMO has been looking at ways to improve this for both new and existing hooks… and more stringent requirements for hook design.

”

Notable legislation which is currently under development:

Horizons May 2011

3332

Regulatory round-up

Enhancing organisational integrityLloyd’s Register’s Human Engineering Services consultancy has recently completed an organisational integrity culture assessment of Carnival UK’s Engineering Department. This project sets the scene on how Carnival UK is focusing on assuring the integrity of their operations by improving company processes, coaching and leadership, and by supporting the capabilities and limitations of staff through systematic work and job role design.

By Joanne Stokes Lloyd’s Register Human Engineering Services (Principal Human Factors Consultant)

BackgroundCarnival UK are always looking for ways to improve their practices and maintain their position as one of the most forward looking cruise companies in the world. As part of this objective Carnival UK recognised that they needed to address a number of challenges that had manifested within the business. These included: creating a culture of compliance, retention of staff, and reduction in casualty costs.

Natasha Ordish, Lloyd’s Register account manager for Carnival UK, identified the Lloyd’s Register consultancy, Human Engineering Services, as having the relevant skills and experience to be able to determine how best to address the challenges identified by Carnival UK.

After a series of meetings, Human Engineering Services were engaged by Carnival UK, through the LR Southampton office, in June 2010.

2. SystemTechnology

Equipment

1. ProcessesProcedures

Risk assessment

Communications

3. PeopleRoles & responsibilities

Leadership

Competence

Culture

1. Processes: Human Engineering Services reviewed Carnival UK’s policies and procedures to determine the desired operational practices within the Engineering department. This information was used to determine the baseline of what the business was trying to achieve.

2. System: The incident database was reviewed to determine what casualties were occurring and why. The dissemination process of lessons learned across the fleet as a result of these incidents was also assessed.

3. People:A series of interviews and observations were carried out with Engineering staff onboard Carnival UK’s cruise liners. Interviews centred on the key challenges identified by Carnival UK, but covered all aspects of organisational culture to identify underlying root causes.

Operational Practice Compliance AssessmentThe first phase of work involved an assessment of the people, processes and operations to establish why these challenges were present, and why they had occurred.

Horizons May 2011

The Carnival UK-operated Queen Elizabeth berths in Sydney, Australia, shortly after her launch in October last year

Carnival UK

3534

Addressing the challengesFor each human element-related concern identified in the assessment, immediate, short, medium and long term recommendations were made. A number of ‘quick wins’ that would see immediate improvements in retention and compliance were identified and reported to Carnival UK. Strategic or long term recommendations were also made to provide firm building blocks upon which to improve compliance and retention, and reduce casualties.

Improving the culture of compliance As a result of this organisational analysis, and the recommendations made, Carnival UK and Lloyd’s Register Human Engineering Services are currently developing the Engineering Department’s Competency Management System. The following plan is in the process of being implemented:

– Action: Create a competency assurance programme that allows Carnival UK to track and assess individuals’ competencies throughout their careers. This is in addition to qualifications and time served.

– Output: A more effective streamlined recruitment, appraisal, and promotion process, proving competencies of staff throughout their careers.

– Benefit: Competent staff from recruitment day one. A reduction in likelihood that human errors will be made due to premature promotion or lack of skill or knowledge. Staff are happier as they understand where they ‘sit’ in the organisation.

Once completed the competency management system will be used by Carnival UK to ensure that staff are placed in positions where they can discharge their duties safely and efficiently.

Future plans and expectations In the medium to long term, Carnival UK expects to continue improving the organisational structure of the Engineering department.

Reducing the likelihood of human errorIt is recognised that changes over time within an organisational structure can lead to different roles incurring too much or too little workload. Too high a workload can lead to mistakes and maintenance delays; too low and complacency can set in.

Based upon Lloyd’s Register recommendations, one future expectation is that Carnival UK will build up a comprehensive picture of current and future staffing requirements. LR have created an action plan to perform this work based upon business needs, fleet size and operations, and assessment of each role’s responsibilities and workload.

Carnival UK and Lloyd’s Register recognise that the long term gain for this work would be an Engineering Department where responsibilities have been systematically allocated to roles according to human capabilities and limitations. Thus, this process would provide the assurance that Engineers can perform the tasks required of their role safely and within an acceptable timeframe. In addition, that maintenance schedules remain on time and systems remain serviced and operational.

Reducing the casualty costsOne can reduce casualty costs by understanding the root causes behind how and why incidents occur.

LR have put together a high level action plan for Carnival UK’s future consideration.

– Action: Develop an underlying coding system that records the root cause of an incident, especially where a cause is determined to be ‘human error’. Develop a reporting form, database, and information dissemination technique that supports the coding system.

– Output: Engineering staff are aware of the bigger picture – the outcomes of their actions/mistakes. Trends in human error across the ship/fleet can be understood. Clear action plans, dissemination of lessons learned, leadership and coaching can be introduced to target and reduce these errors.

– Benefit: Increase business knowledge

of the human error causes associated with casualty numbers (and therefore improved ability to plan). Increase in culture of compliance through lessons learned and increased self awareness. Overall reduction in casualty rates and associated costs.

Successful Co-operationThe successful co-operation on this project provides a clear indication that Carnival UK want to remain at the top of their game, and that Lloyd’s Register has the capability to enable them to do so.

ᏵᏵ For further information, please contact info@humaneng.co.uk

Incident databases are used effectively as a business and planning tool. However, the incident database can also be used pro-actively to understand root causes, identify trends, and transmit lessons learned.

Sharing information directly with ship

Results of detailedtechnical investigation

Reporting Form

AnalysisReports

Database

Horizons May 2011

36

Lloyd’s Register EMEAT +44 (0)20 7709 9166 F +44 (0)20 7423 2057 E emea@lr.org

71 Fenchurch Street London EC3M 4BSUK

Lloyd’s Register AsiaT +852 2287 9333 F +852 2526 2921 E asia@lr.org

Suite 3501China Merchants Tower Shun Tak Centre168–200 Connaught Road CentralHong Kong,SAR of PRC

Lloyd’s Register Americas, IncT + 1 (1)281 675 3100F + 1 (1)281 675 3139 E americas@lr.org

1401 Enclave ParkwaySuite 200HoustonTexas 77077USA

www.lr.orgMay 2011

Services are provided by members of the Lloyd’s Register Group.Lloyd’s Register, Lloyd’s Register EMEA and Lloyd’s Register Asia are exempt charities under the UK Charities Act 1993.