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Cargo transfer: The advantages of hoses in emerging LNG sectors FLNG vessels: Landmark projects cement breakthrough
European terminals: The drive to develop multifunctionality continues
“Notwithstanding the unique characteristics of each project, there are five simple steps critical to the development of all commercially viable, smaller-scale LNG terminals� Karthik Sathyamoorthy, President of LNG marketing, AG&P, page 40
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contents
July/August 2018
25 06
Comment 5 Imminent final investment decisions are poised to launch a new round of liquefaction plant construction
Area report - North West Europe infographic 6 North West Europe LNG receiving terminals and the full range of additional services currently available at each facility
Area report - North West Europe 7 Europe’s northern LNG import terminals have added a broad range of supply chain services to their original regasification duties
18
Area report - Iberia infographic 10 Iberian LNG receiving terminals and the full range of additional services currently available at each facility
Area report - Iberia 11 Following ground-breaking introductions of road tanker loading and cargo reloads, Iberian terminals are now being adapted for LNG bunkering
Ballast water treatment 12 Paul Gunton highlights shipowner priorities in their choice of ballast water management systems for LNG carriers
21
Classification societies 15 An increasing share of class society LNG shipping expertise is being applied to the expanding LNG bunkering sector
Cargo transfer systems 18 Hoses offer advantages over loading arms in the growing regasification and bunker vessel segments of the LNG supply chain.
Floating LNG production 21 The appearance of Hilli Episeyo and Prelude reinforces the emergence of a major new LNG supply option
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LNG World Shipping | July/August 2018
contents Shipowner profile 25 The FLEX LNG fleet has emerged from a long gestation period to become a leading provider of spot market tonnage
LNG bunkering
July/August 2018 Editor: Mike Corkhill t: +44 1825 764 817 e: mike.corkhill@rivieramm.com
28 A series of infrastructure projects is about to mature and propel the Florida port of Jacksonville into the LNG bunkering big league
Consultant Editor: Craig Jallal t: +44 7974 935 477 e: craig.jallal@rivieramm.com
Statistics - fleet developments
Brand Manager: Ian Pow t: +44 20 8370 7011 e: ian.pow@rivieramm.com
31 LNG carrier orders and newbuilding deliveries during the first half of 2018
Statistics - LNGCs on order and delivered 34 Bimonthly update of the LNG carrier orderbook and ships delivered over the past 18 months
Viewpoint 40 Karthik Sathyamoorthy of AG&P identifies five steps which are critical to the development of commercially viable, smaller-scale LNG terminals
Correction: In the review of LNG-fuelled service and supply ships on page 24 of the May/ June 2018 issue of LNG World Shipping, as well as in the accompanying table of such vessels on page 25, Dragages-Ports is mistakenly referred to as being part of the Belgian dredging group DEME. In fact Dragages-Ports is an economic interest group owned by the French state and the seven principal port authorities in France. Also, the Dragages-Ports dredger being converted to dual-fuel running, Samuel de Champlain, is 117 m in length, not 177 m as stated.
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Next Issue: September/October 2018 issue of LNG World Shipping will cover: Area reports: Americas & Caribbean Floating storage and regasification unit (FSRU) update Arctic LNG shipping logistics Gastech preview LNG bunker vessels LPG and ethane: ships and markets
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Front cover image: Utilising flexible cryogenic hoses for ship-to-ship LNG transfers
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COMMENT | 5
Decision time looms for next raft of LNG projects
L Mike Corkhill, Editor
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ike all industrial endeavours, the LNG sector waxes and wanes. Expansion has tended to come in fits and starts, at once at the mercy of geopolitics, financial markets, competing energy sources, trade wars, environmental initiatives and natural phenomena. As a result of the complex interplay between these factors, aligning LNG supply with demand in a timely fashion poses big challenges. The good news for all involved with, and benefitting from, LNG is that the onwards and upwards trend in trade growth is inexorable. The clean-burning characteristics of natural gas, coupled with plentiful supplies and competitive pricing, mean that it is currently the fossil fuel of choice in most markets. The International Gas Union’s recently published 2018 World LNG Report points out that the 12% increase in worldwide movements of LNG in 2017, to a record-breaking 293.1M tonnes, is the highest annual growth in the sector since 2010. As of March 2018, there was 369M tonnes per annum (mta) of LNG liquefaction capacity in place, with another 92 mta under construction. Backing that up is another 875 mta of proposed capacity tabled and under study and development. Most of the final investments decisions (FIDs) for the LNG projects now coming onstream were taken during the 2012-14 period, a time when recovering economies were planning on significant increases in energy consumption. The collapse in energy demand and prices that soon followed resulted in a rapid slide in investments in new projects. Only one LNG export scheme achieved a final investment decision in 2017, and that was Eni’s 3.4 mta Coral floating LNG production (FLNG) initiative for the coastal waters of Mozambique. Similarly, only one FID has been made so far in 2018, by Cheniere Energy for the 4.5 mta Train 3 of its Corpus Christi terminal in Texas.
The knock-on effects of the current slowdown in commitments to new projects will be felt in 202122, when the volume of new liquefaction capacity coming onstream will be minimal. The current global demand for LNG is strong and looks set for continued buoyancy. At the same time some of the gas fields feeding longestablished LNG export plants are in decline. All are agreed that new FIDs will have to be taken soon to prevent a severe LNG supply shortfall in the first half of the next decade. As indicated, there is no shortage of proposed new LNG schemes on the table. Fortunately, many project developers are close to achieving the volume of sales contracts necessary to support an FID. These successes will help meet industry aspirations for a steadier, less fractious expansion in global LNG trade. If the construction of 200 mta of new LNG production capacity by 2025 is a reasonable goal, the following will help achieve it. Targeting FIDs in 2018 are Shell and its partners in LNG Canada, the four-train, 26 mta project in British Columbia, and Gazprom for a third train, of 5.4 mta, at the Sakhalin 2 terminal in eastern Russia. Another possible project approval this year is that for export facilities at the Golden Pass LNG import terminal in Texas. Of all the proposed US export projects currently on the table, Golden Pass has notable advantages, not least the financial clout of the scheme’s promoters, Qatargas and ExxonMobil, and the five storage tanks and two marine jetties already in place at the terminal. The Golden Pass project calls for three trains, each of 5.2 mta. In 2019, FIDs are promised for several major initiatives, including Anadarko for its 12 mta Mozambique LNG development; Driftwood LNG for a 27.6 mta plant near Lake Charles, Louisiana; Novatek for its 18.3 mta Arctic LNG 2 facility; and Qatargas for three new trains totaling 23 mta at Ras Laffan. Even if these early FIDs are only for the initial phases of the projects, the ball is set to start rolling again. LNG
LNG World Shipping | July/August 2018
northwest Europe AREA REPORT | 7
Northwest Europe LNG terminals opt for flexibility Europe’s northern LNG import terminals have moved beyond their original regasification duties to offer a broad range of supply chain services
The LNG bunker vessel Engie Zeebrugge has added a new capability to the array of services on offer at the Fluxys import terminal in Zeebrugge
W
hat European LNG terminals lack in volume throughputs, they more than make up for in cargo-handling sophistication. As befits a region that gave birth to small-scale LNG and LNG bunkering, the terminals of northwest Europe are an integral part of an extended supply chain that reaches an everwidening band of customers seeking coastal distribution and LNG-fuelling services. The LNG receiving terminals dotted along Europe’s Atlantic coastline were originally conceived as regasification facilities, built to process the large parcels of cargo shipped from world-scale liquefaction plants. However, European LNG imports have always faced notable competition, in the form of domestic gas production and voluminous pipeline supplies from Algeria, Norway and Russia. While output from some local sources, such as the UK North Sea and the Groningen field in the Netherlands, has gone into decline in recent years,
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Europe’s demand for gas is stagnating and competitively priced pipeline supplies are plentiful. With the power-hungry, gas-deficit economies of north Asia willing to pay a premium for available supplies of LNG, it is no wonder that Europe is known as “the LNG market of last resort”. But, while LNG may not be required in Europe in large volumes as yet, it is sought after by a growing number of small-scale users, including residential and industrial customers not connected to national gas grids and operators of LNG-powered ships and heavy-duty vehicles. European clean air legislation, among the world’s most stringent, and the establishment of the North and Baltic Sea emission control areas by the maritime community underpin the spreading demand for LNG. The region’s escalating small-scale LNG requirements are ensuring new roles for its import terminals. The majority have now been provided with the ability to reload cargoes for international customers willing to pay a better price and to load LNG
road tankers and ISO tank containers at dedicated bays for onward distribution. More recently, the ability to load LNG bunker vessels and provide cooldown services have become attractive options. And now, with the start-up of the Yamal project in the Russian Arctic, several European terminals have begun to carry out direct cargo transhipments across their jetties, from Yamal’s fleet of icebreaking LNG carriers to conventional ships for onward carriage to the final customer. These new roles have placed the region’s receiving terminals as the central nodes of an increasingly complex matrix of European LNG activities. Calculated after reloads, an aggregate total of 45.98M tonnes of LNG was discharged at the terminals of Europe’s 14 import nations in 2017, a 19.5% year-onyear jump. Despite the growth in European net imports in 2017, the region’s share of the global market has fallen by almost 50% since 2010, to 15.9%. European growth last year was
LNG World Shipping | July/August 2018
8 | AREA REPORT northwest Europe
concentrated in the southern part of the region, in countries like Portugal, Spain, France, Italy, Greece and Turkey, where a combination of low hydropower, hot summer weather and low nuclear production in France pushed up imports by an aggregate 9.1M tonnes. In contrast, net imports by the northwest European countries of the UK, Belgium and the Netherlands declined by a combined 2.1M tonnes.
Low country small-scale focus
While the overall volumes handled by the LNG terminals of northwest Europe may have slumped, upgrade work at the facilities continues apace. Fluxys LNG, for example, is building a fifth storage tank at its Zeebrugge terminal. Scheduled for commissioning in mid2019, the 180,000 m3 unit will support the transhipment of cargoes from Russia’s Yamal LNG project. Engie, NYK, Mitsubishi and Fluxys jointly operate Engie Zeebrugge, a 5,000 m3 LNGBV based at the Zeebrugge terminal. Since loading LNG for the first time at the facility in April 2017, the vessel has been supplying LNG at the Belgian port by ship-to-ship (STS) transfers, including to UECC’s pure car and truck carriers. Fluxys has also decided to construct a second road tanker loading station at its Zeebrugge terminal. Due to enter service mid-2018, the new facility will boost the road tanker/ISO tank loading capacity from 4,000 to 8,000 units per year. In Rotterdam the Gate terminal opened its breakbulk centre in 2016, complete with a small-scale jetty for loading LNGBVs and coastal distribution tankers, road tanker loading bays, with Shell as the foundation customer. The volume of LNG bunkered in Rotterdam in 2017 rose to 1,500 tonnes, from 100 tonnes a year earlier, while Gate’s loading bays handled an average of 12 road tankers a day in 2017. Shell’s new 6,500 m3 LNGBV Cardissa already calls the Gate breakbulk terminal home and the energy major is in the process of adding two additional LNG fuelling vessels to its northwest Europe fleet. Agreement has been reached with shipowner Anthony Veder for the conversion of the 7,500 m3 LNG coastal distribution tanker Coral Methane into a dedicated LNGBV. Shell has also finalised a deal under which it will take on long-term charter a 3,000 m3 LNG bunker barge being built for a joint venture between Victrol and CFT.
LNG World Shipping | July/August 2018
Elengy’s Montoir terminal at St Nazaire is able to transship cargoes between LNG carriers without the need to utilise shore storage tanks
To be based in Rotterdam, the latter vessel will be used to bunker gas-powered inland waterway vessels visiting the port. The bunker vessel fleet will support Shell’s blossoming portfolio of LNG bunkering clients in northern Europe. Among the company’s latest batch of customers is Sovcomflot, which has ordered a series of what will be the world’s first LNG-fuelled Aframax crude oil tankers, and Carnival Corp, two of whose gaspowered cruise liner newbuildings will sail in northern European and Mediterranean waters on completion. Rotterdam is also set to fuel the largest gas-powered ships ever built. CMA CGM is constructing a fleet of dual-fuel 22,000 TEU container ships, the first of which is set for delivery in January 2020. Each will be propelled by the largest dual-fuel engine ever built. The fleet will be serviced by an 18,600 m3 LNGBV that Total and Mitsui OSK Llnes have ordered in China. Three times larger than any LNG fueller yet built, the vessel will be based in Rotterdam. The LNG bunker tank on each CMA CGM box ship, which is the same capacity as that of the Total/MOL LNGBV, will provide enough fuel for a Europe/Asia roundtrip voyage.
Going with the Grain
Across the North Sea in the UK, Grain LNG, which has storage space for 1M m3 of LNG, is seeking to provide a unique loading arrangement for coastal LNGCs and LNGBVs of up to 20,0000 m3 by Q3 2019. The solution would use a floating loading unit that takes on LNG from the marine loading arms on Grain’s existing berths and then transfers the product to the loading
vessel utilising its own, smaller-scale cargo transhipment equipment. In December 2017 Skangas concluded a letter of intent with Grain LNG covering the reloading and bunkering of small vessels. Dunkirk LNG has increased the net volume of storage capacity at its terminal, from 570,000 to 600,000 m3, and investments continue to be made to boost cargo-handling capabilities at this French Channel port facility which commenced commercial operations in January 2017. The cargo reloading rate is currently being boosted to 8,800 m3/hour and a truck loading bay is being built. Both capabilities will be in place by the end of this year. One of the customers of the truck loading bay will be Brittany Ferries and Honfleur, the cruise ferry it is building. In a fuelling partnership with Total, Dunkirk LNG and Groupe Charles André, Brittany Ferries will receive ISO tank containers loaded with LNG in Dunkirk at Ouistreham, Honfleur’s home port. The laden ISO tanks will travel with the dual-fuel ship for a single voyage, feeding into the main bunker tank, and then be replaced by a new set of filled tanks for the next trip. In July 2017 Dunkirk LNG and the local port authority signed an agreement to provide an STS LNG bunkering service at the terminal. Elengy has improved the facilities available at its Montoir LNG terminal at Nantes-St Nazaire by renovating its two berths installing boil-off gas compressors. The upgrades have enabled the facility to accommodate calls of Yamal’s icebreaking LNG carriers and to enhance the ability to tranship cargoes from these vessels to conventional LNGCs. LNG
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10 | AREA REPORT Iberia
Iberian terminals extend flexible approach to LNG bunkering Following the ground-breaking introduction of road tanker loading and cargo reloads, Iberian terminals are now being adapted for LNG bunkering
T
he seven operational LNG import terminals ringing the Iberian coastline were among the first in the world to add multifunctional services, beyond the basic regasification capability. Between them, the Sines terminal in Portugal and the Bilbao, Mugardos, Huelva, Cartagena, Sagunto and Barcelona facilities in Spain account for about one-third of Europe’s LNG import capacity. Spain has always relied on road tanker deliveries of LNG to those remote customers not linked to the gas grid. As such, vehicle loading bays were provided at its terminals as a matter of course. Spanish terminals dispatch around 45,000 road tanker loads annually. Earlier this decade the country also became the world’s leading supplier of reload cargoes, when European LNG imports stagnated and demand for the product further afield increased. This was particularly true of Japan, where the March 2011 earthquake and tsunami forced the closure of the country’s 50-plus nuclear plants and prompted a turn to LNG as an electricity-generating substitute. Sines in Portugal and all the Spanish facilities have a cargo-reloading capability, which requires the relatively minor modification of a terminal’s infrastructure. European LNG reloads peaked in 2014 when the region’s import terminals put 6M tonnes on ships for re-export. Spain accounted for 4M tonnes of the total, while 42% of Europe’s re-exports were dispatched to Asia, where customers were paying premium prices. European re-exports have declined in recent years, as the gap between LNG prices in Asia and Europe has narrowed. However, reloading has taken on a new, smaller-scale dimension at most of the Iberian terminals, where a vessel bunkering service has either been added or is under development. Co-funded by the European Commission, the CORE LNGas hive project has been launched to drive the establishment of an Iberian LNG bunkering network; the initiative is coordinated by Spain’s Enagás, operator of the Bilbao, Huelva, Cartagena, Sagunto and Barcelona terminals. Truck-to-ship bunkering transfers to LNGpowered vessels have already been made in several Spanish ports, but emphasis is now being placed on terminal enhancements to support not only the loading of small-scale carriers and LNG bunker vessels (LNGBVs) but also, for some facilities, the direct bunkering of LNG-powered ships. The reloading capabilities of the Cartagena terminal were enhanced in 2017, when the loading flow rate was increased to 7,222 m3/hour. In April 2017 the LNG-powered bitumen tanker Damia Desgagnés was bunkered at the site with 370 m3 of LNG. The occasion marked the first time a ship had been bunkered at a European terminal with LNG directly, using the facility’s cryogenic
LNG World Shipping | July/August 2018
tank-to-jetty pipework, hoses and a dedicated jetty. Work to adapt the existing marine jetty at Bilbao was also finalised during 2017. Able to handle large- and small-scale reloading and bunkering operations, the Bilbao terminal can now accommodate vessels with LNG capacities ranging from 600 m3 to 270,000 m3. Spain’s first ship-to-ship LNG bunkering operation was carried out in Bilbao in February 2018. The fuelling involved the transfer of cryogenic liquid from the converted LNG/oil bunker barge Oizmendi to the dual-fuel cement carrier Ireland. Oizmendi had taken the LNG onboard earlier at the Bilbao terminal. Following the breakthrough Bilbao operation, Oizmendi, which is operated by the bunker fuel supplier Cepsa, was transferred to its permanent base of operations at Huelva in southern Spain. For the moment the two 300 m3 bunker tanks on Oizmendi are to be filled with LNG transferred from the Huelva LNG terminal by road tanker. Flexible hoses have been identified as the optimum way for the Sagunto and Barcelona terminals to load smaller vessels at their existing jetties, at least initially, while Barcelona is also set for its own converted LNG bunker barge. At Mugardos the construction of a new jetty is under study, as is an adaptation of the existing jetty facility to enable the handling of small-scale traffic. LNG
Oizmendi – helping to open up LNG bunkering opportunities in Iberia
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12 | BALLAST WATER TREATMENT
LNG carrier owners have ballast water options A review of equipment recently specified for LNGCs shows that owners have established clear priorities in their choice of ballast water management systems, writes Paul Gunton
specifying systems to suit each ship’s pumping, piping and other parameters so that each installation could be completed within the ship’s normal drydocking. The second notable order was announced a month later, in January 2018, by Alfa Laval of Sweden. Its USCG type-approved UV-based BWMS was specified by Nakilat, the Qatari shipping and maritime company with the world’s largest LNG fleet. Few details were offered about when the Nakilat order was placed or which LNGCs are involved, but two of Alfa Laval’s PureBallast 3.1 systems of 2,000 m3/h will be retrofitted. PureBallast 3.1 was selected, stated head of Alfa Laval PureBallast Anders Lindmark, for its small footprint, simple installation and ease of use.
The deep V-shaped hull of the B-Free LNGC means the ship’s propeller remains immersed without needing ballast
USCG type-approval aspirants
J
udging by orders placed in the past few months for ballast water management systems (BWMSs) on LNG carriers, a range of technologies are thought to be suitable for this sector. Two orders, in particular, suggest that US Coast Guard (USCG) typeapproval is a significant factor in owners’ decision-making, as the US welcomes a rapidly growing traffic in LNGCs arriving to load export cargoes.
Meeting the USCG criteria
In the first contract of note the Greek BWMS maker Erma First secured a fleet-wide contract from Norway’s Golar LNG in December 2017 to supply its USCG type-approved BWTS Fit system. It uses filtration, electrolysis and electrochlorination as its treatment method
LNG World Shipping | July/August 2018
and said in a statement that its equipment would be installed “on up to 16 LNG vessels,” which potentially covers the whole Golar fleet. Erma First BWTS Fit was the first fullflow electrolysis system to receive USCG type-approval and the Golar order came just two months after Erma secured USCG type-approval. Installations are due to begin during the company’s next drydocking, scheduled for Q2 this year, and continue until the end of 2022, following Golar LNG’s drydocking schedule. Erma First said it had worked intensively with the shipping company “over the previous months to optimise and adapt the system to the company’s vessels”. In the case of a previous contract that also benefited from cooperation with the customer, optimisation had involved
Other systems that do not yet have USCG type-approval also claim to be well-suited for LNG carriers. US manufacturer NEIMarine is working towards both USCG and IMO’s revised G8 type-approvals for its venturi oxygen stripping (VOS) BWMS. This technology consists of an inert gas generator connected to the ballast line to strip the ballast water of all oxygen and kill the organisms in it. For LNG installations, a modification will allow it to use the LNG boil-off gas (BOG) to power the installation. Coldharbour Marine in the UK also uses inert gas as one component of its treatment system and the company’s chief executive Andrew Marshall told LNG World Shipping that its target customer base is LNG carriers and tankers. “Because of this focus, little training is needed to operate the system, since crews on those ship types are familiar with inert
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BALLAST WATER TREATMENT | 13
gas generators and the rest of its equipment is super simple and requires little or no maintenance,” he added. “As a result, the time taken for the crew to achieve full competency on the system is very short.”
Ballast-free
Another option currently being developed for LNG carriers does not involve ballast treatment, or any ballast at all. French gas containment specialist Gaztransport & Technigaz (GTT), along with UK class society Lloyd’s Register (LR), China’s Dalian Shipbuilding Industry Corp and Belgian shipping company Exmar are developing a ballast-free LNG carrier design. In December 2017 LR granted its ‘approval in principle’ to the design and this March the group began the next stage in their 30,000 m³ ‘B-Free’ LNGC initiative. Phase 2 of the project aims to develop the design further and validate results from the first phase by applying more detailed analysis and verification, including model testing. For mid-size LNGCs such as this, ballast water is more critical to achieving sufficient draught for propeller immersion when the vessel is unladen than for stability. The B-Free design achieves this with a triangular-shaped lower part of the hull, allowing the vessel to sit deeper in the water when unladen, achieving the necessary propeller immersion for its 5.6 m diameter propeller while maintaining stability without needing ballast water. The B-Free design is expected to have
lower construction and operational costs than a conventional LNGC because there is no need for a BWMS.
USCG and IMO G8 approvals
As of 1 July 2018, nine BWMSs had achieved USCG type-approval, while six more had applications pending. In addition, three manufacturers that had already secured USCG type-approval have applied for further approvals for modified versions. The following paragraphs review the progress made by several BWMS manufacturers in securing USCG and IMO’s revised G8 type approvals. China’s SunRui holds certificates for both the USCG and IMO testing standards for its BalClor system. Senior purchasing manager Helen Li said that the revised G8 guidelines “are more in line with the stringent USCG requirements” than the original guidelines. It already held USCG type-approval and “no major changes were needed to meet the revised G8 guidelines,” she said. Alfa Laval is the only other manufacturer to have gained G8 approval since the guidelines were revised. It, too, has USCG type-approval for its Pure Ballast 3 BWMS and the company’s Anders Lindmark reports that it had conducted the additional testing needed for a revised G8 certificate during 2017. When it received the certificate in February 2018, Alfa Laval became the first company to reach that milestone.
Other manufacturers that are working towards those goals have target dates that match the revised installation timetable agreed at the 71st Session of IMO’s Marine Environment Protection Committee in July 2017 (MEPC 71). For example, Bawat chief executive Kim Diederichsen said that he expects to receive revised G8 type-approval in Q1 2019, on the back of its USCG type-approval application. Coldharbour, too, expects to complete its USCG testing this year, with G8 tests being run at the same time. This approach is the same as that taken by Wärtsilä. It submitted a USCG type-approval application for its Aquarius EC BWMS in early April 2018 and plans to match that for its UV version in Q3 this year. “Revised G8 requirements are being undertaken as part of our USCG testing schedules,” its BWMS sales director Craig Patrick said. Hyde Marine senior market manager Mark Riggio indicated early 2019 as its target date for both USCG and revised G8 type-approvals. De Nora general manager Stelios Kyriacou, who is responsible for its Balpure business, is also aiming at early 2019, or late 2018, to submit revised G8 approval, having applied for USCG approval in March this year. Ecochlor president Tom Perlich said that its USCG type-approval testing took place while the G8 guidelines were being revised. It obtained USCG approval on 31 March 2018 and said “we do not anticipate a need for separate testing” for G8. LNG
Wärtsilä submitted a US Coast Guard-type approval application for its Aquarius EC BWMS in April 2018
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LNG World Shipping | July/August 2018
14 | RUNNING HEAD sub
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LNG World Shipping | July/August 2018
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CLASSIFICATION SOCIETIES | 15
CLASS SOCIETIES APPROVE OF INNOVATION AN INCREASING SHARE OF CLASS SOCIETY LNG SHIPPING EXPERTISE IS BEING APPLIED TO THE EXPANDING LNG BUNKERING SECTOR, EXPLAINS CRAIG JALLAL
Artist impression of probunkers’ LNG bunkering vessel
T
here are activities that take place in LNG shipping these days that were unheard of 10 years ago. With the arrival of LNG bunkering, other shipping sectors are being drawn into the LNG safety envelope. In this article, we look at some of the recent LNG bunker vessel (LNGBV) and fuelling innovations that class has assisted with, and others that may never leave the CAD screen.
LNG as a ship fuel
2017 may go down in history as the year LNG propulsion went mainstream, with the order of nine 22,000 TEU vessels by CMA CGM. Bureau Veritas (BV) is classing not only these, but also some of the most prestigious LNG-powered ship newbuildings set to be delivered over the next five years. Notable among these are a number of gas-fuelled cruise ships, including the new electric-hybrid and LNG-fuelled icebreaking cruise ship ordered by Ponant. Currently, LNG fuel is primarily delivered to the ship on the jetty side by means of truck-to-ship (TTS) transfers. This is a slow process but not necessarily a hindrance for ships on fixed schedule services, like ferries. For LNG fuelling to gain ground in the wider
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world of shipping, especially for larger ships requiring significant volumes of fuel, ship-to-ship (STS) bunkering will have to become an established practice.
Taking on board 15,000 m3 of LNG could take 12 to 15 hours from start to finish The first newbuilding LNG bunkering vessels entered service in April 2017 in Northern Europe. BV classed the first-ever purpose-built LNG bunker vessel, the 5,800 m3 Zeebrugge-based ENGIE Zeebrugge, as well as the 5,800 m3 Coralius, the second LNG bunker vessel to enter service. Along with a small, converted barge in Spain, there are now three BV-classed dedicated LNG bunkering vessels in operation. Bureau Veritas is a key partner in new bunkering projects
LNG World Shipping | July/August 2018
16 | CLASSIFICATION SOCIETIES
worldwide, sharing its understanding of LNG bunkering technology and safety methodologies with those industry players making a commitment to the use of LNG as marine fuel. One of the most demanding commercial operations will be the bunkering of ultra large containerships (ULCSs). To minimise operational disruption, large containerships need to be able to take on board bunkers while alongside and handling boxes. Taking on board 15,000 m3 of LNG could take 12 to 15 hours in an operation which includes connection, inerting, testing, LNG transfer, purging, inerting again and disconnection. The responsible parties also need to complete a bunker delivery note and meet all the requirements of the International Code of Safety for Ships using Gases or other Low-Flashpoint Fuels (IGF Code) throughout. Prior to port arrival, providing a marine fuel supplier with perhaps 40 hours’ notification is more than adequate for bunkering operations. The main challenges to be addressed for the STS transfer of LNG include the provision of an appropriate safety zone and the creation of a procedure to minimise the impact on simultaneous vessel operations.
Sloshing – critical factor for membrane tanks
For ships using large volumes of LNG as fuel, membrane tanks are an attractive option. A membrane bunker tank has been chosen for the CMA CGM ULCSs. However, the membrane containment systems in LNG-fuelled ships must be robust enough to handle all filling levels, as the consumption of bunkers gradually empties the tanks. Accordingly, membrane LNG fuel tanks have to be designed to withstand sloshing impacts in all partially filled conditions. Sloshing is a critical safety issue to be addressed. For broad-beam ULCSs, a tank spanning the breadth of the ship is potentially subject to heavy sloshing impacts in beam seas when in a partially filled condition. Proper assessment, calculation and, if required, adjustments to the design of the tank can address the risks of sloshing. BV has developed a methodology to assess loads and verify the appropriate design responses. For a large containership with a single, full-width membrane LNG bunker tank, the solution may involve a strengthened containment system and modifications to the tank shape, including chamfered upper sections to better deflect sloshing loads. The combination of a seakeeping and sloshing analysis, followed by application of the sloshing loads, enables a strength assessment under BV rules to be made for the entire membrane containment system,
including inner hull and pump tower. The purpose-built, BV-classed LNGBVs is one approach. The other option is to convert an existing vessel into a gas bunkering vessel. At ABS global gas solutions, Tor-Ivar Guttulsrød highlighted the attraction of converting offshore platform supply vessels (PSVs) into LNGBVs. First, there are a large number of almost new PSVs available due to the collapse of the offshore oil and gas sector. Some PSVs have gone straight from launch into lay-up. In the case of the ABS bunker delivery concept, the PSV could use either a large single LNG tank as the main storage unit or, alternatively, a bank of cryogenic tank containers stacked on deck to hold the LNG fuel. Tor-Ivar Guttulsrød’s proposal envisages the LNG bunkering PSV loading at an LNG terminal or fuelling station jetty and then proceeding to the LNG-powered vessel, where STS bunkering operations would be carried out. ABS has also extended the PSV conversion concept to include
Conventional oil pollution is not a risk and oil spill prevention measures are not required
floating modular LNG power station and regasification vessel versions. The latter version of the concept lies behind Dreifa Energy’s proposed floating regasification PSV conversion project. The design has been granted approval in principle by DNV GL. The Dreifa floating regasification unit (FRU) consists of a regasification plant and associated utility systems located on the deck of a PSV acquired by the company. The FRU would operate in combination with an LNG carrier acting as a floating storage unit. DNV GL’s approval in principle was awarded following an examination of the basic engineering package developed by Dreifa Energy. In addition to confirming compliance with the rules of the society at the current stage of engineering, approval in principle provides clarity on the regulatory framework and classification procedure towards final approval. This is an important step forward in Dreifa Energy’s efforts to finalise contracts for the necessary equipment and conversion work.
ABS to partner probunkers on LNGBVs An exciting announcement at the Posidonia event in June 2018 was made by probunkers, a start-up company that aims to build a fleet of LNGBVs for positioning at seven key bunkering ports around the world. ABS has been appointed to provide the regulatory compliance guidance for the fleet and to define applicable rules and standards. Headquartered in Athens, probunkers is seeking participation from companies active in the shipping and energy sectors, as well as investments to the tune of US$343M based
LNG World Shipping | July/August 2018
on a 10-year plan. A shipping division will be established to design, build, own and operate the LNGBVs, while a commercial division will have a presence in the seven bunkering ports and be responsible for securing LNG supplies and negotiating bunker contracts. The seven LNGBVs will all be single vessel entities 100% owned by probunkers. The company aims to be operational by 2022, following a year of planning and two years of LNGBV construction and finalising LNG supply logistics. LNG
Alexander Prokopakis (probunkers): “The support and expertise of a leading organisation like ABS gives us confidence”
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24/07/2018 14:55
18 | CARGO TRANSFER SYSTEMS
Hoses gain ground as LNG cargo transfer technologies advance
Hoses offer significant advantages over rigid loading arms in key expanding segments of the LNG supply chain
ABOVE: High-pressure natural gas hoses plus tower arrangement for FSRU discharges at Ain Sokhna in Egypt (courtesy of BW Gas)
LNG World Shipping | July/August 2018
W
ith the rise to prominence of floating storage and regasification units (FSRUs) and LNG bunker vessels (LNGBVs), hose-based solutions are joining marine loading arms (MLA) as key cargo transfer technologies. Hoses can be utilised for both ship-to-ship and ship-to-shore transfers of LNG and for the ship-to-jetty discharge of high-pressure natural gas from FSRUs. The nascent LNGBV fleet depends on hoses for the quick transfer of fuel to a wide and growing variety of gas-powered ships. Hoses can accommodate the myriad of different manifold locations that are being encountered in the expanding fleet of LNGfuelled ships with relative ease. While MLAs might be utilised to load an LNGBV at its dedicated jetty, their use is impractical for most fuel transfer operations. Speaking at the Asian LNG Ship/Shore Interface conference organised by LNG World Shipping in Singapore in early June
2018, MIB Italiana and MIB International head of sales and business development Luca Chiodetto described how his company has responded to the innovative ideas, technologies and applications that have characterised the LNG shipping industry over the past decade. MIB has been developing and supplying specialist LNG cargo transfer equipment since 1969. The company put the world’s first LNG quick connect/ disconnect coupler into service at Shell’s Brunei stern-loading jetty in 1976 and brought the world’s first LNG-powered emergency release system (ERS) coupling into operation at the Montoir terminal in France in 1982. The latter equipment is still in operation, some 36 years later. The ERS couplings introduced by the industry 36 years ago are critical to safe operations at the ship/shore interface, and have been called into play on over 2,000 occasions. The equipment has performed as required and enabled rapid, coordinated halts to cargo transfer operations without safety being compromised. The design of ERS couplings for the transfer of high-pressure natural gas from FSRUs has posed challenges for equipment manufacturers. In such applications the transfer system is subject to high loads, due to the connection between the high-pressure jumpers. Further, the stresses induced by relative ship-jetty excursions are significant, as are the dynamics following ERS activation. The ERS device is required to be of compact assembly and must minimise not only the volume of high-pressure gas entrapped between valves, but also venting times. In the MIB solution the sequence valve and pressure transducer in the ERS are interlocked via hydraulic lines; this ensures the coupling releases only when the pressure of the high-pressure natural gas between the valves has reached the pre-set safety level. Spurious releases can thus be avoided and the arrangement also allows the gas
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CARGO TRANSFER SYSTEMS | 19
trapped in the ERS to be depressurised and to blowdown back to the FSRU piping. A typical timing sequence for a highpressure gas ERS activation would be seven seconds, comprising five seconds to close the valves and two seconds for the coupler release. The blowdown part of the sequence is instantaneous. The activation of a 10-inch ERS in such circumstances would leave 32 dm3 of gas trapped between the closed valves.
Advantages of the hose
In summing up the advantages of hosebased solutions over MLAs in certain LNG transfer applications, Mr Chiodetto pointed out that hoses require substantially lower capital expenditures and less lead time to provide a complete system. The time factor can be critical in FSRU projects, which are often on fast-track construction schedules. The relatively low weight of hoses and hose-handling arrangements enables lighter jetty structures, while hoses offer fewer potential leak paths than rigid MLAs. Loading arm maintenance typically requires equipment shutdowns and occasionally, removal from the jetty for servicing. Hoses in need of attention can simply be replaced by new or refurbished lengths. In fact, hoses and associated platforms and structures are maintenance-free during normal operations. This is due, not least, to the fact that no moving parts, such as swivels, bearings and motors, are involved. The advantages offered by hoses do not end there. Because most of the equipment can be containerised, onsite delivery of hoses and hose-handling arrangements entails lower shipping costs. Also, installation of the ERS coupling and the relevant power control system can be carried out at the yard, obviating the need for any fitting out of the equipment at the final terminal site. The use of hoses involves a minimum requirement for hydraulic power, as it is only needed for the activation of the ERS in case of an emergency. Combined, these advantages add up to reduced operating costs, as there is limited need for spare parts and interventions.
“Hoses and associated platforms and structures are maintenance-free during the course of normal operations”
ferries and offshore support vessels. The use of LNG as marine fuel has entered new realms in recent years. Larger LNG-powered ships have entered service and orders in the past few years have included the world’s largest cruise and container ships. LNGBVs have a key role to play in servicing larger vessels. One company active in the supply of hoses for LNG bunkering is MannTek of Sweden. Customers include LNGBV and terminal operators as well as bunker suppliers. Another notable user is Florida East Coast Railway in the US, which recently chose MannTek hoses for its fleet of LNG-powered locomotives. The value of using transfer hoses on a tight bunkering timetable can be seen when taking the example of the 49,000 gt ropax passenger ferry Megastar. Running daily between Helsinki and Tallinn at the eastern end of the Baltic Sea, the vessel is bunkered with LNG each night in Tallinn by Eesti Gaas. A fleet of eight road tankers has been provided to fuel the Tallink-
operated, gas-powered vessel. Built by Gofa Gocher Fahrzeugbau GmbH of Germany, the road tankers are each able to carry 18-19 tonnes of LNG, depending on the fuel density, and the tank operating pressure is set at a maximum of 7 bar. Each bunkering operation involves the hose transfer of four road tanker-loads of LNG to the Megastar’s bunker tanks, with the fuelling procedure involving two road tankers at a time. Megastar makes three Tallinn-Helsinki roundtrips per day and the four road tanker loads (of 72 tonnes) of LNG taken onboard each night are sufficient for one full day of ferry operations on the two-hour crossing. Because the bunkering must be completed within a four-hour time window, the road tankers are provided with highperformance pumps and special piping. MannTek’s truck-to-ship transfer equipment is a key element in the safe, efficient and timely fuelling operations. Besides the company’s hoses and self-closing dry cryogenic couplings, MannTek also supplied the cable-released breakaway couplings (CBCs) that were prescribed as an additional safety feature. In an emergency, such as a driftaway of the ferry from the berth, the CBCs ensure a controlled valve closure and separation of the pipework links. When MannTek’s equipment onboard Megastar went into operation in January 2017, the company’s products had already been involved in 14,000 cryogenic bunkering operations. LNG
Bunkering hoses
The North and Baltic Seas, the originally designated IMO emission control areas, are the birthplace of LNG bunkering. Most of the early fuelling operations involved jettyside transfers of LNG from road tankers and shoreside pressure tanks to relatively small ships, such as cross-fjord
www.lngworldshipping.com
Preparing for a cargo transfer from an LNG carrier to an FSRU using hoses (image courtesy of Höegh LNG)
LNG World Shipping | July/August 2018
FLOATING LNG PRODUCTION | 21
FLNGs signal new era in LNG supply The LNG industry’s second and third floating LNG production vessels, Hilli-Episeyo and Prelude, reinforce the emergence of a major new LNG supply option
T
he transfer of a cooldown cargo to the floating LNG production (FLNG) vessel Prelude and the dispatch of a second cargo from the FLNG Hilli Episeyo in June 2018 signals that the era of offshore LNG liquefaction has now taken hold. The pair join the 180,000 m3 Petronas-operated PFLNG Satu, which loaded its first LNG cargo from the Kanowit field off the coast of Malaysia in March 2017, as the pioneering trio of FLNG vessels. Four more floating production projects are either under development or at a relatively advanced preparation stage while, beyond that, several further FLNG schemes have been tabled. Floating LNG production obviates the need for undersea gas pipelines to a shore liquefaction plant when the commercialisation of remote gas fields is being considered. Because FLNG vessels are constructed at specialised facilities, the local labour costs and permitting issues associated with the construction of shore terminals can be avoided. Despite the use of innovative technologies and the detailed preparation work associated with these inaugural floater projects, the FLNG approach usually translates into shorter lead times and less capital expenditure than is required for traditional shore-based liquefaction plants. The time and cost disparities are only likely to grow as the LNG industry builds on its ground-
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breaking FLNG design work with these initial projects and further refines its floater technologies. The Golar LNG-operated Hilli Episeyo is positioned in nearshore waters off the coast of Cameroon near Kribi. When the FLNG vessel despatched its inaugural cargo, on 17 May 2018 onboard the 2004-built, 138,000 m3 Galicia Spirit, it marked the start-up of not only the second floating LNG export project but also the first employing a converted FLNG vessel. Hilli Episeyo started out life as the conventional 1975-built, 125,000 m3 LNG carrier Hilli. Following four decades of employment shuttling LNG cargoes, Golar sent the Moss spherical tank vessel to the Keppel yard in Singapore in 2015 for conversion to its new role. It was prepared for its new lease of life through the installation of Black & Veatch (B&V) liquefaction technology and arrangements for connection to a clientspecified mooring system. The B&V PRICO liquefaction process uses a single mixed refrigerant (SMR) technology which has a small enough footprint to enable mounting on a spherical tank vessel, albeit a modified one with side sponsons added. The vessel has put Cameroon into the industry record books as the world’s 20th LNG exporting country. The FLNG is helping the West African nation monetise the resources of two otherwise ‘stranded’ offshore gas fields near Kribi. It is moored 14 km off the coast in benign waters by
An LNG carrier is manoeuvred alongside Hilli-Episeyo, prior to mooring and the ship-to-ship transfer of an historic cargo
means of an external frame turret arrangement which allows it to weathervane. Cargo transfers to loading LNGCs are being carried out with the two vessels positioned side-by-side (SBS). Hilli Episeyo is chartered by Perenco and the stateowned Société Nationale des Hydrocarbures, the developers of the Cameroon FLNG project. Golar LNG received a notification on 4 June from the two companies, acknowledging commercial acceptance of the FLNG’s performance. The vessel is contracted to produce 1.2M
tonnes per annum (mta) of LNG for export. Golar LNG has a pair of veteran Moss LNGCs similar to Hilli lined up for transformations to FLNG vessels for further offshore West Africa export projects. Once the developers of the Fortuna LNG venture in Equatorial Guinea and the Greater Tortue initiative in offshore waters shared by Senegal and Mauritania make financial investment decisions (FIDs) on their schemes, Gandria and Gimi, respectively, will undergo similar conversions at the
LNG World Shipping | July/August 2018
22 | FLOATING LNG PRODUCTION
Keppel yard. Green lights for both projects had originally been expected later this year, but Ophir Energy, one of the 3_LNG_W124xH190_EN.pdf 1 2018/07/02 participants in the Fortuna LNG initiative, has encountered
difficulties in finalising the necessary financing arrangements. This prompted Schlumberger to drop out and slow proceedings even 13:18:34 further. Schlumberger had been a joint venture partner
with Golar in OneLNG, another of the Fortuna LNG project participants. While Ophir and Golar are still confident of a go-ahead for their FLNG plan for Equatorial Guinea, the approval is
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A.2 35
unlikely to come before 2019. In contrast, a BP proposal to utilise the converted Golar FLNG vessel Gimi to develop the Tortue/Ahmeyim field in an area that straddles the territorial waters of Senegal and Mauretania is moving ahead rapidly, only 16 months after the discovery of the gas deposit. The Greater Tortue scheme calls for the FLNG vessel to be positioned at a jetty location close to shore near the Senegal-Mauritania border, where a breakwater would afford protection against ocean swells. A project FID is expected by the end of this year, a timetable which would enable the FLNG vessel to begin producing cargoes for export by the end of 2021. Shell’s 488 m Prelude FLNG vessel displaces 600,000 tonnes and is the largest floating offshore facility in the world. Utilising 260,000 tonnes of steel in its fabrication and boasting a GTT Mark III containment system with space for 220,000 m3 of LNG, Prelude was completed by Samsung Heavy Industries (SHI) in June 2017. Some 5,000 workers were involved with the Prelude FLNG vessel and its systems at the height of construction. The FLNG vessel is now positioned on the Prelude gas field, in 250 m of water in open seas 475 km northwest of Broome in Australia. Moored using the largest bow turret system ever constructed, Prelude is now undergoing an elaborate set of hook-up and commissioning procedures to enable the vessel to commence commercial operations later this year. The delivery of LNG to Prelude, on 8 June, by the 137,000 m3, 2002-built, spherical tank Shell LNG carrier Gallina, is part of the commissioning series of operations. The availability of the LNG is enabling not only cooldown of the storage tanks,
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FLOATING LNG PRODUCTION | 23
but also the switchover of the FLNG’s utilities from diesel to gas fuel. Visiting LNG carriers align with Prelude in the SBS configuration and cargo transfers are carried out using a special set of loading arms developed by FMC. Besides the variations in the movements of the two vessels, these arms accommodate the difference in main deck levels between the large FLNG vessel and the much smaller LNGC. Prelude, which will remain on station for 25 years, is able to produce 3.6 mta of LNG, 0.4 mta of LPG and 1.3 mta of condensate from the field’s natural gas. Shell has a 67.5% stake in the venture while Japan’s Inpex holds 17.5%, Kogas of South Korea 10% and CPC of Taiwan 5%. The second FLNG vessel delivered in 2017, after Prelude, was Exmar’s 16,100 m3 Caribbean FLNG. Caribbean FLNG was completed by the Wison yard in China last July and has the capacity to produce 0.5 mta of LNG. The Exmar FLNG was originally built for a location off Colombia’s Caribbean coast, but that project fell through. Exmar is still negotiating employment opportunities for the vessel, including possible deployment on Iran’s Pars field. Two further FLNG projects have cleared the FID hurdle – Eni’s Coral project in Mozambique and the second Petronas FLNG scheme (PFLNG2) planned for offshore Malaysia – and the pair are proceeding according to plan. SHI is building the 3.4 mta Coral FLNG vessel and is working towards a June 2022 completion date for the US$7Bn project. As was the case for Prelude, Technip is responsible for supplying the vessel’s topsides. BP intends
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to purchase the entire output of the Coral FLNG’s design production volume under a 25-year sales and purchase agreement (SPA). SHI has also secured the contract to build the
177,000 m3 PFLNG2 vessel for Petronas. The 1.5 mta PFLNG2 project is being undertaken in collaboration with Murphy Oil and will be utilised, via an external turret mooring arrangement, to exploit the
reserves of the Rotan field 130 km offshore Sabah. In 2016 Petronas decided, in view of the market conditions then pertaining, to delay the delivery of PFLNG2 by two years, to 2020. LNG
LNG World Shipping | July/August 2018
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SHIPOWNER PROFILE | 25
FLEX LNG EMERGES FROM ITS CHRYSALIS
The technology involved in the seaborne transportation of LNG develops quickly. FLEX LNG embodies just how quickly, writes Craig Jallal Flex Endeavour, the company’s first LNGC, has started its working life with a 12-month charter
F
LEX LNG was founded on a unique concept of using offshore liquefaction and transportation of LNG from marginal gas fields. Now, 12 years later, it is in the mainstream of LNG seaborne transportation. FLEX LNG was founded in 2006 and floated on the Oslo Axxes, the junior board of the Oslo Stock Exchange, to develop its proposed multi-purpose 170,000 m3 M-FLEX LNGP carrier: a combined conventional LNG carrier, floating storage and regasification unit (FSRU) and floating production, storage and offloading (FPSO) vessel. Four M-FLEX LNGPs were ordered from Samsung Heavy Industries at a reported cost of US$459M each (approximately twice the price of a standard vessel at the time), with delivery scheduled for 2011.
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However, by 2010 and with the global financial crisis in full swing, FLEX LNG was struggling to raise finance and attract interest in its concept. In 2013 Samsung declared to the South Korean Stock Exchange that the project had collapsed. FLEX LNG persuaded the yard to switch the order to a pair of conventional 174,000 m3 LNG carriers, paying a reported US$210M per vessel from the original down payments. This announcement was followed by the news that Norwegian energy transportation sector investor John Fredriksen had purchased a stake in FLEX LNG through his private investment vehicle, Geveran Trading. Mr Fredriksen sold his shares in his other LNG venture, Golar LNG, and today
indirectly holds 52% of FLEX LNG. Following Mr Fredriksen’s takeover, FLEX LNG converted the two 174,000 m3 LNG carriers on order at Samsung to MAN's M-type, electronically controlled, gas-injection (MEGI) engines, from DFDE propulsion systems. Mr Fredriksen brought in Jonathan Cook*, the former chief marketing officer of TMS Cardiff Gas, to head up FLEX LNG. At about this time, the remaining founders of FLEX LNG stepped down. In 2017 FLEX LNG moved to the main board of the Oslo Stock Exchange, raising US$200M. As with other John Fredriksen companies, the non-core activities are outsourced. The management of FLEX LNG is provided by a separate limited company, FLEX LNG Management Limited. As at the end of 2017, Bermuda-registered
LNG World Shipping | July/August 2018
26 | SHIPOWNER PROFILE
FLEX LNG FLEET
FLEX LNG Ltd had only two employees. In what is almost a signature move for Mr Fredriksen, his private company, Geveran Trading, sold two ME-GI-engined LNG carrier newbuildings on order at Daewoo to FLEX LNG. FLEX LNG paid for the vessels by issuing 78M new shares to Geveran Trading and raising US$100M via a private placement. FLEX LNG took on the remaining US$20.4M debt on the newbuildings. Thus, in a relatively short space of time, FLEX LNG was transformed from an innovative LNG carrier start-up into a conventional operator of LNG carrier companies, albeit of the latest generation. The fleet was reinforced by further orders from either Mr Fredriksen’s private entities or directly by FLEX LNG, but supported by funds underwritten by Mr Fredriksen. The company took delivery of its first two LNG carriers, from Daewoo, in January 2018 and another pair from Samsung in July 2018. There are another four under construction, comprising two at DSME and two at Hyundai Samho, with deliveries scheduled in 2019 and 2020. As things now stand, by the end of 2020 FLEX LNG will have a fleet of eight near-identical, latest-generation LNG carriers. All eight have two-stroke duel-fuel propulsion systems of either MAN’s highpressure ME-GI or Winterthur Gas & Diesel’s low-pressure Generation X (X-DF) type. FLEX LNG claims the ships will be among the most fuel-efficient and technically advanced LNG carriers in the world, with around 30% lower fuel consumption than tri-fuel diesel electric propulsion (TFDE) vessels. Before taking delivery of the first
LNG World Shipping | July/August 2018
newbuilding in January 2018, FLEX LNG had taken several LNG carriers on various shortterm charters. The stated aim is to build up commercial and operational experience. FLEX LNG does not name the LNG carriers chartered-in, but according to brokers, these are believed to be the 2013-built Yenisei River, the 2013-built Lena River and the 2014-built Pskov. The aim of the revised FLEX LNG of 2018 is clear – to be a leading operator of the latest generation of LNG carriers available on the spot market. FLEX LNG emphasises that its fleet offers charterers the lowest fuel costs and, by extension, the lowest unit transport costs. However, it remains the case that FLEX LNG is essentially a start-up, with only four vessels in the water. In Q1 2018 the company reported a turnover of US$15M, and a loss of US$1.8M. The company continues to be heavily underwritten by Mr Fredriksen and it is his presence that likely gave comfort to the banks, which have provided a term loan with some very flexible covenants. Under the terms of the US$315M loan, which is to finance the first three newbuildings, FLEX LNG can swap the collateral base without incurring costs. Thus, one of the three newbuildings could be sold on a sale and leaseback basis, and another vessel substituted as collateral. It would allow that un-drawdown part of the loan to be used to finance another newbuilding. Another flexible aspect of the loan is that the financial covenants are not linked to earnings, as FLEX LNG is geared toward the spot market and is not looking to
lock away the vessels on 10-15 year time charters. Rather, the covenants rely on the balance sheet values of book equity level exceeding 25% and free cash being higher than US$15M. The combination of there being no requirement of employment and non-earnings-based covenants allows FLEX LNG to take an opportunistic approach, designed to maximise exposure to periods of strength in the LNG carrier rate environment. Seeking employment in the spot market does however expose the company to fluctuating earnings, and FLEX LNG has secured working capital through a US$270M revolving credit facility from Sterna Finance Ltd, an affiliate of Geveran Trading. Again, this gives FLEX LNG flexibility to seek alternative loans should the company wish to pursue other newbuilding projects, such as FSRUs. This is very much on the company’s agenda. The corporate brochure states “FLEX LNG is selectively pursuing various opportunities in the FSRU market.” And while FLEX LNG currently has no FSRUs on order, and nor do any companies in the John Fredriksen group, that is not a barrier to entry, given the available resources of the main shareholder. It seems to be a question of when, not if. LNG *Following the recent resignation of Jonathan Cook to pursue other interests, Marius Hermansen has been appointed interim chief executive, while Marius Foss has been hired as head of commercial. Mr Foss comes from a similar role at Golar LNG Ltd.
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28 | LNG BUNKERING
Jacksonville, the premier US LNG bunkering port, moves into higher gear After a modest start, a series of infrastructure projects are about to mature and propel the Florida port into the LNG bunkering big league
Crowley Maritime’s El Coqui was bunkered for the first time at the VT Halter yard by means of 41 road tanker loads
T
o call the northeastern Florida port of Jacksonville the premier US LNG bunkering location is currently not much of an accolade, considering the nascent state of gaspowered shipping in the country. A pair of dual-fuel container ships have been bunkered with LNG in the port since January 2016 using an elaborate but not particularly efficient truck-to-ship (TTS) transfer procedure involving a fleet of 25 40-foot ISO tank containers. To date, this has been Jacksonville’s sole claim to LNG bunkering fame. However, behind the scenes an LNG production and bunkering infrastructure that will streamline vessel fuelling has been taking shape in the port. This same infrastructure will facilitate local distribution and small-scale exports of LNG throughout the Caribbean region.
Committed shipowners
The two prime movers behind the Jacksonville developments are shipowners Tote Maritime and Crowley Maritime. Tote has already put two LNG-fuelled Marlin-class container ships into service and the first of the pair, Isla Bella, is the vessel that introduced Jacksonville, and the US as a whole, to LNG bunkering operations
LNG World Shipping | July/August 2018
back in January 2016. Crowley Maritime is poised to commission two Commitmentclass container/roro (con-ro) ships that will also have dual-fuel engines. In April 2018 the first of these, El Coqui, was bunkered with 41 road tanker loads of LNG in an inaugural TTS operation at the VT Halter yard in Pascagoula, Mississippi where it was built. When placing their recent newbuilding contracts, both Tote and Crowley have opted for dual-fuel ships as the optimum route to compliance with the North American and US Caribbean emission control area regimes introduced in 2012 and 2014, respectively. Tote’s Marlin-class pair, Isla Bella and Perla Del Caribe, are the world’s first LNG-fuelled container ships and serve on the Jacksonville-Puerto Rico route. Each is able to carry 3,100 TEU and each is equipped with a pair of 900 m3 IMO Type C LNG bunker tanks. Crowley’s two dual-fuel con-ro ships, El Coqui and Taino, offer space for 2,400 TEU and 400 vehicles. Each ship is equipped with two 770 m3 Type C LNG bunker tanks and, like the Tote ships, the Commitment-class pair will serve the JacksonvillePuerto Rico route. Among the cargoes carried by El Coqui and Taino will be
www.lngworldshipping.com
LNG BUNKERING | 29
Crowley’s own LNG tank containers. Carib Energy, an affiliate company, has received US Department of Energy permission to export up to 300,000 tonnes per annum (tpa) of LNG in tank containers for 20 years.
JAX LNG infrastructure
In Tote’s current bunkering procedure the cryogenic ISO tanks are loaded at a peakshaving plant in Macon, Georgia and trucked 430 km to Jacksonville where the LNG is transferred to the Marlin-class ships at their dedicated Dames Point berth. Tote utilises a specially built, skid-mounted, cryogenic loading manifold to enable simultaneous LNG transfers from up to four ISO tanks. The device was developed by Applied Cryo Technologies, provider of the ISO tank fleet. This TTS transfer procedure is about to be replaced with a streamlined barge-to-ship bunkering operation centred wholly within the port. Fuel for the ships will be produced by JAX LNG, a new 200,000 tpa liquefaction plant that Pivotal LNG and NorthStar Midstream are building near the Jacksonville Port Authority’s Dames Point Marine Terminal. Pivotal LNG is a wholly owned subsidiary of Southern Gas Company while NorthStar Midstream is a joint venture in which Oaktree Capital and Clean Marine Energy are involved. The partners have built a 7,500 m3 atmospheric pressure LNG storage tank at the site. Bunker fuel produced by JAX LNG will then be shuttled the short distance from the plant to the box ship berth by Clean Jacksonville, the first US LNG bunker vessel (LNGBV). Clean Jacksonville is a dedicated, non-propelled 2,200 m3 bunkering barge currently nearing completion at the Conrad yard in Texas. The LNGBV will be shunted to Tote’s Dames Point berth by a service tug. The barge features a single tank, built to the GTT Mark III Flex membrane design, and will have a boil-off gas (BOG) rate of 0.38% per day. Although this is over three times the BOG rate of conventional-size LNG carriers with Mark III Flex tanks, it is not so critical as the barge will be constantly engaged in bunkering and tank refill operations. Clean Jacksonville will be able to transfer LNG to the container ships at rates of up to 500 m3/hour. Container ship fuelling operations will be facilitated by the barge’s REACH4 transfer arm, a bunker mast technology developed by GTT. JAX LNG is expected to be liquefying gas and Clean
Jacksonville carrying out barge-to-ship LNG bunkering operations with the Tote container ships during the second half of 2018.
Eagle LNG supports Crowley
Eagle LNG Partners, a subsidiary of Ferus Natural Gas Fuels, has been contracted to provide the LNG bunkers for Crowley’s Commitment-class con-ros in Jacksonville. To meet its obligations under the ship-fuelling deal, as well as to supply LNG to domestic and international markets, Eagle LNG is constructing a network of LNG facilities in Jacksonville. The centerpiece of its new network is an LNG export plant to be built on the St Johns River in the northern reaches of the port zone. The facility will feature three medium-size liquefaction trains, each able to produce 300,000 tpa of LNG, a 45,000 m3 atmospheric pressure LNG storage tank, a marine jetty and road tanker loading bays. Approval of the terminal project by the US Federal Energy Regulatory Commission is imminent and Eagle is targeting Q3 2019 as the date for commencing LNG production by the first of the three trains. Eagle LNG is backing up this principal liquefaction plant with two other LNG facilities in the port. The company’s Maxville terminal in western Jacksonville is a small-scale liquefaction unit while the third facility is an LNG fuelling depot at the Talleyrand Marine Terminal. Maxville entered service in March 2018 with the loading of LNG ISO tanks for delivery to a customer in Puerto Rico. The facility’s atmospheric pressure tank holds 3,800 m3 of LNG while the liquefaction unit’s production is initially running at 50,000 tpa, building to 200,000 tpa at a later date. The Talleyrand depot is able to store 2,000 m3 of LNG in two horizontal pressure vessel storage tanks. Eagle LNG will operate Maxville and the Talleyrand fuelling station in tandem to bunker Crowley’s two Commitment-class con-ros. The Eagle LNG fuelling station is adjacent to the Talleyrand Marine Terminal berth where the Crowley ships are homeported. Maxville is ready, the Talleyrand fuelling station is ready and El Coqui is about to go into service running on gas. Tote Maritime, Crowley Maritime, JAX LNG and Eagle LNG are poised to establish Jacksonville as not only the benchmark US port for LNG bunkering operations but also one of the leading locations worldwide for the fuelling of LNG-powered ships. LNG
Isla Bella has been bunkered at its Jacksonville berth for the past two years using a fleet of LNG tank containers
www.lngworldshipping.com
LNG World Shipping | July/August 2018
LNGC FLEET DEVELOPMENT | 31
LNG yards record buoyant half-year ship delivery and order levels LNG carrier orders and newbuilding deliveries were higher during the first half of 2018 than they have been for many years
I
n the two months to 30 June 2018 eight LNG carriers were ordered and seven delivered. This recent activity has boosted the tallies of LNG ships contracted in the first half of the year to 25 and vessels delivered to 30. Those are impressive totals when compared to industry performances in recent years. In the whole of 2017 only 20 LNG carriers were ordered (just 10 in 2016). The level of new ship contracts in 2016 was the lowest since 2009, the year after the collapse of Lehman Brothers and the global financial meltdown. Shipyards handed over a total of 24 conventional LNG carriers to their owners in 2017. That tally increases to 37 if four 27,500 m3 LNG/ethane carriers, three LNG bunker vessels (LNGBVs), four floating storage and regasification units (FSRUs) and the Shell and Exmar floating LNG production (FLNG) vessels are included.
Orderbook boost
In terms of newbuilding contracts in the first half of 2018, Daewoo Shipbuilding & Marine Engineering (DSME) outperformed its rivals, winning 11, or 44%, of the period’s LNGC orders. Hyundai Ulsan Heavy Industries (HHI), Hyundai Samho Heavy Industries (HSHI) and Samsung Heavy Industries (SHI) each secured four ships, while the only two LNGBVs booked during the semester went to Chinese yards. Total and Mitsui OSK Lines placed their joint order for an 18,600 m3 LNGBV with the Hudong-Zhonghua yard in Shanghai while FueLNG, the Shell/ Keppel initiative, nominated the Keppel Singmarine facility in Nantong to construct its 7,500 m3 LNGBV. On delivery in 2020
www.lngworldshipping.com
The 18,000 m3 ice class 1A Super Coral EnergICE was the only coastal LNG carrier delivered during the first half of 2018
the two vessels are earmarked for ship fuelling duties in Rotterdam and Singapore, respectively, the world’s two busiest ship bunkering ports. By propulsion system, MAN Energy Solutions’ M-type, electronically controlled, gas-injection (ME-GI) engines came out on top. Of the 25 first-half LNGC newbuilding orders, 13 will be powered by these dual-fuel two-stroke engines that rely on the supply of fuel gas at high pressure. All the DSME and two of the HHI ships will have ME-GI engines. The Generation X dual-fuel (X-DF) engines developed by Winterthur Gas & Diesel (WinGD) have been chosen to power 10 of the newbuildings, including all the newly contracted SHI and HSHI ships. X-DF low-speed propulsion units are based on the Otto rather than the Diesel cycle, and do not require the feed of fuel gas at high pressure.
Regas vessels in the mix
Although there is currently a great deal of interest among would-be LNG importers for solutions based on the use of FSRUs, commitments are in the development phase and have yet to translate into widespread newbuilding orders. Having said that that, one FSRU, Höegh LNG’s 170,000 m3 Hoegh Esperanza from HHI, was delivered during the first six months of 2018. At the same time two FSRUs were ordered, both in May 2018. Maran Gas specified a 174,000 m3 vessel at DSME while Turkiye Petroleum decided on a 180,000 m3 unit at HHI. Designed for open, combined and closed-loop regasification operations, Hoegh Esperanza is Höegh LNG’s eighth FSRU. Hoegh Esperanza had been scheduled to enter into service as the Penco-Lirquén receiving facility, Chile’s third LNG import terminal, to supply an
LNG World Shipping | July/August 2018
32 | LNGC FLEET DEVELOPMENT
adjacent gas-fired power plant. Unfortunately, the Penco-Lirquén permitting process has run into delays, due to issues with the project’s environmental approvals. Until these can be resolved, Hoegh Esperanza has been offered for service in the international market. In early June 2018 CNOOC Gas & Power Trading and Marketing (CNOOC) agreed with Höegh LNG to take Hoegh Esperanza on a three-year charter, with a oneyear extension option. Under the agreement, CNOOC will be able to utilise Hoegh Esperanza as an FSRU at its Tianjin terminal in northern China at certain times of the year and as a conventional LNGC at others. Ordered in May 2018 and set for early 2021 delivery, the Maran Gas FSRU is the second speculatively contracted regas vessel in the Greek owner’s current nine-ship LNG orderbook. The first Maran Gas FSRU is due to be completed in spring 2020. There is no shortage of proposed FSRUbased LNG import projects, for which Maran Gas will no doubt be among the competing vessel owners making bids. The latest countries to express interest in FSRU solutions are Australia, Lebanon and Sudan. The Turkiye Petroleum FSRU will go on charter to Botas, Turkey’s state oil and gas company, on completion in 2020 to meet the country’s LNG import needs. Botas currently has Mitsui OSK Lines’ 263,000 m3 MOL FSRU Challenger on short-term charter, with the ship positioned at the Mediterranean port city of Dörtyol in eastern Turkey near Iskenderun. MOL FSRU Challenger is being lined up for employment as an FSRU in Hong Kong when it comes off charter with Botas in 2020, and the regas vessel contracted by Turkiye Petroleum is a replacement candidate for Dörtyol. Botas is also considering the use of an FSRU in the Gulf of Saros on the northern coastline of the Gallipoli Peninsula.
Neptun Werft’s Rostock facility in Germany. The vessel built by the Neptun yard is the 18,000 m3 Coral EnergICE, the only coastal LNG carrier delivered during the first half of 2018. Sailing in the Anthony Veder fleet, Coral EnergICE is opening a new phase in Baltic LNG shipping. The newbuilding is the first coastal LNG carrier to be constructed to the ice class 1A Super standard and is the largest in a growing fleet of such vessels active in the Baltic. It can serve all the region’s terminals, including those such as the Manga facility in Tornio, the northernmost port in the Bay of Bothnia, that are icebound during the winter months. Coral EnergICE has been taken on long-term charter by Skangas, the LNG terminal-operating affiliate of Finland’s Gasum. Skangas will utilise the ship to deliver LNG to Manga and to Pori, its other Finnish receiving terminal, on the country’s south coast.
Full reliquefaction
One of the 10 LNG carriers completed by DSME during the first half of 2018 is
particularly notable for its cargo-handling attributes. Built for operation by MOL and charter to the Uniper, the 180,000 m3 LNG Schneeweisschen is the yard’s first dual-fuel LNG carrier completion to be equipped with a full reliquefication system. It is also DSME’s first LNGC to be powered by X-DF engines. DSME has developed its full reliquefication engineering package – which it terms its methane refrigeration system-full reliquefication (MRS-F) design – as a complement to its earlier partial reliquefaction system (PRS) concept. The shipbuilder points out that with the MRS-F technology, it has optimised the reliquefication option for both X-DF and ME-GI LNG carriers. DSME explained that by combining the PRS and MRS technologies, full reliquefication of the LNG carrier’s boil-off gas is possible for all operating scenarios, including the at-anchor state. The MRS only needs to come into play at ship speeds below 15 knots, as the PRS covers any reliquefication requirements that may arise at higher ship speeds. LNG
Slew of deliveries
Daewoo was also the busiest yard in terms of LNGC completions during the first half of 2018. The Korean shipbuilder delivered 10 of a total of 30 ship commissionings, while compatriot yards Samsung and Hyundai handed over five each. Japanese shipbuilders completed six of the newbuildings, with Mitsubishi Heavy Industries (MHI), Kawasaki Heavy Industries (KHI) and Imabari all accounting for two each. The delivery roster was completed by three vessels from HudongZhonghua yard in China and one from
LNG World Shipping | July/August 2018
Of the 25 LNGCs ordered in the first half of 2018, 13, including all the Daewoo ships, will be powered by MAN ME-GI engines
www.lngworldshipping.com
LNG Ship / Shore
Interface Conference - Europe 22-23 November 2018, London
Book now!
www.lngshippingconference.com
Bringing together Europe’s LNG transportation supply chain
Platinum sponsor
The LNG Ship/Shore Interface Conference will bring together Europe’s LNG transportation supply chain to discuss ship and terminal operations at the jetty, offshore and bunker station. Our programme focuses on best practice in Europe. We will look at all aspects of the ship/shore interface throughout the region including: where LNG carrier and terminal operations link to discharge LNG; cargo and custody transfer systems; berthing and escort tugs; mooring and jetty arrangements; and cargohandling equipment.
Gold sponsor
Speakers and delegates from across the supply chain will attend including: vessel owners and operators; LNG terminal and jetty operators; LNG ports; energy majors; charterers; equipment suppliers; service providers; and industry associations. PROGRAMME HIGHLIGHTS: • Comprehensive update on key industry developments and order book • Jetty design and compatibility with different size vessels • New range of small and mid-scale terminals that are emerging • Port approach, berthing and mooring technologies • FLNG and FSRU ship/shore interface challenges • Tandem mooring operations for less hospitable offshore environments
Official publication
• The latest in cargo transfer technologies • Risk management and emergency response procedures • Identifying training needs for specific ship/shore interface operations
Supporting organisation
Book your place online today at www.lngshippingconference.com/book-now or contact Ian Pow on +44 20 8370 7011 or ian.pow@rivieramm.com Organised by
www.lngshippingconference.com
34 | STATISTICS
YOUR PARTNER IN SHIP PERFORMANCE MONITORING www.kyma.no
LNG CARRIERS ON ORDER LNGC ORDERBOOK AS OF 30 JUNE 2018 SOUTH KOREA Hull no
Shipowner
Capacity, m3
Delivery
Charterer
Containment
Class
Propulsion
Details
Shell
GTT No96
DNV GL
LSDF (HP)
Shell business
Daewoo Shipbuilding & Marine Engineering (DSME), Okpo 2456
Maran Gas
173,400
2019
2457
Maran Gas
173,400
2019
–
GTT No96
LR
LSDF (HP)
open
2458
Maran Gas
173,400
2018
Shell
GTT No96
ABS/CCS
LSDF (HP)
Shell business
2459
Maran Gas
173,400
2019
Shell
GTT No96
LR/CCS
LSDF (HP)
Shell business
2466
Maran Gas
174,000
2019
–
GTT No96
ABS
LSDF (HP)
open
2467
Maran Gas
174,000
2019
–
GTT No96
LR
LSDF (HP)
open
2468
Maran Gas
174,000
2020
–
GTT No96
DNV GL
DFDE
FSRU; open
–
Maran Gas
174,000
2020
–
GTT No96
–
LSDF (HP)
open
–
Maran Gas
174,000
2021
–
GTT No96
–
DFDE
FSRU; open
2416
Teekay
173,400
2017
Shell
GTT No96
DNV GL
LSDF (HP)
Shell business
2417
Teekay
173,400
2018
Shell
GTT No96
DNV GL
LSDF (HP)
Shell business
2455
Teekay
173,400
2019
Yamal LNG
GTT No96
DNV GL
LSDF (HP)
Yamal cargoes
2461
Teekay
173,400
2018
Bahrain LNG
GTT No96
DNV GL
LSDF (HP)
Bahrain FSU
2421
Dynagas
172,000
2018
Yamal LNG
GTT No96
BV/RS
DFDE
icebreaking LNGC
2422
Dynagas
172,000
2017
Yamal LNG
GTT No96
BV/RS
DFDE
icebreaking LNGC
2427
Dynagas
172,000
2019
Yamal LNG
GTT No96
BV/RS
DFDE
icebreaking LNGC
2428
Dynagas
172,000
2019
Yamal LNG
GTT No96
BV/RS
DFDE
icebreaking LNGC
2429
Dynagas
172,000
2019
Yamal LNG
GTT No96
BV/RS
DFDE
icebreaking LNGC
2426
CSDC/MOL
172,000
2019
Yamal LNG
GTT No96
BV/RS
DFDE
icebreaking LNGC
2432
CSDC/MOL
172,000
2020
Yamal LNG
GTT No96
BV/RS
DFDE
icebreaking LNGC
2423
Teekay/CLNG
172,000
2018
Yamal LNG
GTT No96
BV/RS
DFDE
icebreaking LNGC
2425
Teekay/CLNG
172,000
2018
Yamal LNG
GTT No96
BV/RS
DFDE
icebreaking LNGC
2430
Teekay/CLNG
172,000
2019
Yamal LNG
GTT No96
BV/RS
DFDE
icebreaking LNGC
2431
Teekay/CLNG
172,000
2020
Yamal LNG
GTT No96
BV/RS
DFDE
icebreaking LNGC
2433
Teekay/CLNG
172,000
2020
Yamal LNG
GTT No96
BV/RS
DFDE
icebreaking LNGC
2434
Teekay/CLNG
172,000
2020
Yamal LNG
GTT No96
BV/RS
DFDE
icebreaking LNGC
2488
BW Group
174,000
2019
–
GTT No96
DNV GL
LSDF (HP)
FSRU; open
2489
BW Group
174,000
2019
–
GTT No96
DNV GL
LSDF (HP)
open
2464
Chandris/K Line
173,400
2018
BP
GTT No96
LR
LSDF (HP)
BP business
2442
BP Shipping
173,400
2018
BP
GTT No96
LR
LSDF (HP)
BP business
2443
BP Shipping
173,400
2018
BP
GTT No96
LR
LSDF (HP)
BP business
2444
BP Shipping
173,400
2019
BP
GTT No96
LR
LSDF (HP)
BP business
2445
BP Shipping
173,400
2019
BP
GTT No96
LR
LSDF (HP)
BP business
2446
BP Shipping
173,400
2019
BP
GTT No96
LR
LSDF (HP)
BP business
2470
Flex LNG
173,400
2019
–
GTT No96
ABS
LSDF(HP)
open
2471
Flex LNG
173,400
2019
–
GTT No96
ABS
LSDF(HP)
open
2479
Flex LNG
174,000
2020
–
GTT No96
–
LSDF (HP)
open
2480
Flex LNG
174,000
2020
–
GTT No96
–
LSDF (HP)
open
2490
BW Group
174,000
2020
–
GTT No96
–
LSDF (HP)
open
2491
BW Group
174,000
2020
–
GTT No96
–
LSDF (HP)
open
LNG World Shipping | July/August 2018
www.lngworldshipping.com
STATISTICS | 35
YOUR PARTNER IN SHIP PERFORMANCE MONITORING www.kyma.no
2483
Alpha Shipping
173,400
2020
–
GTT No96
–
LSDF (HP)
open
2484
Alpha Shipping
173,400
2020
–
GTT No96
–
LSDF (HP)
open
2485
Alpha Shipping
173,400
2021
–
GTT No96
–
LSDF (HP)
open
–
Minerva Marine
174,000
2021
–
GTT No96
–
LSDF(HP)
open
–
Minerva Marine
174,000
2021
–
GTT No96
–
LSDF(HP)
open
Samsung Heavy Industries (SHI), Geoje 2189
Golar Power
170,000
2018
Golar Power
GTT MkIII
DNV GL
DFDE
Sergipe FSRU
2131
GasLog
174,000
2017
Shell
GTT MkIII
ABS
LSDF (LP)
Shell business
2212
GasLog
180,000
2019
Centrica
GTT MkV
ABS
LSDF (LP)
Sabine Pass exports
2213
GasLog
180,000
2019
–
GTT MkV
–
LSDF (LP)
open
2107
Flex LNG
174,000
2018
–
GTT MkIII
ABS
LSDF (HP)
open
2108
Flex LNG
174,000
2018
–
GTT MkIII
ABS
LSDF (HP)
open
–
Petronas
180,000
2020
Petronas
GTT MkIII
–
N/A
LNG FPSO
2149
MOL/Mitsui & Co
174,000
2018
Mitsui & Co
GTT MkIII
ABS
LSDF (LP)
Cameron exports
2150
MOL/Mitsui & Co
174,000
2018
Mitsui & Co
GTT MkIII
ABS
LSDF (LP)
Cameron exports
2220
Höegh LNG
170,000
2019
–
GTT MkIII
–
DFDE
FSRU; open
2233
Korea Line
7,500
2019
Kogas
KC-1
KRS
DFDE
South Korea coast
2234
Korea Line
7,500
2019
Kogas
KC-1
KRS
DFDE
South Korea coast/
Pertamina consortium
170,000
2019
Pertamina
GTT MkIII
–
DFDE
Indonesia FSRU
GasLog
180,000
2020
–
GTT MkIII
ABS
LSDF (LP)
open
2275
GasLog
180,000
2020
Centrica
GTT MkIII
ABS
LSDF (LP)
Centrica business
2271
TMS Cardiff Gas
174,000
2020
–
GTT MkIII
–
LSDF (LP)
open
–
TMS Cardiff Gas
174,000
2020
–
GTT MkIII
–
LSDF (LP)
open
bunkering – 2274
Hyundai Heavy Industries (HHI), Ulsan 2909
Höegh LNG
170,000
2018
Global Energy
GTT MkIII
DNV GL
DFDE
Pakistan FSRU
2854
Gazprom
174,000
2017
Gazprom
GTT MkIII
RS
DFDE
Kaliningrad FSRU
2937
SK Shipping
180,000
2019
SK E&S
GTT MkIII
ABS
LSDF (LP)
Freeport exports
2938
SK Shipping
180,000
2019
SK E&S
GTT MkIII
ABS
LSDF (LP)
Freeport exports
2945
Kolin/Kalyon
170,000
2019
Kolin/Kalyon
GTT MkIII
BV
DFDE
Turkey FSRU
2963
Knutsen OAS
180,000
2020
Iberdrola
GTT MkIII
–
LSDF (HP)
Corpus Christi exports
2964
Knutsen OAS
180,000
2020
Endesa
GTT MkIII
–
LSDF (HP)
Corpus Christi exports
3086
Knutsen OAS
180,000
2020
Endesa
GTT MkIII
–
LSDF (HP)
Corpus Christi exports
2993
Triumph Offshore
180,000
2019
Swan Energy
GTT MkIII
–
DFDE
Jafrabad FSRU
3020
TMS Cardiff Gas
174,000
2020
Total
GTT MkIII
BV
LSDF (LP)
Total business
3021
TMS Cardiff Gas
174,000
2020
Cheniere
GTT MkIII
–
LSDF (LP)
Cheniere business
3022
TMS Cardiff Gas
174,000
2020
–
GTT MkIII
–
LSDF (LP)
open
3095
Turkiye Petroleum
180,000
2020
Botas
GTT MkIII
–
DFDE
Turkey FSRU
3096
Thenamaris
180,000
2020
–
GTT MkIII
–
LSDF (LP)
open
–
Sovcomflot
174,000
2020
Total
GTT MkIII
–
LSDF (LP)
Total business
BP business
Hyundai Samho Heavy Industries (HSHI), Samho-Myun S856
Teekay
164,000
2019
BP
GTT MkIII
–
DFDE
S857
Teekay
164,000
2019
BP
GTT MkIII
–
DFDE
BP business
S970
NYK
174,000
2020
EDF
GTT MkIII
BV
LSDF (LP)
EDF business
8006
Sovcomflot
174,000
2020
–
GTT MkIII
BV
LSDF (LP)
open
8010
Flex LNG
174,000
2020
–
GTT MkIII
–
LSDF (LP)
open
8011
Flex LNG
174,000
2020
–
GTT MkIII
–
LSDF (LP)
open
7,500
2018
Nauticor/SGD
Type C
LR
DFDE
Baltic bunker vessel
Hyundai Mipo Dockyard, Ulsan –
Bernhard Schulte
www.lngworldshipping.com
LNG World Shipping | July/August 2018
36 | STATISTICS
YOUR PARTNER IN SHIP PERFORMANCE MONITORING www.kyma.no
JAPAN Mitsubishi Heavy Industries (MHI), Nagasaki 2321
MOL
177,000
2018
Mitsui & Co
Moss
ClassNK
StaGE
Cameron exports
2323
MOL
177,000
2018
Mitsui & Co
Moss
ClassNK
StaGE
Cameron exports
2322
NYK
177,000
2019
Mitsui & Co
Moss
ClassNK
StaGE
Cameron exports
2324
NYK
165,000
2018
Mitsui & Co
Moss
ClassNK
StaGE
Cameron exports
2325
NYK
165,000
2018
Mitsui & Co
Moss
ClassNK
StaGE
Cameron exports
2326
MOL/Chubu Electric
180,000
2018
Chubu Electric
Moss
ClassNK
StaGE
Freeport exports
2327
NYK/Chubu Electric
180,000
2018
Chubu Electric
Moss
ClassNK
StaGE
Freeport exports
2332
Mitsubishi Corp
165,000
2019
Mitsubishi
Moss
ClassNK
StaGE
Mitsubishi business
2332
Mitsubishi Corp
165,000
2019
Mitsubishi
Moss
ClassNK
StaGE
Mitsubishi business
Kawasaki Heavy Industries (KHI), Sakaide 1713
K Line
164,700
2017
Chubu Electric
Moss
ClassNK
UST
Chubu Electric use
1720
MOL
164,700
2018
Chubu Electric
Moss
ClassNK
UST
Chubu Electric use
1728
MOL
155,000
2018
Mitsui & Co
Moss
ClassNK
DFDE
Cameron exports
1729
MOL
155,000
2019
Mitsui & Co
Moss
ClassNK
DFDE
Cameron exports
1734
MOL/Chubu Electric
177,000
2018
Chubu Electric
Moss
ClassNK
DFDE
Freeport exports
1735
NYK/Chubu Electric
177,000
2018
Chubu Electric
Moss
ClassNK
DFDE
Freeport exports
Imabari Shipbuilding, Imabari 8215
Unknown
178,000
2022
–
GTT MkIII
–
LSDF (HP)
open
8216
Unknown
178,000
2022
–
GTT MkIII
–
LSDF (HP)
open
8217
Unknown
178,000
2022
–
GTT MkIII
–
LSDF (HP)
open
Japan Marine United, Kumamoto 5070
MOL/Tokyo LNG Tanker
165,000
2017
Tokyo Gas
SPB
ClassNK
DFDE
Cove Point exports
5071
NYK/Tokyo LNG Tanker
165,000
2018
Tokyo Gas
SPB
ClassNK
DFDE
Cove Point exports
5072
MOL/Tokyo LNG Tanker
165,000
2019
Tokyo Gas
SPB
ClassNK
DFDE
Cove Point exports
5073
MOL/Tokyo LNG Tanker
165,000
2019
Tokyo Gas
SPB
ClassNK
DFDE
Cove Point exports
CHINA Hudong-Zhonghua Shipbuilding, Shanghai 1665A
CNOOC/CLNG/TK/BW
174,000
2018
Shell
GTT No96
ABS/CCS
DFDE
QCLNG exports
1666A
CNOOC/CLNG/TK/BW
174,000
2019
Shell
GTT No96
ABS/CCS
DFDE
QCLNG exports
1810A
MOL
174,000
2019
Yamal LNG
GTT No96
–
DFDE
Yamal cargoes
1811A
MOL
174,000
2020
Yamal LNG
GTT No96
–
DFDE
Yamal cargoes
1812A
MOL
174,000
2020
Yamal LNG
GTT No96
–
DFDE
Yamal cargoes
1813A
MOL
174,000
2020
Yamal LNG
GTT No96
–
DFDE
Yamal cargoes
–
Dynagas
174,000
2020
TBC
GTT No96
–
DFDE
FSRU; open
–
Dynagas
174,000
2021
TBC
GTT No96
–
DFDE
FSRU; open
Total/MOL
18,600
2020
Total
GTT MkIII
BV
TBC
Rotterdam bunkering
30,000
2017
CNPC Kunlun
Type C
CCS
DFDE
China coast
28,000
2017
CNPC Kunlun
Type C
CCS
DFDE
China coast
N/A
2018
VGS
TBC
–
N/A
LNG FRU
45,000
2018
Saga LNG
LNT A-Box
ABS
DFDE
China coast
Coastal Europe
1817A
Ningbo Xinle Shipbuilding, Ningbo XL-157
PetroChina
Cosco Dalian Shipyard, Dalian N588
Dalian Inteh
Wison Offshore & Marine, Nantong –
VGS
China Merchant Heavy Industry, Nantong 188
Landmark Capital
Shipping Keppel Singmarine, Nantong –
Stolt-Nielsen
7,500
2018
TBC
Type C
DNV GL
DFDE
–
Stolt-Nielsen
7,500
2018
TBC
Type C
DNV GL
DFDE
Coastal Europe
–
Keppel/Shell
7,500
2020
Shell
Type C
–
DFDE
Singapore bunkering
Table includes newbuilding FSRUs, LNG FPSOs and LNG bunker vessels. Propulsion key: DFDE = dual-fuel diesel-electric; ST = steam turbine; UST = ultra steam turbine; StaGE = steam turbine and gas engine; LSDF (HP) = low-speed dual-fuel (high-pressure); LSDF (LP) = low-speed dual-fuel (low-pressure) LNG World Shipping, data as of 30 June 2018
LNG World Shipping | July/August 2018
www.lngworldshipping.com
STATISTICS | 37
YOUR PARTNER IN SHIP PERFORMANCE MONITORING www.kyma.no
LNG CARRIER NEWBUILDINGS DELIVERED 1 APRIL 2017 – 30 JUNE 2018 Vessel name
Delivery
Capacity, m3
Owner
Builder
Charterer
Containment
Details
SM Eagle
4.2017
174,000
Korea Line
Daewoo
Kogas
GTTNo96
Sabine Pass exports
Hoegh Giant
4.2017
170,000
Höegh LNG
Hyundai
Quantum Power
GTTMkIII
Tema FSRU
JS Ineos Independence
4.2017
27,500
Evergas
Sinopacific
Ineos
Type C
Ethane service
Engie Zeebrugge
4.2017
5,100
Fluxys/Gas4Sea
Hanjin
Engie
Type C
Zeebrugge bunkering
Hyundai Princepia
5.2017
174,000
Hyundai LNG
Daewoo
Kogas
GTTNo96
Sabine Pass exports
SM Seahawk
5.2017
174,000
Korea Line
Daewoo
Kogas
GTTNo96
Sabine Pass exports
JS Ineos Invention
5.2017
27,500
Evergas
Yangzijiang
Ineos
Type C
Ethane service
Cesi Beihai
6.2017
174,000
CESI/MOL
Hudong
Sinopec
GTTNo96
APLNG exports
Cardissa
6.2017
6,500
Shell
STX
Shell
Type C
Rotterdam bunkering
Hyundai Peacepia
6.2017
174,000
Hyundai LNG
Daewoo
Kogas
GTTNo96
Sabine Pass exports
Prelude
6.2017
220,000
Shell
Samsung
Shell
GTTMkIII
Prelude FPSO
Seri Cempaka
7.2017
150,000
MISC
Huyundai
Petronas
Moss
Petronas projects
SK Audace
7.2017
180,000
SK Shipping/Marubeni
Samsung
Total
GTTMkIII
Ichthys exports
Asia Venture
7.2017
160,000
Chevron
Samsung
Chevron
GTTMkIII
Gorgon exports
Caribbean FLNG
7.2017
16,100
Exmar
Wison
TBC
Type C
FLRSU; open
Coralius
7.2017
5,800
Sirius/Veder
Royal Bodewes
Skangas
Type C
N Europe bunkering
Cesi Tianjin
9.2017
174,000
CESI/MOL
Hudong
Sinopec
GTTNo96
APLNG exports QCLNG exports
Pan Asia
10.2017
174,000
CNOOC/CLNG/TK
Hudong
Shell
GTTNo96
MOL FSRU Challenger
10.2017
263,000
MOL
Daewoo
Botas
GTTNo96
Turkey FSRU
Boris Vilkitsky
10.2017
172,000
Dynagas
Daewoo
Yamal LNG
GTTNo96
Yamal exports
Macoma
10.2017
173,400
Teekay
Daewoo
Shell
GTTNo96
Shell business
Fedor Litke
11.2017
172,000
Dynagas
Daewoo
Yamal LNG
GTTNo96
Yamal exports
Murex
11.2017
173,400
Teekay
Daewoo
Shell
GTTNo96
Shell business
Eduard Toll
12.2017
172,000
Teekay/CLNG
Daewoo
Yamal LNG
GTTNo96
Yamal exports
Bishu Maru
12.2017
164,700
K Line
Kawasaki
Jera
Moss
Jera business
TBC
12.2017
25,000
Exmar
Wison
TBC
IHI SPB
FSRU; TBC
SK Resolute
1.2018
180,000
SK Shipping/Marubeni
Samsung
Total
GTTMkIII
Sabine Pass exports
Patris
1.2018
174,000
Chandris/K Line
Daewoo
BP
GTTNo96
BP business
Cesi Wenzhou
1.2018
174,000
CESI/MOL
Hudong
Sinopec
GTTNo96
APLNG exports
Pan Americas
1.2018
174,000
CNOOC/CLNG/TK
Hudong
Shell
GTTNo96
QCLNG exports
Gaslog Houston
1.2018
174,000
GasLog
Hyundai
Shell
GTTMkIII
Shell business
Flex Endeavour
1.2018
173,400
Flex LNG
Daewoo
Uniper
GTTNo96
Uniper business
Flex Enterprise
1.2018
173,400
Flex LNG
Daewoo
Voyage charters
GTTNo96
open
BW Tulip
1.2018
173,400
BW Group
Daewoo
Voyage charters
GTTNo96
open
Vladimir Rusanov
1.2018
172,000
CSDC/MOL
Daewoo
Yamal LNG
GTTNo96
Yamal exports
Coral EnergICE
1.2018
18,000
Anthony Veder
Neptun
Skangas
Type C
Baltic trading
SK Serenity
2.2018
174,000
SK Shipping
Samsung
Kogas
KC-1
Sabine Pass exports
Magdala
2.2018
173,400
Teekay
Daewoo
Shell
GTTNo96
Shell business
Seri Camar
2.2018
150,000
MISC
Hyundai
Petronas
Moss
Petronas projects
LNG Sakura
2.2018
177,000
NYK/Kepco
Kawasaki
Kansai Electric
Moss
Cove Point exports
SK Spica
3.2018
174,000
SK Shipping
Samsung
Kogas
KC-1
Sabine Pass exports
Pacific Mimosa
3.2018
155,000
NYK
Mitsubishi
Jera
Moss
Wheatstone exports
Gaslog Genoa
3.2018
174,000
GasLog
Samsung
Shell
GTTMkIII
Shell business
Gaslog Hong Kong
3.2018
174,000
GasLog
Hyundai
Total
GTTMkIII
Total business
Pacific Breeze
3.2018
182,000
K Line
Kawasaki
Inpex
Moss
Ichthys-Taiwan
Castillo de Merida
3.2018
178,000
Elcano
Imabari
GNF
GTTMkIII
GNF business
BW Lilac
3.2018
173,400
BW Group
Daewoo
Voyage charters
GTTNo96
open
Hoegh Esperanza
4.2018
170,000
Höegh LNG
Hyundai
CNOOC
GTTNMkIII
FSRU; CNOOC charter
Marvel Falcon
4.2018
174,000
NYK
Samsung
Mitsui & Co
GTTMkIII
Cameron exports
Oceanic Breeze
4.2018
155,000
K Line
Mitsubishi
Inpex Corp
Moss
Ichthys exports
Seri Cemara
4.2018
150,000
MISC
Hyundai
Petronas
Moss
Petronas projects
Cesi Lianyungang
5.2018
174,000
CESI/MOL
Hudong
Sinopec
GTTNo96
APLNG exports
Myrina
5.2018
173,400
Teekay
Daewoo
Shell
GTTNo96
Shell business
British Partner
5.2018
174,000
BP
Daewoo
BP
GTTNo96
BP business
Castillo de Caldedas
6.2018
178,000
Elcano
Imabari
GNF
GTTMkIII
GNF business
LNG Schneeweisschen
6.2018
180,000
MOL/Itochu
Daewoo
Uniper
GTTNo96
Freeport exports
LNG World Shipping, data as of 30 June 2018
www.lngworldshipping.com
LNG World Shipping | July/August 2018
40 | VIEWPOINT
Making small-scale LNG terminals commercially viable LNG has the potential to revolutionise emerging industries in countries such as India, Pakistan and Bangladesh. AG&P president of LNG marketing Karthik Sathyamoorthy explains how to establish a viable supply chain to support this transition
T Karthik Sathyamoorthy (AG&P): Five steps to developing a successful smallscale LNG terminal project
here is a need to invest significantly in the development of the domestic energy infrastructure to provide power to emerging industries in the world’s fast-growing gas economies; this will ensure their continued economic growth. Before making these investments, it is important to decide on the right energy mix, balancing the desire for cleaner fuel sources with the need for grid stability and affordability. LNG has a key role to play here, as it is a cleaner fossil fuel and is also versatile, with potential applications ranging from power generation to use as a transport fuel. The challenge is to make LNG accessible. By making LNG readily available and integrating it into existing energy ecosystems, countries such as India, Pakistan and Bangladesh can successfully shift to a low-carbon, stable energy system, serving a new generation of customers. The starting point for this endeavour is a well-functioning LNG supply chain for importing, storing and distributing LNG. Such a system requires not only substantial capital expenditure, but also an innovative approach to serving smaller end-customers, from sourcing to last-mile delivery. The new supply chains must be nimble enough to cater to more cost-focused customers – who want flexibility in the quantity and lock-in periods for the LNG they buy – as well as robust enough to grow in line with rising demand. A modular and scalable approach is the most pragmatic way to meet demand for smaller volumes of LNG from a wider range of off-takers. Many of the proposed LNG projects across the Asia region are relatively small, requiring 1-2M tonnes per annum (mta) of LNG and supporting a single power producer. AG&P sees opportunities in developing small-scale import terminals to serve such customers. AG&P believes flexibility and agility are key to developing the right-sized solutions to serve customers for whom a large, one-sizefits-all approach will not work. AG&P’s solutions use standardised and scalable designs, new technologies and integrated maritime and onshore LNG transport, storage, break-bulk
LNG World Shipping | July/August 2018
and regasification assets to streamline logistics and reduce costs, not least by eliminating the need for bespoke engineering for each piece of infrastructure along the LNG supply chain. The challenges and complexities involved in establishing LNG supply chain solutions are still being learned. While innovative technologies are making LNG more accessible, analysing project risks at the outset and factoring in the potential for complexity and delay will increase the likelihood of successful project implementation. Each LNG project has its own requirements and characteristics which need to be understood to deliver LNG to the customer at the best price. The following five steps are critical for developing commercially viable, smaller-scale LNG terminals: 1. Feasibility studies: at the conception stage of any LNG project, specialists are required to examine the proposed site and conditions and perform feasibility studies to ensure the optimum configuration is selected. 2. Onshore and marine infrastructure: the viability of a project depends on the costs associated with the supporting, location-specific infrastructure. This must be independently evaluated during both the pre-front-end engineering and design (pre-FEED) and FEED stages. 3. Procurement considerations: developing the most cost-effective solution requires a thorough cost-benefit analysis of building new infrastructure, versus the conversion of existing assets, leasing or chartering. 4. Regulations and tax: early engagement with the relevant port authorities is essential so the terminal infrastructure is fully compliant with the port code, conditions of use and regulations. This can be a lengthy process and must be factored into the project timeline. 5. Port and marine services: most project developers enter into a port services agreement for the provision of tugs and support services with a third-party provider. These negotiations can be complex and time-consuming, and the port services provider may be unwilling to take on liability for any aspect of the project. LNG
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