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Putting Spain on the LNG map

Francisco Maza Luque, Repsol, Spain, takes a look at the innovations that are helping to make Spain the first port of call for LNG bunkering operations.

Earlier this year, Repsol completed its first LNG bunkering that offset the emissions associated with the vessel’s LNG consumption. The spot operation inaugurated the commercial use of the new Cartagena bunkering facility in Spain and was co-ordinated exclusively by telematic means to enhance safety. The operation confirms Repsol and Spain as an attractive bunkering option.

On 5 March 2021, Repsol completed an LNG bunkering operation to the vessel Fure Vinga in the port of Cartagena in eastern Spain. The operation, that supplied 420 m3 of LNG to the Swedish-owned chemical tanker with a length of 150 m and a beam of 23 m, lasted approximately four hours and was performed without incidents or delays.

This novel supply of LNG to a ship for use as fuel was carried out at the facilities of Enagas, with the support of the Port Authority of Cartagena and the Maritime Captaincy of Cartagena. The bunkering operation inaugurated the commercial use of the new Cartagena bunkering facility, after the finalisation of recent modifications and a first pilot operation carried out in 2017, thanks to the collaboration between Repsol and Enagas. The combination of the extensive bunkering experience of an operator like Repsol

Figure 1. Chemical tanker Fure Vinga.

and the expertise that Enagas has accrued over the decades made this operation a success.

The operation aggregated several innovative characteristics that made it unique and very different from other similar operations carried out in the past in different ports in Spain. These innovations have been the result of the extensive co-operation between different units within Repsol and all stakeholders involved, starting long before the operation took place.

A very promising aspect of this procedure was the short time frame between the day that the bunkering operation was agreed and the day the Fure Vinga was supplied with LNG in Cartagena. Only one week passed, which was a new record for a spot operation of this kind in Spain. This was made possible because of all the work that was undertaken prior to even envisioning the operation, as well as the closer convergence of the LNG bunkering practices to those that are usually seen on the MGO and bunker fuel side. The co-operation and the extraordinary professionalism of the Swedish shipowner Furetank Rederi, owner of the Fure Vinga, was also very important when reacting to the request with such short notice.

Repsol also decided to adapt its procedures to make it possible to co-ordinate all parts of the operation by telematic means. Thus, there was no direct contact with the vessel’s crew at any time, contrary to the normal way to proceed in this kind of operation. To make this possible, it was essential to prepare a detailed plan and, during the operation, carry out a precise and agile co-ordination between the vessel, the operators at Enagas’ terminal, and Repsol’s personnel in Cartagena and Madrid, Spain. This way, the safety of the operation was guaranteed amid the current COVID-19 situation.

Figure 2. LNG bunkering operation to vessel Fure Vinga in Cartagena, Spain.

Figure 3. LNG bunkering operations in Spain carried out by Repsol.

Lower LNG loading tariffs in Spain

Repsol has been working for almost a decade on the elaboration and certification of a wide range of procedures, checklists, and operational standards for a large variety of potential bunkering operations in Spain. The company has engaged with many different port authorities to work out specific technical and risk assessments, and it has carried out numerous operations in different locations, ranging from the simplest truck-to-ship LNG bunkering supplies to dual fuel bunkering operations and terminal-to-ship supplies.

In total, Repsol has offered LNG bunker solutions to 21 different vessels, from tugboats to chemical tankers, with very different bunkering systems, connections, and procedures.

Needless to say, one of the foundations of the operation is the presence that Repsol has in the Spanish Gas System, as well as the commercial and trading capabilities needed to source the LNG at a price that makes Repsol in particular, and Spain in general, an attractive bunkering option for a vessel to call at a Spanish port. The competitiveness of Spain as a bunkering location has recently received new incentives in the form of a very significant reduction of the LNG loading rates charged by the Spanish Gas System Operator. On 26 September 2020, the Spanish supervisory agency, the CNMC, published the new rates applying to these types of services, reflecting an average discount of approximately 90% compared to previous rates. For this particular operation, there was a discount of 98%.

Repsol also took advantage of the developments and modifications of the jetty used in the operation, carried out as a part of the CORE LNGas Hive project that is co-financed by the European Commission. It is led by the Spanish Port Supervisor, Puertos del Estado, and co-ordinated by Enagas. The project, in which Repsol also participates as a sponsor, is developing safe and efficient integrated logistics and supply chains for LNG in the transport sector (small scale and bunkering), particularly for maritime transport around the Iberian Peninsula. It contributes to the decarbonisation of the Iberian EU transport corridors of the Mediterranean and the Atlantic, and it is a step forward in the efforts to reduce emissions, promoting the use of clean energy for transportation in accordance with the roadmaps of the EU. One of the activities carried out under this project is the modification of the Spanish regasification terminals to supply LNG for ships, including the bunkering facility in Cartagena.

First time compensating total CO2 emissions

The operation in Cartagena was also the first time that Repsol, as a supplier of LNG, has guaranteed the compensation of the total CO2 emissions associated with

the consumption by the vessel of this LNG. Emissions were compensated through the purchase of CO2 credits (verified emission reductions or VERs) in the voluntary carbon market. In this case, the credits purchased come from a project in Brazil with the main objective to avoid and prevent unplanned deforestation in native forests. Repsol has defined a very specific and demanding set of criteria for the selection of these projects, based mainly on the type of project, the standard under which it is certified, and the social and environmental benefits that the project brings at a local level.

For Repsol, it is not only about reducing emissions and contributing to mitigating climate change. It also places a special emphasis on the standards such as the climate, community, and biodiversity standards (CCBS) Gold level that assess social and environmental impacts in detail, including the protection of biodiversity.

This not only consolidates Repsol’s position as a supplier of LNG for maritime transport but also sets the milestone of a first compensated LNG as a bunker fuel supply. With this new bunkering operation, Repsol is completing its capabilities to serve the shipping industry in a more efficient way, offering reliable and agile LNG bunkering services as it has traditionally done with other fuels. This is a further step towards the company’s goal of achieving net zero emissions by 2050, offering shipowners the possibility of making their commercial routes more efficient and environmentally friendly.

In line with this objective for reducing greenhouse gas emissions to the atmosphere, and in addition to the supply of carbon-neutral gas and LNG by compensating CO2 emissions purchasing certified credits, Repsol is also adding biomethane to its portfolio in the short-to-medium-term. It is developing the possibility to supply LNG with Guarantees of Origin of biomethane from European production (shortterm) and biomethane projects in Spain with a focus on value creation for final gas users (medium-term).

New bunkering stations in northern Spain

Additional steps are expected soon since Repsol is building two bunkering stations in northern Spain, in the cities of Bilbao and Santander. These facilities, each one with a storage capacity of 1000 m3 and a pumping capacity of 600 m3/h, are expected to be in operation in 2022 and 2023, respectively. They will allow LNG bunkering operations to be performed while other simultaneous operations are carried out within the vessels and the port area.

Both facilities are co-financed by the EU under the framework of the Connecting Europe Facility (CEF) programme.

Repsol is building these capabilities jointly with its partners and stakeholders in Spain with whom it shares the vision of Spain as an LNG bunkering hub in the future. Spanish ports and Spanish operators are demonstrating that they are able to compete with other European ports when offering these services.

As LNG becomes an increasingly valued alternative for shipowners for use in shipping, Repsol is convinced that Spain will come to play an ever more important role in the reduction of emissions, in line with the regulation of the International Maritime Organization (IMO).

Figure 4. LNG loading from terminal regulated tariff at Spanish Gas System. New and former tariffs.

Figure 5. CORE LNGas Hive Project.

Figure 6. Pacajai REDD+ Project in Brazil.

Figure 7. Repsol roadmap for decarbonisation.

Figure 8. General view of the LNG bunkering terminal, 3D model.

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