LNG Supplement - SORJ Vol 19 Issue 4 October / November 2021

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Supplement to SORJ Volume 19 Issue 4 October / November 2021

LNG SUPPLEMENT A SPECIAL SUPPLEMENT TO SORJ (SHIP AND OFFSHORE REPAIR JOURNAL)

Volume 19 Issue 4 – Page 1


Repairs

Unifeeders’ containership ElbBLUE being bunkered with Synthetic LNG at Brunsbuttle (See Page 19)

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SORJ (Ship and Offshore Repair Journal) Welcome to the LNG Supplement, which is published alongside the October/November edition of SORJ (Ship and Offshore Repair Journal). LNG tankers are repaired at various yards throughout the world, especially those with the GTT licence for the repair of such containment systems. The Moss spherical tanks do not require a licence as the system is designed for life service without repairs. LNG as a fuel is also expanding tremendously, although many believe that LNG is only a stop-gap solution on the road to IMO’s 2050 emmision–free world. However, many shipowners/operators are ordering new tonnage or converting existing ships for LNG-fuelled operation.

FRONT COVER Supplement to SORJ Volume 19 Issue 4 October / November 2021

LNG SUPPLEMENT A SPECIAL SUPPLEMENT TO SORJ (SHIP AND OFFSHORE REPAIR JOURNAL)

4 8 16

LNG - Market League Table LNG - Design

19 24 31

LNG - Bunkers LNG - Machinery Repairs LNG - Equipment

Front Cover: The Front Cover of this issue shows the two yards operated by Singapore’s Sembcorp Marine – Admiralty Yard (Top) and Tuas Boulevard Yard, both of which repair LNG tankers, although the Admiralty Yard is the most successful in this market. Sembcorp Marine is one of the world largest players in the LNG tanker repair market and in the conversion and building of FSRUs Although every effort is made to ensure accuracy and reliability of the material published, Ship and Offshore Repair Journal cannot accept any responsibility for the verity of the claims made by contributors or the wording contained within advertisements. ©2015 Ship and Offshore Repair Journal. All rights reserved in all countries. No part of this publication may be reproduced by any means whatsoever without the written permission of the publishers. Subscriptions: Annual airmail/first class subscription rates are: Europe £55/$114, rest of the world £63/$120. Send remittance to: Subscription Manager, Ship and Offshore Repair Journal, Office 1, First Floor, 374 Long Road, Canvey Island, Essex, SS8 0JU, UK. Existing subscribers should send change of address details to this address. Ship and Offshore Repair Journal is published bi-monthly by A&A Thorpe, Office 1, First Floor, 374 Long Road, Canvey Island, Essex, SS8 0JU, UK. Telephone: +44 (0)1268 511300 Web: www.shipandoffshorerepair.com Email: sue@shipaat.com

EDITOR Alan Thorpe, A&A Thorpe, Office 1, First Floor, 374 Long Road, Canvey Island, Essex, SS8 0JU, UK. Telephone: +44 (0)1268 511300 Email: alan@shipaat.com DEPUTY EDITOR Paul Bartlett Telephone: +44 (0)1844 273960 Email: paul.bartlett@live.co.uk FAR EAST BUREAU Contact: Ed Ion Telephone: +65 6222 6375 Mobile: +65 9111 6871 Email: edward.ion@helixmedia.asia

ADVERTISING All details are on www.shipandoffshorerepair.com or contact Sue Morson at A&A Thorpe Telephone: +44 (0)1268 511300 Email: sue@shipaat.com TURKEY (EXCLUSIVE) Company name: Proaktif İletişim Tel No: +905322402079 Email: mige@proaktifiletisim.com SORJ WEBSITE www.shipandoffshorerepair.com A website is available for readers to find out the latest details about SORJ (Ship and Offshore Repair Journal). Details of upcoming features, ship descriptions, news and back issues are available as are all details of how to contact this office or any of the staff of SORJ.

ISSN 2515-6179

Volume 19 Issue 4 – Page 3


LNG - Market

By Paul Bartlett LNG fleet based on carrying capacity. To date, there are 24 LNG tankers, four LPG tankers and one FSRU managed and operated in-house by NSQL.

LNG sector on a roll as demand ramps up

The Global Sea Spirit

New LNG tanker for Nakilat Qatar’s Nakilat has taken delivery of a newbuild LNG tanker, Global Sea Spirit, which will be commercially and technically managed inhouse by Nakilat Shipping Qatar Limited (NSQL). Built by South Korea’s Daewoo Shipbuilding & Marine Engineering (DSME she is the third of four LNG newbuild tankers to be delivered to Global Shipping, a joint venture between Nakilat (60%) and Greece’s Maran Ventures (40%). The first two LNG tankers (ME-GI type) were delivered in May 2020 and January 2021 respectively and are currently in service. She is chartered to Cheniere Marketing International. With a cargo carrying capacity of 174,000 m3, Global Sea Spirit is the first vessel with X-DF propulsion to join the Nakilat fleet, with the second newbuild (also with X-DF propulsion) expected to be delivered early next year. Like the ME-GI system, vessels running with X-DF engines propulsion are proven to be more fuel efficient, reduce greenhouse emissions and environmentally friendly due to their low carbon emission. Like the rest of Nakilat’s fleet, the newbuild fully complies with all mandatory international and national regulations pertaining to environmental protection. They also have significantly lower boil-off rates, and equipped with onboard reliquefication units, thus providing greater operational flexibility for charterers. The delivery of all four newbuild LNG tankers by 2022 will bring Nakilat’s fleet to 74 vessels, which is just under 12% of the current global

The Methane Princess and Methene Progress laid-up after the completion of the 20 year contract

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Few shipping sectors have undergone so radical a transformation as the LNG market. From the first commercial shipment of the cargo in 1964 from Arzew, Algeria to the new LNG terminal at Canvey Island, UK, aboard the 27,400 m3 Methane Princess, there followed decades in which the global business was confined to a handful of low-profile, long-term, fixed-contract trades, and a small and relatively stable fleet of similarlysized vessels dedicated to specific projects, the sector has undergone a transformation. Prior the Methane Princess, and her sistership, Methane Progress, experimental cargoes were carried to Canvey Island on-board a converted cargo vessel Methane Pioneer (5,090 m3 of LNG from Lake Charles, Louisiana to the UK) and the Esso Puerto Rico, although she was designed in 1958 to carry LPG. Both the Methane Princess and Methane Progress were operated by Shell and had Conch containment systems. This containment design was never ever used again, although the ships spent some 20 years on the Arzew – Canvey Island service There was, at that time, virtually no short-term or spot market. But today, a wide range of new trades has evolved and more are constantly developing. The sector’s composition has changed – from the risk-averse owners whose ships were tied in to 20-year contracts to one in which a significant number of newcomers vie for business – short, medium or long. Ships are ordered on spec and make spectacular returns from time to time in a volatile spot and short-term market.

Fleet diversification As global LNG trades have diversified, so too have the ships themselves. There are still nearly 250 steam turbine vessels and close to 200 dual-fuel diesel electrics. There are about the same number of low-pressure and high-pressure dual-fuel two-stroke engine installations. These generate different levels of methane emissions, a growing concern in shipping’s increasingly visible sustainability drive. GTT membrane containment systems are used on most vessels in operation today and on order. About 120 ships have Moss ‘spherical’ tanks but no ships on order have this containment technology. A diverse fleet ranging from small-scale vessels to the largest 266,000 m3 Q-max ships are deployed in a varied market. They are employed in some of the original dedicated supply contracts agreed by producers including Abu Dhabi, Australia, Indonesia, Malaysia, and later, Qatar. But today they also operate in more diverse trades out of northern Russia, Canada, Africa, South America and, of course, the US. The small number of dedicated contracts has expanded into a complex network of supply deals. In some cases, notably in the US, entire trades have reversed. New terminals built to import the LNG that the US traditionally required have been converted to key export hubs and, in 2020, gas shipments accounted for 23% of US energy exports, measured


Volume 19 Issue 4 – Page 5


LNG - Market

A Q Max ‘membrane’ LNG tanker in operation

on an energy equivalent basis, according to the US Energy Information Administration (EIA). Global LNG trade has continued to expand at percentage rates in the high single figures or low double digits. Even in 2020, when global energy dipped sharply, seaborne trade in LNG continued to rise. Clarksons Research estimates that volumes shipped by sea increased by just over 1% in 2020, despite the pandemic, making up 12.5% of gas demand and 39% of gas trade. This year, the analysts expect volume growth of close to 6%, followed by around 4% in 2022. Tonne-mile increases will be higher, however, reflecting longer and more diverse trades, notably out of the US to Asia and Europe. Clarksons expects tonne-mile growth of 10% this year, and 6% in 2022. The 1% increase in 2020 increase followed a growth of nearly 9% in 2018 and more than 12% in 2019. Meanwhile liquefaction and regasification capacity continue to expand around the world and the number of bunkering ports has more than doubled from the 79 in 2017 to 161 this year. At least another 23 LNG bunkering ports are likely to be operating by the end of 2022, according to Clarksons figures.

More floating capacity Meanwhile, the floating sector has taken off. By the end of this year, there are expected to be six floating production facilities in operation, including Shell’s vast Prelude facility, stationed over the Browse Basin 125 miles off the coast of Western Australia. About 50 floating storage and regasification units (FSRU) are likely to be operating by the end of the year. Experts predict that the number of FSRUs will increase significantly in the years ahead, despite the fact that LNG is a hydrocarbon. Despite this, it is a far cleaner source of energy than other hydrocarbons – including coal and oil – which are still the primary source of energy in many countries. In poor parts of Africa, for instance, there are no energy grids and many people still use wood as a primary energy source, sometimes inside their dwellings without proper ventilation. Respiratory diseases are common. Environmentalists invariably oppose new projects – Greenpeace recently daubed a new FSRU, LNG Croatia, with the words ‘Climate Killer’. However, energy experts point out that natural gas is dramatically better than coal and a significant improvement on oil, in terms of sustainability. Until new low- or zero-carbon fuels become available in sufficient scale, LNG is a valid option, they say. During May this year, Singapore’s Sembcorp Marine delivered a FSRU

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A Moss-type ‘spherical’ LNG tanker

to KARMOL for deployment offshore Senegal. The 125,470 m3 KARMOL LNGT Powership Africa will supply LNG, via the Karadeniz Powership Ayşegül Sultan, to generate electrical power to regions currently lacking domestic gas production/infrastructure. KARMOL, a joint venture between Karpowership and Mitsui OSK Lines, has commissioned another FSRU for deployment off Mozambique. This conversion involves the former LNG tanker Northwest Shearwater, which is currently in Sembcorp Marine’s Admiralty Yard (AY) for the conversion. She will be renamed Karmol LNGT Asia. Sembcorp Marine is also currently converting NYK Lines’ 127,700 m³ LNG Flora into an FSRU for infrastructure operator Gasfin Development, to be operated offshore Ghana on the Torma Gas Field. When delivered she will be renamed Torman II. NYK and Gasfin are also collaborating on an FSRU barge called the Project Lisa. In a latest development, Qatar’s Nakilat and Karpowership have signed a Memorandum of Understanding (MoU) to collaborate in the LNG-topower market and jointly own and operate Floating Storage Regasification Units (FSRUs). Nakilat’s Chief Executive Officer Eng. Abdullah Al-Sulaiti said, “We are very pleased and excited to sign this agreement with Karpowership today. This fits very well with Nakilat’s long-term growth plan to expand and diversify our shipping portfolio and strengthens our position as a global leader in the energy transportation sector.” Karpowership’s Chief Executive Officer Orhan Remzi Karadeniz added,

The KARMOL LNGT Powership Africa – converted by Sembcorp Marine


Sembcorp Marine. Integrated Synergies, Global Possibilities.

Sembcorp Marine Repairs & Upgrades Pte Ltd Admiralty Road West, Singapore 759956. Tel (65) 6752 2222 Fax : (65) 67581025 www.sembmarine.com

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LNG LEAGUE TABLE Page 8 – www.shipandoffshorerepair.com


LNG LEAGUE TABLE Volume 19 Issue 4 – Page 9


LNG - Market “We are very excited to be working with Nakilat as this will enhance our ability to offer a one stop shop tailor-made solution to our customers through our integrated business model where we design, develop, engineer and construct our entire assets. FSRUs together with Powerships deliver energy to any country around the world, by utilising a cleaner and more reliable fuel than many existing options”. The MoU outlines an ambitious plan for the immediate future. Nakilat and Karpowership hope to set up a new joint venture and deliver the first FSRU by 2023. During August this year, Singapore’s Keppel Offshore & Marine delivered the BW Tatiana a FSRU, which will be deployed in El Salvador, Central America’s first FSRU. The 137,000 m3 will be stationed offshore the Port of Acajutla, El Salvador, and be part of the Energia del Pacifico LNG-to-power project. Keppel in 2020 won a contract from the BW LNG-Invenergy joint venture to convert Shell’s moss-type LNG tanker Gallina into the FSRU, which has regasification capacity of 280m ft3/day of gas. Keppel is also currently completing the Gimi FSRU project for Norway’s Golar LNG. The unit will start a 20-year contract with BP for the Greater Tortue Ahmeyim project offshore Mauritania and Senegal in the fourth quarter of 2022.

Fleet expansion continues as capacity sets new record The 665-ship LNG tanker fleet comprised 611 ships of more than 40,000 m3 in the closing week of October, and a further 54 vessels of smaller sizes. The total fleet represents just over 100m m3, up 7.2% year-on-year, according to statistics from Clarksons Research, and the first time that it has broken through the 100m m3 threshold. Deliveries over the first three quarters of this year totalled 7.9m m3 which, according to the analysts, is the largest volume recorded to date. The orderbook represents almost a quarter of this capacity, a figure that has remained fairly constant since the beginning of 2018. However, the fleet has grown by more than 20% since the end of that year. Fleet capacity is expected to increase by about 5% in 2022 but tonne-mile trade is likely to grow faster. This follows a period in which seaborne trade of LNG has undergone rapid expansion. Clarksons figures show a 44% increase between 2015 and 2020. And what is more, the outlook for

The Gallina being converted to the FSRU BW Tatiana in Keppel Shipyard

trade growth is still positive. Experts suggest that the LNG fleet will continue to grow rapidly, partly as a result of the many projects that are being developed. The most notable is expansion in Qatar which could require as many as 100 new ships, according to estimates. But there are many other start-ups, both confirmed and likely, with substantial vessel requirements.

Record spot rates A range of key developments have characterised the global LNG market this year, including the highest-ever spot rates early in the year, with some fortunate owners fixing ships at more than US$200,000 a day in January. Rates have been volatile but profitable, and the spot market had another exceptional rise in October, with ships fixed close to $200,000 a day. The combination of high gas prices and relatively low stocks has meant that demand for LNG shipping capacity has been exceptional. However, energy analysts are uncomfortable with the outlook. The economic rebound as the global vaccination drive took effect and the sustainability strategy of adopting gas as a more sustainable hydrocarbon fuel than coal or oil is putting the supply chain under pressure. Gas prices have climbed as never before. Spot prices in Asia, for example, averaged $33/m BTU during the first two weeks of October, an eight-fold increase on the prices prevailing in October 2020. Meanwhile, high shipping costs are good for those lucky owners with ships available, but it is not good news for others along the LNG supply chain. Consumers, in particular, are in the firing line, whether individual households or entire countries. Some energy experts, therefore, are now warning of a developing crisis over the coming winter in the northern hemisphere, and economists are expressing concern about industrial disruption as a result of high energy costs, rising inflation, and cuts in economic output.

Further growth

One of the new Arctic LNG tankers

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However, soaring gas prices are likely to underpin further growth in the LNG sector and spur exporters with additional capacity, such as the US. Australia is still ahead of Qatar at the top of the exporters’ rankings, with 77.8m tonnes shipped out last year and an expected 78.9m tonnes of experts likely this year. Corresponding figures for Qatar are 77.1m tonnes


Expertise in the gas value chain

With a wealth of experience and capabilities in gas-related repairs and conversions, Keppel Offshore & Marine is today’s preferred partner of choice in meeting the world’s growing demand for LNG in a fast and cost-efficient way.

Keppel Shipyard Limited (A member of Keppel Offshore & Marine Limited) Volume 19 Issue 4 – Page 11 51 Pioneer Sector 1 Singapore 628437 Tel: (65) 68614141 Fax: (65) 68617767 Email: ks@keppelshipyard.com www.keppelom.com


LNG - Market Qatar (17) and Russia (10). A further 57 liquefaction possibilities are currently under discussion, some of which have been on the drawing board for some time. Some of the details may well be undergoing a dusting down in light of the gas price surge and rampant demand. However, there are no short cuts available in the regulatory approvals process and most of these ‘proposed’ projects are scheduled with start-ups in from 2025 onwards. But timelines invariably shift in LNG infrastructure development so the dates could well slip towards the end of the decade or beyond. Demand for floating units remains buoyant

and 77.9m tonnes. But vast expansion of production facilities in Qatar could see a change in the rankings in 2022. On the importing side, however, high gas prices may constrain volumes to some extent over the northern hemisphere winter, but Chinese imports in August, for example, still increased by 12% month-on-month and 7% year-on-year, Clarksons figures show. This massive requirement, equivalent to about 80% of entire UK production, has absorbed large volumes of gas that could have been available elsewhere, resulting in looming supply issues in Europe, for example, and sharply higher prices. Over the whole of 2021, Chinese imports are expected to increase by 18% over 2020 volumes, followed by another double-digit hike of 12% forecast for 2022. As demand for floating units remains buoyant, conversion candidates are being monitored carefully. Larger vessels are usually favoured for such projects but many of the most suitable ships have already been taken. There are still 15-20 vessels in the fleet built before 1990 but their suitability for conversion to FSRUs or FSUs is not clear. A further 40 vessels were commissioned between 1990 and the end of the century. Demolition has continued mostly at low single-digit numbers over the past decade. The six ships sold for recycling in 2020 was the highest annual tally so far this century. Five vessels have been sold for recycling over the year to date, with strong earnings holding more appeal even than the high demolition prices available from recycling yards on the Indian subcontinent. Vessels sold for demolition have included the 1997-built 130,405 m3 Teri F and the previously laid-up Baltic Energy, 125,929 m3, built by Kawasaki in 1983. Both vessels were steam-turbine units and were sold to recyclers on the Indian subcontinent.

LNG projects to underpin further fleet expansion There are currently 23 liquefaction projects being developed of which the US and Russia have five each, Qatar has four, with other facilities under construction in Canada, Indonesia, Mauritania, Mexico, Mozambique and Nigeria. According to estimates by Clarksons Research, and based on ship capacity of 174,000 m3, 178 ships will be needed to service transport requirements, including 49 for US projects and 42 for Russian developments. However, the scale of the planned build-up in US capacity is demonstrated by the number of projects currently in the front-end engineering design (FEED) phase and/or with agreements signed. Clarksons lists a total of 49 such projects, only 16 of which are not in the US. Most of the capacity is due to come on stream around the middle of the decade and the US projects will drive demand for an estimated 330 vessels. Other projects at this stage of development are located in Australia (6 ships), Canada (27), Israel (3), Mexico (20), Mozambique (initially 10),

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Political risk rears its ugly head Contracts for 17 new LNG tankers required for TotalEnergies Mozambique development, designed as a two-train facility with annual production capacity of 13bn tonnes have had final signings delayed until March 2022. Originally due to be finalised by May 2021, the contracts at Hyundai Samho Heavy Industries and Samsung Heavy Industries, all in South Korea, have been put back following a declaration of ‘force majeure’ by the French energy major earlier this year after an Islamist insurgency in Palma, close to the Cabo Delgado onshore site of the $20bn development. The gas reserves are located in the Golfinho and Atum fields off the east African country’s coast. Their development could be a transformation for the poor nation. The decision to develop a land-based site, rather than a floating setup, is understood to have been taken by TotalEnergies and its partners, partly to support the country’s economy and specifically to provide work for African personnel in the local community. Although timing remains uncertain, the project is still expected to go ahead. But the shipping companies which will provide sea transport for the project have been forced to hold back on definitive contracts. K-Line, Maran Gas Maritime, Mitsui OSK Lines, and NYK Line now face sharply higher shipbuilding prices as a result of costlier raw materials such as steel and rising energy costs, but also because of the scramble to order new vessels including LNG tankers. Newbuild prices are rising quickly across all sectors. Brokers believe that LNG tankers costing around $180m six months ago could now be priced at $210m, and prices continue to rise. There is also a question of berth availability. As the Qataris firm up on newbuilding slots for their unprecedented newbuilding progamme, for example, the availability of building berths will fall and LNG tanker prices are likely to continue their ascent. The fluid situation could not be updated before press time, but TotalEnergies is understood to have placed the project on hold for at

One of the latest terminals to open was in Croatia


LNG - Market

The TotalEnergies Mozambique development

least another six months. Its ‘force majeure’ move and the withdrawal of almost all expatriate personnel prompted the country’s President Filipe Nyusi to tackle the insurgency with Rwandan troops, supported by other military personnel from the Southern African Development Community (SADC). The SADC is understood to have provided support from countries including Angola, Botswana, Lesotho, South Africa, and Tanzania. TotalEnergies has a 26.5% stake in the project which it bought from Andarko in 2019. Other partners are Mozambique’s state hydrocarbon company, ENH Rovana Área Um (15%), Mitsui (20%), Beas Rovuma Energy Mozambique (10%), Barat PetroResources Limited (10%), Indian state company Oil and Natural Gas Corporation Limited (10%), and Thailand’s PTT Exploration and Production Public Company Limited (8.5%).

Container lines lead deep-sea take-up of LNG for fuel Major liner companies are amongst those pioneering the take-up of LNG propulsion. French carrier, CMA CGM, which has declared its commitment to carbon neutrality by 2020, was one of the first off the mark when it placed contracts for nine LNG-powered 23,000 teu vessels at Chine State Shipbuilding Corporation’s Jiangnan Shipyard in November 2017. The first of these, the CMA CGM Jacques Saade, delivered in September 2020, was installed with the largest-ever LNGfuelled engine and fuel supply system. The two-stroke WinGD X92DF engine delivers 63,940 kW of power. However, despite the almost complete eradication of sulphur and

CMA CGM’s CMA CGM Jacques Saade

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LNG - Market nitrogen oxide emissions, low-pressure two-stroke engines capable of burning fuel oil and LNG do tend to have higher emissions of methane, a far more damaging gas than carbon dioxide from a climate point of view. But WinGD has introduced a new combustion setup – X-DF2.0 Technology – and new system called Intelligent Control by Exhaust Recycling (iCER), which is now integral to its second generation dual-fuel engine range. WinGD’s iCER system uses inert gas to improve combustion control, resulting in a halving of methane emissions and improved fuel consumption in both gas and diesel operation. The engine company has estimated fuel savings at 3% in gas mode and 5% when running on diesel. Methane slip has been reduced to “very low levels”, the company said, leading to a greenhouse gas reduction of almost 20% over conventional diesel engines. Since the ordering of the nine-ship series, Rodolphe Saadé, Chairman and CEO of the company, revealed that six dual-fuelled vessels of 15,000 teu, also built at CSSC yards, were to be dedicated to US trades. The first of these was due for delivery thing month and all six are scheduled to be operational by the end of 2022. By that time, the French company will be operating 32 dual-fuel LNG containerships of various sizes.

Stronger shipper sentiment While many container lines are still opting for conventional fuels for new ships, CMA CGM is not alone. Leading carriers are only too aware that major shipper groups are now demanding more visibility on environmental issues and lines that are deemed not to have adopted

rigorous sustainability policies are likely to lose out. The most proactive carriers are therefore taking the fuel issue very seriously. They include some independents such as Seaspan and Hartmann Reederei. Maersk Line recently bucked the trend by announcing an order for eight 16,000 teu containerships capable of running on carbon free methanol, MSC and Hapag-Lloyd have both followed the LNG route. Geneva-based MSC has hedged its bets to some extent by entering into long-term charters for LNG-fuelled vessels, rather than ordering new ships itself. Although the company plays its cards closely, deals concluded so far are thought to include eleven dual-fuelled 15,300 teu containerships with Singapore-based Eastern Pacific Shipping and four ships from Zodiac Maritime. Meanwhile, Hamburg-based Hapag-Lloyd has doubled its sixship order, placed at South Korea’s Daewoo Shipbuilding & Marine Engineering at the end of 2020, with another six vessels in June of this year. The 23,500 teu ships are designed to operate on LNG but will have sufficient fuel tank capacity to run on conventional fuel if required. The vessels will have high-pressure dual-fuel engines in which the combustion process minimises methane slip. In a statement, the German company noted that fossil LNG is currently the most promising fuel on the path towards zero emissions, but that its medium-term goal is to operate ships that can provide carbon-neutral transport by using synthetic gas. Hapag-Lloyd also revealed that the second series of six ships had been financed with a $852m syndicated green loan with ten participating banks, backed by the Korea Trade Insurance Corporation. SORJ

Hapag-Lloyd has doubled its six-ship order at DSME with another six 23,500 teu vessels in June of this year

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Volume 19 Issue 4 – Page 15


LNG - Design

An artist’s impression of the ballast-free bulk carrier

GTT launches LNG Optim France’s GTT has launched LNG Optim, a new digital ‘Smart Shipping’ solution. This tool helps LNG operators, and LNG tankers or LNG-fuelled vessels, to prepare the voyages of their vessels in order to reduce the overall fuel consumption and to manage Boil-off gas in the tanks. For several years, GTT Group has been extending its range of services to support the maritime industry in its digital and energy transformation, with the launch of Smart Shipping solutions to optimize the energy performance of ships. The LNG Optim solution, based on GTT’s unique expertise in studying boil-off gas management and developed in collaboration with the Group’s subsidiaries, Ascenz, Marorka and OSE Engineering, has already been adopted by major players in LNG shipping. The studies performed by GTT to design this solution took into account the modelling of complex phenomena such as LNG ageing, the influence of sea states on Boil-off gas generation, as well as the impact of active systems like reliquefaction plants and subcoolers. Philippe Berterottière, Chairman and CEO of GTT, said, “This new technological innovation

from GTT, which is the result of joint work between the different teams of the Group, marks our ambition in the very promising field of “Smart Shipping”. Our Digital offer aims to support ship-owners, charterers and operators in the energy transition, by optimising the operational and environmental performance of their LNG-fuelled vessels.” Meanwhile, GTT has announced various orders for LNG tanks for LNG tankers building in various shipyards: • With South Korea’s Hyundai Heavy Industries (HHI) for the tank design of three new LNG tankers on behalf of an Asian ship-owner. As part of this order, GTT will provide the design and associated engineering services for the tanks of the vessels which will each offer a capacity of 174,000 m3. The LNG tanks will be fitted with the GTT Mark III Flex membrane containment system. Deliveries of the vessels are scheduled for the second and third quarters of 2024. • With South Korea’s Samsung Heavy Industries (SHI) for the tank design of three new LNG tankers on behalf of a shipowner whose name remains confidential at this stage. GTT will design the tanks of the vessels which will offer a cargo capacity 180,000 m3 and will be fitted with the Mark III Flex membrane containment system, a technology developed by

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GTT. The vessels will be delivered between the second quarter of 2023 and the first quarter of 2024. • With China’s Jiangnan Shipyard (Group) for the cargo handling system and tank design of a LNG tanker on behalf of the Chinese shipowner JOVO. This is GTT’s first order for a membrane LNG tanker from Jiangnan, making the shipyard the second Chinese LNG tanker yard to construct a vessel with GTT technology. GTT will design the tanks of the vessel with a cargo capacity 79,800 m3. The vessel will be fitted with the GTT’s Mark III Flex membrane containment system and will be the first LNG tanker built in China to be fitted with the Mark III technology family. The vessel will be delivered in the fourth quarter of 2023. • With South Korea’s Hyundai Samho Heavy Industries (HSHI) for the tank design of two new LNG tankers on behalf of an European shipowner. GTT will design the tanks of the vessels, which will offer a cargo capacity 174,000 m3 and will be fitted with the Mark III Flex membrane containment system, a technology developed by GTT. The vessels will be delivered in the first quarter of 2024. GTT has also combined with China’s Hudong Zhonghua Shipbuilding Group (HZ), for a double Approval in Principle (AiP), from China


LNG - Design Classification Society (CCS) and DNV, for the ‘Ballast-Water-Free’ LNG Bunker & Feeder vessel concept. The received AiPs recognise the compliance of this ‘Ballast-Water-Free’ vessel design with the rules and codes relating to ocean-going vessels, their construction and equipment. The design fitted with GTT’s membrane system enables the construction of more economical and environmentally friendly vessels. The majority of merchant vessels worldwide uses ballast water when the bunkers are empty or partially loaded in order to maintain seaworthy conditions. Therefore, a considerable quantity of ballast water is carried by ships every day. Even when ballast water is treated, there is a risk of transferring harmful aquatic organisms and pathogens from one area to another. The solution developed by GTT eliminates this risk completely. In addition, removing the ballast water treatment system also reduces the energy consumption and CO2 footprint of the vessels. A ballast-free vessel also offers advantages in terms of investment and operational cost, simplification of vessel operation, reduction

of corrosion and prolongation of lifetime. An extensive test campaign in the hull test tank has demonstrated the good sailing and seakeeping capabilities of the design. Philippe Berterottière, Chairman and CEO of GTT, said, “This major technological innovation to improve both the environmental and economic performance of LNG Bunker & Feeder vessel has been made possible thanks to the support of our partner Hudong Zhonghua. We welcome the approvals of CCS and DNV, which allow us to offer our ship-owners and charterers customers a high-value technology solution. GTT once again demonstrates its ability to innovate in order to make vessels ever more environmentally friendly and in line with the environmental guidelines of the maritime industry.”

DNV award AiP to SHI DNV has awarded an Approval in Principle (AiP) to South Korea’s Samsung Heavy Industries (SHI) for a ‘Fuel Ready’ (ammonia, D,

S, Ti) class notation for its 300,000 dwt LNGfuelled VLCC design. SHI has developed a fuel ready concept for a VLCC with dual fuel diesel/ammonia as a potential fuel combination after conversion from dual fuel diesel/LNG. The AiP award confirms the general feasibility of the design. It was found that there are no showstoppers in realising the DNV class notation ‘Fuel Ready’ after examining the shipyard’s drawings. The newly released ‘Gas Fuelled Ammonia’ notation has also been applied in the process. “The global maritime industry is at a critical juncture in terms of being ready to respond with low-carbon ship design. Through DNV’s AiP for ammonia ‘Fuel Ready’ design, SHI is making an effort for commercialisation of alternative fuel solutions for global shipowners considering newbuildings or converting ammonia-fuelled ships in the future,” said Ho-hyun Jeong, EVP and Head of SHI’s Engineering Operations. “We are very happy to work with SHI in this innovative ‘Fuel Ready’ VLCC concept,” said Knut Ørbeck-Nilssen, CEO of DNV Maritime. “DNV has been pioneering the research and

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Volume 19 Issue 4 – Page 17


LNG - Design development of viable future marine fuels, including ammonia. As a trusted voice to tackle global transformations, our role is to support the industry in bringing new low-carbon ship designs to life in a safe and sustainable manner.” The AiP incorporates the attributes S (structure) and Ti (tank installed). A high-level verification of ammonia applicability for the C-tanks installed on-board the VLCC was also performed. At the time of newbuild, the vessel will still be subject to a full review of documentation requirements pertaining to the applied rules. In addition to ‘Fuel Ready’, DNV also offers a dedicated ‘Gas Fuelled Ammonia’ class notation, aimed at shipowners looking to build ammonia fuelled vessels now. The new notations were launched on July 1st, 2021 and will enter into force January 1st, 2022.

BV award AiP to MHI France’s Bureau Veritas (BV) has delivered an AiP to Mitsubishi Shipbuilding – part of Mitsubishi Heavy Industries (MHI) Group – for a cargo tank system to be mounted in a liquefied CO2 (LCO2) tanker. LCO2 tankers transport liquefied CO2 in a low temperature, high-pressure state. They play a pivotal role in the carbon dioxide capture, utilisation, and storage (CCUS) process, by transporting CO2 from its emission sources to storage sites or facilities for utilisation. Demand for these vessels is expected to increase in the future, as CCUS is attracting attention worldwide as an effective means to achieve decarbonisation.

BV reviewed the design of the LCO2 cargo tank system and confirmed that it meets the technical and regulatory requirements and standards for safety. The inspection of this system was conducted based on the International Gas Carrier (IGC) code, which applies to marine vessels carrying liquefied gas in bulk, as well as BV’s ship classification regulations. Alex Gregg-Smith, Senior Vice President & Chief Executive, North Asia and China at BV commented, “This AiP recognises that Mitsubishi Shipbuilding’s new LCO2 technology meets our class rules and standards. I would like to thank Mitsubishi’s team for their trust, and BV is proud to help advance innovation and new technology that is much needed to achieve a low-carbon future.”

Deltamarin wins design contracts with China Merchants Finland’s Deltamarin has signed design contracts with China Merchants Jinling shipyard (Weihai) for the complete basic and detail design packages of three ro/pax vessels. These are the 10th, 11th, and 12th Stena E-Flexer vessels for two different end clients. Stena’s E-Flexer class has been developed with a basic concept, but is flexible and adapted to customer needs, both commercially and technically. The concept combines cargo and passenger capabilities, and the vessels are substantially larger than today’s standard ferries.

An artist’s impression of the Canadian E-Flexer

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An artist’s impression of the MHI LCO2 tanker

The Stena E-Flexer class is at the forefront in terms of sustainability, and sets a new standard for emissions, costs and energy efficiency, as well as performance. Vessel No. 10 will be chartered by a Canadian federal Crown corporation, Marine Atlantic, from Stena RoRo. The vessel will have a capacity of 1,100 persons and approximately 2,600 lane meters. It has LNG dual fuel engines and a battery hybrid solution to minimise emissions. The ship will enter service in eastern Canada between Newfoundland and Nova Scotia in 2024. The vessels Nos. 11 and 12 will be chartered by Brittany Ferries from Stena RoRo. Both ships will have a capacity of 1,400 passengers. Cargo capacities have been tailored for the planned services and differ in terms of total lane meters and lane meters intended for cars. Both ships will be equipped for LNG operation, meaning that they can run on LNG, biogas or other new fuels such as ammonia. In addition, the ships will have a large battery hybrid solution of 10 MWhr for propulsion and manoeuvring in port and an 8 MW electric shore connection for charging the batteries. SORJ


LNG - Bunkers Growth in LNG-fuelled projects The Society for Gas as a Marine Fuel (SGMF) has published two new guidelines to improve the safety of LNG-fuelled ships. The documents are intended to assist greater standardisation in crew competency and vessel design. SGMF’s Operation of ships with LNG – competency and assessment guidelines defines the skills required for any party involved in the preparation, storage, handling and use of gas as a marine fuel. The guidance can also be used by organisations developing training in these competencies. A new Technical Guidance Note recommends on the best locations for bunker manifolds or bunker stations on gasfuelled ships. The guidance complements existing SGMF documentation on manifold arrangements and is intended to promote compatible bunkering operations across a widening range of bunkering facilities and installations. Both publications were prepared by working groups comprising SGMF members. They, along with an extensive library of other guidance, are available freely as part of SGMF membership. Non-members can also purchase hard copies. Mark Bell, General Manager, SGMF commented, “The rhetoric around LNG is rising to fever pitch, but SGMF remains a calm voice calling for consistent safety standards to be applied to the most widely available of shipping’s alternative fuels. We are delighted that our working groups have been able to contribute further to the consolidation of safety standards with these two important publications.” Meanwhile, SGMF has set up its first regional committee to facilitate co-operation and information sharing as uptake of LNG-fuelled ships surges in the Asia Pacific. The new body held its first meeting during June and already has an ambitious work agenda. Its first tasks will be to prepare a publication on the pathway to green ammonia and a regional dashboard tracking trade patterns to measure the multifaceted impact of conversion to gas as marine fuel. This dashboard will build on an existing East Coast Australia dashboard developed by DNV, released late 2020. Meanwhile, industry coalition SEA-LNG recognises significant growth in LNG-fuelled vessel orders in 2021. According to the latest

A LNG-fuelled PCTC

report from Clarkson Research Services, LNGfuelled vessel orders are approaching 30% of gross tonnage on order, representing a substantial part of shipping’s overall capacity when these vessels are delivered. This year (2021) has been a banner year for new LNG dual-fuel vessel construction contracts as reported by DNV and others. This trend is expected to continue. Major deep-sea sectors of the maritime industry are embracing LNG in efforts to reduce both local and global emissions, as LNG-fuelled vessels are one of the only options today that meet the reduced emissions required of environmental finance. It is anticipated that over 90% of the new PCTCs that will enter the market in the coming years will be LNG dual fuel. Likewise, containership owners and operators are moving to LNG-fuelled tonnage, with orders for LNGfuelled liners increasing five-fold since January 2020. Tankers and bulkers are also following suit, with increases of seven-fold and two-fold respectively over the 18-month period.

MAN testing SLNG During late September, the 13,000 dwt, 1,036 teu containership ElbBLUE bunkered synthetic LNG (SLNG) at the Port of Brunsbuttel on the Elbe, Germany. This is the first such bunkering operation undertaken using SLNG and is being carried out as a test case for the owners and engine manufacturers (MAN Energy Solutions). MAN engineers will accompany the ship on her voyage from Brunsbuttel to St Petersburg, Russia, and then back to Brunsbuttel. The MAN team will be monitoring all necessary details of the engine’s performance including, pressures, temperatures, revolutions, emissions etc, although, according to Stefan Eefting, Head of MAN PrimeServ Augsburg, “There is no expectation that the results will be any different from the ship’s normal operation – running on LNG.

“This represents another important milestone and will once more demonstrate the feasibility of the Maritime Energy Transition, which a MAN Energy solution has been promoting for several years. We have found the perfect partner in Wessels Reederei. Now it’s the duty of politics. After the conversion of the Wes Amelie, a government support programme has been set up for the conversion of more ships to LNG. To make SNG a viable and available option for shipping, governments and regulators need to work closely together. At present, this fuel is far too expensive and not available in sufficient quantities for long-term use.” To demonstrate that SLNG can successfully be used as a marine fuel, 20 of the 120 tons of LNG that the vessel typically uses on such a round trip will be replaced by climate-neutral SLNG. As a result, CO2 emissions are expected to decline by 56 tonnes for this trip. As the Wes Amelie, the ship was converted from HFO-driven diesel engine to LNG during 2017 at Germany’s German Dry Docks in Bremerhaven. At that time she was the first vessel to move to LNG fuel using MAN units. The vessel was built during 2011 as the Wes Amelie by China’s Jiangdong Shipyard, Wuhu and is owned by Germany’s Wessels Reederei, Haren Ems and is part of the Unifeeder pool. She is powered by and MAN 8L51/60 dual fuel diesel engine, which has an output of 9,000 kW. Since 2017, MAN Energy has converted some 10 vessels/year to LNG, however, it will need a massive increase in this figure to attain IMO’s climate target by 2050. Meanwhile, GoodFuels and Unifeeder have together completed their first bunkering of sustainable marine biofuel in the Port of Rotterdam. Under this new partnership, the 14,669 dwt shortsea containership ElbSUMMER was bunkered with a blend of marine biofuel produced from 100% sustainable feedstock and marine gasoil (MGO) before starting its journey towards Helsinki, Finland. This is the first bio-bunkering between GoodFuels and Unifeeder, and aligns with both companies’ ambition to significantly reduce the carbon footprint of European transportation and improve the environmental impact of the shipping industry. GoodFuels supplies sustainable biofuels to the global shipping industry that ‘drop in’ existing engines without requiring any modifications to the engine components or fuel infrastructure, and enable instant decarbonisation impact. GoodFuels’ sustainable marine biofuels reduce CO2 emissions by up to 90% well-to-

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LNG - Bunkers

The ElbBLUE being bunkered with SLNG

exhaust, and eliminate SOx emissions almost entirely. Its entire portfolio of biofuels is 100% sustainable because they are produced from various certified feedstocks labelled as waste or residue. Similarly to GoodFuels, Unifeeder, which is part of DP World, is also positioning itself as a frontrunner for sustainability in shipping, and is fully dedicated to reducing Greenhouse Gas emissions with its own target of decarbonising its fleet by 50% by 2040. Partnering with GoodFuels is an impactful and immediate way of Unifeeder achieving these goals by using a solution that is market-ready and available today.

New bunker vessel for France Following successful sea and gas trials, France’s TotalEnergies Marine Fuels and Japan’s Mitsui O.S.K. Lines (MOL) have move closer to operational service of the first LNG bunker vessel based in France. The first LNG bunker vessel to be based in France has marked another step towards her delivery and operational commencement, following the successful completion of her sea and gas trials. The new vessel is TotalEnergies Marine Fuels’ second collaboration with MOL and Chinese shipbuilder, Hudong-Zhonghua Shipbuilding. TotalEnergies Marine Fuels and MOL signed a long-term charter contract in November 2019 and construction commenced in April 2020. The 18,600 m³ capacity vessel was first launched from the Hudong-Zhonghua Shipyard at the end of April 2021. In June, sea trials were conducted off Shanghai where the new vessel’s navigation and propulsion systems were successfully tested, including speed and manoeuvrability assessments at open sea. Gas trials were completed in early July, under the attendance of the ship management team.

Due to go into operational service in the final quarter of 2021, the Marseille will be operated by V-Ships France, under the French flag and will be based in the Port of Marseille-Fos, Southern France, to serve the Mediterranean region. Her first contracts will be to perform LNG bunkering services to CMA CGM’s LNG-fuelled containerships and MSC Cruises’ upcoming LNG-powered cruise ships that call at the French port. Leveraging the design-and-build experience for TotalEnergies Marine Fuels’ first chartered LNG bunker vessel, Gas Agility, the world’s largest LNG bunker vessel in operation, the new vessel will incorporate enhanced equipment boosting its bunkering efficiency and flexibility to supply LNG to a wide range of vessels across various segments and sizes. These improved features include an additional bow thruster, upgraded cargo pumps and high duty compressors, as well as a pressure reduction system to optimise bunkering operations of ‘Type C’ tank vessels under all conditions. Other key features will be similar to the Gas Agility’s pioneering design. The 135 m long, GTT Mark III membrane vessel will meet the highest technical and environmental standards, herself using LNG as propulsion fuel and integrating a complete re-liquefaction of the boil-off gas. The Bureau Veritas-classed vessel also underlines a strong collaborative action across the French maritime industry and the excellence of its value chain, from incorporating technologies of leading French companies into the vessel’s shipbuilding, to the supply of LNG, and the involvement of local port authorities to enable the vessels’ safe operatorship.

The Marseille on sea trials

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By the end of 2021, TotalEnergies Marine Fuels will charter two LNG bunkering vessels in Rotterdam and Marseille and share the use of a third bunker vessel in Singapore. In February 2021, the Singapore entity of TotalEnergies Marine Fuels also received a license from the Maritime & Port Authority of Singapore (MPA) to supply LNG in the Port of Singapore from 2022.

Gasum wins Finnish contract and bunkers cruiseship Finland’s Gasum has won the framework agreement in a competitive tendering process organised by the Finnish government central purchasing body, Hansel Ltd. Gasum will supply LNG, to the Finnish Transport Infrastructure Agency and the Finnish Border Guard for 20212022 as set forth in the framework agreement. The framework agreement has two years additional option. LNG as a marine fuel meets the current as well as future emission limits. Meanwhile, during late September, in the port of Le Havre, France, Finland’s Gasum bunkered LNG to Le Commandant Charcot, PONANT’s latest LNG-fuelled newbuilt polar exploration vessel. This operation marked Gasum’s first LNG delivery in France and the first LNG bunker operation in the port of Le Havre. Gasum and PONANT share the dedication both to excellence and to reducing the environmental footprint of the shipping industry. Le Commandant Charcot, named after the


Volume 19 Issue 4 – Page 21


LNG - Bunkers renowned French polar scientist and explorer Jean-Baptiste Charcot, is the first hybrid-electric polar exploration ship powered by LNG. This unique polar exploration vessel is the latest addition to PONANT’s fleet and is set to sail the Arctic and Antarctic regions. “We have been working on this natural gas powered polar exploration ship project for 6 years and this is already the second LNG bunkering operation we have carried out with Gasum since the delivery of the ship during late July 2021. These LNG bunkering operations represent the culmination of several years of analysis, engineering and testing to perform these operations safely and with maximum efficiency. The ship reached the Geographic North Pole for the first time during early September 2021, using LNG throughout its journey. We are fully satisfied and particularly proud of the technical innovations developed on this ship that have enabled us to achieve this exceptional performance. Le Commandant Charcot is the first passenger ship equipped with high pressure membrane LNG tanks offering up to two months of autonomy on LNG, greater flexibility in its bunkering and operation, and guaranteeing enhanced safety. She paves the way for new and more environmentally friendly LNG propulsion methods and helps to meet the CO2 reduction targets set out in the Paris Agreement.” said Hervé Gastinel, CEO of PONANT. Reducing emissions is crucial as she will be operating in fragile environments, such as the waters of the North Pole and Antarctica. LNG is currently the most environmentally friendly

An artist’s impression of the Fratelli Cosulich LNG bunker vessel

maritime fuel available. Switching to LNG removes completely SOx, PM and reduces NOx emissions up to 85%. LNG also emits at least 20 % less CO2 when compared to traditional maritime fuels.

Wärtsilä awarded Italian and HMD contracts Finland’s Wärtsilä has been awarded a contract to supply a complete cargo handling system for a new LNG bunkering vessel. The ship is being built at the Nantong CIMC Sinopacific Offshore and Engineering shipyard in China for Fratelli Cosulich S.p.A, the Italy based shipping group. The Wärtsilä system selected for this 8,200 m3 capacity bunkering vessel includes a complete engineering, design and equipment supply package for the cargo handling system, including a loading and discharge system, a boil-off gas (BOG) management control and

integrated fuel supply system, as well as the custody transfer and bunkering transfer systems. The Wärtsilä equipment will be delivered commencing in 2022, and the ship is expected to start commercial operations in 2023. It will probably operate around Italy’s coastline in the Mediterranean Sea. Meanwhile, Wärtsilä has received two more orders for its complete LNG cargo handling and fuel system. The contract has been awarded by South Korea’s Hyundai Mipo Dockyard (HMD), the yard building two LNG bunkering vessels for which the Wärtsilä systems will be required. The 18,000 m3 capacity ships have been ordered by Korea based owners Pan Ocean and Korea Line LNG. The complete Wärtsilä solution selected for these orders includes the system engineering and design, the boil-off gas (BOG) management control with an integrated fuel supply system, and the custody transfer system. The equipment is scheduled for delivery to the yard during the first half of 2022.

BV awards AiP for Malaysian bunker vessel

The Le Commandant Charcot being bunkered with LNG

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France’s Bureau Veritas (BV) has delivered an AiP to Malaysia’s LNG Marine for its first LNG Bunkering Vessel concept, which is also the first of its kind ever developed by a Malaysian company. The development of LNG-fuelled ships is one of the key steps taken by the shipping industry to reduce its emissions and make the transition to a lower-carbon future. Meanwhile, the increased size of this new breed of LNG-fuelled ships is driving bunkering needs well beyond the capacity of LNG trucks previously used for smaller bunkering operations at terminals. This


LNG - Bunkers Unit 22C & D, West Station Industrial Estate, Maldon, Essex, CM9 6TS enquiries@pandsautomation.com 01245 322777

The Pacific Ruby being bunkered with LNG

has led to the development of LNG Bunkering Vessels (LNG BVs). The vessel design will reflect industry best practice, as well as the latest features for LNG bunkering operations to cater for all types and sizes of LNG-fuelled ships. BV reviewed the design and confirmed that it meets the technical and regulatory requirements and safety standards. The vessel will integrate the most recent notations in terms of cyber management (CYBER MANAGED notation) and environment protection (CLEANSHIP, GREEN PASSPORT notations). The vessel will also have provision to incorporate a battery-hybrid for reducing its GHG emissions in future operations.

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AET tanker bunkered in the US During October, Singapore’s AET completed its first ever LNG bunkering in the US, working in co-ordination with Shell to refuel the LNG dualfuel Aframax tanker Pacific Ruby outside Port Canaveral in Florida. The transfer of 600 tonnes of marine LNG onto the 113,305 dwt vessel from the Q-LNG 4000 bunker barge was safely and successfully completed within three hours while the entire bunkering operations took nine hours. The operation was co-ordinated by AET and Shell NA LNG LLC while Pacific Ruby was on its way from Houston bound for Rotterdam. AET’s Commercial and Operations Teams out of Houston both commercially and operationally managed the full process with Shell and the crew of the Pacific Ruby ensuring efficiency and safety for this first vessel bunkering in the US. This bunkering milestone also represents further progress in AET’s commitment to reduce the environmental impact of shipping by using lower emission fuels world-wide. At the same time, it also represents another example of the rapid extension of LNG bunkering facilities in the US and globally, allowing LNG supply for transatlantic tanker routes between Europe and the US.

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New LNG bunkering vessel from Damen The Estonian energy company Elenger has taken delivery of the first of Damen’s new class of LGC 6000 LNG bunkering vessels. Named Optimus, the 100 m vessel will carry up to 6,000 m³ of LNG in two type-C tanks at -163° C. The vessel will be the first LNG bunkering vessel in the Gulf of Finland, serving both LNG powered vessels

and smaller shoreside customers. Its introduction is expected to accelerate the wider adoption of LNG as a cleaner alternative fuel in the Baltic Sea by providing a mobile and efficient ship-toship distribution service for the first time. The tanker was built at Damen Shipyards Yichang and completed its gas trials in Damen Verolme Rotterdam shipyard before being delivered to its owner Infortar for charter by Elenger – the new trademark recently introduced by Eesti Gaas for its export markets. SORJ

Volume 19 Issue 4 – Page 23


LNG - Machinery Repairs LNG-fuelled ships on the increase SEA-LNG warns that barring fuels for industry decarbonisation strategy will hamper drive towards net-zero. The shipping industry, its regulators, and its supporters need to focus on reducing emissions, without prejudging the technology needed to achieve that. The rapidly growing order book for LNGfuelled vessels illustrates that increasing numbers of ship owners and operators understand the benefits of this environmentally friendly fuel. LNG’s transition pathway to carbon-neutral shipping services, through the use of bioLNG and synthetic LNG, is clear and well defined. It is often overlooked that all synthetic fuels, such as synthetic LNG, green ammonia, and green methanol are derived from the same building block – hydrogen produced from electrolysis using renewable electricity. Consequently, they all face the same challenge – the need for massive amounts of renewable energy that does not exist today. Hundreds of billions of dollars will need to be invested over decades before these fuels can be scaled to the level needed to serve the maritime industry. Knowledgeable shipowners understand this fact and accept the reality that a basket of future fuels will likely be needed to reach the shipping industry’s GHG reduction goals. Vessel types, deployments and usage will all be factors when deciding the best alternative fuel in the coming decades. Many owners know that bio and synthetic LNG can be used interchangeably with existing LNG bulk infrastructure, supply chains, bunkering vessels, dual fuel engines and the fuel storage, and supply systems on-board these vessels. No expensive retrofit is required as demonstrated by the recent bunkering of Unifeeder’s ElbBLUE with synthetic LNG. They also know that there is minimal methane slip in the high-pressure engines that can be purchased today. Low-pressure engines have been improved significantly and continue to improve, to the point that methane slip arguments are just an excuse to disparage LNG to justify waiting and inaction. With this in mind, it is troubling that the CEO of a large carrier suggests that LNG should be banned from the maritime sector. His solution is to embrace methanol and accept the risk that

The ElbBLUE bunkering SLNG in Brunsbuttel

sufficient green methanol production capacity can be developed for the industry, a massive challenge likely a decade or more away. We should not forget that the industry needs roughly 250m tonnes of conventional fuel or, given methanol’s lower energy density, approximately 510m tonnes of green methanol. The same carrier admitted the supply constraint even for its own needs, “We will have to be a little creative about where we bunker... when the supply of green methanol will be scattered in different places.” So, what happens in the interim? This carrier’s ships will likely have to burn conventional fuel or methanol produced from fossil fuels, which will have significantly higher GHG emissions than current marine fuels. The rest of the industry, many being owners with smaller fleets who can’t afford to build their own supply, will struggle even more to find green methanol. The scale of the challenge facing the maritime industry clearly demonstrates the need for a basket of fuels as opposed to a prescriptive solution that some are inappropriately suggesting. Also of interest, is the stance on LNG and methane slip from some industry stakeholders? Repeatedly, the methane slip argument has been used to justify decisions not to invest in LNG. Why not opt for a high-pressure dual-fuel engine? It will give immediate well-to-wake GHG emissions reductions of 23% with the option to get to zero through bioLNG and synthetic LNG using the same infrastructure. The proposal to ban LNG, a proven and viable fuel that begins decarbonisation now, would seriously delay the shipping industry’s

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ability to meets its GHG reduction obligations. Waiting really is not an option. To be successful in meeting its GHG reduction targets, the industry needs to begin using all alternative fuels, including LNG, bioLNG, and synthetic LNG, that are safe and operationally effective. Serious issues surrounding toxicity, flammability, energy density, pilot fuel requirements, and infrastructure need to be openly addressed. Well-to-wake GHG emissions through independent life cycle analysis will be required for all future alternative fuels. We must support the regulators’ drive towards goal-based and technology-neutral policy and regulation. This will facilitate the development of a complete basket of viable fuels that will be essential for a successful carbon-neutral future. The task ahead will not be easy, but we must remain diligent in our examination of LNG’s pathway to bio and synthetic LNG, as well as all future alternatives showing promise and potential.

Newport Shipping pushes LNG retrofit projects Many shipowners are still undecided about how the future will pan out for the market with regards to future fuels, but with both industry bodies and customers in the supply chain applying pressure, shipowners need to act now to start cutting emissions. Over the past few years more options for fuel


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LNG - Machinery Repairs

One of the Newport Shipping’s allied shipyards – PaxOcean on the Indonesian island of Batam

types have appeared on the market for vessels to become more environmentally friendly, however, the challenge today is that shipowners need to be acting now if the industry is going to meet with targets that are set by IMO for emission reductions of 40% by 2040. While the number of LNG-fuelled ships is on the rise, it still accounts for only a fraction of the global fleet - with about 175 such vessels presently on the water - and there have been few LNG retrofits to date as shipowners hedge their bets on the best alternative fuel option. LNG is a fuel that can help shipowners towards reducing emissions. The uptake of the fuel in the industry is showing that it is a clearly accessible and available fuel for the current market. By utilising LNG as a fuel shipowners are looking at reducing CO2 emissions by up to 80% with further reductions in NOx, SOx and particulate matter (PM). Switching to LNG will assist shipowners in uprating their ‘green credentials’. Installing the technology to use LNG doesn’t need to be a painful process. In June this year, Newport Shipping received an AiP from DNV for its LNG retrofit designs for Capesize bulk carriers and VLCC. The designs allow flexibility for the shipowner to retrofit on to existing vessels, without the extra cost of having to rip out tanks and internal structures of a vessel.

Newport Shipping has also received AiP from Bureau Veritas (BV) for its containership LNG design. The design is based on containers for LNG being stored on deck that can then be discharged and replaced when a vessel comes into port. Turgay Colak, Head of Research & Development at Newport Shipping explain, “Our concepts are based on deck-mounted LNG tanks that can be installed without major modifications to the vessel hull, thereby reducing installation costs and off-hire period, as part of a retrofit solution using a dual-fuel engine that would also be suitable for future use of carbonneutral synthetic and bio-LNG.” Commercially, LNG is a viable option for the market in order to meet with upcoming environmental targets, as Lianghui Xia, Managing Director at Newport comments, “When we speak about the remaining lifetime of the current fleet under 10 years old, LNG is comparatively the most practical solution for decarbonisation. Expansion in adoption of bio-LNG and synthetic LNG (SLNG) can further strengthen the LNG supply to be carbon neutral.” In 2021 Newport Shipping’s subsidiary Newport Maritime Service (NMS) released a report looking at the viability of the use of LNG as a fuel in the maritime industry. The report

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looks at giving those exploring the idea of LNG insight into the development of natural gas as marine fuel from the perspectives of environmental, economic and engineering performance. Newport Shipping is in discussions with clients and suppliers for LNG retrofit projects. The company notes that LNG as a fuel will be able to assist those with younger vessels looking to future proof their maritime assets. It is expected that the fuel transition to more efficient fuels will be gradual as shipowners look at what alternatives are on the market and which viable solutions are available to them. Newport Shipping is offering clients its extended payment terms that will assist in financing for projects such as LNG retrofits. By accessing this option, shipowners will be able to opt for the solution that they require without the financial burden of significant upfront cost outlay. Newport Shipping has a shipyard network with access to 15 yards around the world located in Asia, Europe, the Middle East and the US. With its network of trusted and wellknown respected suppliers Newport Shipping is offering a full project management turnkey solution package for its LNG retrofits, along with financial payment options to spread the cost of project payments.


LNG - Machinery Repairs Wärtsilä signs up with Nakilat, HaiSea and Italian owner Finland’s Wärtsilä has signed Support Agreements for LNG tankers owned by Qatarbased Nakilat, owner of the world’s largest LNG tanker fleet. The agreements are valid for five years. Wärtsilä is the supplier of the LNG reliquefaction systems on-board all of the QFlex vessels covered by the agreements. Under the contract terms, Wärtsilä will provide 24/7 technical remote support for the vessels’ on-board Gas Process Plants. The customer has direct access to Wärtsilä’s dedicated team of LNG technical experts for specialised technical advice and remote troubleshooting, thereby reducing potential equipment downtime, and when possible, avoid time consuming and costly on-board visits by service engineers. Furthermore, following each cargo loading, selected operational data from

7

the running reliquefaction systems is analysed by Wärtsilä’s LNG technical experts to ensure the operability and readiness of the system. This also creates a traceable operational data history. Wärtsilä will also supply the main engines and LNG fuel gas supply systems for two new LNG-fuelled escort tugs being built for Canada’s HaiSea Marine, a joint venture between the Haisla Nation and Seaspan Marine Transportation. The ships have been designed by Robert Allan, and are under construction at Turkey’s Sanmar Shipyards. They are expected to be two of the most environmentally advanced escort tugs operating in the coastal waters of British Columbia in Canada. The order with Wärtsilä was placed in April 2021. The two vessels will each be powered by Wärtsilä 34DF dual-fuel engines operating with LNG fuel. The engines will be fitted with Wärtsilä’s NOx selective catalytic reduction (SCR) system to restrict emissions of nitrogen oxides. Wärtsilä will also supply its LNGPac fuel storage, supply and control system. The

One of the Nakilat fleet of LNG tankers

Wärtsilä equipment is scheduled for delivery to the shipyard in 2022. Wärtsilä has previously delivered similar equipment for two in-service ferries operated by Seaspan Ferries, another Seaspan affiliated

One of the Capital Gas Ship Management fleet

Shipyards: Malta Messina Naples Rijeka Ancona Savona Marseille

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Volume 19 Issue 4 – Page 27


LNG - Machinery Repairs

Wärtsilä’s unique LNGPac fuel storage, supply, and control system is a key enabler for the use of LNG as a marine fuel

company. The successful performance of these ferries and Wärtsilä’s lifecycle support capabilities in Canada, were cited as being important considerations in the award of this contract. Meanwhile, Wärtsilä will provide the main and auxiliary engines, as well as the fuel storage and supply system, for a new Italian ro/pax ferry designed to operate on LNG. Wärtsilä’s extensive experience in LNG applications and its broad portfolio of related products were cited as key considerations in the contract award. The vessel is under construction at Sefine Shipyard in Turkey and has been ordered by Caronte & Tourist Isole Minori, based in Milazzo, Italy. Given its environmental advantages, LNG continues to gain popularity throughout the shipping industry. The fuel contains no sulphur or particulate matter and emits only low levels of NOx, while CO2 emissions are some 20% less than those from HFO fuel. Wärtsilä’s early development of dual-fuel engines and fuel systems capable of handling LNG, together with the global build-up of a delivery and bunkering infrastructure, has been largely instrumental in enabling its viability. This latest order comprises two Wärtsilä 34DF dual-fuel main engines, two Wärtsilä 20DF dual-fuel auxiliary engines, two Wärtsilä Gas Valve Units, and a Wärtsilä LNGPac fuel storage, supply, and control system. The equipment is scheduled for delivery to the yard in spring 2022, and the ferry is expected to be delivered in 2023. The 109.98 m long ferry will be capable of accommodating 800 passengers and up to 115 cars on two vehicle decks. It will mainly

operate between Milazzo in Sicily and the Aeolian islands. Wärtsilä will also supply four shaft generator systems to provide power take-off from the main engines for two LNG tankers to be built at South Korea’s Hyundai Heavy Industries (HHI) for Greece’s Capital Gas Ship Management Corp. Each of the two 174,000 m3 tankers will be fitted with two 1.9 MW Wärtsilä shaft generators. The equipment is scheduled for delivery to the yard in 2022. With installations in more than 600 vessels, Wärtsilä has the shipping industry’s most extensive track record in supplying shaft generator systems. By enabling power take-off, the systems allow the main engine to generate electricity for on-board use, thereby reducing

An artist’s impression of the new Italian ro/pax ferry

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fuel consumption, lowering emission levels, and improving both the vessels Energy Efficiency Design Index (EEDI) and future Carbon Intensity index (CII). “In aiming to continue improving our fleet efficiency and reduce our environmental footprint, we have decided to adopt the latest available technologies. The installation of advanced shaft generator systems was one of the investments we are making in this direction. Wärtsilä has a depth of experience, and with the reliability and quality of their solutions, is the ideal partner for such a project” says Miltos Zisis, Managing Director of Capital Gas Ship Management Corp. “We are committed to delivering products, systems, and solutions that contribute to the decarbonisation of the maritime sector. Our highly efficient shaft generator systems utilise the latest technology to make a significant contribution to this ambition, while at the same time lowering operating costs for the customer,” says Yiannis Christopoulos, General Manager Sales, Wärtsilä Marine Power.

NYK contract for WinGD Switzerland’s WinGD has won a contract to integrate hybrid energy systems on four newbuild car carriers for Japan’s NYK Line, further expanding the engine developer’s portfolio of future-ready power solutions for companies navigating shipping’s energy transition. The four PCTCs will run on LNG, with WinGD’s 7X62DF-2.1 two-stroke engines


LNG - Machinery Repairs

WinGD’s integrated hybrid energy system offers future-ready power solutions for companies navigating shipping’s energy transition

coupled with shaft generators, DC-links and battery systems. Based on its in-depth knowledge of the main engine’s performance WinGD has optimised spinning reserves,

peak shaving, and energy flow to run the main engine constantly at its sweet spot while avoiding inefficient generator loads. WinGD will be responsible for the system integration and system-level energy management, through WinGD’s new Hybrid Control System. Combined with other ship design enhancements, the LNG-battery configuration is expected to cut overall CO2 equivalent emissions by around 40% compared to conventionally powered vessels operating on heavy fuel oil, taking them beyond IMO’s 2030 target for cutting GHG emissions. “Battery hybrid technology improves fuel efficiency and emissions by mitigating main engine and electrical generator load fluctuations,” said Keita Fukunaga, Deputy Manager/ Ship Design Team/ Technical Group at NYK LINE. “This project is an important step in our plan to replace current vessels to newly built LNG-fuelled PCTCs, reducing the fleet’s carbon intensity by 50% by 2050. We are delighted to contract with WinGD to integrate this innovative power and propulsion arrangement.”

WinGD Programme Portfolio Manager Digital & Hybrid Stefan Goranov added, “An appropriately controlled hybrid energy system is emerging as one of the most cost-effective solutions for deep-sea vessels to meet future environmental targets, combining the high efficiency of low-speed two-stroke engines with optimally sized electric drives, machines, and energy storage units. This important landmark showcases WinGD’s core engine development expertise and the extensive investments we have been making to understanding how to optimise the operational characteristics of integrated hybrid systems.” WinGD believes that the low-speed twostroke engine must remain at the heart of any hybrid energy configuration for deep-sea merchant vessels. With its step into system integration, the company brings its expertise to the holistic design of power arrangements that can incorporate batteries, shore power interfaces, solar or wind power generation, fuel cells, frequency converters and energy management systems. Peak shaving is just one example of the

WÄRTSILÄ UNDERWATER SERVICES (FORMERLY TRIDENT) INNOVATIVE UNDERWATER SOLUTIONS DEPENDABLE SERVICE GLOBAL EXPERTISE

Find out more at www.wartsila.com/uws

Volume 19 Issue 4 – Page 29


LNG - Machinery Repairs operating modes that hybrid power systems can deploy to make deep-sea shipping more efficient. As low-speed engines are inherently more efficient than four-stroke engines, the carefully managed use of the main engine and electrical energy management aided by batteries can optimise the loading of auxiliary engines. Other modes include efficient port manoeuvres and bow thruster operation, and the use of batteries rather than auxiliaries to provide spinning reserve in case of the need for emergency power. This project marks another significant step forward in WinGD’s commitment to the energy transition within shipping. The expertise gained within the well-established X-DF fleet, paired with customers dedicated to improving the sustainability of their assets, is ensuring progress towards this goal. The vessels will be built by China Merchants JinLing Shipyard (Nanjing) for delivery in 2023. They are expected to be assigned to transport vehicles mainly between Europe and the Middle East.

Wärtsilä and Solvang to collaborate on retrofitting project Wärtsilä Exhaust Treatment and Norway’s Solvang ASA have agreed on a full-scale pilot

retrofit installation of a carbon capture and storage (CCS) system on one of Solvang’s ethylene carriers, the 21,000 m3 Clipper Eos. Wärtsilä Exhaust Treatment designs the retrofitted unit while it also completes a land-based 1MW test system at its Moss headquarters in Norway. The land-based unit will be completed in autumn 2021, and the companies expect to retrofit the pilot CCS system on the Clipper Eos by 2023. The agreement reinforces Wärtsilä’s continued research and development into carbon capture at the point of exhaust to support the shipping industry’s decarbonisation pathway. The project will enable both Wärtsilä and Solvang to strengthen their position at the cutting edge of sustainable technology development in shipping. To remain in line with IMO’s decarbonisation targets, Wärtsilä is initially aiming for a 70% reduction in CO2 emissions at the point of exhaust with its pilot unit. Commenting on the announcement, Sigurd Jenssen, Director at Wärtsilä Exhaust Treatment, said, “Joining forces with Solvang to build and retrofit a commercially viable CCS technology demonstrates to the industry that we are only two or three years away from bringing to market another vital tool in shipping’s decarbonisation toolkit. We are excited to see how this collaboration with Solvang evolves in the coming months. Our land-based test unit is nearing completion, and we will then move to

A schematic of what the Clipper Eos will look like after conversion

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making it a reality on the Clipper Eos, ensuring that both Wärtsilä and Solvang remain at the forefront of maritime sustainability technology advancement.” Edvin Endresen, CEO at Solvang ASA added, “Carbon capture and storage is an exciting development that we are proud to support, and strongly believe that this technology could be an important key to decarbonize the world’s deep-sea fleet. As a forward-thinking company that is equally passionate about ensuring the industry’s transition to decarbonisation, Wärtsilä is the perfect partner as we look to scale up sustainable technologies across our fleet and reduce shipping’s environmental impact on the world.” The Clipper Eos has been time chartered by Japan’s Marubeni Corp, Tokyo since her delivery in 2019. Marubeni, having more than 40 years’ experience trading and handling ethylene, advise that they are committed to co-operating with Solvang and Wärtsilä to enable the parties to perform relevant testing and installation of equipment on the vessel in a mutual effort to drastically reduce the CO2 footprint of the vessel. In addition to signing a Letter of Intent with Solvang and scaling its Moss CCS test unit, Wärtsilä recently announced it is partnering with the LINCCS consortium to scale and create carbon capture technologies and infrastructure. The consortium recently received NKr111m in funding to CCS research and development. SORJ


LNG - Equipment change this and make the systems on-board the vessels work to maximise their sustainability credentials.” Leif Larsen, Director of Newbuilding and Projects at Utkilen, added, “Having worked with Høglund back in 2017, we are happy to announce that we have commissioned them again to further improve the environmental performance of four of our chemical tankers. “Høglund’s invaluable expertise and knowledge presents the latest technological innovation and engineering excellence to provide our fleet with a competitive edge, especially when it comes to optimising our systems’ efficiency and environmental performance.”

One of The Utkilen fleet

Høglund wins Utkilen contract Norway’s Høglund has been assigned to design, supply and deliver a Fuel Gas Supply System (FGSS) solution for Norwegian tanker owner and operator Utkilen. The project, a fully Norwegian collaboration between the owner, Høglund and fellow Norway-based design, piping and welding company Skarweld AS, will see the design and installation of FGSS on four Utkilen LNG-ready ships - Mostraum, Vikstraum, Saltstraum and Sydstraum. Høglund has been commissioned to supply and deliver a control system and a monitoring system as part of an overall energy turnkey solution. Apart from the tank installation, which will be carried out whilst the vessels at a yard, the retrofit itself will, for the main part, be delivered whilst the ships are in service in order to reduce downtime. By installing new highquality gas systems without interrupting operations, Høglund is pioneering a new way to complete installations that will have significant benefits for the industry. This type of installation makes future-proofing shipping assets compatible with the on-going activity of the vessels, overcoming potential commercial barriers to retrofits. Skarweld AS will contribute to the project by designing and implementing the piping system for the vessels. The four vessels, the most modern within Utkilen’s fleet, will boast shore power capability as well as shoreside monitoring capacity through Høglund’s systems. These retrofits complement Utkilen’s sustainability commitment to reduce its impact on the environment and invest in a greener future for its fleet. The new FGSS on-board will enhance the four sisterships’ energy rating and help future-proof them in advance of upcoming regulations on carbon emissions, and to adhere to the ISO 14001 standard. This project further exemplifies shipowners’ and operators’ increasing recognition of systems integration as a key element to improve the environmental performance of individual vessels and wider fleets. Commenting on the contract, David Gunaseelan, VP Sales & Marketing at Høglund Marine Solutions, said, “We are very much looking forward to this all-Norwegian project that will allow us to join forces with our local partners at Skarweld and work collaboratively for our longstanding customer Utkilen. “This project will be particularly interesting due to the fact that, despite being LNG-ready, the four vessels lack gas energy systems, which is something that we are increasingly noticing in the industry. With this in mind, we are looking forward to using our engineering expertise to

Maran Gas and NLNG contracts for Kongsberg Norway’s Kongsberg Maritime (KM) has announced that Maran Gas Maritime has signed a contract to roll out KM’s K-IMS Information Management System across its entire fleet. Already a long-term customer of KM, with this move Maran Gas are taking the relationship to a new level by integrating KM into its digitalisation strategy and cyber security. “We feel very confident with the decision to implement the K-IMS project with KM for the entire fleet,” says Andreas Spertos, EVP, Technical Director, Maran Gas Maritime. “By the end of 2021, K-IMS will be rolled-out to more than 20 LNG tankers of various propulsion types. “Implementation of K-IMS will continue for existing and newbuild vessels until the entire fleet of 40+ LNG tankers is upgraded. K-IMS will replace the existing limited capability data transfer system and will provide us with unlimited opportunities to develop and advance further our in-house fleet monitoring and analysis systems that support the safe, efficient and environmentally friendly operation of the fleet.” Anders Sjuls Fjeld, Sales Director LNG, Global Sales & Marketing, KM, adds, “All of us at KM are committed to growing our working partnership with Maran Gas, after spending approximately 15 fruitful years as the systems provider for its fleet. By focusing on building strong customer relations and trust, and following an open, dialogue-driven partnership with Maran Gas, we have created a great foundation for rolling out K-IMS.” Most ships in the Maran Gas fleet already have K-IMS-ready hardware in place - any outstanding vessels have been taken into consideration in

One of the Maran Gas fleet

Volume 19 Issue 4 – Page 31


LNG - Equipment

Kongsberg Maritime is to deliver Shell’s JAWS software to the entire NSML LNG tanker fleet via the K-IMS platform

the overall rollout plan. “Data replication is then enabled via software applications on our K-IMS Onboard and K-IMS Onshore solutions,” Fjeld concludes. KM currently has secured more than 300 K-IMS contracts, with over 100 K-IMS agreements signed in the first half of 2021 alone and more in the pipeline. “The majority of the LNG segment’s largest international ship owners and charterers are currently reaping the benefits of K-IMS, which is perhaps the most advanced, tailor-made vessel information management system in the world. It has already proved to be well suited to the LNG sector, and many more LNG shipowners are lining up to get involved,” comments Bård Bjørløw, EVP Global Sales & Marketing, Kongsberg Maritime. Meanwhile, NLNG Ship Management Limited (NSML) has just signed a contract with KM to deliver Shell’s patented JAWS (Just Add Water System) draught and trim optimisation software across the entire NSML fleet of 11 LNG tankers. JAWS will be distributed using KM’s K-IMS digital solution – a portfolio of specialised applications to support complex operations – making K-IMS and JAWS a core element of NSML’s digitalisation and cyber security strategies. The JAWS software uses historic, high-frequency vessel data to determine optimal operating conditions, as recorded from previous voyages. This enables the system to advise on how best to enhance a vessel’s draught and trim at any given speed as a means of reducing fuel consumption and lowering emissions. JAWS also monitor and reports live fuel and emissions savings back to managers, giving a real-time insight into the benefits of deploying this technology across a fleet. By uniting all data-logging and communication channels into one secure system, the collaborative K-IMS solution presents a comprehensive information flow which provides a common, user-friendly solution for fleet owners, charterers and third parties alike. To date, close to 300 K-IMS contracts have been signed within the LNG sector. “K-IMS is also establishing an appreciable market footprint in the offshore segment,” says Vegar Løver, Sales Manager, LNG, Kongsberg Maritime. “By working together with Shell on JAWS, we have added a new layer of trust and strengthened customer relations relating to KM’s regular product portfolio. Our K-IMS solution has created a great foundation for rolling out JAWS. We’re very pleased that the solution has provided the basis for NSML to move forward with both digitalisation and cyber security.”

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Samho and HMD orders for Wärtsilä Wärtsilä will supply three reliquefaction plants, the newly developed Compact Reliq, for three new LNG tankers building at South Korea’s Hyundai Samho Heavy Industries (HSHI) for Norway-based Knutsen OAS

One of the Knutsen OAS fleet


LNG - Equipment Shipping, and represent options taken following an earlier order for two such vessels. The orders for three more systems were booked in July and August 2021 and the deliveries will take place in the autumn of 2022. The Compact Reliq was introduced to the market in 2020. It features a compact design for easy installation and maintenance on all sizes of carrier vessels, both large and small. Based on the well-proven reversed nitrogen Brayton cycle refrigeration technology, the solution reliquefies the boil-off gas (BOG) and keeps the cargo cool under all operating conditions. It allows a portion of the BOG to be used as fuel for the ship’s engines, with the excess able to be sold as part of the LNG cargo. “We have had good experience with Wärtsilä’s reversed nitrogen Brayton cycle reliquefaction plants in the past, and the Compact Reliq is an exciting addition to their portfolio. It makes on-board reliquefaction viable for all sizes of carriers, and is clearly the right choice for our new ships,” said Jarle Østenstad Newbuilding Director, Knutsen OAS Shipping “We received an order for two systems last year to be delivered to the HSHI yard for installation on Knutsen’s newbuild tankers. There was an option for additional vessels and this option has been taken up with contracts for three new Compact Reliq plants. These are important projects that further strengthen our relationship with both HSHI and Knutsen OAS,” said Pål Steinnes, Sales Manager, Wärtsilä Gas Solutions. The Wärtsilä solution uses safe and easily obtainable commercial grade nitrogen. It is instrumented for remote monitoring and online operational support as part of Wärtsilä’s Operational Performance Improvement and Monitoring (OPERIM) programme.

ABB to deliver equipment to six new LNG tankers ABB’s A200-L turbochargers will be used on MAN Energy Solutions’ 5G70ME-C10.5-GA engines destined for six 174,000 m3 LNG tankers ordered by four shipowners – Korea Line Corp, PAN Ocean, Knutsen OAS and JP Morgan – under a long-term charter agreement with Shell. The ME-GA is MAN’s first low-pressure dual-fuel two-stroke engine. It sits alongside MAN’s well-established high-pressure ME-GI engines, offering LNG tankers and other vessels an alternative way to cut greenhouse gas emissions and minimise air pollution at lower capital cost. The LNG-fuelled engine can also operate on synthetic or biomassderived LNG as it becomes available, either for full use or as part of a fuel blend, further reducing climate impact. Turbocharger performance is particularly important for dual-fuel engines. High turbocharging efficiency ensures that a high air-fuel ratio is maintained during high-load operations, reducing potential fast combustion, which can adversely affect operation and emissions. The A100/A200-L series is ABB’s most advanced single-stage turbocharger technology for two-stroke engines, using the latest thermodynamic and aerodynamic expertise to pack the highest pressure ratios and efficiency currently available into a compact unit. The small footprint also translates into a lower cost of ownership as spare parts are smaller and more economical and the turbocharger itself is easier to handle for servicing. “When engine designers and OEMs want reliable high performance to support new engine technologies, they look to ABB turbochargers,” said Alexandros Karamitsos, Head of Global Sales Low-Speed Turbochargers, ABB. “I am confident that shipowners will increasingly value our combination of technology leadership and global service coverage as

The ABB A265-L turbocharger

incoming emission regulations encourage them to explore new fuels and engine concepts. We are delighted to be involved in this ground-breaking project and grateful for MAN’s trust in our engineering expertise.” ABB Turbocharging will also provide turbochargers for the auxiliary engines on each vessel.

MHI-MME delivers to FSRU Japan’s Mitsubishi Heavy Industries Marine Machinery & Equipment (MHIMME) has delivered a turbine for demonstration test of a cryogenic power generation system for a FSRU design named as ‘Cryo-Powered Regas system’ developed by Japan’s Mitsui O.S.K. Lines and South Korea’s Daewoo Shipbuilding & Marine Engineering (DSME) and confirmed its successful running at DSME’s Okpo shipyard. The role of an FSRU is to regasify -160oC LNG through heat exchange. In the past, LNG’s cold energy had not been utilised in FSRUs and was released. By installing the CryoPowered Regas system, such cold energy will be transferred to another heating medium, and the generated steam

The MHI-MME Cryo-Powered Regas turbine

Volume 19 Issue 4 – Page 33


LNG - Equipment FSRU’s fuel consumption and CO2 emissions. A small-scale version of the Cryo-Powered Regas system was built in DSME’s R&D premises. The turbine generator used in this system was designed and constructed by MHI-MME specifically for the system. Through this test, MOL and DSME verified that the system could successfully generate electricity up to its rated capacity. The result of this demonstration test confirms that through the utilisation of the CryoPowered Regas system, fuel consumption and CO2 emissions of new generation FSRUs can be reduced by 50% at maximum rated regas flow rate compared to conventional existing FSRUs. Power generation by recovering waste energy including LNG latent heat in its regasification process is regarded as one of prospective measure to improve energy efficiency and realise low -carbon society, and MHI-MME proactively enhances its energy saving solution portfolio for marine use and contributes to further achievement of a low-carbon society.

Svitzer AMEA signs 10-year contract with FGEN LNG Corp Svitzer recently announced that it has signed a 10-year Time Charter Party with FGEN LNG Corporation (FGEN LNG), a wholly-owned subsidiary of First Gen Corporation (First Gen), for the provision of towage and other vessel support services required by FGEN LNG’s Interim Offshore LNG Terminal. These will feature a FSRU that will be located at the First Gen Clean Energy Complex in Batangas City in the Philippines. Svitzer will provide four new 75-ton bollard pull tugboats to assist the FSRU and LNG carriers that will deliver LNG to it - for berthing, unberthing, navigation assistance - and provide other services including fire-fighting, pollution control, port and vessel security services, pilot and

The two Svitzer tugs

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boarding party transfer, and fender management. Commenting on the contract win, Nicolai Vinther Friis, Managing Director for Svitzer AMEA, said, “We are truly pleased that FGEN LNG has chosen Svitzer as a trusted partner and provider of towage services for the FGEN LNG terminal in Batangas Bay. Our two companies share many of the same values and, at Svitzer - we look forward to collaborating with FGEN LNG on ensuring the energy security of the Philippines and to be part of the country’s green transition. This important contract adds a new country to the global Svitzer portfolio and expands our ability to provide safe and efficient towage and marine services support to more customers across the globe.” Operations are planned to begin as early as the third quarter of 2022 and Svitzer will now take the first steps to set up operations in the Philippines, which will include hiring 72 seafarers and five onshore staff, all local Filipinos. It is a key priority for Svitzer to ensure that its operations contribute positively to the communities in which Svitzer operates, which implies investing in local communities by providing training and professional development for members of the local workforce. Commenting on the collaboration with Svitzer, Jon Russell, Executive Vice President and Chief Commercial Officer at First Gen, added, “The provision of high-quality marine services will be vital to making the FGEN Project successful and our decision to select Svitzer came after a detailed evaluation of Svitzer’s technical capabilities and experience in this specialised activity as well as its commercial and contractual competitiveness. Svitzer has a track record of successful engagements in similar projects around the world, and throughout the process demonstrated a collaborative attitude, tailoring its offer to meet the specific needs of FGEN LNG. We look forward to working closely with the Svitzer team on this exciting project that will enhance the energy security of the Philippines and play an important role in the transition to a decarbonised economy.” SORJ


Yamal LNG’s LNG tanker Georgiy Brusilov entering Denmark’s FAYARD for general repairs (See League Table on Pages 8/9)

Volume 19 Issue 4 – Page 35


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