Lngship january 2014

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January 2014 - Issue 5

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MONTHLY FREE REPORT FOR THE LNG, OIL & GAS INDUSTRY

Ship

Wärtsilä signs a contract to

supply LNG terminal to Tornio in Finland The LNG Fuel opportunity

Clean Marine secures EGCS contract

10 highlights of LNG bunkering in 2013

HHI and JMU are LNG – jointly pioneering the Pros & Cons the first ever use of LNG fuel

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“The Tornio Manga LNG terminal is a long-term infrastructure investment programme.

The beneficiaries include shipping and road transportation companies, power and heat utilities, as well as other industrial and mining companies in northern Europe.

We appreciate Wärtsilä’s participation as a valuable partner in this project with special value-adding capabilities in this field,” says Pekka Erkkilä, Chairman of the Board, Manga LNG Oy.

Wärtsilä signs a contract to

supply LNG terminal to Tornio in Finland Wärtsilä, a leading global supplier of power plant and ship power solutions and services, has signed a turnkey contract to supply a liquefied natural gas (LNG) receiving terminal to be built in Tornio, northern Finland.

The contract, valued at approximately EUR 100 million, has been made with Manga LNG Oy, a joint venture between the Finnish companies Outokumpu Group, Ruukki Metals Oy, Gasum Oy and EPV Energy Ltd. The contract is conditional on receipt of investment support and Manga LNG Oy’s contracts with other parties, including the gas suppliers.

tion of Wärtsilä Power Plants to engineer, supply, and construct the new LNG receiving terminal as an acknowledgement of our expertise and experience in engineering, procurement and construction (EPC) project execution, in LNG handling systems, and in the use of LNG as fuels. The terminal will enable this clean and competitively priced fuel to be available for industrial consumers in the Bay of Bothnia region, and will further enhance the growing acceptance of LNG as a marine fuel,” says Vesa Riihimäki, President, Wärtsilä Power Plants.

The main user of the natural gas from the terminal will be the Outokumpu Tornio steel mill, but industries, mines, and other potential gas consumers in the region will also be served. The terminal may also eventually supply LNG to ships, such as the new icebreaker planned to operate in the Tornio and Bay of Bothnia region.

“The Tornio Manga LNG terminal is a long-term infrastructure investment programme. The beneficiaries include shipping and road transportation companies, power and heat utilities, as well as other industrial and mining companies in northern Europe. We appreciate Wärtsilä’s participation as a valuable partner in this project with special value-adding capabilities in this field,” says Pekka Erkkilä, Chairman of the Board, Manga LNG Oy.

Wärtsilä is extending its LNG value chain strategy to cover LNG terminal solutions

“This is a large and extremely important project, and we see the selec-

Wärtsilä is recognised for its market leading gas engine technology as well as for its broad offering in gas handling systems. With the Tornio Manga LNG receiving terminal, Wärtsilä is for the first time combining its strong Power Plants EPC capability with its industry leading LNG gas handling technology to provide a turnkey LNG terminal solution. As LNG continues to replace oil and other fuels worldwide, Wärtsilä sees strong global market potential for medium-scale LNG distribution. The combination of market-leading LNG technology, ship design, and gas-fired marine propulsion and power plants enables Wärtsilä to take a leading role in end-to-end LNG systems.

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lngShip 3 Tornio Manga LNG-project Finnish industrial companies Outokumpu and Ruukki Metals, energy company EPV Energy and gas company Gasum have agreed on project to utilize liquefied natural gas (LNG) on industrial processes, energy production and shipping. Project development company Manga LNG Oy will prepare contracts needed for LNG terminal construction, gas procurement and logistics. Swedish mining company LKAB has been offered a chance to join the project early this year.

According to plan, a reception, unloading and bunkering facilities, LNG vaporising facility and one 50.000 m3 storage tank will be constructed in Tornio terminal. For gas deliveries, a pipeline will be built to Röyttä industrial site. In addition, a truck loading facility for LNG trucks will be built. From Tornio terminal the LNG will be delivered with trucks or by railroad to customer terminals and consumption destinations in Northern Finland and Sweden.

The final investment decision will be made during 2014. The building phase of the terminal is during 2014 – 2017 and LNG deliveries will commence during 2017. Technical basic engineering was completed in February 2013. The cost estimate for the terminal is approximately 100 million euros. The turnkey (EPC) contract tendering process of the terminal was carried out during 2013 and the contractor was chosen in December 2013.

Tornio Manga LNG started co-operation with Gasum Ltd on LNG procurement and logistics in April 2013. The co-operation will continue in joint development company. The co-operation is aiming on substantial cost savings and to improve LNG security of supply for Pansio and Tornio terminals. For LNG shipments a joint venture is planned with a shipping company specializing on LNG. The capacity of the new, ice-classed vessel will be confirmed during spring 2014, when supply negotiations have been completed and the primary load port has been confirmed. The size of the vessel will be from 15.000 to 20.000 m3.

The environmental impact assessment was completed in August 2013, without major remarks neither from authorities nor stakeholders.

LNG replaces fossil fuels in industrial use and energy production and reduces substantially particle, NOx, SOx and CO2 emissions compared to current levels. Industrial companies are the biggest gas users, but big enough terminal capacity improves possibilities for the shipping industry to meet the new sulphur emission restrictions, valid from 2015, by using LNG as a ship fuel in Bay of Bothnia.

Wärtsilä in brief Wärtsilä is a global leader in complete lifecycle power solutions for the marine and energy markets. By emphasising technological innovation and total efficiency, Wärtsilä maximises the environmental and economic performance of the vessels and power plants of its customers. In 2012, Wärtsilä’s net sales totalled EUR 4.7 billion with approximately 18,900 employees. The company has operations in nearly 170 locations in 70 countries around the world. Wärtsilä is listed on the NASDAQ OMX Helsinki, Finland.

Stena Bulk takes back responsibility for Stena’s LNG tankers and plans further investments Following a reorganisation, Stena Bulk took back the overall responsibility for the commercial operation and technical management of the three LNG tankers Stena Blue Sky, Stena Crystal Sky and Stena Clear Sky from Stena LNG on January 1. The vessels are signed to time charters for the next 2-3 years on favourable terms and are subsequently expected to be signed to medium to long-term charters.

“For the last three years, we, that is Stena Bulk/Stena LNG together with Northern Marine Management, which has been responsible for the technical management, have built up a very good name in the LNG segment – an industry segment undergoing expansive development and one that we judge will be very interesting indeed in the next few years”, says Erik Hånell, President and CEO of Stena Bulk.

“The three existing tankers will form the basis of future projects. We are active and keep a sharp eye on all relevant projects in the market and we see what opportunities there are for investing and finding suitable industrial partners in the segment”, he concludes.

In 2011, Stena Bulk invested in the three LNG tankers owned by the Taiwan-based shipping company TMT (Today Makes Tomorrow) and in May 2012, Stena formed a separate company, Stena LNG. Stena Bulk has now once more assumed the overall responsibility for the three LNG tankers.

Göran Hermansson, previously at Stena LNG, has joined Stena Bulk’s organisation. He will focus on LNG and gas-related projects as well as other projects at Stena Bulk.

Stena Bulk’s organisation in Gothenburg will, as previously, be responsible for the commercial management of the three tankers and the tanker offices in Singapore and Houston will continue to be active in this segment.

Stena’s three LNG tankers are the 145,500 dwt Stena Blue Sky (built in 2006) and the two 173,000 dwt sisters Stena Crystal Sky and Stena Clear Sky (built in 2011).

Photo:Stena Crystal Sky

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How to calculate safety zones for LNG bunkering

A lot of work have been done on standardization of LNG bunkering this year, including a launch of an ISO guideline and a Recommended Practice. One key topic of those documents is the establishment of safety zones around the operations. So I am happy to let my colleague Maartje Folbert share some more detail about how to work with safety zones. Maartje Folbert, risk analysis expert, DNV GL Rotterdam: Now that ports in several countries are moving forward to develop LNG bunkering facilities, the operational safety issues related to LNG bunkering have increasingly become a topic of international discussion. The establishment of safety zones around bunkering operations is one of these topics. Until recently no international consensus was reached as to how this should be done. With the development of the draft ISO guidelines for systems and installations for supply of LNG as fuel to ships as well as the draft version of DNV GL’s RP on LNG bunkering, a direction has been given as to how the establishment of safety zones around the bunkering activities should be dealt with.

The purpose of a safety zone is to reduce the likelihood of igniting spilled natural gas. The philosophy is that, although the event of an LNG release should at all times be avoided, if a dispersing cloud is not ignited there will be no fire risk. The prevention of ignition as such is part of the second layer of defence. This is achieved by not allowing any non-essential personnel and activities within the defined safety zone. So, at the same time the number of people in the vicinity of the activity which could be exposed to fire hazards is reduced to a bare minimum which can also be considered a risk reduction.

Safety zones are not to be confused with security zones. Security zones are part of the first layer of defence: their purpose is to reduce the likelihood of LNG releases caused by external impacts such as ship collisions. The reduction is achieved by monitoring ship traffic and other activities in this zone.

The draft ISO guideline suggests two methods to determine the safety zone for a specific situation: a deterministic approach and a probabilistic approach. Following the deterministic approach it is calculated what is the maximum distance from the bunkering activity at which a cloud of methane could still be flammable. This distance is calculated for a maximum credible scenario, which is to be determined in a workshop meeting. This is a simple approach which usually leads to relatively large safety zones, as no safeguards are included in the analysis.

The probabilistic method follows a risk based approach, by assessing the maximum distance to flammable concentration of each possible release scenario as well as its likelihood. The safety zone is then defined by the distance at which the frequency of the occurrence of a flammable cloud is equal to once every million operations. This method will usually lead to smaller safety zones than the deterministic approach as it does not only look into the effects but also the likelihood of the different scenarios, including the applied safeguards. A drawback is that it requires more complex analysis of the operation. Therefore this methodology will typically be used for locations where the available space is limited and no large safety zones can be implemented.

The application of the methodologies and the hearing process of both the draft ISO guidelines and the draft RP will without a doubt demonstrate some practical issues related to the above described methodologies, but we have certainly moved one step closer to an international consensus on how LNG bunkering can be done in a safe way.

GDF SUEZ charters the world’s largest LNG Floating Storage and Regasification Unit

|GDF SUEZ announces, together with its project partner Marubeni, that it has chartered a Floating Storage and Regasification Unit (FSRU) which will be the world’s largest upon commissioning. It will be used for the LNG import terminal project, GNL del Plata in Uruguay. The Uruguay FSRU will be 345 meters long and 55 meters wide, giving the GNL del Plata terminal a long-term storage capacity of 263,000 m3 and regasification capacity of 10 Msm3/ day, expandable to 15 Msm3/ day. It will be moored 4 km offshore from Montevideo, at the GNL del Plata terminal, which will have the capacity to receive LNG carriers of up to 218,000m3.The FSRU has been chartered from an affiliate of Mitsui O.S.K. Lines, Ltd. (MOL, Japan) and is being constructed by Daewoo Shipbuilding and Marine Engineering, South Korea.

Worldwide, in total 15 FSRU’s / Storage and Regasification Vessels (SRV’s) have been built and 10 FSRU’s are under construction or on order.

Until the delivery of the new FSRU in late 2016, the Shuttle Regasification Vessel GDF SUEZ Neptune will be used as a bridge solution, enabling commercial operation of the terminal to commence in 2015.

In addition to the new Uruguay vessel and GDF SUEZ Neptune, the Group also operates GDF SUEZ Cape Ann, which serves as an FSRU in Tianjin (China). Overall, GDF SUEZ operates a fleet of 14 LNG carriers and has an interest in a significant number of regasification terminals around the world.

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The LNG Fuel Opportunity

by Panayiotis Mitrou, Senior Client Support Manager, HL

Gas is emerging as a significant source of clean propulsion for the global shipping industry. New emissions regulations, societal and customer preferences for cleaner fuels as well as high fuel oil prices, combined with expanding supplies of natural gas, are driving this trend. It is imperative that key industry stakeholders, including owners, shipyards and ports engage in a cooperative model that will drive change, acknowledging the challenges ahead and ensuring safety, technical integrity and commercial sustainability.

Lloyd’s Register’s approach to risk assessment is helping an increasing number of new projects proceed across new frontiers and clients conclude on safe investment decisions. It is considered that LNG is one of the options going forward; still not a panacea to all ship types and operations at the present time in the global market. Natural gas is a clean-burning fuel as it eliminates SOx and Particulate matters emissions and NOx reduction of up to 80-90% whereas it also contributes to the reduction of CO2 emissions and particulate matters, compared to coal and other fossil fuels. Despite being a highly desirable energy source due to its green characteristics, until recently it has not been readily available on a global scale. The lack of a bunkering infrastructure is one of the largest obstacles to widespread take-up of LNG as fuel. This picture is changing rapidly though, as the market dynamics improve for transporting natural gas in liquid form. LNG had an important part of the energy equation in some regions, notably Asia, for decades. The sudden boom in the discussions around LNG is due in large part to technological advances that are reducing the costs of liquefaction , shipping, and regasification in conjunction with the pressing need for less expensive and environmentally complaint solutions. Liquefaction costs have declined 35-50% in the past 10 years, the cost of building an LNG tanker has fallen about 45% since the mid- 1980s, and regasification costs have also decreased.

Natural Gas demand on the other hand is increasing globally and to meet this demand many world-scale LNG projects are under development. New production plants are being constructed in Egypt, Australia, Equatorial Guinea, Indonesia, Norway, and Russia, whereas plants are being expanded in Trinidad and Tobago, Oman, and Nigeria, and new projects are being proposed in Nigeria, Angola, Qatar, and other locations.

Lloyd’s Register has been at the forefront of marine gas developments from the very beginning. We have been working to ensure that shipowners, ship designers, shipbuilders, equipment manufacturers and technology developers can meet safety and performance goals by developing an approach that involves both prescriptive (rule-based) and risk-based approaches for when there are no rules. We looked at what’s novel in designing gas-fuelled ships and we developed rules that will now evolve as solutions based on a thorough evaluation of risk which eventually can support rule-based solutions. This is an ongoing process of constant improvement following proven performance.

The new rules draw on Lloyd’s Register’s industry experience as the market leader in the classification of LNG carriers and our rules for gas ships. Completed in July, the new rules replace Lloyd’s Register’s provisional natural gas as fuel rules.

They have been harmonised with the IGC Code and draft IGF Code and they are based on in-service experience and our work with industry on joint industry projects as well as the oversight of our Technical Committees.

At any time Lloyd’s Register is running dozens of projects looking at and evaluating new technology, working with yards, owners, containment systems developers, equipment manufacturers and engine makers. This experience helps develop new rules as new technologies are validated through our risk guidance and understanding of hazards combined with Lloyd’s Register’s leading risk methodology using HAZIDS, chosen qualitative/quantitative risk assessments and HAZOPS. The new rules help the industry make decisions about gas-fuelled designs. The main hazards to be addressed are related to:

– gas in non-gas carrier type ships – gas fuel tank location – vapour management – bunkering.

Tank location is a key issue and one that has attracted much discussion. The bottom line is that most risks can be managed but the technical and commercial costs need to be addressed. With ultra large containerships a significant factor is loss of cargo space due to the relatively high volume of gas bunker tanks compared with fuel oil volumes. While in passenger ships proximity to passenger accommodation is the big factor.

Lloyd’s Register has been researching the issues around a bunker network and infrastructure for the shipping industry and undertook a thorough analysis of the main deep-sea trade routes, the fuel consumption of vessels in the global fleet and the current and future location of bunkering hubs, resulting in some interesting projections with respect to the future picture of demand for LNG. Outside of the niche markets, the study found that the establishment of LNG bunkering infrastructure capable of supporting most of the world’s consumers will be highly sensitive to the price of LNG relative to alternative fuels. Hence for some owners, fuel flexibility will be key.

Moreover, the analysis revealed that it will be the container-ship and cruise-ship markets that are the most likely to adopt LNG. This is because of their relatively high energy requirements, the demands of customers in these two sectors, their regular trading patterns and the time such ships spend in emission-control areas.

Despite the scenarios for LNG uptake by specific market segments, Lloyd’s Register has engaged in a project to investigate the potential to develop a commercially viable bulk carrier design based on an existing COSCO conventional design, but employing gas powered propulsion systems. The ‘Clean Sky’ design has recently received approval in principle (AIP) by Class. This is a pioneering endeavour in that it builds in flexibility by enabling dry cargo owners to choose dual, or tri fuel engines, able to burn, heavy fuel oil (HFO) or diesel, as well as LNG. Lloyd’s Register has been right at the heart of helping the shipping industry with new LNG as fuel projects. Viking Grace, the largest such project to date, is now in service and the world’s first gas-fuelled newbuilding tanker, Argonon, is in her second year of operation.

Gas as fuel is not just an issue on board a ship – even if ships can burn LNG safely, ports and terminals must be able to handle gas bunkering in safety. Our ability to support ports and terminals in developing LNG bunkering guidelines provides a template for ports everywhere. Recently Lloyd’s Register has won a Maritime and Port Authority of Singapore (MPA) contract to develop operational procedures and technical standards required to develop LNG bunkering capabilities in the Port of Singapore. This project allows Lloyd’s Register to apply the knowledge and experience gained in the technical consultancy, de-risk and classification approvals we have delivered to recent innovative gas transferring systems and gas fuelled ships globally, and support Singapore Port to get ready for real LNG bunkering operations, both for short-sea and deep sea shipping, making safe LNG bunkering possible.

Based on its extensive track record and experience Lloyd’s Register provides stakeholders with the support and guidance for LNG use as a marine fuel and helps them develop a solid understanding of the steps involved in addressing risks. Our commitment is to help vessel and port operators find their way through the complexity of the regulatory environment, the technological evolution, the diversity of factors and conditions, and plan their path in making the use of LNG as a marine fuel, a safe operation.

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MAGNOLIA LNG: LAUNCH OF LEVEL I AMERICAN DEPOSITARY RECEIPT PROGRAM Magnolia LNG, LLC is pleased to advise that its parent company LNG Limited has arranged for the quotation of its American Depositary Receipts (“ADRs”) on the OTC International platform in the United States. The Company’s ADRs will trade under the symbol “LNGLY” and represent 1 ADR for every 40 ordinary LNG Ltd shares. Magnolia LNG President and LNG Ltd Managing Director, Maurice Brand, said “We recognize there is strong interest to invest in LNG Ltd from institutional, highnetworth and retail investors in North America and a quotation on the OTC will provide the opportunity for these investors to trade conveniently and

efficiently in their normal exchange trading hours. The Magnolia LNG project is moving towards being granted Filing status with the US Federal Energy Regulatory Commission and achievement of this milestone, with other commercial milestones, will materially increase the Company’s US profile.”

The OTC facility will provide a convenient vehicle for realtime trading for US investors in the parent company of Magnolia LNG. Deutsche Bank has been appointed as the exclusive depositary Bank for the Company’s ADR program.

RasGas Delivers First Cargo to Kochi LNG Terminal in India RasGas Company Limited (RasGas) delivered its first cargo aboard the LNG tanker Fuwairit to the Kochi LNG Receiving Terminal in India on 15 November 2013. This was the second cargo supplied

by RasGas for Kochi, the first commissioning cargo was also loaded at Ras Laffan and transported to Kochi by Petronet in August this year.

Kochi LNG Terminal is located in Puthuvypeen, Kochi, India and is the second LNG receiving terminal operated by Petronet LNG Limited (Petronet), the largest single importer of LNG to India.

Hamad Rashid Al Mohannadi, RasGas CEO mentioned, “This successful delivery is a reflection of RasGas’ commitment to our long-term customer, Petronet. The supply to the Kochi LNG terminal is an indication of the strength of our relationship and the importance we place on India as a strategic LNG market. It is

also a demonstration of RasGas’ capability to reliably supply LNG around the world.”

Speaking on the occasion, Dr. A.K. Balyan, Managing Director and CEO of Petronet said, “We are proud of our relationship with RasGas. This LNG terminal is a gateway for receiving LNG to serve the huge markets and businesses in southern India. The quick implementation of gas pipelines by Gas Authority of India Limited (GAIL) will help receipt of gas to various consuming sectors”.

RasGas entered into a 25 year 7.5 MTA Sale and Purchase Agreement with Petronet and has been supplying the Indian market since 2004, making RasGas the largest and only existing long-term LNG supplier in the country.

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lngShip 7 Clean Marine secures EGCS contract with HudongZhonghua Clean Marine has been selected by HudongZhonghua Shipbuilding in China to supply exhaust gas cleaning systems (EGCS) for two 38,000 dwt.

Chemical Tankers being built for Stolt Tankers and NYK Stolt Tankers.

Clean Marine AS has since 2006 developed an Exhaust Gas Cleaning Systems (EGCS), better known as Scrubber, for the maritime industry. Through extensive testing in workshop and in the field, our marine scrubber has been developed into a highly flexible and efficient exhaust gas cleaning device for existing and new ships.

A certified, full-scale Clean Marine EGCS is in operation onboard the Handymax Bulk Carrier M/V Balder. Balder is the first vessel in the world to operate this type of system in the U.S. Emission Control Area. Clean Marine will also supply EGCS for two new shuttle tankers being built for AET at Samsung Heavy Industries and a VLGC being built for Dorian LPG at Hyundai Heavy Industries.

See “Press Room” for details.

Clean Marine is one of the pioneers within the maritime EGCS industry. Our thorough knowledge of the maritime industry and good engineering practice have been incorporated in to the design of our marine scrubber. Clean Marine offer ship owners, engine makers, and ship builders the information and equipment needed to install an EGCS on both new buildings and existing ships.

LNG Carrier Grace Dahlia Delivered | TOKYO Kawasaki Heavy Industries, Ltd. announced that it has delivered the LNG carrier Grace Dahlia (Kawasaki hull no. 1665) to Nippon Yusen Kabushiki Kaisha (NYK Line).

This is the second 177,000 m3 LNG carrier to be delivered by Kawasaki, and is the world’s largest Moss-type LNG carrier currently in operation. The significant increase in LNG carrying capacity that this vessel offers was made possible by expanding the size of the cargo tanks. Kawasaki has made sure the ship-shore compatibility and outstanding propulsion performance of its existing vessels are not affected by this upgrade. To power this vessel, Kawasaki has chosen the Kawasaki Advanced Reheat Turbine Plant (Kawasaki URA Plant), which it developed specially for LNG carriers.

G

DF SUEZ is pleased to announce that it has signed a 15-year BOOT (Build, Own, Operate and Transfer) contract with Gas Sayago S.A. 1 for LNG storage and regasification services in Uruguay.

Commercial operation of the new terminal is expected in 2015. Located in the Punta Sayago area, close to Montevideo, the offshore terminal, GNL del Plata, will comprise a Floating Storage and Regasification Unit (FSRU) and a jetty, protected by a 1.5 km breakwater.

GE to Provide Close to $600 Million in Turbomachinery Equipment for Russia’s Yamal LNG Megaproject

| HOUSTON GE (NYSE: GE) has received a contract to provide key turbomachinery equipment for the Yamal liquefied natural gas (LNG) “megaproject” that is being developed on the Yamal Peninsula in Russia’s northern Siberia region. The LNG produced at the site will be used to help meet the growing energy needs, primarily of Asia and Pacific Region countries. The LNG megaproject is owned by JSC Yamal LNG, a joint venture between Russia’s largest independent gas producer OAO Novatek (80 percent) and France’s Total SA (20 percent). The project is being implemented in the Arctic zone of Russia, in the Yamal Peninsula, near Sabetta port. The joint venture is building a gas liquefaction facility that will have a production capacity of 16.5 million tons per year, based on the feedstock resources of the South Tambeyskoye gas condensate field. Proved and probable reserves of natural gas (PRMS) of the South Tambeyskoye field exceed 900 BCM (32 tcf). Underscoring its leadership in the LNG sector, GE Oil & Gas is supplying Technip (France) and JGC (Japan) consortium, the LNG plant EPC contractor, with critical turbomachinery equipment for three production lines (or ”trains”), each with the capacity to produce about 5.5 million tons of LNG a year.

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d Feature article

10 highlights of LNG bunkering in 2013

know I am late in summing up 2013, it’s already February 2014. But while drafting a speech for the boss, I was forced to review all the main developments of LNG bunkering throughout the year. And it struck me how much had really happened – it was difficult to shorten the list to only ten items. But here’s it is according to my best judgement, in chronological order: January: Australia joint industry project was completed, with conclusions that there were no show stoppers to quick implementation of LNG fuel in Australian waters. Also, clear economic benefits to the Aussie economy were indicated.

January: MS Seagas LNG bunker vessel for bunkering of MS Viking Grace launched. This demonstrated the viability of ship-toship bunkering, even with passengers onboard.

June: ISO TC67 guideline and RP for LNG bunkering released.

Two important contributions to standardization of LNG bunkering equipment and procedures.

July: MS Francisco high speed RoPax launched. First LNG fueled ship in operation outside Scandinavia. Also notable for it’s remarkable speed record of 58 knots.

September: Port of Antwerp teams up with Exmar to develop LNG bunkering. Yet another strong indication that North European ports are serious about their LNG plans.

September: UASC orders 11 + 6 ‘LNG ready’ 18k/14k TEU container ships. This is a game changer for the shipping market, and it really puts pressure on all the container operators.

October: First LNG fueled tug launched. So from now on I can’t see why any tug would be fueled by liquid fuels.

November: MOU between Singapore and Belgium ports for coordination of LNG bunkering. Another important step in standardization.

November: Wärtsilä 2-stroke, low pressure gas injection engines launched. This engine should make LNG even more desirable for deep sea trades.

December: Cargill announced plans for LNG fueled dry bulk and tanker ships. These ships might possibly be the first deep sea LNG fueled ships in the world.

All in all, I don’t think 2013 could have been much better for LNG. Exponential growth in LNG fueled ships set to continue (Blue are delivered. Green are under construction and added to graph on expected delivery date).

Source: http://blogs.dnvgl.com/lng/2014/

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Lloyd’s Register: Exhaust emissions compliance

Compliance with exhaust emissions requirements is a major challenge for the marine industry today. There are a number of options, each with their own technical and operational challenges and at different levels of technological maturity.

The complexity and novel nature of some of the available options mean increased commercial, technical and regulatory risk. At the same time, a successful implementation can lead to commercial benefits and competitive advantage. For Lloyd’s Register all options are on the table: fuels (conventional and alternative), emissions abatement technologies, gas as a fuel.

If you have already decided on a compliance route, we can help you understand the operational and technical risks and requirements of your chosen option. If you have yet to decide, we take a much broader approach, outlining the background to the regulations and detailing the different options available.

We can offer a range of solutions including training on different subjects (regulation, abatement technologies, alternative fuels, continuous emissions monitoring, LNG as a fuel), technical/economic assessment of compliance options and strategies, HAZID facilitation, independent specialist attendance at equipment trials and exhaust emissions data analysis/troubleshooting.

EC emissions threat to sea freight costs UK importers should be prepared for a rapid escalation in shipping costs this time next year when new shipping emissions regulations come into force.

Effective on 1 January 2015, the English Channel, North andBalticSeaswill become part of a new emissions control area (ECA) inEuropein which ships will be restricted to burning fuel that has a sulphur content of just 0.1%.

Currently vessels are allowed to burn fuel with 1% sulphur content – the difference might not seem to be much, but Michael Berendt, chief executive of German container shipping line Hapag-Lloyd said in interview shortly before Christmas that he expected the extra costs incurred by having to buy more refined fuel products would amount to €150-200m a year for his company alone.

“This doesn’t apply to the Mediterranean though, and certainly not to China. We are pioneers in the field of environmental protection. But stricter environmental regulations need to be governed by international agreements that apply to everyone, otherwise we will be put at a disadvantage here in Germany,” he told German logistics newspaper Deutsche Verkehrs Zeitung.

Currently, a barrel of IFO 380 – the barely-refined crude that ships traditionally burn – is selling for around 0, while marine gas oil, which has 0.1% sulphur limit and almost the same as the distillate diesel trucks and cars run non is selling for around 0 a barrel.

However, when the new regulations come into force, the price is expected to rapidly increase due to the higher demand – with ships, trucks, farmers, and households that use diesel for domestic heating all expected to be competing for the same fuel. Some fuel specialists have questioned whether there is enough refining capacity at a European, or even global, level to cater for the swing in demand.

For shipping lines there are currently two alternatives to using MGO – installing scrubbers on exhaust systems that “clean” the sulphur content of the emissions; or switching to liquefied natural gas (LNG) as a fuel type.

Satu Hassi, a Finnish member of European Parliament and a representative ofFinland’s Green Party commented. “Tightened rules will have a big improvement in protecting health. The next step would be to have the 0,1% limit, so far planned only for ECAs, to applied in all EU waters.

Allport Cargo Services will continue to monitor and report on the ramification of these developments for shippers.

- See more at: http://allportcargoservices.com/retailnews/allportknowledge/regulatory-news/ec-emissions-threat-to-sea-freightcosts/801684762#sthash.KgseScmO.dpuf

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Gazprom to launch commercial gas production from Kirinskoye field in 2014 RUSSIA The Gazprom headquarters hosted today a working meeting between Alexey Miller, Chairman of the

Company’s Management Committee and Alexander Khoroshavin, Governor of the Sakhalin Region. The meeting noted a significant amount of Gazprom’s investments in the Sakhalin Region –the Company’s capital investment in the Region exceeded RUB 250 billion over five years (between 2009 and 2013).

The funds were mainly allocated to the following strategic projects of Gazprom: the construction of the Sakhalin – Khabarovsk – Vladivostok gas transmission system (GTS), pre-development of the Kirinskoye gas and condensate field (Sakhalin III) and construction of a gas pipeline from the onshore processing facility of the Kirinskoye field to the Sakhalin main compressor station of the Sakhalin – Khabarovsk – Vladivostok GTS. This year the capital investments will make up RUB 10 billion. The Kirinskoye field pre-development will continue, including the drilling of production wells. In 2014 Gazprom is going to launch commercial gas production from the Kirinskoye field.

Alexey Miller and Alexander Khoroshavin addressed the issues of gas supply to the Sakhalin Region. Between 2008 and 2013 the Company channeled over RUB 3 billion for these purposes. In particular, a General Scheme for Gas Supply to and Gasification of the Region was elaborated, three inter-settlement gas pipelines were built connecting the Dalneye gas distribution station (GDS) and the Yuzhno-Sakhalinsk CHPP-1, the Dalneye GDS and the Novo-Alexandrovsk settlement as well as the Novo-Alexandrovsk gas distribution point (GDP), the Klyuchi population center and the Sanatornoye population center.

The Region’s Government, in its turn, fulfilled its obligations to prepare the consumers for gas supplies. As a result, the gasification level of the Sakhalin Region (taking into consideration the consumers, who received thermal energy from gaspowered TPPs) increased by 24.5 per cent to 33.6 per cent.

In 2014 the Company will carry on the construction of the gas branch and the Nogliki GDS, as well as the inter-settlement gas pipelines connecting the Nogliki GDS with the Nogliki GDP and the Nogliki GDS with the Nysh settlement.

HHI and JMU are jointly pioneering the first ever use of LNG fuel |United Arab Shipping Company (UASC) will expand its fleet with new super-efficient container vessels, prepared for “dual fuel” through a later LNG Fuel Gas Supply System (FGSS) retrofit after the delivery of the vessels. Through a technical cooperation with Japan Marine United Corporation (JMU) and IHI Corporation (IHI), Hyundai Heavy Industries Co., Ltd. (HHI), the shipbuilder for UASC intends to obtain an Approval in Principle (AiP) from UASC’s designated classification society, DNV-GL, for the FGSS and the LNG fuel tank. The AiP is intended to apply to UASC’s current newbuilding order of five 14,000 TEU vessels with six options and five 18,000 TEU vessels with one option.

Dual fuel refers to ordinary fuel oil as well as Liquefied Natural Gas (LNG). LNG is a cleanerburning, less expensive and real alternative to crude oil products. The use of LNG has the potential to reduce CO2 by 30% and completely eliminate SO2 particles. The newbuilding vessels are designed to be constructed in such a way that LNG fuel tanks and the FGSS can be installed in a matter of weeks once the infrastructure is in place to

enable LNG supplies in major ports of call for container vessels. The capability of being retro-fitted for LNG ensures that UASC vessels continue to remain the most advanced and environmentallyfriendly ultra-large container vessels globally for many years to come.

UASC is among the first vessel owners in the world to plan their newbuildings for LNG retro-fitting and is the first international long-haul container liner owner/operator to do so, demonstrating UASC’s leadership in this area. Recognizing that fuel costs as well as emission-related environmental considerations are extremely important factors in determining the profitability and carbon footprint of UASC’s new vessels, HHI has partnered with JMU, a leading expert in maritime design, research, technology, and the license holder of the Self-supporting Prismatic-shape IMO type-B LNG Tank (IHI-SPB Tank) to engineer necessary provisions such as a conceptual design for a FGSS based on HHI’s own FGSS model “Hi-GAS”, which is appropriate for UASC’s container vessels, and the design of the IHI-SPB Tank to be supplied by IHI at the time of the retrofit.

Contract Makes First Commercial ME-LGI Engine Reality

|Vancouver-based Waterfront Shipping has confirmed its Methanol Carrier Project for a series of 50,000-dwt methanol carriers, each powered by an MAN B&W ME-LGI main engine running on methanol.

The confirmation stems from a Letter of Intent MAN Diesel & Turbo and Waterfront signed in July of this year. MAN Diesel & Turbo officially designates the ME-LGI engine as ME-B9.3LGI. In collaboration with leading shipping lines, Waterfront reports that it is behind the 2+1 × 6G50ME-LGI engines ordered by WestfalLarsen, the 2+1 × 7S50ME-B9.3-LGI by Mitsui O.S.K. Lines (MOL), and the 1+1+1 × 6G50ME-LGI with Marinvest/Skagerack Invest. Hyundai Mipo Dockyard Co., Ltd. (HMD) will build the Westfal-Larsen and Marinvest/ Skagerack Invest vessels, while HHIEMD, Hyundai Heavy Industries’ engine and machinery division, will construct the engines. For the MOL contract, Minami Nippon Shipbuilding will construct the newbuildings, while Mitsui Engineering & Shipbuilding (MES) will build the engines.

online

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LNG – the Pros & Cons

Producer: Mirja-Maija Santala, Media Manager, Wärtsilä Corporation

We present the arguments for and against the use of liquefied natural gas (LNG). First, Rick McArthur presents Wärtsilä’s case for dual-fuel propulsion with gas combustion technology as the low-emission, economical alternative to conventional fuels.

DUAL-FUEL PROPULSION Luxury vessels such as superyachts are a visible expression of wealth. For owners and operators who want to assert their environmental credentials – vessel operation without smoke or particulate emissions married with the lowest possible levels of carbon dioxide and sulphur oxide – dual-fuel propulsion with gas combustion technology offers the most comprehensive solution.

Three approaches can be employed to reduce the emissions generated by vessels powered by fossil fuels: using conventional liquid fuel and adding emission-reduction solutions to the engines; using LNG as the only on-board fuel; or specifying dualfuel technology, which allows operation using the most economical option – marine diesel oil (MDO) or LNG – in all circumstances.

The strength of dual-fuel technology is its ‘fuel flexibility’: dual-fuel solutions make it possible to use MDO in transfers and LNG when operating in port, close to shore or in an emissions control area (ECA).

Using LNG as fuel can also reduce a vessel’s operating costs as owners and operators are free to opt for the most suitable fuel.

SIMPLE & EFFECTIVE Using LNG with combustion technology means that no exhaust gas treatment is required in order to comply with NOx emissions requirements, as the emission levels fall well within the parameters. SOx levels are practically zero, no particulates (soot) are generated and CO2 emissions are also significantly reduced. More than 100 vessels in merchant, offshore and ferry applications are already successfully operating on gas.

Natural gas consists primarily of methane, a potent greenhouse gas (GHG). “In overall terms, dualfuel propulsion solutions, applying lean-burn technology, produce approximately 10 per cent less GHG emissions than a diesel engine of equivalent output running on MDO,” said Tomas Aminoff, director of product management at Wärtsilä Ship Power.

From a design viewpoint, the biggest challenge when using LNG is providing the on-board space required for fuel storage. Specific bunkering arrangements also have to be provided. In dual-fuel configurations, as LNG will only be used in port and when operating in ECAs, the storage tanks can be smaller than if it was the only onboard fuel.

MAXIMISING COMFORT & CONVENIENCE The design for an LNG-powered superyacht already exists. In a joint project, Fincantieri Yachts, Wärtsilä and Stefano Pastrovich of Pastrovich Studio have developed a new concept in which Wärtsilä’s dual-fuel technology is fully integrated into a world first – the 99m, dual-fuel, IMO Tier III-compliant XVintage motoryacht (see issue 131 of TSR, pages 64-73).

The XVintage power and propulsion system is based on Wärtsilä 20DF dual-fuel engines, compact units, which provide all the advantages of fuel flexibility. Fully compliant with upcoming IMO Tier III regulations when operating in gas mode, they can be switched between fuels without any loss in speed or power output.

The dual-fuel gensets in XVintage are equipped with alternators mounted on a common bedframe and utilise double-mounting arrangements, meeting the most stringent standards for levels of noise and vibration.

BUNKERING & FUEL STORAGE All fuels require safe handling arrangements and LNG is no exception.

Pumped from one location to another through pipelines in gaseous form or transported by sea in liquid form, the transformation phase from gas to liquid requires cryogenic temperatures.

THE AVAILABILITY OF LNG LNG carriers move natural gas from liquefaction terminals to re-gasification terminals all over the world, and LNG is available at all these shorebased facilities. Marine LNG import and export terminals are to be found almost everywhere, so LNG is basically available anywhere in the world, and several new terminals are scheduled to come on stream in future years.

What is missing at this time is the infrastructure to transfer LNG from these terminals to the vessels that require it. The availability of LNG bunkering for vessels utilising LNG as marine fuel is also spreading widely – mainly in environmentally sensitive regions or in locations where the same gas price makes this propulsion alternative particularly appealing.

lngShip online

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Bergen Group Fosen has now completed a successful delivery of MV “Bergensfjord” (NB88) to the shipping company Fjord Line.

On Monday, February 3rd 2014, Fjord Line took delivery of the new MS Bergensfjord, the second of two eco-friendly cruise ferries built for the Norwegian shipping line by the Bergen Group Fosen shipyard in Rissa, Norway.

“The completion of the ship went faster than expected, so we are looking into the possibility of putting it into service earlier than planned,” says Fjord Line CEO Ingvald Fardal.

The Bergensfjord’s identical sister ship, MS Stavangerfjord, is already in service after it started sailing the Bergen-Stavanger-Hirtshals route and Hirtshals-Langesund routes in July 2013.

Fardal says having both ships in operation will allow the company to reach its goal of offering daily departures for passengers and freight from all four ports.

“This marks the beginning of a new era in ferry traffic between Norway and the EU that will be of great importance to both the tourism and business sectors. The sale of tickets for the summer months already looks extremely promising in Norway and continental Europe,” says Fardal.

Finishing touches After Monday’s delivery at Rissa, in central Norway, the Bergensfjord casts off today and sets sail for Hirtshals, Denmark. In the weeks to come, Fjord Line will concentrate on fitting out the remaining equipment and drilling the ship’s crew in all aspects of operations and safety procedures. The new cruise ferry’s first regularly scheduled departure is currently slated for Thursday, 3 April from Bergen.

“We are very pleased that Bergen Group Fosen has been able to deliver the ship in accordance with the schedule agreed on last summer. That gives us enough time to run in technical equipment and conduct quality control of all operations and logistics. If possible, we will put the ship into service earlier than currently planned,” says Fardal.

World’s most environmentally friendly Fjord Lines’ two new and identical cruise ferries are both equipped with engines powered by liquefied natural gas (LNG). LNG engines reduce NOx emissions by 92 percent compared to engines powered by traditional heavy fuel oil. Emissions of sulfur are eliminated completely, while particulate emissions are cut 98 percent. The technology Fjord Line uses also reduces emissions of greenhouse gases (CO2) by 23 percent. So air pollution will be minimal at sea as well as in port, helping to make these cruise ferries the world’s most environmentally friendly of their kind.

The new ships, which are 170 meters long, are perfectly designed to handle North Sea waves and provide passengers with a smooth and stable voyage. Each ship has space for 1,500 passengers, with 306 cabins and a vehicle deck for up to 600 cars, trucks and cargo.

Fjord Line CEO Ingvald Fardal (second from right) celebrates delivery of MS Bergensfjord Monday by shaking hands with Bergen Group Fosen CEO Anders Straumsheim, flanked by project leader Håvard Larsen of Bergen Group Fosen (left) and technical director and project leader Morten Larsen of Fjord Line (right) (Photo: Jan Petter Selbekk).

Fjord Line CEO Ingvald Fardal (second from right) celebrates delivery of MS Bergensfjord Monday by shaking hands with Bergen Group Fosen CEO Anders Straumsheim, flanked by project leader Håvard Larsen of Bergen Group Fosen (left) and technical director and project leader Morten Larsen of Fjord Line (right) (Photo: Jan Petter Selbekk).

online

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Nakilat Joint Venture Signs US $669m Refinancing with QNB

| DOHA akilat, Qatar’s premier gas transporter, has secured a US $669 million facility with QNB Group, the World’s Strongest Bank, for the refinancing of two existing LNG vessels and the purchase of two additional LNG vessels by its Maran Nakilat Co. Ltd. joint venture. The agreement was signed at a ceremony held at the head office of QNB, with a number of senior officials from both sides attending. This is the second refinancing that Nakilat has secured for its Maran Nakilat Co. Ltd. joint venture in recent months. Through the two transactions Nakilat has arranged a combined total of US $1.33 billion in refinancing for its Maran Nakilat Co. Ltd. joint venture. Together the two transactions have allowed Nakilat to double the size of Maran Nakilat Co. Ltd.’s fleet — from four vessels to eight vessels — and to increase its ownership in the joint venture by 10 percent.

The two vessels being added to Maran Nakilat Co. Ltd.’s fleet are currently under construction in Korea. These vessels will carry LNG cargos from across the world. Once delivered from the shipyards, this latest addition of two vessels to Maran Nakilat Co. Ltd.’s fleet will increase Nakilat’s total LNG vessel count from 56 to 58.

ABS Publishes Advisory for Navigating Northern Sea Skangass builds LNG bunkering Route| solution |Skangass will build a bunker station for LNG ABS, a leading provider of global maritime classification services, today released its Navigating the Northern Sea Route Advisory to support shipowners and operators intending to transit the increasingly popular commercial shipping routes through the Arctic seas. The comprehensive Advisory, which was developed with assistance from Russia’s Central Marine Research and Design Institute, provides owners with the information they need to apply for permits and to identify the possible technical and operational risks that could arise when trading in some of the world’s most challenging commercial shipping environments. “The Northern Sea Route was virtually unnavigable by all but powerful icebreakers just a few short years ago,” says Todd Grove, ABS Chief Technology Officer, noting that the Russian Federation’s recent moves to encourage international shipping through the Northern Sea Route (NSR) and the melting ice floes there have opened commercial shipping opportunities. “The NSR’s growing popularity has positive implications for transit times between Asia and Northern Europe,” Grove explains, “but the often unpredictable and unfamiliar shipping environment through the north also poses operational and technical challenges. This Advisory was developed to provide the industry with some of the information it needs to navigate those challenges safely and efficiently, while also helping to minimize the impact on the environment.” The Advisory includes the following: The Northern Sea Route The Arctic environment NSR Regulations Winterization strategies The practice of navigating in ice-covered waters Ports of the NSR

in Risavika, close to Stavanger in Norway. DSB (Norwegian Directorate for Civil Protection ) has approved the plans for a bunker station dedicated for Fjord Line’s cruise ferries.

For the first time in Norway, ferries have the opportunity to bunker LNG while having passengers on board.

- Skangass has received an approval for establishing a permanent bunkering solution for Fjord Line’s ferries, says Managing Director in Skangass Tor Morten Osmundsen.

– We are pleased with DSB supporting our opinion that bunkering with passengers on board can be done in a safe manner.

The project is well on the way and Skangass is aiming towards a start-up during Summer 2014.

One of the main drivers for using LNG as vessel fuel is the EU environmental regulation for lower emissions of sulphur dioxide (SO2). The directive is in force from 2015. To make LNG available in a larger scale than today the infrastructure for bunkering needs to be developed. EU is planning to contribute to develop 139 ports with LNG bunker stations in Europe before the year 2025.

The bunker solution for LNG in Risavika in Norway thereby makes an important contribution for vessels trading along the Norwegian coast to comply with the environmental regulation.

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Gazprom to launch commercial gas production from Kirinskoye field in 2014 RUSSIA The Gazprom headquarters hosted today a working meeting between Alexey Miller, Chairman of the

Company’s Management Committee and Alexander Khoroshavin, Governor of the Sakhalin Region. The meeting noted a significant amount of Gazprom’s investments in the Sakhalin Region –the Company’s capital investment in the Region exceeded RUB 250 billion over five years (between 2009 and 2013).

The funds were mainly allocated to the following strategic projects of Gazprom: the construction of the Sakhalin – Khabarovsk – Vladivostok gas transmission system (GTS), pre-development of the Kirinskoye gas and condensate field (Sakhalin III) and construction of a gas pipeline from the onshore processing facility of the Kirinskoye field to the Sakhalin main compressor station of the Sakhalin – Khabarovsk – Vladivostok GTS. This year the capital investments will make up RUB 10 billion. The Kirinskoye field pre-development will continue, including the drilling of production wells. In 2014 Gazprom is going to launch commercial gas production from the Kirinskoye field.

Alexey Miller and Alexander Khoroshavin addressed the issues of gas supply to the Sakhalin Region. Between 2008 and 2013 the Company channeled over RUB 3 billion for these purposes. In particular, a General Scheme for Gas Supply to and Gasification of the Region was elaborated, three inter-settlement gas pipelines were built connecting the Dalneye gas distribution station (GDS) and the Yuzhno-Sakhalinsk CHPP-1, the Dalneye GDS and the Novo-Alexandrovsk settlement as well as the Novo-Alexandrovsk gas distribution point (GDP), the Klyuchi population center and the Sanatornoye population center.

The Region’s Government, in its turn, fulfilled its obligations to prepare the consumers for gas supplies. As a result, the gasification level of the Sakhalin Region (taking into consideration the consumers, who received thermal energy from gaspowered TPPs) increased by 24.5 per cent to 33.6 per cent.

In 2014 the Company will carry on the construction of the gas branch and the Nogliki GDS, as well as the inter-settlement gas pipelines connecting the Nogliki GDS with the Nogliki GDP and the Nogliki GDS with the Nysh settlement.

HHI and JMU are jointly pioneering the first ever use of LNG fuel |United Arab Shipping Company (UASC) will expand its fleet with new super-efficient container vessels, prepared for “dual fuel” through a later LNG Fuel Gas Supply System (FGSS) retrofit after the delivery of the vessels. Through a technical cooperation with Japan Marine United Corporation (JMU) and IHI Corporation (IHI), Hyundai Heavy Industries Co., Ltd. (HHI), the shipbuilder for UASC intends to obtain an Approval in Principle (AiP) from UASC’s designated classification society, DNV-GL, for the FGSS and the LNG fuel tank. The AiP is intended to apply to UASC’s current newbuilding order of five 14,000 TEU vessels with six options and five 18,000 TEU vessels with one option.

Dual fuel refers to ordinary fuel oil as well as Liquefied Natural Gas (LNG). LNG is a cleanerburning, less expensive and real alternative to crude oil products. The use of LNG has the potential to reduce CO2 by 30% and completely eliminate SO2 particles. The newbuilding vessels are designed to be constructed in such a way that LNG fuel tanks and the FGSS can be installed in a matter of weeks once the infrastructure is in place to

enable LNG supplies in major ports of call for container vessels. The capability of being retro-fitted for LNG ensures that UASC vessels continue to remain the most advanced and environmentallyfriendly ultra-large container vessels globally for many years to come.

UASC is among the first vessel owners in the world to plan their newbuildings for LNG retro-fitting and is the first international long-haul container liner owner/operator to do so, demonstrating UASC’s leadership in this area. Recognizing that fuel costs as well as emission-related environmental considerations are extremely important factors in determining the profitability and carbon footprint of UASC’s new vessels, HHI has partnered with JMU, a leading expert in maritime design, research, technology, and the license holder of the Self-supporting Prismatic-shape IMO type-B LNG Tank (IHI-SPB Tank) to engineer necessary provisions such as a conceptual design for a FGSS based on HHI’s own FGSS model “Hi-GAS”, which is appropriate for UASC’s container vessels, and the design of the IHI-SPB Tank to be supplied by IHI at the time of the retrofit.

Contract Makes First Commercial ME-LGI Engine Reality

|Vancouver-based Waterfront Shipping has confirmed its Methanol Carrier Project for a series of 50,000-dwt methanol carriers, each powered by an MAN B&W ME-LGI main engine running on methanol.

The confirmation stems from a Letter of Intent MAN Diesel & Turbo and Waterfront signed in July of this year. MAN Diesel & Turbo officially designates the ME-LGI engine as ME-B9.3LGI. In collaboration with leading shipping lines, Waterfront reports that it is behind the 2+1 × 6G50ME-LGI engines ordered by WestfalLarsen, the 2+1 × 7S50ME-B9.3-LGI by Mitsui O.S.K. Lines (MOL), and the 1+1+1 × 6G50ME-LGI with Marinvest/Skagerack Invest. Hyundai Mipo Dockyard Co., Ltd. (HMD) will build the Westfal-Larsen and Marinvest/ Skagerack Invest vessels, while HHIEMD, Hyundai Heavy Industries’ engine and machinery division, will construct the engines. For the MOL contract, Minami Nippon Shipbuilding will construct the newbuildings, while Mitsui Engineering & Shipbuilding (MES) will build the engines.

online

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Terntank Rederi a/s orders the world’s most environmentally friendly tankers | IHI has been awarded an EPC (Engineering, Procurement and Construction) contract to construct two (2) of India’s Largest LNG Storage Tanks at Dahej LNG Terminal in State of Gujarat, by Petronet LNG Limited (PLL). The two tanks will each have a net storage capacity of 170,000m3. The construction is scheduled to be completed in 2016.

IHI has already completed four (4) 148,000m3 LNG storage tanks at Dahej LNG Terminal and two (2) 155,000m3 LNG storage tanks at Kochi LNG Terminal in State of Kerala, for PLL. In this winter, IHI has been awarded an EPC contract of two (2) LNG storage tanks by GSPC LNG Limited. By this continuous award of EPC contract, IHI’s share of LNG storage tanks in India will be more than seventy (70) percent. Demand for LNG is constantly growing worldwide, with India playing a major role in the total increase in LNG demands. Plans for several LNG terminals are currently under development in India to fulfill the vast demand of energy.As a pioneer in the LNG business, IHI has over 130 construction experience worldwide in LNG storage tanks projects, since it constructed the first LNG storage tank in Japan. For further contribution to the global energy supplies, IHI will keep expanding its incomparable achievement under the growing demand for LNG. Photo: LNG storage tanks in Kochi LNG Terminal, completed in 2012.

Brittany Ferries announces order of giant gas-powered cruise-ferry | Leading French ferry and holiday company, Brittany Ferries, today announced that an order has been placed for a new cruise-ferry that will be its largest yet, and one of the biggest such vessels in the world. It will also be the cleanest, most environmentally-friendly ship to operate in UK waters because LNG emits about 25 per cent less carbon dioxide during combustion than marine fuel oil and burns with no smoke. It is entirely free of sulphur and is very low in nitrogen oxide emissions.

Brittany Ferries and STX France have been co-operating for two years on a study regarding the feasibility of powering a cruise-ferry by LNG. The ship, costing some 270 million euros (£225 million) will be built by STX France in St. Nazaire and she will enter service in late spring 2017.

O

perational start-up at Petrobras’ third LNG Regasification Terminal The Petrobras LNG Regasification Terminal in Bahia brings greater flexibility and assurances to natural gas supplies in Brazil, with regasification capacity now up to 41 million m³/day.

At precisely 1:13 pm on Friday (January 24, 2014), Petrobras added to the Brazilian gas pipeline network the first regasified LNG (Liquefied Natural Gas) from its new Regasification Terminal, located in Baía de Todos os Santos, Salvador, in the state of Bahia.

Repsol completes the sale of LNG assets | Repsol has completed the sale of liquefied natural gas (LNG) assets with the handover to Shell of assets in Peru and Trinidad & Tobago after the relevant authorisations have been obtained. In October 2013, Repsol sold its stake in Bahía Bizkaia Electricidad (BBE) to BP, which exercised a purchase option over the asset.

The combined transactions represent total proceeds for Repsol of $4.3 billion (of $4.1 billion from the sale of assets to Shell and $0.2 billion from the sale of BBE to BP), and the company additionally sheds financial commitments and non-consolidated debt in line with the figures announced in February 2013 when the assets´ sale was agreed.

The sale, which includes the minority stakes in Atlantic LNG (Trinidad & Tobago,) Peru LNG and BBE as well as the LNG sale contracts and time charters with their associated loans and debt, has generated approximately $2.9 billion for Repsol in profit and capital gains after tax, slightly higher than the guidance given when the transaction was agreed in February. As a consequence of the transferral of assets, and in line with the company’s policy of financial prudence, Repsol will adjust the book value of the North American assets with a provision of $1.5 billion after tax, in line with new fiscal regulations. The resulting capital gains yet to be booked will be included in the accounting of 2013 and 2014, in accordance with the transferral date of the assets included in the agreement.

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