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The ship-shore interface: LNG shipping’s weakest link FSRUs: a story of growth Europe ramps up its LNG imports
“Oversupply of LNG has to find new markets – and small-scale and bunkering are two of the most promising places where this LNG can go” Dag Lillevedt, chief executive, Fuelgarden, see page 9 of supplement
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contents
May/June 2016
08 13
Comment 5 Australia industry summit finds the international LNG community in a sadder, wiser mood
Analysis 6 Thirteen things we’ve learned from the new International Group of LNG Importers (GIIGNL) annual LNG report 8 Europe is emerging as a critical LNG-import market, as it seeks to cut its dependence on piped gas from Russia and to diversify its energy sources. Mike Corkhill reports
Conference 16
13 LNG World Shipping’s forthcoming London conference will discuss the shipshore interface, the weakest point in the LNG supply chain
Operations 16 As more ports start to import, export and supply LNG as marine fuel, escort tugs will become ever more important in mitigating risk. Selwyn Parker reports
Exports 18 Plans by Mozambique and Tanzania to tap and export their vast gas reserves may create a new LNG hotspot in east Africa. Diana Taremwa Karakire reports
Cargo handling 18
21 Mike Corkhill reports on how US researchers are assessing the risks of methane leakage during LNG bunkering in the drive to gut greenhouse-gas emissions
Offshore 24 New buyers of LNG are turning to floating storage and regasification units (FSRUs) as the fastest, cheapest way to import. Karen Thomas reports on a growing LNG business
Infographic 26 Your exclusive LNG World Shipping guide, showing the world FSRU fleet and the import markets that will drive demand for new offshore terminals
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LNG World Shipping | May/June 2016
contents Fleet profile
May/June 2016
31 VesselsValue senior data editor Craig Jallal explains why Qatari state-owned LNG giant Nakilat will look to its partners when it needs additional capacity
Best of the web 33 A digest of some of the most popular stories this spring on LNGworldshipping.com
Ship-to-shore 35 Innovation in ship-to-shore transfer
Statistics 36 Your exclusive LNG World Shipping guide to the global LNG fleet, orders and deliveries
Viewpoint 44 Parker Bestobell Marine market-development manager Duncan Gaskin explains how the company has developed cryogenic valves to meet FSRUs’ very specific needs
Coming up The next bimonthly issue of LNG World Shipping is the June-July magazine. This issue will cover: • Analysis – as Russia’s Yamal LNG project moves closer to fruition, we examine prospects for a new trade lane to Asia via the northern sea route and how this may affect polar shipping and demand for ice-class carriers • Technology – innovation in cargo-handling plant and equipment • Profile – how shipmanagement companies are reshaping their businesses to adapt to volatile markets • Supplement – lifecycle maintenance. Our annual report on LNG-carrier repairs and maintenance will cover the opportunities and challenges facing the top yards in this competitive market segment. We will report back on the year’s most innovative projects and talk to companies promoting a shift towards condition-based maintenance.
Editor: Karen Thomas t: +44 20 8370 1717 e: karen.thomas@rivieramm.com Consultant Editor: Mike Corkhill t: +44 1825 764 817 e: mike.corkhill@rivieramm.com Sales Manager: Ian Pow t: +44 20 8370 7011 e: ian.pow@rivieramm.com Production Manager: Richard Neighbour t: +44 20 8370 7013 e: richard.neighbour@rivieramm.com Subscriptions: Sally Church t: +44 20 8370 7018 e: sally.church@rivieramm.com Korean Representative: Chang Hwa Park Far East Marketing Inc t: +82 2730 1234 e: chpark@unitel.co.kr Japanese Representative: Shigeo Fujii Shinano Co Ltd t: +81 335 846 420 e: scp@bunkoh.com Chairman: John Labdon Managing Director: Steve Labdon Finance Director: Cathy Labdon Operations Director: Graham Harman Editorial Director: Steve Matthews Executive Editor: Paul Gunton Head of Production: Hamish Dickie Corporate Portfolio Manager: Bill Cochrane Published by: Riviera Maritime Media Ltd Mitre House 66 Abbey Road Enfield EN1 2QN UK
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ISSN 1746-0603 (Print) ISSN 2051-0616 (Online) ©2016 Riviera Maritime Media Ltd
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LNG World Shipping | May/June 2016
A member of: Total average net circulation: 4,000 Period: January-December 2015
Disclaimer: Although every effort has been made to ensure that the information in this publication is correct, the Author and Publisher accept no liability to any party for any inaccuracies that may occur. Any third party material included with the publication is supplied in good faith and the Publisher accepts no liability in respect of content. All rights reserved. No part of this publication may be reproduced, reprinted or stored in any electronic medium or transmitted in any form or by any means without prior written permission of the copyright owner.
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COMMENT | 5
LNG GETS A REALITY CHECK
A Karen Thomas, Editor
fter three years in the planning, Perth in Western Australia last month played host to LNG18 – the latest iteration of an event that every three years brings together the most senior players in the gas-producing, shipping, importing, technical and service industries. Three years ago, at LNG17, the mood was one of optimism, buoyed by the boom in Asian demand, and the new wave of floating and land-based production projects, from the US to Australia, and from the Russian Arctic to east Africa. Fast-forward three years, and demand growth for LNG has slowed among Asia’s mature importing economies just as that first wave of projects has come to market. For LNG shipping, that means surplus capacity as new tonnage ordered against the expected
later, we have found gas demand down by almost one-fifth. “We believed in Europe that the demand growth would come automatically, that the environmental and economic case was so compelling that we didn’t need to listen to our customers. We didn’t need to engage in public opinion. We didn’t need to advocate to policymakers.” It will take a united effort to promote and demonstrate the advantages of liquefied natural gas. There is growing consensus that LNG’s build-it-and-they-will-come approach is out of step with today’s depressed markets. And as world governments turn their attention to COP21 climate targets, the industry must work harder to persuade the wider public that LNG offers a safe, clean and cost-effective alternative to traditional fossil fuels.
Ten years ago, we were told in Europe that we stood on the brink of great expansion, great volume growth – a Golden Age for European gas demand boom hits the market. Little wonder that this year’s gathering found delegates in a sadder, wiser mood. Speaker after speaker urged the industry to innovate – and to work together to find smarter ways to improve efficiency and cut costs. The message is that the LNG industry must work to achieve the growth it expects – and that none of us can take that growth for granted. This reality check has been a while coming. “Ten years ago, we were told in Europe that we stood on the brink of great expansion, great volume growth – a Golden Age for European gas,” IHS Energy chief strategist Michael Stoppard told the conference. “It didn’t quite work out like that. Ten years
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Cheniere Marketing president Meg Gentle urged the industry to encourage new importers, in particular those that will need floating storage and regasification units (FSRUs). Meanwhile, credibility is everything in today’s tough markets. Pavilion Energy chairman Tan Sri Mohd Hassan Marican warned that safety remains paramount, particularly at the ship-shore interface, as the LNG supply chain lengthens to take in more, smaller players. Just one major incident will push the industry’s ambitions back by ten or 15 years, he warned. “We should never assume our success in this business,” Mr Stoppard concluded. “We really have to work hard at it.” LNG
LNG World Shipping | May/June 2016
13 THINGS WE LEARNED FROM
↑
Total LNG imported, 2015: 245.2 mta, annual 2.5% increase 239.2 mta LNG imported 2014, 1% annual increase
LNG IMPORTS: South Korea Japan
↓
68.4 mta spot/short-term traded LNG, 28% of total LNG traded 69.6 mta spot/short-term traded LNG 2014, 29% of total LNG traded
Mexico Brazil Argentina France Malaysia Turkey Puerto Rico Israel
↑
117 LNG-import terminals 2015 110 LNG-import terminals 2014
Dominican Rep. India Greece Canada Portugal Chile Lithuania
↑
34 importing countries, 2015 30 importing countries, 2014
Netherlands Sweden Kuwait Singapore USA Indonesia China Dubai
↑
777 mta, total regasification capacity, 2015 751 mta, total regasification capacity, 2014
Belgium Spain Taiwan Pakistan Italy Thailand United Kingdom Jordan
—
19 exporting countries, 2015 19 exporting countries, 2014
LNG World Shipping | May/June 2016
Egypt
MT
-5
-4.5
-4
-3.5
-3
For more articles visit www.lngworldshipping.com
-2.5
-2
-
THIS YEAR’S GIIGNL REPORT 2015 Vs 2014
-1.5
-1
-0.5
0
0.5
1
1.5
2
2.5
For more articles visit www.lngworldshipping.com
3
308 mta total nameplate liquefaction capacity, 2015 298 mta total nameplate liquefaction capacity, 2014
↑
3 LNG carriers demolished, 2015 3 LNG carriers demolished, 2014
—
280,945m3 total capacity demolished, 2015 269,300m3 demolished, 2014
↑
6 LNG carriers laid up, year-end 2015 5 LNG carriers laid up, year-end 2014
↑
764,088m3 total capacity laid up, 2015 637,203m3 laid up, 2014
↑
New LNG carriers delivered, 2015: 33 New LNG carriers delivered, 2014: 34
↓
LNG World Shipping | May/June 2016
8 | ANALYSIS
EUROPE GENERATES SOLID LNG DEMAND The Baltic is following the example of the Mediterranean and becoming a busy LNG carrier zone, but with the emphasis on small-scale
Cheap and plentiful LNG boosts European customers keen to diversify their limited gas-supply portfolios. Mike Corkhill reports
E
urope’s net LNG imports surged in 2015, climbing 15.8 per cent on-year to reach 37.6 million tonnes (mt), due to a combination of increased regional demand for gas, declining local gas production and a fall in the number of reload cargoes at European import terminals. Another determinant was the dramatic slowdown in what was once rapidly growing demand for LNG in Asia. LNG follows the path of least resistance and, with Asian storage tanks now full, gas sellers have turned to European terminals as destinations for more of their cargoes. In the face of weak global gas demand European LNG prices are at the same low levels as those in Asia and not much different to the cost of pipeline deliveries. The purchase of
LNG World Shipping | May/June 2016
additional LNG cargoes is enabling European utilities to lessen their dependence on piped gas deemed to be geopolitically sensitive, notably from Russia. Qatar and Nigeria are the leading examples of exporters reorienting their cargo flows because they no longer command the premium Asian buyers paid for additional LNG cargoes following the Japanese tsunami in March 2011. When shipping costs are factored in, Europe is now a more attractive LNG market than it has been for several years. According to the International Group of Liquefied Natural Gas Importers (GIIGNL), Qatar shipped 21.1mt of LNG to Europe in 2015, 20 per cent more than a year earlier. Nigerian exports to the region were 5.45mt, 26 per cent ahead of 2014.
For more articles visit www.lngworldshipping.com
ANALYSIS | 9
Big winners
In terms of increased import volumes, the UK, Spain, Italy and Belgium were Europe’s big winners in 2015. The UK remained the region’s top LNG buyer, its 10.08mt in net imports 20 per cent up on the previous year. Qatar supplied the UK with 96 per cent of its LNG in 2015 and most of the emirate’s cargoes were discharged at South Hook LNG terminal in South Wales, in which Qatar Petroleum holds a controlling stake. Net Spanish LNG imports last year totalled 8.8mt, an 11.7 per cent on-year increase resulting from a widespread drought that reduced hydroelectric output. Huelva, Barcelona and Sagunto are the busiest of Spain’s six receiving terminals.
Turkish potential
Cargo purchases by Turkey, Europe’s third-largest LNG importer, totalled 5.35mt in 2015, a 1.8 per cent drop on the previous year. Qatar, Algeria and Nigeria are the country’s principal suppliers and Norway and Trinidad provide occasional shipments. Turkey is one of the world’s fastest-growing power markets and uses gas for more than 50 per cent of its electricity generation. It relies on imports to meet virtually all its gas needs, of which Russian pipeline deliveries account for nearly 60 per cent of the volume it buys from other nations. Political tensions between the two countries have increased in recent months, prompting Turkish interest in diversifying energy sources and boosting LNG imports through its Aliaga and Marmara receiving terminals. In December 2015 Turkey and Qatar reached preliminary agreements on the possible development of a third terminal and the sale of LNG under a new term contract. Turkey is also looking to the US as a possible future source of LNG.
Neck and neck
France is Europe’s fourth-largest LNG importer, by the smallest of margins over Italy. France’s 4.35mt of imports in 2015 were down 4.5 per cent on-year, whereas Italy’s 4.32mt represented a 32 per cent increase. The busiest of Italy’s three import facilities is the RasGas-controlled offshore Adriatic LNG terminal. France’s lower imports in 2015 are attributed to higher purchases of Norwegian piped gas and increased storage drawdowns. However, inbound French LNG is set for a boost with the opening of the country’s fourth receiving terminal, the EDFoperated Dunkirk facility near the Belgian border, this coming June. Dunkirk has the capacity to process 9.4 mta of LNG, which is enough, through its links to the gas grids of France and Belgium, to meet about 20 per cent of the two countries’ annual gas consumption. The terminal also has the ability to reload cargoes and
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Europe’s net LNG imports surged nearly 16 per cent last year to reach 37.6 million tonnes
possible LNG bunkering and tank truck loading roles are being investigated. French state utility EDF holds 60 per cent of Dunkirk’s capacity rights and its recent purchase contracts include two deals with Cheniere Energy for output from the recently commissioned Sabine Pass liquefaction complex. Under the first, Dunkirk will receive 26 Sabine Pass cargoes between 2016 and 2018 and the second covers the purchase of up to 24 LNG cargoes over the 2017-2018 period. Dunkirk is also the most likely destination for the latter tranche, or at least the bulk of it. France’s other terminals, all operated by the Engie affiliate Elengy, are Montoir at St Nazaire and Fos Tonkin and Fos Cavaou, both in the industrial port of Fos, close to Marseilles. Built to handle Medmax ships of up to 75,000m3 carrying cargoes from Algeria, Fos Tonkin has been in service since 1972 and Elengy is set to make a decision on the facility’s post-2020 future by 2017.
Benelux flexibility
Besides Europe’s Big Five importers, six European Union (EU) nations each received under 2mt of LNG in 2015. Belgium’s Fluxys facility in Zeebrugge was the busiest of the facilities handling smaller volumes, accommodating net imports of 1.9mt, some 89.7 per cent more than the previous year. Zeebrugge supplements its regasification activities with cargo reloads and road tanker loadings. Last year Fluxys re-exported 0.83mt of LNG using both conventional-sized and small coastal LNG carriers and its LNG tank-truck consignments are now approaching 2,000 annually. The range of operations at the terminal is set to widen again. Fluxys has won a 20-year contract to tranship up to 8 mta of Yamal LNG, from Yamal’s fleet of dedicated icebreaking LNGCs to conventional gas ships for onward distribution to the final customer. A fifth in-ground storage tank, of 180,000m3, is being built at Zeebrugge to assist with this work. Fluxys is also constructing a multipurpose second jetty, for commissioning this year, to accommodate both LNG cargo discharges and loadings as well as ships in the size range 2,000-217,000m3. The smaller gas vessels utilising the terminal will include a 5,100m3 tanker which is set to be the industry’s first purpose-built LNG bunker vessel on delivery to NYK/Engie later in 2016. The neighbouring Gate terminal at Rotterdam in the Netherlands recorded net imports of 0.63mt in 2015, up by 50 per cent on the previous year. Amongst the factors boosting Benelux interest in LNG purchases is the falling output from the Dutch Groningen gas field. Gate is seeking to enhance its hub role, as is Zeebrugge. Gate is building a breakbulk facility adjacent to its main terminal to facilitate the
LNG World Shipping | May/June 2016
10 | ANALYSIS
distribution of smaller volumes of LNG around Europe’s busiest port and its hinterlands. Like Zeebrugge, Gate will also have its own LNG bunker vessel. The 6,500m3 gas tanker being built for Shell for 2017 delivery will load at the Gate breakbulk facility and fuel LNG-powered vessels in Rotterdam and the surrounding area.
Greece in transition
Greece began importing LNG in February 2000, at its Revithoussa terminal on a small island west of Athens that in 2015 handled 0.45mt, an 18.4 per cent increase on-year. DEPA, Greece’s state-owned gas utility, is upgrading Revithoussa through the provision of a third in-ground tank to boost the terminal’s storage capacity by 73 per cent. Additional modifications, due for completion by the end of 2016, will permit the berthing of vessels of up to 266,000m3 and increase the terminal’s regas capacity by 40 per cent, to 4.7 mta. Greece, like Turkey, depends on imports for virtually all its gas, some two-thirds of which comes from Russia by pipeline via Bulgaria and Turkey. Greece is keen to reduce this dependence through increased purchases of LNG. In addition to the Revithoussa expansion two FSRU-based terminals have been proposed, in Thrace in northeastern Greece, to broaden gas supply choices for the country and its neighbours in southeastern Europe. The Copelouzos Group has put forward a 1.9 mta project for Alexandroupolis
close to the Turkish border whereas DEPA is promoting Aegean LNG, based on a 2.6 mta FSRU in the port of Kavala. Croatia is also looking to ease its reliance on Russian pipeline gas and to fast-track LNG imports using an FSRU. European Union subsidies are being mooted for the proposed floater as part of a drive to serve customers in central Europe.
Baltic breakthrough
The Baltic Sea is also poised for a major increase in LNG carrier traffic, although the emphasis will be on smaller vessels. Lithuania and Sweden recently became the first two Baltic countries to import LNG. Sweden’s breakthrough is a great advertisement for small-scale LNG. Between them, the Scandinavian nation’s two coastal distribution terminals, at Nynäshamn and Lysekil, received 290,000 tonnes of LNG in 2015, not far short of the 320,000 tonnes that neighbouring Lithuania imported via its 170,000m3 FSRU. Poland is set to become the third Baltic Sea LNG importer when its 3.7 mta Swinoujscie terminal opens for business this summer. Elsewhere, Gazprom is set to take delivery of an FSRU in 2017 that will bring LNG to the Russian enclave of Kaliningrad. Finland, meanwhile, has three small-scale receiving terminals under construction, at Pori, Tornio and Hamina, for commissioning in 2016, 2017 and 2018. LNG
Buying additional LNG cargoes allows European utilities to cut their dependence on piped gas that is geopolitically sensitive, notably from Russia
Revithoussa's jetties are being modified to enable it to handle Q-max LNG carriers
LNG World Shipping | May/June 2016
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Ship-shore interface CONFERENCE | 13
LNG’S WEAKEST LINK – WHY SAFETY IS EVERYTHING AT THE SHIP-SHORE INTERFACE LNG World Shipping will host its Ship-Shore Interface Conference in London, UK on 11-12 May. This year's event will scrutinise the point in the supply chain where workloads are at their most intense and where the risks are greatest
F
or the LNG industry, the equivalent to the coalface is when the gas carrier is in the terminal zone. Compared with the relatively relaxed workaday routines of life at sea, activities reach peak intensity at the ship-shore interface. History and risk analysis have shown that if anything is going to go wrong in the LNG supply chain, the chances are that it will occur when the ship is in the port approaches or berthed at the terminal jetty. At the ship-shore interface the LNG carrier has to negotiate often traffic-laden port waters whose approach channels pose navigational challenges. At the same time, the ship and terminal must both work to a finely tuned and pre-agreed game plan that can accommodate a full range of possible emergencies while cargo is being transferred across the jetty at rates of up to 12,000m3 per hour.
FLEXIBILITY
The industry’s ship-shore interface focus has taken on new dimensions in recent years, reflecting increasingly flexible LNG trading patterns and the extension of the LNG supply chain upstream and downstream. The traditional ship-shore interface involves a conventional-size carrier at a regularly visited shore terminal but the rising popularity of spot and short-term cargoes and less stringent charterparty requirements governing destination ports mean that ships today are calling at more terminals than ever before. Similarly, each terminal is handling more LNG carriers of varying types and sizes than before. The floating receiving terminal is now also an integral part of LNG activities and floating LNG production will also become a new feature of the logistics chain. Floating terminals have brought new LNG carrier interface options into play, many requiring innovative technologies to be developed to ensure safe operations. Growing interest in the natural gas option from energy customers remote from the grid and with limited volume requirements is spurring interest in small-scale LNG, notably in the form of coastal gas carriers and regional distribution terminals.
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The use of LNG as marine fuel is another small-scale market driver. The multiple solutions available to LNG bunkering logistics planners are opening up new ship-shore interface scenarios.
DIALOGUE
The ship-shore interface has been a central theme for LNG World Shipping since the magazine’s inception. This year’s conference builds on the publication’s inaugural conference two years ago, bringing together the key players – the ship operators, charterers and terminal operators, equipment suppliers, service providers and enforcement authorities – that play a pivotal role in safe cargo transfers and smooth port turnarounds. The 2016 conference provides a dedicated space in which LNG carrier and terminal operators will discuss the business and operational challenges that arise at their common interface. This year, with the scope of proceedings extended to encompass floating terminals, small-scale operations and LNG bunkering, the vital commitments made by both equipment suppliers and service providers will come under special scrutiny.
Communications systems, equipment and emergency-response planning come into sharp focus. Fluxys Belgium/E Manderlier
LNG World Shipping | May/June 2016
14 | CONFERENCE Ship-shore interface
SIGTTO LEAD
A measure of the importance of the ship-shore interface to the LNG industry is the fact that more than 20 titles in the technical publications portfolio of the Society of International Gas Tanker and Terminal Operators (SIGTTO) cover some aspect of the subject. The total goes up to 30 if we include training-related documents. SIGTTO leads the industry in disseminating best practice and providing technical support for the liquefied gas shipping and terminal sectors. The exemplary safety record that LNG ships have maintained over the past 50 years owes much to the society’s commitment to ship-shore interface issues. The point at which ships and terminals connect remains under the SIGTTO microscope. Four currently convened society working groups are preparing new publications that relate to the ship-shore interface. Two topics that interest SIGTTO are the LPG ship-shore interface and the emergency-response roles of support vessels in protecting gas carriers and terminals. Both topics are on the agenda at this year’s LNG World Shipping conference. SIGTTO’s LPG group is identifying possible causes of LPG and chemical gas cargo ship-shore interface-related incidents and will update the association’s original document on the subject, which dates from 1997. It behoves the gas shipping industry to share its experiences so that new participants learn lessons quickly and efficiently rather than learning them the hard way. SIGTTO members recognised the importance of terminal support craft in mitigating emergency situations back in 2012, prompted by the increasing diversification of the LNG supply chain. This led to the preparation, by a number of support vessel, gas tanker and terminal operators among the society’s membership, of guidance that reinforces the effectiveness of such vessels in maintaining high safety standards at gas terminals.
SHARING EXPERIENCE
Like every terminal, every terminal emergency will have its own specific characteristics, and there is much to be gained from discussion and a cross-fertilisation of ideas across the industry. Many lessons are learned
Many lessons are learned the hard way and it behoves the gas shipping industry to share its experiences the hard way and it behoves the gas-shipping industry to share its experiences and thus to fast-track the learning curves of new participants. Delegates to the LNG World Shipping Ship-Shore Interface Conference 2016 will have the opportunity to discuss, among other topics, the emergency release system mechanisms of cargo transfer equipment. This is an issue taking on added significance in light of today’s extending LNG supply chains and the advent of LNG bunkering. Other focal points at the two-day event include vessel mooring arrangements, ship-shore communication links and training for ship and terminal staff. LNG carrier mooring incidents have declined with the widespread use of high modulus polyethylene (HMPE) fibre ropes but, as the recent injury to an officer on the Q-max vessel Zarga at the South Hook terminal in Wales showed, accidents can still occur when these ropes are used. Training remains a critical first line of defence and the gas shipping safety regime has benefited from the introduction of crew competence standards in recent years. The application of such standards to new fields of gas carrier and terminal activity poses challenges, as the upcoming conference will highlight. Proceedings at the Ship-Shore Interface 2016 event will be in the capable hands of conference chairman Bernhard Schulte Shipmanagement corporate expert, liquefied gas Chris Clucas. LNG The 2016 LNG World Shipping Ship-Shore Interface conference takes place at London’s Millennium Gloucester Hotel on May 11-12. Visit our website to find out who is speaking and which topics they will cover: http://bit.ly/LNGship-shoreIFACE
As the LNG supply chain extends, so does the ship-shore interface safety and training regime
LNG World Shipping | May/June 2016
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16 | OPERATIONS Escort Tugs
TUGS FOR TOUGH TERMINALS T
he steady growth in LNG terminals around the world is boosting demand for tug boats specifically adapted to handle gas carriers in often challenging ports, many of them with long approach channels. These tugs are operating in facilities from Australia to the Baltic Sea as increasingly international procedures in terms of safety and riskmitigation come into play, and in most cases the vessels’ crews are specially trained. One of the latest ports to welcome LNG-carrying vessels is Poland's Swinoujscie on the Baltic Sea. In February the LNG terminal used customised harbour-escort tugs built by Turkey’s Bogazici Shipping to successfully berth a Qatargas–owned Q-flex vessel to load the terminal’s commissioning cargoes. Swinoujscie is the biggest LNG terminal in northern, central and eastern Europe and presents significant challenges. It has a 3km breakwater and an unloading jetty with a single berth able to handle methane carriers with a capacity of anything from 120,000m3 to – in the case of Q-flex size vessels – 217,000m3. When full commercial operations start later this year, the tugs, which Spain’s Cintranaval-Defcar group designed for Bogazici, will be handling vessels delivering 1 million tonnes a year (mta) of LNG. And as terminal operator Polskie LNG president Jan
Tug boat designers, builders and crews must rise to new challenges as LNG terminals proliferate around the world. Selwyn Parker reports
Chadam pointed out at the time of the inaugural berthing, there is no room for mistakes in an enterprise with such high stakes. “The receiving terminal’s potential makes us an important player in energy independence in the whole region,” he said.
Demands
When it comes to handling LNG carriers, port operators are pushing designers and shipyards to higher specifications and performance. Smit Lamnalco business development manager Andrew Brown points out that safety is paramount in the case of the five new Robert Allan-designed
LNG World Shipping | May/June 2016
RAstar 3400 escort tugs it is introducing to the port of Gladstone in Australia. “These tugs are highpowered and are ideally suited for escort operations in areas exposed to weather and sea, such as many new LNG terminals, where a high standard of seakeeping is required.” In Gladstone, tug crews must routinely deal with difficult close-quarter situations. Access to the port is through narrow channels on the Queensland coast, buffeted by winds of more than 40 knots that kick up waves of up to 3m. Lamnalco’s LNG-customised tugs comply with Australian Maritime Authority safety
regulations, among the toughest in the world. “These vessels represent a unique development in terminal escort tug design,” says project director Ali Gurun from the vessels’ Turkish builder Sanmar shipyard. Although the Society of International Gas Tanker and Terminal Operators (SIGTTO) says LNGapproved tugs are not greatly different in principle from standard ones, the differences are nevertheless important. For instance, Smit Lamnalco had its Gladstone RAstar 3400s customised – they boast a sponsoned hull configuration and foil-shaped escort skegs that work together to greatly reduce the roll motion and accelerations to less than half that of conventional tugs of comparable size.
Stability
As the designer’s executive chairman Robert Allan explains, the stability provided by the bigger and more powerful escort-class tug is a vital element in working with LNG carriers. “By definition, it must be designed to handle a much more unique set of operational demands [than a conventional harbour tug]. “Thus it has a different hull form and very different kind of winch capable of ship-handling and towing. Many [standard] escort tugs are more than capable of handling LNG carriers, if suitably equipped, and we
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Escort Tugs OPERATIONS | 17
have designed many of these for more exposed terminals.” Whether an escort or harbour tug, any tug handling LNG carriers must also exert the softest possible touch on these vessels’ typically thinskinned hulls. In technical terms, the contact pressure is 14 tonnes/m2, which experts say is extremely low. An elaborate fendering system provides the necessarily gentle push. On the bow is an upper row of cylindrical fenders with a diameter of 1,000mm and a lower level of 450mm deep W-shaped fenders, while another cylindrical fender of 600mm diameter protects the stern. Standard safety procedures focus particularly on the reduction of the risk of explosion. As well as the installation of a gas detection system, all ventilation dampers on the Lamnalco tugs can be remotely closed. The system that remotely controls the gas-tight dampers has a two-tiered alarm set at lower explosion limits of 20 per cent and 40 per cent. On the deck the
“In an emergency, support vessels provide the first line of defence” – Andrew Brown, Lamnalco
towing winches, navigation lights, outside lights and emergency-stop buttons are explosion-proof. The firefighting capability has FiFi 1 certification and the tugs have extra foam-carrying capacity. In another example of the trend towards international safety standards, the latest Bogazici-built tug at work in the Swinoujscie terminal features similar safety equipment to that installed on the Lamnalco vessels.
Mixed-use ports
In the growing number of mixed ports, most tugs are expected to fulfil a dual role. As LNG towage company Svitzer’s chief technical officer Kristian Brauner points out, its fleet in Darwin in Australia will have
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to deal with all the port’s other operational requirements as well as the demands of LNG. “While we needed a tug with escort notation and emergency towage capability, we also required whole-of-port tugs with full FiFi, pollution control and oil recovery capabilities,” he says. This is increasingly the case in other mixed-used ports such as Milford Haven, Rotterdam and Singapore, where LNG and conventional terminals sit side by side. At Darwin, Svitzer has just commissioned two smaller RAstar 2800 tugs, all-purpose versions to service the Ichthys LNG project starting up in late 2017. These tugs have the standard safety features such as gas-detection systems but no customisation for LNG
carriers. “Our crew don’t handle any LNG and the tug is only connected to the carriers by the towline while the crew remains on board,” Svitzer explains. Personnel on these tugs need no special LNG training. “It’s not required because [LNG carriers] are similar to a fuel tanker in terms of hazard and safety issues,” says Svitzer. In such locations the true escort tug may not in fact be suitable. As Robert Allan says: “In many instances they are too large and even too powerful to be ideal for more routine ship-handling.” Meanwhile SIGTTO guidelines issued in September are dictating procedures and influencing training. Lamnalco, for instance, uses the guidelines to train crews on simulators in Singapore. SIGTTO specifies that tugs with escort capability must be employed at terminals in exposed locations and with long approach channels. Crews are being trained for accident scenarios that include loss of containment, collision, grounding and incursion of unauthorised vessels into the gas-exclusion zone. All are among the “top events”, in official language, in which support craft play a vital risk-mitigating role. Another for which they must be prepared is a gas carrier floating away from its jetty because the mooring lines have failed. As Smit Lamnalco’s Andrew Brown maintains, crew preparedness counts. “In an emergency, support vessels provide the first line of defence,” he says. In future, the world will see LNG-fuelled tugs able to operate anywhere in a port. As SIGTTO notes, class and IMO regulations are pending for operating – and training – tugs powered by LNG or other fuels with a low flashpoint. LNG
LNG World Shipping | May/June 2016
18 | EXPORTS East Africa
East Africa keeps faith with LNG
T
anzania and Mozambique are home to East Africa’s largest natural reserves, with a combined capacity of nearly 250 trillion cu feet (tcf ). In recent years, both countries have moved to develop these vast fields but slow government regulation has at times hampered progress, as has inadequate infrastructure and weak international prices. Italy’s Eni and US-based Anadarko Petroleum are developing straddling reservoirs in the Rovuma Basin off the northern coast of Mozambique. The partners hope to deliver LNG from the 24 tcf reservoir by 2020. Eni has discovered some 85 tcf of natural gas in Mozambique and Anadarko has unearthed some 75 tcf, enough to transform the country into a world-class producer of natural gas. Last year, the partners reached key milestones, including selecting a contractor for the initial onshore development, estimated to cost US$15 billion. The project in Mozambique comprises two LNGprocessing trains. Anadarko says the partners have so far reached long-term offtake sales contracts for more than 8 million tonnes a year (mta). The majors felt the location of the project on the east African coast would be ideal for large LNG facilities,
Tanzania and Mozambique plan to develop and export their vast gas reserves – but progress so far has been slow. Diana Taremwa Karakire reports
Mozambique has enough gas in the offshore Rovuma Basin to become a world-class exporter. Eni
built to export gas to Asia’s energy-hungry markets. Now, however, with the emergence of a global supply glut, questions remain over the project’s final investment decision. Oil and gas companies worldwide have been delaying big development projects after the sharp fall in oil prices, to which the price of Asia’s longterm LNG-supply contracts remains tied. However, Anadarko maintains that, with
Tanzania and Mozambique “appear highly cost-competitive and well placed to supply LNG to Asia” – KPMG Africa director Mark Essex
LNG World Shipping | May/June 2016
many projects on hold due to low global prices, “now is the time to move forward” with low-cost projects in areas such as Mozambique. Meanwhile, plans have been finalised to acquire land for building an LNG plant along Tanzania’s Indian Ocean coast. Some 55 tcf has been discovered in the country so far. Developing these resources will transform the Tanzanian economy over the next 10 years into a middle-income nation, according to the country’s central bank. Today, Tanzania produces around 300 million ft3 of natural gas to fire electricity plants. However, state energy company Tanzania Petroleum Development Corp predicts that this could more than triple
by 2020, enabling the country to export liquefied gas to regional and Asian markets. Shell’s recent acquisition of the BG Group raises the prospect that developing these resources may gather pace. BG’s partners in Tanzania LNG include Statoil, Exxon Mobil and Ophir Energy. They plan to build an onshore LNG export terminal in partnership with state-run Tanzania Petroleum Development Corp, to start in the early 2020s. Despite the unfriendly business environment, however, KPMG Africa senior manager energy and natural resources Jean Githinji believes that “government flexibility can keep projects going”. Critics have blamed government indecision for holding back projects such as Tanzania LNG. Earlier this year, however, Tanzania’s recently elected president John Magufuli pledged to speed up government decisions on key investment projects. This year has brought more indications that things may have started to move at last. In February, Tanzania announced that it had secured 2,070 hectares of land for the project. This removes a major hurdle for the long delayed LNG-production plant. Analysts believe that both countries’ projects remain competitive. KPMG Africa International Development Advisory Services associate director Mark Essex says that although low oil and LNG prices “challenge the economics of greenfield LNG projects”, the schemes in Tanzania and Mozambique “appear highly costcompetitive and well placed to supply Asia”. LNG
For more articles visit www.lngworldshipping.com
SOLUTION FIVE
WE Drive™
Shaft Generator Motor
Hybrid Machinery
Ship wide DC Bus Power Distribution
SOLUTION FOUR
WE Drive™
Shaft Generator Motor
Hybrid Machinery
DC-link Power Distribution
SOLUTION THREE
WE Drive™
Shaft Generator Motor
Boost Mode
SOLUTION TWO
WE Drive™
Shaft Generator Motor
Take Me Home
SOLUTION ONE
WE Drive™
Shaft Generator
Economical Operations
ENERGY EFFICIENCY
Hybrid Machinery
Efficient Power Distribution
Hybrid DC Machinery
CARGO HANDLING | 21
US RESEARCHERS ASSESS LNG BUNKERING METHANE-LEAK RISK CO2 accounts for about 82 per cent of all greenhouse gas emissions from human activities in the US
T
he battle to reduce greenhouse gas (GHG) emissions from ships is heating up – as the workload of IMO’s Marine Environment Protection Committee’s indicates – and LNG-powered vessels can be a powerful tool in the maritime community’s drive to comply with tightening international regulation of ship atmospheric pollution. Combustion of natural gas produces lower carbon dioxide (CO2), sulphur oxides (SOx), nitrogen oxides (NOx) and particulate matter than burning the same amount of oil fuel on an energy-equivalency basis. In fact, the emissions signature of LNG meets all
current, pending and proposed standards laid down for controlling ship air pollution. However, LNG has a potential environmental downside. LNG processed for carriage by sea and use as bunker fuel is, typically, 95 per cent methane, a potent greenhouse gas due to its ability to trap radiation and, hence, promote global warming. On a volume basis CO2 accounts for about 82 per cent of all greenhouse gas emissions from human activities in the US, whereas methane is responsible for 9 per cent. However, in a tonne-for-tonne comparison, methane has an impact on climate change 25 times
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greater than CO2.Although methane emissions volumes are relatively small, escapes of natural gas have a disproportionately high global warming potential (GWP) quotient. In recent years scientists have been trying to better understand the sources and volumes of methane emissions, including those across the oil and gas supply chain. In 2015 the US recognised the potential detrimental impact and introduced the first legislation to control methane escape. Work has expanded to encompass the risks that LNG-powered ships present, namely methane leakage
during LNG-bunkering and the passage of unburned methane through gas-burning engines, a process called slip.
Studies
Researchers in the US have just completed a study to determine the net effect of methane leakage and slip on LNG-fuelled ships’ GHG impact. Their work at the University of Delaware and the Rochester Institute of Technology adopted a total-fuelcycle approach in an analysis on behalf of the US Maritime Administration (MARAD). Bunkering ships that are not LNG carriers is comparatively new but will grow, not least in the US. It can take various
LNG World Shipping | May/June 2016
22 | CARGO HANDLING
forms, including truck-to-ship, ship-to-ship and terminal-toship operations, and using interchangeable portable tank containers as LNG bunker units. Opportunities exist for methane leaks from various elements of the bunkering system. In its own investigative work, ABS has adopted a risk-assessment framework in considering LNG leakage during bunkering, which the MARAD study embraced. ABS has identified four initiating events that can give rise to methane emissions: leaks from LNG pumps, pipes, hoses and tanks; inadvertent disconnection of hoses; overfilling or overpressuring vessel fuel tanks; and external impact. ABS also outlines 22 prevention and mitigation safeguards that minimise the frequency and volume of bunkering leaks.
Methane slip
But when it comes to the process of burning LNG to provide propulsion, various factors cause unburned hydrocarbon to pass through an engine and into the atmosphere. Slip emissions occur because of poor combustion of the gas under very lean methane/air mixtures, variations in flame propagation dynamics and the blow-by of unburned methane during cylinder valve operations. However, not all engines are equal when it comes to the amount of hydrocarbon they allow to pass through them untouched. The three most popular engines found on LNGpowered ships are: (a) lean-burn, spark-ignited engines operating on the Otto cycle (b) diesel dual-fuel (DDF) compression-ignited engines, that operate like lean-burn
types on the Otto cycle but with diesel cycle injection to ignite the methane/air mixture (c) diesel-injected, compression-ignited engines that operate with natural gas on the diesel cycle. Rolls-Royce and Mitsubishi make the first type, which can produce lower downstream CO2 emissions than DDF engines at similar air-fuel ratios. Lean-burn units can also operate on a much thinner fuel-air mixture and at higher compression ratios using advanced spark timing but are also more prone to slip than compressionignition engines. DDF engines typically use a port-injected, air/methane mixture, ignited by diesel cycle injection and show a flame propagation like that in Otto cycle combustion. These engines, including Wärtsilä’s
four and two-stroke units, produce lower methane slip than lean-burn gas equivalents. Combustion in highpressure, gas-injection diesel cycle engines on the other hand uses diffusion-controlled pilot fuel ignition, as in conventional diesel engines. MAN’s ME-GI units are examples of these two-stroke engines, which provide high reliability, high thermal efficiency, good fuel flexibility and a level of methane slip that can be negligible. However, high-pressure gas-injection engines fail to reduce NOx emissions to meet IMO Tier III demands. That means they require an exhaust-gas recirculation (EGR) scrubber system or a selective catalytic reduction system, sometimes both, to comply. As a general rule, methane slip occurs only in the Otto
5% fuel saving experiences on 3,000 vessels adopted by more than 200 owners and operators.
The PBCF has been developed and commercialized in 1987 by the corporate group centered in Mitsui O.S.K. Lines, Ltd.. PBCF is the originated device to be focused in the recovery of energy from the flow out energy in propeller hub vortex. Research and development on the PBCF started in 1986, and sales began the following year. Since then, an increasing number of shipowners, mainly in Japan, began to adopt the system. By 2006, the 19th year since the start of sales, the PBCF had been ordered for 1,000 vessels. Since then, it has gained worldwide recognition by vessel owners and operators, and the number of ships adopting it has doubled in just five years, reaching the 2,000 vesselｓ milestone in 2011, and now exceeding the 3,000 milestone in just four year.
Basic principle of PBCF effect
As the flows accelerated down after the blade trailing edges are blocked and rectified to a straight ship-stream by the fins of the PBCF, the hub vortex will be eliminated. without PBCF
with PBCF
hub vortex
E-mail：pbcf@motech.co.jp URL：http://www.pbcf.jp/
CARGO HANDLING | 23
cycle mode, including in dualfuel engines, but not in the diesel cycle mode. Methane slip tends to be greater at lower engine loads and depends on the composition of the gas and the engine speed. All makers of gas-burning engines are working to minimise methane slip. Manufacturers are developing combustionchamber technologies to improve the combustion process, using catalysts to oxidise unburned methane and optimising turbocharging arrangements. One area of investigation is the use catalysts in aftertreatment systems to oxidise methane, but this technology needs further development.
Key findings
The MARAD study highlights the need to consider more than just the combustion engine to minimise methane emissions. An examination of the full LNGbunkering supply chain is vital. Two key findings emerged from the research. First, methane slip is a key factor in determining whether an LNG propulsion system will improve or worsen GHG emissions compared with the burning of conventional fuels. Ships using compressionignited LNG systems – whose methane slip is low – produce low GHG emissions compared with vessels burning conventional fuels, even allowing for a certain amount of methane leakage during routine bunkering. However, spark-ignited LNG engines cause more methane slip and can negate the recognised environmental advantages of the LNG system. This is true even when there are no bunkering leakages. MARAD’s second important finding is how routine bunkering leakages can have a disproportionate impact on overall GHG emissions due to the high
volume of natural gas throughput and methane’s high GWP. For example, a 1 per cent methane leakage during bunkering operations leads to a 10 per cent increase in net GHG emissions. For a compression ignition engine a 1 per cent bunkering leakage cut the net GHG emissions advantages of LNG
from a benefit of 14.9 per cent to 6.7 per cent compared with low-sulphur diesel fuel. MARAD’s study found that reducing leakage in frequently recurring bunkering processes has substantial benefits on total-fuel-cycle GHG impacts. Researchers identified several stages in the bunkering process where
leakage can be reduced and they recommended further investigation to look more closely at these areas. Low natural gas prices mean that the economic value of this methane loss may not be significant. However, the environmental opportunity costs are also very important. LNG
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24 | OFFSHORE FSRUs
FSRUS OPEN LNG TO NEW IMPORTERS Lower gas prices, more supply and excess capacity add up to one segment of the LNG market that is doing rather nicely, thank you. Karen Thomas reports
A
s Australia ramps up its LNG exports and as the US switches from importing to exporting, analysts expect a resulting supply glut – and a new incentive to new players to import this ever-cheaper commodity. Consultancy Wood Mackenzie estimates that new projects will deliver a combined 125 million tonnes a year (mta) to market, including 10-17 mta this year. Meanwhile, the cost of buying LNG on the spot market has fallen by half in the last 12 months. That spells bad news for energy companies’ returns on
LNG World Shipping | May/June 2016
investment – but for prospective buyers, there is more than enough cheap gas coming to market and a surplus of idle LNG carriers to deliver or store it. The International Gas Union (IGU) predicts an increase in LNG-importing countries from fewer than 30 two years ago to nearly 50 by 2025. Building land-based import terminals can be expensive and time-consuming, and can run into regulatory obstacles. So, for many prospective LNG buyers, floating storage and regasification units (FSRUs) present a cheap, quick and straightforward alternative, at around US$300 million to build, or as little as US$80 million to convert, according to broker Poten & Partners.
GROWTH MARKET
Last year, new importers Egypt, Pakistan and Jordan opted for FSRUs – and the trend looks set to gather momentum. According to the annual report of the 2015 International Group of Liquefied Natural Gas Importers (GIIGNL), the live FSRU fleet comprised 23 vessels with a combined capacity at year-end of nearly
For more articles visit www.lngworldshipping.com
FSRUs OFFSHORE | 25
3.5 million m³. The orderbook stands at eight vessels, three to be delivered this year and five next year. LNG World Shipping has identified nearly 30 operating and confirmed FSRU-based projects worldwide and nearly 40 at the proposal stage. US-based Excelerate owns nine FSRUs, has an LNG carrier it deploys for storage and holds four options at Daewoo Shipbuilding and Marine Engineering (DSME). Golar LNG has seven FSRUs, a converted LNGC acting as a floating storage unit (FSU) off Jamaica and takes delivery of its eighth – unfixed – FSRU next year. Norway-based Höegh LNG has six FSRUs on the water, another fixed to the Penco-Lirquen import project in Chile and one unfixed FSRU, all part of its plans to expand this fleet to at least 12 by 2019. The Chile project has gained new urgency now that Höegh has decided not to enter the floating LNG (FLNG) production segment. Elsewhere, a fourth established player, OLT, is importing LNG to Italy via FSRU. New entrants are already circling, however. BW Gas entered the market last year, when it dispatched the 170,000m³ BW Singapore to Egypt, chartered as a second floating import terminal to EGAS. BW has now exercised its option on a second FSRU newbuilding but where it will deploy Hull 2118, the company has yet to say. The LNG transporter has been linked to a plan by UK-backed First Gas to station an FSRU off Yuzhny in Ukraine. And now at least three new players are about to enter the market.
BIGGEST VESSEL
Mitsui OSK takes delivery this year of the largest FSRU to hit the water, at 263,000m³. Hull 2419 will produce up to 4 mta when it replaces the 145,000m³ Höegh LNG-owned GDF Suez Neptune off Uruguay in November. Next year, Gazprom will take delivery of the world’s first iceclass FSRU, having commissioned the 174,000m³ newbuilding to import up to 3.6 mta through Russia’s Baltic enclave at Kaliningrad. Teekay LNG has ordered a floating storage unit (FSU) for the Bahrain LNG build-own-operate-transfer (BOOT) joint venture with Samsung C&T and Gulf Investment Corp (GIC). It is converting ME-GI engine LNG carrier Hull 2461 into a 174,000m³ FSU to be moored off Hidd for 20 years. Teekay has also been linked to talks with India’s Swan Energy to station a 5 mta FSRU off Pipavav in Gujarat. In a second proposed Gujarat import project at Jafarabad, Belgium-based Exmar, which has suffered setbacks to its FLNG ambitions this year, is negotiating with Swan Energy to supply a 4.5 mta FSRU. And in April Fox Petroleum announced that it has signed a Memorandum of Understanding to position an FSRU at Karawar in Karnataka State and to invest US$1.05 in import infrastructure. The energy-hungry Indian subcontinent is emerging as a prospective FSRU hotspot, with at least 11 such projects under discussion, from Gwadar in Pakistan’s Baluchistan region to Moheshkhali Island in the far south of Bangladesh. Monaco-based GasLog furthered its plans to enter the FSRU space by hiring Bruno Larsen in March to head this business. He will present his growth strategy to the board in May. Other reports have linked China National Offshore Oil Corp (CNOOC) and other shipping and energy compatriots to the FSRU market. Poten says shipowners there are “looking at buying old carriers for conversion and chartering them out to city
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gas distributors, given attractively low valuations of US$18-20 million... “Converted FSRUs are attractive to independent Chinese LNG importers that are at the mercy of the country’s three major importers, which can deny third-party deliveries, even when a tanker is en route, because of storage constraints. “FSRUs could [also] be competitive against high tolling fees for third-party access, currently sought by state-owned onshore terminal operators.”
NEW PROJECTS
The consensus holds that FSRU projects will grow significantly in number over the next few years – but how fast? Excelerate Energy chief executive officer Rob Bryngelson suggests a rate of four or five projects a year, a mix of smaller and larger FSRUs. Consultancy Douglas-Westwood predicts a near doubling of the world fleet to 2022, growth in Asia and western Europe in particular increasing the number to 55 vessels. The LNG World Shipping FSRU project list shows the Indian subcontinent as generating most interest in new ventures, with at least nine projects under discussion in India, one new venture in Pakistan and one in Bangladesh. Otherwise, the global spread of projects is even, with six proposed ventures apiece in Asia, Africa, Latin America and Europe. Those of particular interest in the coming months include Croatia, which is about to decide whether to develop Krk LNG as a land-based or FSRU-based project. In Brazil, Golar LNG is moving into the midstream LNG market. It has the exclusive right to supply an FSRU to a new combined-cycle power plant there in whose development it also has a stake. Golar is likely to convert one of its tri-fuel diesel-electric (TFDE) newbuildings for that project. Chief executive Gary Smith has pledged to step up the company’s conversion programme to reduce Golar’s exposure to the “disappointing” spot market. So which countries are likely to join the LNG-importers' club next? The top contenders include Chile, where Höegh will soon deliver Hull 2685 and Ghana, where West Africa Gas (WAGL) has chartered the 170,000m³ Golar Tundra on a five-year contract to 2021, with options. In Bahrain, the Teekay-led FSU venture plans a 2018 start date, as do the Gazprom venture in Kaliningrad, the New Fortress Energy FSU project in Jamaica and the Swan Energy/Teekay LNG terminal in Pipavav. At least one Indian project will come to market within the next two years, while in the UK, Excelerate has agreed to station an FSRU off Teesside and Port Meridian Energy plans to set up a 6 mta STL-buoy project in Morecambe Bay. Watch this space. LNG
LNG World Shipping | May/June 2016
THE GLOBAL FSRU FLEET
TOP
5
LIVE FLEET +ORDERBOOK
EXCELERATE ENERGY
9
GOLAR LNG
Golar Winter Golar Spirit Golar Freeze Nusantara Tegas Satu Golar Igloo Golar Eskimo Golar Tundra Golar Arctic (FSU) Hull 2189
7+1
Hร EGH LNG
6+2+1
BW GAS
1+1 OLT
Experience Excelsior Excellence Express Exemplar Exquisite Explorer Expedient Excelerate
(unconfirmed)
Hรถegh Grace GDF Suez Neptune Independence Hรถegh Gallant PGN FSRU Lampung GDF Suez Cape Ann Hull 2685 Hull 2552 ordered HHI, Feb 2016 (TBC) BW Singapore Hull 2118
FSRU Toscana
1 LNG World Shipping | May/June 2016
FSRU newcomers (orderbook) Mitsui OSK
1
Teekay LNG
1 (FSU)
Gazprom
1
Exmar
1 (barge)
For more articles visit www.lngworldshipping.com
Existing
Proposed
Research: Karen Thomas, Mike Corkhill Infographic: Richard Neighbour Š LNG World Shipping, April 2016 For more articles visit www.lngworldshipping.com
LNG World Shipping | May/June 2016
28 | FSRU infographic
EXISTING AND PLANNED FLOATING STORAGE AND REGASIFICATION (FSRU) PROJECTS WORLDWIDE, MAY 2016 Region
Project name/location
parties involved
plan details
North America
San Pedro de Macoris, Dominican Republic
BW Gas
1 mta FSRU/ FSU from 2016
South America
Buenaventura, Colombia
Government of Colombia
barge-based option
South America
Recife, Brazil
Ebrasil
is seeking a FSRU from 2019
South America
Rio Grande do Sul, Brazil
Bolognesi Group talks with Excelerate Energy
South America
Suape, Brazil
Bolognesi Group
intends to import 2 mta from 2017 joint venture. Golar LNG exclusive right to provide the FSRU
South America
Sergipe, Brazil
GenPower and Golar LNG
South America
Mejillones, Chile
Gas Atamaca talks with Golar LNG
seeking a 1.5 mta FSRU for 15 years
South America
GNL Penco, Concepcion Bay, Chile
Cheniere/Australis
looking for FRU to import 4.2 mta from 2017
South America
San Vicente Bay, Chile
ENAP
wants to charter a 2 mta FSRU
Africa
Dakar, Senegal
Senelec, Mitsui and Nebras Power
FSRU to be stationed near Dakar, capacity TBC
Africa
Abidjan, Ivory Coast
Petroci/Benin Electricity/Volta River Authority
seeking a 2 mta FSRU or FSU for 10-year charter
Africa
Ghana 1000, Takoradi, Ghana
TBC
Africa
Cotonou, Benin
Gasol
Africa
Walvis Bay, Namibia
Xaris Energy/Excelerate Energy
wants to import up to 1.2 mta into Benin, Togo and Ghana from 2016
Africa
Adabiya, Egypt
EGAS
wants to charter its thrid FSRU/cross-check with above
Africa
Saldanha Bay, South Africa
IPP/Dept of Energy
up to three FSRUs for 2018-2019 start. Karen Breytenbach, DoE
Europe
Morecambe Bay, UK
Port Meridian Energy
6 mta STL-buoy project
Europe
Marsaxlokk, Malta
Enemalta
plans to charter an FSU
Europe
Aegean LNG, Kavala, Greece
DEPA
plans to charter a 2.7 mta FSRU
Europe
Alexandroupolis, Greece
Prometheus Gas
proposed 1.9 mta FSRU
Europe
Yuzhny, Ukraine
First Gas
preliminary agreement with BW Gas for 1.4 mta FSRU
Krk, Croatia
Government of Croatia
2.4 mta FSRU or land-based terminal
Beirut, Lebanon
Ministry of Energy
tender relaunch planned for 1.3 mta FSRU
Europe Middle East Indian subcontinent
Karachi, Pakistan
Government of Pakistan
tender launch, January 2016
Indian subcontinent
Gwadar, Pakistan
Interstate Gas Systems/government of China
FSRU option, TBC
Indian subcontinent
Jafarabad, Gujarat
Swan Energy/Exmar
4.5 mta FSRU
Indian subcontinent
Swan LNG, Pipavav, India
Swan Energy/Teekay LNG
5 mta FSRU, 2018
Indian subcontinent
Mumbai
India Gas Solutions
5 mta FSRU
Indian subcontinent
Karwar, Karnataka, India
Fox Petroleum
7.6 mta FSRU
Indian subcontinent
Kakinada, India
APGDC, Shell, Engie
5 mta FSRU
Indian subcontinent
KG LNG, Kakinada, India
VGS
4.5 mta, FSU or FSRU
Indian subcontinent
Port of Kolkata
Port of Kolkata and Excelerate
4 mta FSRU, 25 years
Indian subcontinent
Krishnapatnam, Andhra Pradesh
Petrogas
5 mta FSRU
Indian subcontinent
H-Energy East Coast, Digha, India
Hiranandani Group
8 mta FSRU
Indian subcontinent
Moheshkhali Island, Bangladesh
Petrobangla and Excelerate Energy
5 mta FSRU, 15 years
Asia
Batangas, Philippines
Shell
4 mta
Asia
Philippines, TBC
HiLoad LNG/Vires
Floating regas dock (FRD)
Asia
Cilamaya, West Java, Indonesia
Pertamina
600,000 tonne FSRU
Asia
Cilacap, Central Java, Indonesia
Pertamina; Central Java FSRU
1.2 mta-1.6 mta FSRU
Asia
Son My, Vietnam
Petrovietnam
3 mta FSRU from 2020
Asia
Thi Vai, Vietnam
Petrovietnam
1 mta FSRU from 2017
Asia
Gulf of Martaban, Myanmar
Government of Myanmar
2.7 mta, Yangon FSRU
LNG World Shipping | May/June 2016
For more articles visit www.lngworldshipping.com
infographic FSRU | 29
CONFIRMED FLOATING STORAGE AND REGASIFICATION UNITS (FSRUS) AND FLOATING STORAGE UNITS (FSUS), APRIL 2016 Region Central America
Project name/location
Vessel name
Capacity, m3
owner
charterer
Aguirre Offshore GasPort, Puerto Rico
TBC
150,900
South America
Cartagena, Colombia
Höegh Grace
170,000
Höegh LNG
Sociedad Portuaria El Cayao
South America
Pecém, Brazil
Golar Spirit
129,000
Golar LNG Partners
Petrobras
South America
Bahia, Brazil
Golar Winter
138,000
Golar LNG Partners
Petrobras
South America
Guanabara Bay, Rio de Janeiro, Brazil
Experience
173,400
Excelerate Energy
Petrobras
South America
various
Excelsior
138,000
South America
GNL del Plato, Montevideo, Uruguay
GDF Suez Neptune
145,000
Höegh LNG
Gas Sayago
South America
GNL del Plato, Montevideo, Uruguay
Hull 2419
263,000
Mitsui OSK
Gas Sayago
South America
Bahia Blanca GasPort, Argentina
Exemplar
150,900
Excelerate Energy
YPF
South America
GNL Escobar, Argentina
Expedient
150,900
Excelerate Energy
YPF
South America Caribbean
Excelerate Energy Puerto Rico Electric Power Authority
Penco-Lirquen, Chile
Hull 2685
170,000
Hoegh LNG
Penco-Lirquen
Montego Bay, Jamaica
Golar Arctic (FSU)
140,650
Golar LNG
New Fortress Energy West Africa Gas Ltd
Africa
Tema, Ghana
Golar Tundra
170,000
Golar LNG Partners
Africa
Ain Sokhna, Egypt
Hoegh Gallant
170,000
Hoegh LNG
EGAS
Africa
Ain Sokhna, Egypt
BW Singapore
170,000
BW Shipping
EGAS
Teesside, UK
TBC
Excelerate Energy 137,500 OLT Offshore LNG Toscana
Europe Europe
Livorno, Italy
FSRU Toscana
Europe
Kaliningrad, Russia
Hull 2854
174,000
Gazprom
Gazprom
Europe
Klaipeda, Lithuania
Independence
170,000
Höegh LNG
Klaipedos Nafta
Hadera Gateway, Israel
Excellence
138,000
Excelerate Energy
Israel Electric
Middle East
Aqaba, Jordan
Golar Eskimo
160,000
Golar LNG
Jordan LNG
Middle East
Mina al-Ahmadi, Kuwait
Golar Igloo
170,000
Golar LNG
Kuwait National Petroleum
Middle East
Jebel Ali, Dubai
Golar Freeze
125,000
Golar LNG
Dubai Supply Authority
Middle East
Jebel Ali, Dubai
Explorer
150,900
Excelerate Energy
Dubai Supply Authority Bahrain LNG
Middle East
Middle East
Hidd, Bahrain
Hull 2461 (FSU)
174,000
Teekay LNG
Port Qasim, Karachi, Pakistan
Exquisite
150,900
Excelerate Energy
Engro
Asia
Tianjin, China
GDF Suez Cape Ann
145,000
Hoegh LNG Partners
Engie, sublet to CNOOC
Asia
Lampung, Sumatra, Indonesia
Lampung FSRU
170,000
Hoegh LNG Partners
Perusahaan Gas Negara
Asia
West Java, Indonesia
Nusantara Regas Satu
125,000
Golar LNG Partners
Nusantara Regas
Asia
Bali, Indonesia
FSU
26,000
JSK Group
PT Pelindo Energi Logistik
Asia
Bali, Indonesia
JSK Group
PT Pelindo Energi Logistik
Indian subcontinent
FRU
Unfixed
Express
150,900
Excelerate Energy
Unfixed
Excelerate
138,000
Excelerate Energy
For more articles visit www.lngworldshipping.com
LNG World Shipping | May/June 2016
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Nakilat FLEET PROFILE | 31
Qatar Gas Transport Co (Nakilat): a story of growth Q
atar Gas Transport Company Ltd (Nakilat) could make an interesting case study at business school on how to successfully develop, implement and control a secure shipping supply chain. Nakilat was formed in 2004 to deliver the 77 million tonnes per annum (mta) of LNG that Qatar’s state-owned gas-producing companies RasGas and Qatargas planned to export. It secured 25-year contracts to ship the LNG from these producers and embarked on a huge LNG carrier newbuilding programme, said to have cost about US$11 billion. As of April, the Nakilat-controlled fleet comprised 63 wholly or part-owned LNG carriers with a total capacity of 13 million m3 and a current value of US$11 billion, according to VesselsValue.com. The vessels are reported to be on 25-year charters, with ten-year options, to RasGas and Qatargas. To maximise exports, Nakilat chose the largest membrane containment system designs in three size ranges: the Q-Max, at around 260,000m3; the Q-Flex, around 216,000m3; and large LNG carriers of around 150,000m3. Q-Max and Q-Flex ships are said to be expensive to operate, due to the twin engine design, but since September, Nakilat has been testing the 2010-built Rasheeda, whose twin diesel engines have undergone a retrofit with MAN’s ME-GI dual-fuel propulsion system that can run on LNG. Nakilat wholly owns all the Q-Max ships and holds a majority share of 16 of the Q-Flex types. Management and operation of these 31 vessels is a joint exercise with Shell International Trading and Shipping Company Ltd (STASCO) under a 12-year deal that started in 2008. Under this agreement, STASCO is transferring its technical and LNG shipmanagement knowledge to Nakilat. This handover of expertise has already seen success in the case of four Nakilat
Qatar-based Nakilat will rely on its partners when it needs more tonnage. VesselsValue senior data editor Craig Jallal examines the future direction of this US$11 billion fleet
VLPG carriers now entirely managed by Nakilat Shipping Qatar, a wholly owned subsidiary. The remaining 36 LNG carriers in the Nakilat-controlled fleet are owned and operated by a small group of third parties, with Nakilat holding a significant share in the joint ventures of 43 per cent on aggregate, with buy-out options to purchase full control. One of the major partners is Angelicoussis Shipping, which, through Maran Gas Maritime, has 15 LNG carriers chartered out to Qatari gas companies. Although Nakilat itself is no longer ordering LNG carriers – the last one was delivered in 2010 – the fleet available to Nakilat continues to expand through Maran Gas, which has 13 on order, with at least two said to be earmarked for Nakilat charters. This highlights Nakilat’s future direction, relying on partners such as Maran Gas to provide the swing supply. In the long-term, under the STASCO agreement, by 2020 Nakilat will directly manage the 14 Q-Max LNG carriers and 16 of the Q-Flex LNG carriers. These ships will undergo repairs and refits, and possible engine retrofits, at Nakilat’s own facilities in Qatar. By 2020, Nakilat may have bought out some of the joint venture partners, lengthening the list of wholly owned LNG vessels.
NAKILAT-ASSOCIATED LNG-CARRIER JOINT VENTURES Name
Location
Nakilat ownership
J5 Nakilat No 1 Ltd
Cayman Islands
40%
J5 Nakilat No 2 Ltd
Marshall Islands
40%
J5 Nakilat No 3 Ltd
Marshall Islands
40%
J5 Nakilat No 4 Ltd
Marshall Islands
40%
J5 Nakilat No 5 Ltd,
Marshall Islands
40%
J5 Nakilat No 6 Ltd
Marshall Islands
40%
J5 Nakilat No 7 Ltd
Marshall Islands
40%
J5 Nakilat No 8 Ltd
Marshall Islands
40%
Peninsula LNG Transport No 4 Ltd
Marshall Islands
30%
Teekay Nakilat Corp.
Marshall Islands
30%
Germany
45%
Netherlands
45%
Marshall Islands
45%
Liberia
45%
Pronav - Neptana Schiffsbetriebsgesellschaft Alexandra KG Pronav - Nausola Schiffsbetriebsgesellschaft Britta KG Pronav - Nauranto Schiffsbetriebsgesellschaft Gabriela KG Pronav - Neptora Schiffsbetriebsgesellschaft Julia KG Teekay Nakilat (III) Corp
Marshall Isalnds
60%
OSG Nakilat Corp
Marshall Islands
50.1%
India LNG Transport Company No 3 Limited
Malta
20%
For more articles visit www.lngworldshipping.com
LNG World Shipping | May/June 2016
32 | FLEET PROFILE Nakilat
FLEET PROFILE, QATAR GAS TRANSPORT CO (NAKILAT) vessel name
capacity m3
built
Nakilat ownership, %
charterer
Chartered until
Milaha Ras Laffan
138,270
2004
0%
RasGas II, Trains 3,4+5
2029
Maran Gas Asclepius
145,700
2005
60%
RasGas II, Trains 3,4+5
2030
Umm Bab
145,700
2005
60%
RasGas II, Trains 3,4+5
2030
Simaisma
145,700
2006
60%
RasGas II, Trains 3,4+5
2031
Milaha Qatar
145,000
2006
0%
RasGas II, Trains 3,4+5
2031
Al Gattara
216,280
2007
50.1%
Qatargas II, Train 4
2032
Tembek
216,200
2007
50.1%
Qatargas II, Train 4
2032
Al Ruwais
210,100
2007
45%
Qatargas II, Train 4
2032
Al Safliya
210,100
2007
45%
Qatargas II, Train 4
2032
Al Jassasiya
145,700
2007
60%
RasGas II, Trains 3,4+5
2032
Maran Gas Coronis
145,700
2007
60%
RasGas II, Trains 3,4+5
2032
Bu Samra
267,335
2008
100%
Qatargas II, Train 5
2033
Mozah
267,335
2008
100%
Qatargas II, Train 5
2033
Umm Slal
267,335
2008
100%
Qatargas II, Train 5
2033
Al Ghuwairiya
263,249
2008
100%
Qatargas II, Train 5
2033
Al Thumama
216,235
2008
40%
RasGas III, Train 6
2033
Al Gharrafa
216,224
2008
50.1%
Qatargas II, Train 4
2033
Al Utouriya
216,203
2008
40%
RasGas III, Train 6
2033
Al Hamla
216,200
2008
50.1%
Qatargas II, Train 4
2033
Al Sahla
216,164
2008
40%
RasGas III, Train 6
2033
Al Kharsaah
214,198
2008
100%
RasGas III, Train 6
2033
Al Huwaila
214,176
2008
100%
RasGas III, Train 6
2033
Al Shamal
213,536
2008
100%
RasGas III, Train 6
2033
Al Khuwair
213,101
2008
100%
RasGas III, Train 6
2033
Al Oraiq
210,198
2008
40%
RasGas III, Train 6
2033
Murwab
210,174
2008
40%
RasGas and Qatargas
2033
Al Aamriya
210,168
2008
40%
RasGas III, Train 6
2033
Umm Al Amad
210,157
2008
40%
RasGas III, Train 6
2033
Fraiha
210,152
2008
40%
RasGas III, Train 6
2033
Al Ghariya
210,100
2008
45%
Qatargas II, Train 4
2033
Duhail
210,100
2008
45%
Qatargas II, Train 4
2033
Al Mafyar
267,335
2009
100%
Qatargas 3, Train 6
2034
Al Mayeda
267,335
2009
100%
Qatargas 3, Train 6
2034
Mekaines
267,335
2009
100%
Qatargas 3, Train 6
2034
Shagra
266,398
2009
100%
Qatargas 4, Train 7
2034
Al Dafna
266,366
2009
100%
Qatargas 4, Train 7
2034
Al Samriya
261,700
2009
100%
Qatargas II, Train 5
2034
Lijmiliya
261,700
2009
100%
Qatargas II, Train 5
2034
Al Ghashamiya
217,330
2009
100%
Qatargas 3, Train 6
2034
Al Kharaitiyat
216,200
2009
100%
Qatargas 3, Train 6
2034
Al Rekayyat
216,200
2009
100%
Qatargas 3, Train 6
2034
Mesaimeer
216,200
2009
100%
Qatargas 3, Train 6
2034
Al Shahaniya
210,166
2009
100%
Qatargas 3, Train 6
2034
Al Sadd
210,162
2009
100%
Qatargas 3, Train 6
2034
Onaiza
210,150
2009
100%
Qatargas 3, Train 6
2034
Al Karaana
210,100
2009
100%
Qatargas 4, Train 7
2034
Al Khattiya
210,100
2009
100%
Qatargas 4, Train 7
2034
Al Nuaman
210,100
2009
100%
Qatargas 4, Train 7
2034
Zarga
266,433
2010
100%
Qatargas 4, Train 7
2035
Rasheeda
266,276
2010
100%
Qatargas 4, Train 7
2035
Aamira
266,236
2010
100%
Qatargas 4, Train 7
2035
Al Bahiya
210,100
2010
100%
RasGas 3, Train 7
2035
Taitar No 3
147,366
2010
0%
RasGas to Taiwan
2035
Maran Gas Posidonia
161,900
2014
60%
Nakilat
Short-term
Maran Gas Apollonia
161,870
2014
60%
STASCO (ex-BG charter)
Not disclosed
Maran Gas Delphi
159,800
2014
60%
STASCO (ex-BG charter)
Not disclosed
Maran Gas Efessos
159,800
2014
60%
Nakilat
Short-term
Maran Gas Alexandria
161,870
2015
60%
RasGas and Qatargas
Not disclosed
Maran Gas Sparta
161,870
2015
60%
STASCO (ex-BG charter)
Not disclosed
Maran Gas Lindos
155,800
2015
60%
STASCO (ex-BG charter)
Not disclosed
Maran Gas Achilles
174,000
2016
60%
RasGas and Qatargas
Not disclosed
Hull 2437, DSME
170,000
2017
[Maran Nakilat TBC]
RasGas and Qatargas
Not disclosed
Hull 2438, DSME
170,000
2017
[Maran Nakilat TBC]
RasGas and Qatargas
Not disclosed
LNG World Shipping | May/June 2016
For more articles visit www.lngworldshipping.com
2016 • A supplement to LNG World Shipping
Dual-fuel boxship debut: A new era for LNGpowered tonnage Indonesia: a new frontier for mini-LNG Infographic: your exclusive guide to the LNG-fuelled vessels on order and in service
“LNG holds the potential for significant benefits to developers of small-scale liquefaction projects and to buyers of containerised LNG in smaller, geographically isolated markets” Gina Sagar, associate, Baker Botts, see page 36
contents
2016
14 Comment
06
5 This year's report tracks the growth and slow but steady development of the global LNG-fuelled fleet
Analysis
6 Indonesia’s plan to develop a mini-LNG distribution network positions the world’s fourth most populous nation as the small-scale market to watch. Karen Thomas reports
Case study
Hotspots
10 Fast-moving consumer goods (FMCG) giant Unilever has joined forces with Engie and other supply-chain partners to form Connect2LNG, one of Europe’s most ambitious small-scale LNG ventures that brings together the supply and demand sides of the business
20
Warm spots Cold spots
Opinion
14 Top ports outline the opportunities and challenges they have faced in seeking to offer LNG bunker-supply services
BUNKER-SUPPLY HOT AND COLD SPOTS
6
36
1 4
THINGS THAT SUPPORT LNG BUNKERING IN PORTS
Available supply, proximity to import terminal Reliable and safe logistics
Source: DNV GL, 2016
2 5
Favourable investment/ taxation climate Competence, knowledge and skills
3 6
Clear, established legislation/regulations
ACCIDENTS ACCESS TO CAPITAL SEA-TO-ROAD SUPPLY SECURITY LACK OF COMPETENCES MARKET MECHANISM MISFIT MORE REGULATIONS OPEX CAPEX SHORT-TERM RESULTS PRESSURE
AGAINST
Public acceptance Source: DNV GL, 2016
Bunkering
BUSINESS MODEL COMMERCIAL NICHES ALLIANCES BRAND-BUILDING ENVIRONMENT IMPROVED OPEX SOCIAL BENEFITS TECHNOLOGY LEADERSHIP FIRST-MOVER ADVANTAGE
19 When it comes to offering LNG as marine fuel, many terminals have good intentions – but only a handful have translated those good intentions into a viable FOR commercial service
LNG bunkering in the balance; challenges and opportunities
Infographic
Source: LNG World Shipping, DNV GL, April 2016 Infographic: Richard Neighbour
20 LNG World Shipping maps the world’s emerging LNG-bunkering hotspots and the factors that drive or deter new ventures
Infrastructure
22 Poseidon Med II is tackling the lack of LNG-distribution infrastructure in the Adriatic and the eastern Mediterranean
For more articles visit www.lngworldshipping.com
LNG World Shipping | May/June 2016
contents Logistics
24 Small, floating regasification units offer faster, more flexible access to gas to remote communities. Mike Corkhill reviews the latest projects
Special report
Your exclusive guide to the world’s oceangoing LNG-powered non-LNG carriers
Infographic
26 Our annual review of LNG-powered tonnage examines these vessels by number, engine type and area of operation
Sector reports
28 LNG-powered passengerships 30 LNG-powered tankers and bulkers 32 Containerships, ro-ro and general cargoships 34 Service and supply ships
Viewpoint
36 Gina Sagar and Steven Miles from Washington-based law team Baker Botts look at the opportunities and challenges for containersised LNG shipments
Follow LNG World Shipping on Twitter @LNGkaren Keep up with the latest international LNG shipping news at www.lngworldshipping.com Front cover, image © Crowley Marine
Editor: Karen Thomas t: +44 20 8370 1717 e: karen.thomas@rivieramm.com Consultant Editor: Mike Corkhill t: +44 1825 764 817 e: mike.corkhill@rivieramm.com Sales Manager: Ian Pow t: +44 20 8370 7011 e: ian.pow@rivieramm.com Production Manager: Richard Neighbour t: +44 20 8370 7013 e: richard.neighbour@rivieramm.com Subscriptions: Sally Church t: +44 20 8370 7018 e: sally.church@rivieramm.com Korean Representative: Chang Hwa Park Far East Marketing Inc t: +82 2730 1234 e: chpark@unitel.co.kr Japanese Representative: Shigeo Fujii Shinano Co Ltd t: +81 335 846 420 e: scp@bunkoh.com Chairman: John Labdon Managing Director: Steve Labdon Finance Director: Cathy Labdon Operations Director: Graham Harman Editorial Director: Steve Matthews Executive Editor: Paul Gunton Head of Production: Hamish Dickie Portfolio Manager: Bill Cochrane Published by: Riviera Maritime Media Ltd Mitre House 66 Abbey Road Enfield EN1 2QN UK
www.rivieramm.com ©2016 Riviera Maritime Media Ltd
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Disclaimer: Although every effort has been made to ensure that the information in this publication is correct, the Author and Publisher accept no liability to any party for any inaccuracies that may occur. Any third party material included with the publication is supplied in good faith and the Publisher accepts no liability in respect of content. All rights reserved. No part of this publication may be reproduced, reprinted or stored in any electronic medium or transmitted in any form or by any means without prior written permission of the copyright owner.
LNG World Shipping | May/June 2016
For more articles visit www.lngworldshipping.com
COMMENT | 5
Small-Scale LNG Supplement
TRACKING GROWTH IN LNGFUELLED TONNAGE
E Karen Thomas, Editor
very year, LNG World Shipping dedicates part of its small-scale LNG shipping supplement to the global LNG-fuelled fleet, examining how quickly demand has grown in the last 12 months for this cleanerburning fuel. Our 2016 report finds that the total LNGfuelled fleet numbered 80 in service and 106 on order, as at the end of March. That total compares with 66 in service and 81 on order at the end of March 2015, giving an increase on-year by overall vessel numbers of 21 per cent for those in service and nearly 31 per cent for tonnage on order. The report goes on to study trends in LNGfuelled tonnage by ship type: passenger ships, service and supply ships, container, ro-ro and cargo ships and tankers and bulkers that are not LNG carriers. In passing, our research also lists the LNGpowered vessels in service and on order that sail the world’s inland waterways. Growth in LNG-fuelled tonnage has been slower than many anticipated. Two years ago, classification society DNV GL was expecting to see more than 1,000 LNG-fuelled vessels in service by 2020. Now DNV GL expects that number to reach just 600 by then. However, new impetus will come, starting this summer, when the first of four purposebuilt, multi-user LNG bunker-supply ships
comes into service. Meanwhile – as is always the way with research that has a cut-off point – news has now emerged of at least one – vast – additional order. In early April, MSC Cruises announced a US$4.1 billion order for two enormous LNG-fuelled cruiseships, plus two options, from STX France. STX will deliver the 200,000 gt-plus ships in 2022, 2024, 2025 and 2026. If you need to see the full list, visit the online version of this comment on the LNG World Shipping website where, exclusive to our online readers, we list all the LNGfuelled vessels in service and on order by the end of March 2016. We list the 186 vessels first by name, order and delivery date and then by shipbuilder, engine, propulsion type and class society. See http://bit.ly/lngfuelledtonnage for more information. And if you are interested in how this segment of the business will evolve and grow, we will look at prospects for LNG-fuelled tonnage next month in London, at the LNG World Shipping ship-shore interface conference. Our two-day event will take place in London on 11-12 May, bringing together LNG shipowners, suppliers and industry commentators to discuss the implications of LNG demand growth for supply-chain security and efficiency. We hope you will join us. LNG
Two years ago, classification society DNV GL was expecting to see more than 1,000 LNG-fuelled vessels in service by 2020. Now DNV GL expects that number to reach just 600 by then
For more articles visit www.lngworldshipping.com
LNG World Shipping | May/June 2016
6 | ANALYSIS
Small-Scale LNG Supplement
INDONESIA: BIG PLANS FOR SMALL-SCALE LNG Asia’s populous archipelago state sees LNG as the solution to power generation on its outlying islands. But delivering those plans requires hefty investment and significant new infrastructure. Karen Thomas reports
O
nce – but no longer – the world’s secondlargest gas producer, Indonesia will soon need to import LNG to meet soaring domestic demand for gas. Indonesia is one of Asia’s most buoyant economies, expected to grow 6 per cent this year. It is also the world’s fourth most populous nation, its 255 million people spread across 14,000 islands. Indonesia’s gas production has failed to keep pace with growing demand, at home and abroad. By 2014, the country had fallen in the world rankings to become the world’s tenth-largest gas producer, at 74.4 billion m3 according to BP, but was also the 25th largest consumer of gas, using 38.4 billion m3. Indonesia cut its LNG output by 1 million tonnes (mt) in 2014, having shut down exports from Arun LNG in October and converting the plant into a receiving terminal. It now has three LNG-
production plants that last year delivered some 16.5mt, of which it exported 14mt. The three liquefaction plants are the 22.5 million tonne a year (mta) Bontang LNG plant on Kalimantan, the 2 mta Donggi-Senoro LNG on Sulawesi and the 7.6 mta, BP-owned Tangguh LNG in Irian Jaya, which is due to add a third train, of 3.8 mta. Energy World plans to build a second Sulawesi-based LNG plant, the Sengkang LNG project, comprising two initial trains producing 0.5 mta each. Japan-based Inpex proposed to develop Abadi FLNG as the country’s first floating LNG (FLNG) production project, to launch in the late 2020s. However, Jakarta declared this spring that it wants the project to be developed on shore. Despite plans to increase the country’s production capacity, Indonesia is on course to become a net importer
LNG World Shipping | May/June 2016
Indonesia needs to more than double its electricity production by 2022 to meet annual demand growth of 7-8.5 per cent. (Asia Development Bank)
For more articles visit www.lngworldshipping.com
ANALYSIS | 7
Small-Scale LNG Supplement
of LNG by the end of this decade. National oil company Pertamina expects national LNG demand to increase to 12 mta by 2019-2020 and is looking to secure 6.1 mta from the international market.
Demand pressure
The scale of projected demand has put Indonesia under intense pressure to secure its future energy supply and to invest in the infrastructure to deliver it. Indonesia’s ministry of energy predicts that the country will need to more than double its electricity production, from 213 tWh in 2013 to some 440 tWh by 2022 to meet annual demand growth of 7-8.5 per cent. Joko Widodo’s government sees mid- and small-scale LNG distribution as a solution to the country’s growing energy needs. State-owned power company Perusahaan Listrik Negara (PLN) has launched a mini-LNG strategy, in which coastal LNG carriers of around 10,000m3 capacity will deliver to Bali, Lombok, Makassar and Maluku and other locations. Today, Indonesia has two import terminals on its largest island, Sumatra – the converted 1.5 mta Arun LNG terminal, which received its first cargo last February, and a floating storage and regasification unit (FSRU), the Höegh LNGowned, 170,000m3, 1.8 mta PGN FSRU Lampung. A second FSRU is stationed off Java, the Golar LNG Partnersowned 125,000m3, 3.6 mta Nusantara Regas Satu. Now, Pertamina has opened tenders for a third FSRU-based terminal to import up to 1.6 mta via Cilacap in Central Java, Central Java FSRU. Pertamina has also proposed to position a fourth FSRU at Cilamaya in West Java, 110km down the coast from Jakarta, to import 0.6 mta. In March, news emerged that the Central Java FSRU will be a 25-year build,
own, operate, transfer (BOOT) contract and that Pertamina is asking bidders to explain where and how they would source the LNG and to supply the vessel for the project. This could open an opportunity for Golar LNG, which is positioning itself as a midstream LNG player, having taken an equity stake last year in an FSRU-based project at Porto de Sergipe in Brazil. Other shipowners likely to bid include Höegh LNG, GasLog, NYK, Mitsui OSK and US-based Excelerate Energy. In November, Pertamina and Tokyo Gas announced that they will develop a purposebuilt LNG-receiving terminal at Bojonegara in West Java, a US$810 million, 4 mta venture, due to open by 2019. Other partners include Mitsui & Co and Japan Bank for International Co-operation. This spring, Pertamina also signed a memorandum of understanding with Osaka Gas to develop LNG infrastructure in Indonesia, with a focus on shared technology, working together to design, build and operate LNG-import terminals and pipe infrastructure.
Ambitions
The scale of Indonesia’s powergeneration plans is positioning the country to become one of the fastest-growing markets for LNG and a regional first-mover in small-scale LNG in Asia. “Indonesia has the potential and the ambition to become Asia’s most important small-scale LNG player,” says brokerage advisor Poten & Partners. “LNG particularly appeals to the archipelago because a number of stranded markets have no electricity and it would be impractical and expensive to build pipelines from remote gas fields to power plants serving such limited demand.” Once Indonesia has established additional import hubs, the challenge will be to
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Central Indonesia small-scale tender – prequalified consortia and companies Consortia • Socar Petroleum, PT Humpuss Transportasi Kimia, PT PP (Persero) and Toba Bara • Bukaka, Tokyo Gas and Mitsui • PT Perusahaan Gas Negara (Persero) and International Power Ltd • Itochu and PT Energasindo Heksa Karya • Shell Gas & Power Development and PT Energi Dian Kemala • Mitsubishi, Brunei National Petroleum Co and Diamond Gas International Companies • PT Pertamina (Persero) • Osaka Gas • PT Medco Energi International • Gas Natural Fenosa • Marubeni Source: PLN, September 2015
Indonesia’s electrification goals: Percentage of Indonesians with access to electricity 85 per cent, 2015 98 per cent, 2022 Electricity-expansion target, 2022: 35,000MW Capital costs US$93 billion Private sector contribution, capital costs US$40.5 billion Energy-supply mix, 2030 Coal: 50 per cent Gas: 25 per cent Renewables: 25 per cent Source: Government of Indonesia, 2015
get the gas to the islands and communities that most need it. Last autumn, PLN invited build-operate-transfer bids to develop 21 power plants – 10 in Sulawesi, eight in Nusa Tenggara and three in Kalimantan. Speed is of the essence. PLN wants to open the plants by early 2019 at the latest – and to do that, it will need to double its gas supply. Critics say Jakarta needs to do more to improve co-ordination between Indonesia’s state-owned energy interests to develop the LNG-distribution infrastructure that the country needs and to avoid delays. Jakarta is discussing whether or not to adopt a single gas-aggregator scheme, pulling together the individual efforts of Pertamina, pipeline company PGN and PLN to source LNG. Analyst Wood Mackenzie says this would make procurement better co-ordinated and would harmonise domestic prices. On the down side, however, it would also require changes to existing gas and LNG supply and infrastructure contracts. Indonesia will also need significant private sector investment in receiving terminals to achieve its aims. The government is looking for project partners to develop land-based and floating import units and infrastructure. However, several barriers remain and critics say success rests on whether Indonesia can create an investment framework that encourages foreign direct investment and involves homegrown investors. The dilemma is that although lower gas prices stimulate demand, they also make gas-related investments less lucrative and more challenging. That increases the need for more private investment – but the willingness to invest is in turn motivated by the likely returns. Poten notes that PLN will not provide the winning
LNG World Shipping | May/June 2016
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ANALYSIS | 9
Small-Scale LNG Supplement
bidders with a guarantee to cover regasification and shipping. It says: “A ballpark estimate for regasification is US$1-2/mBtu and US$3/ mBtu for shipping, because of ship-to-ship transfers and the use of 5,000m3-6,000m3 LNG carriers for distribution… “PLN will reserve the right to terminate the agreements early, without a minimum operating period, and the RFP does not provide any details on the type of financial penalties. Some bidders… are seeking clarification for this clause.”
Projects
One small-scale project moving forward quickly is on the tourist island of Bali, where land costs are particularly high. PLN and port authority PT Pelabuhan Indonesia are pressing ahead with an offshore LNG project, due to open for business in May, the Benoa LNG-import project, which will reach some important landmarks this year. South Korean-Indonesian
shipping company Jaya Samudra Karunia ( JSK) was due to take delivery this spring of a South Korea-built floating regasification unit (FRU), to be based at Benoa harbour that will enable Bali to receive shipments of LNG from Bontang LNG in East Kalimantan. The Mitsui OSK Lines/ Humpuss Intermodal Transport (HITS)-owned 23,000m3 shuttle ship Surya Satsuma will deliver the cargo, under a seven-year supply deal agreed in December between IPC Logistics Energy (PEL) and HITS subsidiary PT Humpuss Transport Chemistry. JSK will provide the floating storage unit (FSU) for the project, using a chartered secondhand 31,000m3 LNG vessel, fixed for three years, to be replaced with a purposebuilt FSU that will be delivered from South Korea towards the end of 2017. JSK is said to have spent US$100 million on the two vessels. These developments position Benoa to become the first mini-LNG terminal in
Indonesia. The partners opted for a floating solution to meet peak demand at the 200MW Pesanggaran power plant as land is expensive and scarce on the island tourist trap. Other import projects are making slower progress – as well as Bojanegara and Benoa and the two FSRU-based projects, Pertamina plans two land-based LNG terminals in Porong, East Java and at Salawati in West Papua and mini LNG plants on North Kalimantan in Simenggaris and Nunukan and at Salawati. Nevertheless, analysts see major opportunity in Indonesia’s small-scale LNG ambitions. In February, Norway-based consultancy Fuelgarden signed a memorandum of understanding in Jakarta to develop an LNG value chain for off-grid power generation across Indonesia. Chief executive Dag Lillevedt says the market is hungry for low-temperature knowhow and technology – but that it also needs flexible, tailored solutions. “The outlook
for small-scale LNG demand is very good in Indonesia,” he says. “The demand for LNG as a fuel is there, the requirement for flexible and cost-efficient LNG distribution solutions is there and the request for cryogenic competence and technologies is there. So growth prospects and opportunities are good… “Indonesia is in need of cryogenic competence and [for players] that can come in and help them set up various types of distribution and infrastructure solutions, rather than coming in with one product that they want to sell. “There are probably as many different project requirements as there are islands in Indonesia. And as there are several thousand islands in Indonesia, one-sizefits all does not work. “Power consumption varies, availability of current energy varies and land availability varies. So Indonesia needs someone that can be a partner to them, not just a one-off supplier.” LNG
Central Indonesia: small-scale projects Nunukan 2 MALAYSIA
Malinau
Tahuna Minahasa Peaker 1
INDONESIA
Kasel Peaker 1
Kolaka Utara Bombana Sultra (Kendari) Makassar Peaker Wangi-Wangi Sulsel Peaker Bau-Bau Selayar
Sumbawa
Source: Poten & Partners - November 2015
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Flores Maumere Alor Bima Kupang Peaker Waingapu Rote
LNG World Shipping | May/June 2016
10 | CASE STUDY
Small-Scale LNG Supplement
Connect2LNG expands the European LNG supply chain Unilever has joined forces with Engie, DHL and other partners to launch supply-chain pilot project Connect2LNG. But can the scheme persuade other consumer goods companies and logistics firms to switch to the cleaner-burning fuel? Karen Thomas reports
S
ix years ago, Anglo-Dutch giant Unilever launched its so-called Sustainable Living Plan, pledging to reduce its carbon emissions from transport by 40 per cent. The first step this fast-moving consumer goods (FMCG) company took was to drive waste and empty kilometres out of its transport networks and to tackle inefficient loading in an industry in which one truck in every five travels empty. In the plan’s first five years, Unilever shifted some 100 million truck kilometres off the road in Europe, but that is nowhere near enough to meet that 40 per cent target. So the company has entered
LNG World Shipping | May/June 2016
a new phase, one that moves the emphasis from reducing kilometres to “greening” the ones it cannot eliminate. Alternative fuels fit Unilever’s corporate drive to make its supply chain more environmentally friendly. The company is the driving force behind Connect2LNG, a €9 million (US$10 million) project backed by Brussels that aims to expand the LNG supply chain across Europe. Increasing take-up of LNG requires shippers to build long-term relationships along the supply chain, promoting the benefits of this cleaner fuel and working to build the infrastructure needed to get
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CASE STUDY | 11
Small-Scale LNG Supplement
the commodity to market. The Connect2LNG consortium is a pioneering venture that claims to represent “both the demand and the supply side of LNG”. Unilever has joined forces with French energy giant Engie, vehicle manufacturer Iveco, pallet giant CHEP and the logistics companies DHL, Gilbert de Clercq, Vos Logistics and Perrenot. If Connect2LNG succeeds, it will create a template for similar cross-industry partnerships, in Europe and in other parts of the world. Compared with diesel, the partners expect LNG to deliver 11 per cent less CO2, 35 per cent less NOx, 95 per cent fewer particulates and to cut noise pollution by 25-50 per cent. Unilever sees LNG as one cleaner-burning fuel among many – one that may be a transitional fuel en route to the commercial development of biogas. Launching Connect2LNG, Unilever Europe president Jan Zijderveld explained the mission thus: “By promoting the transition to alternative fuels, Unilever takes a leading role in making the transport sector more sustainable.” He continued: “LNG is a clean and safe alternative for heavyduty international transport purposes. Unilever has the scale to send out a positive signal in order to bring about a fundamental change in the transport sector. “When we move, others will follow and this will in turn give transport companies and fuel suppliers the required critical mass and confidence to move as well.” In January, the partners signed a three-year contract with the European Commission’s Innovation and Network Executive Agency (INEA) to develop a European infrastructure for LNG as an alternative fuel for heavy-duty international road transport. “The focus of the Connect2LNG project is on activation of international transportation,” says Unilever logistics transformation and innovation manager Mark Rickhoff. “We have come together with our partners representing the full LNG value chain, from a demand-driven and a sustainability perspective. “By teaming up, we believe we can deliver a positive business case for everyone involved – in terms of sustainability but also, further down the line, in terms of making economic sense.” Reporting to INEA, the consortium partners will spend the next three years reviewing different business models that open opportunities to scale-up the use of LNG, aiming to share their
Connect2LNG sees a first-mover advantage for transport firms to invest in LNG
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findings, models and technology across the transport sector. INEA executive director Dirk Beckers says: “Reduction of the environmental impact of road transport and the parallel promotion of alternative fuels lies at the heart of what our Connecting Europe Facility (CEF) funding instruments seek to realise. “INEA has overseen many successful projects in this domain and I am confident that Connect2LNG will also prove to be of critical importance to the sector and to Europe as a whole, and that it will help to stimulate more and more organisations to present highquality proposals in the CEF [funding] call.” INEA funding instrument CEF Transport has a total European Union budget of €24.05 billion for 2014-2020. Within this, Connect2LNG has approval for 50 per cent co-funding from the European Commission to a maximum €4.5 million.
Pilot project
The Connect2LNG partners will launch a study and pilot a network of five LNG fuelling stations along the arterial motorways that link northwest and southern Europe. They plan to operate 125 LNGfuelled trucks and to monitor their real-life performance, in terms of environmental impact and cost. The consortium members will work with Brussels and with regional and municipal authorities to tackle regulatory hurdles to using LNG as transport fuel and to harmonise standards and equipment. The lack of LNG filling stations has presented a major barrier to companies investing in LNG-fuelled trucks. Engie will set up five LNG filling stations in France and Germany along Europe’s main transport routes, the so-called core-network corridors, to connect north-west and southern Europe. These will open in second-half 2017, allowing the pilot deployment to begin. Engie will source the gas and the consortium partners will agree where it should site the filling stations to best effect, says Unilever logistics transformation and innovation director Paul de Jong. Engie will also supply the LNG to the stations, using road tankers. “Unilever represents the demand side of the business – we try to play a leading role and want to show the industry that it’s important to move to cleaner fuels and actively contribute to move this subject forward, practising what we preach,” Mr de Jong says. “We are in an entrepreneurial phase – this is not our direct territory but we hope that by playing a leading role we will inspire other FMCG companies and manufacturers to move as well.” The partners will also recruit an academic partner – yet to be confirmed – to analyse data from the pilot project. That data will calculate the operability and costs of deploying LNG-powered heavy goods vehicles for middle to long-distance road transport. Once they have studied the findings, Connect2LNG members plan to share that information with other cargo owners and supplychain management companies to promote LNG as a road-transport fuel. “If we want to redevelop a European infrastructure, the more the merrier,” Mr Rickhoff explains. “In terms of contracting LNG capacity, there might be an element of first-mover advantage for transport companies that are going to actively invest,” Mr Rickhoff adds. “We are seeking capacity and want to use that capacity so that there is the potential for transport companies to grow their business. “This is a very positive differentiator. But we aren’t sure whether everyone sees that at the moment.”
LNG World Shipping | May/June 2016
12 | CASE STUDY
Cycles
Small-scale LNG growth has been slower than many commentators anticipated. The supply chain is still underdeveloped, thanks to a cycle in which perceived shortages of demand for LNG as transport fuel and for other purposes have held back investment in the infrastructure to deliver that supply to market. This so-called chicken-and-egg situation is well known in the small-scale LNG industry but Mr Rickhoff says he sees signs that the impasse is starting, at last, to shift. That slow shift may well be a legacy of the COP21 talks in Paris in December, a summit whose conclusions left much open to debate but that has also made sustainability a hot topic for politicians and for businesses alike. Governments and regional and metropolitan authorities are under growing pressure to deliver their environmental targets. By 2020, many of Europe’s largest cities will fine diesel-fuelled vehicles, and when oil prices start to harden, this will strengthen the business case for switching to LNG. Unilever sees its investment in distribution infrastructure as a strategy that will bear fruit once demand grows. It also believes that grow it must as diesel fuel attracts new tax penalties and as tougher regulations make LNG a more flexible option, albeit not overnight. “We truly hope that others in the industry will pick up on this fast and we, as Unilever, are happy to help to make the change to alternative fuels happen,” Mr de Jong concludes.
Small-Scale LNG Supplement
Engie plans LNG filling stations across Europe Engie plans to launch its own LNG and CNG initiative separate to the Connect2LNG scheme in which it is a partner. The energy company’s project aims to invest nearly €100 million (US$113.5 million) by 2020 in setting up LNG and CNG filling stations to supply natural gas and biogas to trucks across Europe. Under the initiative, Engie plans to build some 70 LNG stations in several European countries and 30 CNG stations in France. The company estimates that Europe now has just 75 LNG filling stations. Engie is emerging as a major player in LNG distribution and is promoting LNG as marine fuel. It is a partner in the LNG bunkersupply vessel to be stationed in Zeebrugge, Belgium by year-end and is building a fixed LNG-supply station at the Port of Antwerp that will serve both ships and trucks. Engie says: “This contribution to strengthening the LNG and CNG distribution infrastructures in Europe will rely on Engie’s active involvement with its customers who are committing to move to alternative fuels, notably the truck manufacturers as well as the national and European authorities.” LNG
Connect2LNG will calculate the operability and costs of deploying LNGpowered heavy goods vehicles for middle to long-distance road transport
LNG World Shipping | May/June 2016
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14 | OPINION
Small-Scale LNG Supplement
DEVELOPING LNG BREAKBULK SERVICES – 'THE STAKES ARE VERY HIGH' LNG World Shipping asked four senior port managers what opportunities and challenges face ports that seek to offer LNG breakbulk services Singapore LNG chief executive John Ng
We are at an interesting turning point in the LNG industry. Despite the current low LNG prices, both for spot LNG and oil-indexed long term supply, LNG demand in the key consuming nations in Asia has remained largely suppressed compared with previous years, due to a mix of reasons that includes the restart of nuclear power plants, weak economic conditions and coal remaining the dominant fuel source. At the same time, a number of new LNG production projects came on-stream in 2015, with more due this year and beyond, leading to an oversupplied LNG market in Asia. The circumstances have led to substantial quantities of new LNG production entering the market, particularly from the US and Australia, to be contracted on destination-free terms, which means that such cargoes can be diverted or traded by the buyer into other markets. We believe that this flexible supply, coupled with not very robust demand in the traditional markets and the emergence of LNG-trading intermediaries, will lead to more secondary market trading in the years ahead. And with the limited growth in traditional large-scale LNG demand, many producers and traders are likely to turn their attention towards growing the small-scale LNG segment, which
includes LNG bunkering and substituting the use of LPG or diesel in various applications such as small-scale power generation, among other things. Such developments will invariably require LNG breakbulk services to some extent, and with the infrastructure that we have built in Singapore, SLNG is able to offer storage, breakbulk and reload services to facilitate the growth of the small-scale LNG segment. Within the region, countries such as Indonesia and the Philippines, given their archipelagic geography, have the best potential for smallscale LNG to grow and flourish. However, while these changes are evolving, it will take time for the various links in the value chain, such as receiving terminals for small-scale LNG, to develop – and, given the high capital costs involved, the will to pursue such developments, whether commercial or political, is important. All the different players must come together to form the required eco-system, without which the potential cannot be realised. Further, given that prices for oil, gas and coal are all fairly low, the price differential resulting from switching to gas from oil or oil products has reduced or gone negative in some instances, making the up-front capital cost required for the fuel switch a challenge. To switch from coal to gas may also not be very easy, from an economic perspective. However, we believe that in the medium to long term, environmental drivers will push the fuel mix in favour of gas.
John Ng, Singapore LNG
Simon Culkin, Grain LNG
Stefaan Adriaens, Gate Terminal
LNG World Shipping | May/June 2016
Joachim Coens, Port of Zeebrugge
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Gate’s dedicated small-scale jetty should become operational this summer
“All the different players must come together to form the required ecosystem, without which the potential cannot be realised” – John Ng, Singapore LNG
Gate Terminal commercial manager Stefaan Adriaens
I think the stakes at Rotterdam are very high. Worldwide, this is the second biggest bunkering location and the port is the largest located in a sulphur-emissions control area. Changes in bunkering at Rotterdam are already under way. Recently released figures by the port indicate a shift in bunkersupply demand in 2015 away from fuel oil – down from 9.8 million m³ to 8.7 million m³ – to gas and diesel oil, up from 0.7 million m³ to 1.8 million m³. From our offices at the harbour entrance, we can see a seagoing vessel entering or leaving the port every 15 minutes. We think of all these ships as potential customers and our mission is to help them to clean up their exhaust fumes. If we transitioned just 10 per cent of the oil-bunkering volumes to LNG this would almost double the amount of LNG unloaded at Gate. Looking at historical figures, the number of LNG-fuelled ships increases tenfold every eight years. This year we will have the 100th ship running on LNG from starting in 2000, so my forecast is that by 2024 we will have 1,000 ships using LNG worldwide and annual LNG-fuel consumption will then be around 3 million tonnes or 1 per cent of current LNG production. The Port of Rotterdam realised the opportunity potential and threat potential of LNG to its existing business. Given the advantages to local air quality and given that LNG-fuelled ships are typically ordered by innovators, the port decided to embrace LNG and undertook various feasibility studies early on. Certain aspects, such as IGF Codes are, of course, global issues – or regional, if related to inland waterways – but safety studies always remain local. Following various risk assessments and discussions with the
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stakeholders, the port changed its bylaws to allow LNG as bunker fuel. Of course, Rotterdam had the advantage that LNG was a wellknown product due to the presence of the Gate terminal. Judging by the visits of many other authorities to Gate, I have learned that getting familiar with the idea of LNG requires some time at other locations. A particular problem in Rotterdam is a scarcity of space. Although LNG bunkering by trucks for barges is a regular operation here, the port has not yet found a suitable place to bunker seagoing vessels by trucks and it has yet to launch such operations – although this is available at nearby ports as Moerdijk. As LNG equipment is expensive, it makes economic sense that investment and market growth go hand in hand. So normally you start with bunkering by trucks, which is now a standard operation in many European ports and, as the market grows, you can scale up to sophisticated solutions such as fixed installations or bunkering by vessel. In Rotterdam, we had to take a leap of faith and move immediately to a bunkering vessel. Shell has ordered an LNGsupply vessel that should become operational next year. Gate, on the other hand, has had to invest in a dedicated smallscale jetty that is under construction and that should become operational this summer. This obviously requires some stamina from the parties involved and is only viable in areas that anticipate significant demand. The next two years will be critical in the transition to LNG. The number of LNG-fuelled ships will grow by 50 per cent this year, admittedly from a low figure, and other committed parties – Engie in Zeebrugge and Skangas in the Baltic – have also ordered LNG bunker-supply vessels. It will be interesting to follow what is happening in Rotterdam.
“By 2024 we will have 1,000 ships using LNG worldwide, making annual LNG fuel consumption around 3 million tonnes or 1 per cent of current LNG production” – Stefaan Adriaens, Gate Terminal
LNG World Shipping | May/June 2016
16 | OPINION
The oil-distribution chain is a very robust one and now even offers fuel oil with 0.1 per cent sulphur that is SECA-compliant without scrubbers but, on the other hand, you also have parties that are very committed to LNG.
Grain LNG terminal manager Simon Culkin
Last summer, the National Grid LNG terminal on the Isle of Grain in Kent celebrated its tenth anniversary. We started all those years ago by offering traditional storage and regasification facilities and, for many years, that suited our customer base very well, but now the energy landscape is changing rapidly and we know that we need to be flexible and to provide additional services that will enable our customers to thrive. The small-scale LNG market is broadly split between three services offered by LNG-import terminals throughout the globe: breakbulk, road tankering and bunkering. At the end of 2015 we began to offer a road-tanker service in which LNG is loaded onto trucks for distribution. Typically the LNG loaded onto tankers at Grain by our customers is sent to refuelling stations around the country to be used as a fuel for HGV vehicles. We believe that there is a growing market for LNG as a much cleaner, greener, fuel and the roadtanker service has proved very successful. Now, we are considering expanding our offering to include other types of small-scale services. Our ambition is to provide Grain customers with a one-stop shop where they can store, regasify, reload, use breakbulk services and access nearby national transport links to move their cargo across the country and, of course, across Europe. One factor relevant to all import terminals looking at providing small-scale services is the need for a robust national infrastructure plan to enable customers to move the LNG to where it is needed. Here at Grain, we are always considering our customers and how we can manage their future needs and what we need to do to match their expectations. We are prepared to consider a full range of options for Grain LNG, including expanding the terminal dedicated to small-scale operations, such as with additional roadtanker bays, a rail terminal and perhaps smaller, intermediate satellite terminals. Typically smaller vessels will be able to unload at smaller terminals and that opens up a whole new market in Europe and a level of trade. This need for a joined-up approach nationally and internationally is why we also work closely with allied organisations to speak to government and other stakeholders to make sure that we are part of the conversation shaping our energy future.
“One factor relevant to all import terminals looking at providing smallscale services is the need for a robust national infrastructure plan to enable customers to move the LNG to where it is needed” – Simon Culkin, Grain LNG
LNG World Shipping | May/June 2016
Small-Scale LNG Supplement
“Companies that are active both in the LNG business and in transporting natural gas themselves have an even greater competitive advantage” – Joachim Coens, Port of Zeebrugge
Port of Zeebrugge chief executive Joachim Coens
First of all, ports and LNG terminals must have the necessary facilities for handling both deepsea LNG vessels and smaller LNG vessels – if possible, even simultaneously. This is why Zeebrugge’s Fluxys terminal is equipped with a second jetty, able to handle smaller types of LNG vessels. A terminal also needs sufficient buffer capacity to receive and store the LNG. Zeebrugge has four storage tanks and a fifth under construction, all adding up to a total capacity of 560,000m³. Another trump card for an LNG terminal is its ability to supply directly to the natural gas network, requiring the existence on-site of large-capacity regasification units. Companies that are active both in the LNG business and in transporting natural gas themselves have an even greater competitive advantage – which is the case with Fluxys, the operator of Zeebrugge LNG. Maximum flexibility is a particular necessity in offering smallscale LNG services. Slots on LNG terminals are usually reserved for larger suppliers of LNG, but they also need to service smaller LNG receivers such as LNG bunkering vessels or barges. You also need to find a way to offer service to the even smaller volumes that cannot be delivered directly from the terminal. LNGfuelled vessels have to be fuelled by LNG-bunkering vessels or from a fixed installation, supplied by small LNG cargo vessels. Meanwhile, for the smallest volumes, down to 40m³ or even less, LNG trucks can load at special loading stations on the terminal. The Port of Zeebrugge has two such truck-loading stations. We believe that flexibility is the key when it comes to offering a good service for all LNG applications. LNG
Grain aims to expand its terminal dedicated to small-scale operations, adding road tanker bays, a rail terminal and smaller, intermediate satellite terminals
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BUNKERING | 19
Small-Scale LNG Supplement
LNG bunkering hangs in the balance W
hen LNG World Shipping sat down to analyse global availability of LNG as marine fuel, we quickly found ourselves in a tangle of ports’ good intentions. Thirty-four ports claim to supply LNG as bunker fuel, 24 are developing such services and nearly 60 are studying commercial demand and the investment that supplying LNG as marine fuel would require. The reality is more limited, even in the global hotspot for LNG bunkering that is Europe. Here, Gas Infrastructure Europe lists four active LNGbunkering operations, four under construction and four more being planned. Few ports offer regular, commercial supplies – reflecting sluggish demand growth. As our research shows, there were just 80 LNG-fuelled vessels in service worldwide as of March and 106 on order (see p20+21). Just two years ago, classification society DNV GL was predicting more than 1,000 LNG-powered vessels in service come 2020 but has now revised that prediction to 600. That would support demand for just 4 million tonnes a year (mta) of LNG as marine fuel, equivalent to 20 per cent of small-scale LNG production
LEFT: Many ports can source LNG by truck
capacity today. Many ports are simply marketing the fact that they have tested such an offering and can source LNG, delivered by truck, on request. Worldwide, just four seagoing LNG bunker-supply ships are on order. Just one is in service, in Sweden, where AGA-owned Seagas supplies up to 227,000 litres a day of fuel to the ferry Viking Grace. Two more seagoing bunkersupply ships enter service this year, in Jacksonville, Florida and Zeebrugge in Belgium. The final two come into service next year, in Rotterdam and in the Baltic and North Seas. Regulatory pressures will drive demand for gas as marine fuel as emission-control areas spread. New York-based Transparency Market Research expects growth in LNG as
bunker fuel to reach 60 per cent annually up to 2026, and our map (see overleaf ) shows an overlap between ports planning to supply LNG as marine fuel and the emissioncontrol areas. Significant supply gaps remain worldwide. Singaporebased consultancy Tri-Zen refers to these as LNGbunkering “black holes” – parts of the world where it is not yet viable to operate LNGpowered seagoing vessels. However, in many of these areas, such as the Mediterranean and Adriatic, slow progress belies strong interest in sourcing LNG to clean up emissions, improve the energy mix and – in many cases – reduce dependence on gas piped from Russia. Greece, Italy and their Adriatic
“Oversupply of LNG has to find new markets – and small-scale and bunkering are two of the most promising places where this LNG can go”
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neighbours are pressing ahead with LNG-bunkering project Poseidon Med II. Meanwhile, across Asia – from South Korea to Indonesia – there is growing interest in importing LNG and in distributing it in smaller parcels, as marine fuel and for other small-scale uses. Such initiatives make LNG World Shipping less pessimistic about the long-term prospects for LNG bunkering, as new regulations take effect, when oil prices harden and when business confidence returns to shipping, prompting owners to look anew at fleet renewal and expansion. Dag Lillevedt, chief executive of LNG consultancy Fuelgarden, also sees today’s supply glut driving LNGbunkering growth. “That oversupply of LNG has to find new markets – and small-scale and bunkering are two of the most promising places where this LNG can go,” he says. “Ports that offer LNG breakbulk services have a oncein-a-lifetime opportunity at the moment. Ports that build up that kind of service will be part of the game, if not ahead of it. “The challenge is that in many places LNG is new, and rules, regulations and procedures must be put in place, and the needed infrastructure must be planned and built.” LNG
LNG World Shipping | May/June 2016
Hotspots Hotspots Warm Warm spots spots Cold Cold spots spots
BUNKER-SUPPLY BUNKER-SUPPLY HOT HOTAND AND COLD COLDSPOTS SPOTS
66 11 44
THINGS THINGSTHAT THATSUPPORT SUPPORT LNG LNGBUNKERING BUNKERINGININPORTS PORTS
Available Available supply, supply, proximity proximity to import to import terminal terminal Reliable Reliable andand safe safe logistics logistics
Source: Source: DNV DNV GL, 2016 GL, 2016
22 55
33 66
Favourable Favourable investment/ investment/ taxation taxation climate climate
Clear, Clear, established established legislation/regulations legislation/regulations
Competence, Competence, knowledge knowledge andand skills skills
Public Public acceptance acceptance
BUSINESS MODEL COMMERCIAL NICHES ALLIANCES BRAND-BUILDING IMPROVED ENVIRONMENT OPEX SOCIAL BENEFITS TECHNOLOGY LEADERSHIP FIRST-MOVER ADVANTAGE
ACCIDENTS ACCESS TO CAPITAL SEA-TO-ROAD SUPPLY SECURITY LACK OF COMPETENCES MARKET MECHANISM MISFIT MORE REGULATIONS OPEX CAPEX SHORT-TERM RESULTS PRESSURE
FOR
AGAINST LNG bunkering in the balance; challenges and opportunities
Source: LNG World Shipping, DNV GL, April 2016 Infographic: Richard Neighbour
22 | INFRASTRUCTURE
Small-Scale LNG Supplement
THREE COUNTRIES, SIX PORTS, 26 PARTNERS – AND A PLAN Exclusive to LNG World Shipping: George Polychroniou outlines the latest plans to expand LNG distribution infrastructure across southeast Europe
N
George Polychroniou is head of strategy and corporate development of Greece’s Public Gas Corp (DEPA) and project manager of Poseidon Med II
atural gas is widely recognised as the most suitable bridge between the highcarbon fossil fuels era and the lowcarbon economy targeted for 2050. Small-scale LNG is developing rapidly, especially as a transportation fuel and to serve end-users in remote areas or those who are not connected to the main pipeline infrastructure. Both developments are important, particularly in southeast Europe and especially in Greece. Recently adopted environmental restrictions that will take effect in 2020 make LNG availability, at affordable prices, a crucial factor for the shipping sector’s competitiveness, especially for a country such as Greece, where shipping is the most important industry – accounting for about 7 per cent of its GDP – and that controls more than 20 per cent of the world merchant fleet. In this region, however, natural gas penetration remains among the lowest in Europe. Entire areas of Greece have no access to natural gas, including western Greece and the islands, and small-scale LNG is a feasible way to change the situation. The main obstacle to overcome, to develop the necessary infrastructure for LNG bunkering and the small-scale LNG supply chain in general, is the need for high investment in both supply and demand, in a market that is still immature. This is still a chicken-and-egg problem and the Poseidon Med II project can play an important role in dealing with it. Poseidon Med II continues and unifies the Costa II East (Poseidon-Med) and Archipelago-LNG projects. It is a part of the global project to take all the steps necessary to adopt LNG as marine fuel in the eastern
LNG World Shipping | May/June 2016
Mediterranean and to make Greece an international LNG marine bunkering and distribution hub for southeast Europe. This mega-project requires co-operation between 26 partners from three countries to achieve the ultimate target: tackling the chickenand-egg problem to make LNG available in six core ports in the area. To do this, we are following a holistic approach, as no port can develop a selfsufficient and sustainable LNG-bunkering station and no shipowner can shift to LNG alone efficiently without a critical mass of neighbouring ports developing supply points and of ship operators as consumers. Our approach is to undertake specific preparatory actions, tackling both supply and demand along the supply-demand chain – including the LNG terminal, feeder vessels, port infrastructure and the vessels that will use LNG – to reach maturity and allow decision-making. We plan to carry out several activities within the next five years, covering seven main areas and categories. These relate to the project itself, Revithoussa LNG terminal and ports infrastructure, vessel installations, constructing an innovative pilot vessel in Italy, financial and regulatory issues, and, finally, sustainability and synergies. Public Gas Corp (DEPA) is co-ordinator and project manager of this initiative. DEPA, Greece’s main gas supplier, introduced natural gas to Greece, achieving the country’s most important energy project of recent decades in the country. DEPA considers Poseidon Med II a priority project that is fully aligned with its strategic initiatives. LNG
For more articles visit www.lngworldshipping.com
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24 | LOGISTICS
Small-Scale LNG Supplement
Wärtsilä is offering a small-scale floating LNG regasification package, Wärtsilä Mobile LNG
A new era of floating small-scale LNG regasification begins Small, floating regas facilities offer flexible and rapid access to gas for remote communities by Mike Corkhill
T
he era of floating small-scale regasification is about to begin with the commissioning of an LNG receiving terminal at Benoa on the Indonesian island of Bali (see page 6). The facility will be operated by PT Pelindo Energi Logistik (PEL), an affiliate of the state-owned port operator. Central to the US$500 million project is a dedicated berth in the port at which a floating regasification unit (FRU) and floating storage unit (FSU) provided by Jaya Samudera Karunia (JSK) Group are stationed. JSK is also chartering Triputra (ex-Surya Satsuma), a 23,000m3, 2000-built LNGC owned
LNG World Shipping | May/June 2016
by PT Humpuss, to shuttle to Bali an agreed volume of 300,000 tonnes per annum of LNG from Indonesia’s large Bontang liquefaction plant in Kalimantan. The seven-year fixture is worth US$100m to Humpuss and has necessitated a switch to the Indonesian flag for the vessel to comply with domestic cabotage laws. Gas processed by the Benoa FRU will be piped 3.7km to a 200MW diesel and gas-fired power plant in Pesanggaran owned by state electricity firm PT Perusahaan Listrik Negara (PLN). CSI plans to focus on further small to midscale LNG opportunities where its new technical assistance and licence agreement (TALA) with GTT can be utilised.
For more articles visit www.lngworldshipping.com
LOGISTICS | 25
Small-Scale LNG Supplement
Remote access
Diesel fuel is used to power most of the small power plants dotted around the islands of Eastern Indonesia. PLN points out that the transport of LNG by sea to strategically located small-scale receiving terminals, as in Bali, will enable the replacement of diesel fuel by clean-burning natural gas. Such substitution, in turn, will enhance national energy sustainability and reduce the need for government diesel subsidies. Neither gas transmission pipelines nor full-size LNG receiving terminals are feasible in eastern Indonesia as the relatively low gas demand does not justify the high capital costs involved. Coastal LNG iers and smallscale receiving terminals offer the most costeffective gas distribution solution for reaching the region’s “stranded” markets. The Bali project highlights the benefits that small floating regas facilities can bring to remote markets where demand is limited and there is a desire to replace other fossil fuels with clean-burning gas. Capital expenditure is much less than that required for a shore terminal while operating costs are below those of a conventional-size FSRU. No onshore permits are required for small floaters and the time between a final investment decision and project startup should not exceed two years. Barge-mounted regas facilities provide the ultimate in flexibility, including in terms of the ability to relocate and scalability through additional units to meet developing market needs. Barges are also able to accommodate shallow waters, thus minimising the need for dredging.
Exmar’s firsts
Belgium-based Exmar was the first company in the world to build, own and operate a conventional size floating storage and regasification unit (FSRU), and has been active in the sector since 2005. It was also poised to operate the first small floating vessel with a regas capability but the project for which it was intended has failed to materialise. The vessel in question is under construction at the Wison yard in China for its primary intended role as a floating liquefaction plant. In March 2012, Pacific Exploration and Production (PEP) contracted Exmar to build and operate the vessel with the aim of stationing it off Colombia’s Caribbean coast and liquefying 500,000 tpa of LNG for export. PEP also decided to provide the vessel, to be named Caribbean FLNG, with the ability to regasify a volume of LNG for those occasions when Colombia’s hydroelectric output dropped
For more articles visit www.lngworldshipping.com
Exmar is working with PEP on a small, floating gas-processing barge at Wison under construction as a FSRU to be jointly owned by the two companies
and the country’s domestic gas supplies needed to be supplemented with LNG imports. Recent changes in the LNG market mean that the Colombia liquefaction project is no longer economically viable for PEP and the agreement with Exmar was terminated in March 2016. Caribbean FLNG, which has a storage capacity of 16,100m³ in three Type C pressure vessel tanks, is set for delivery in the second quarter of 2016 and Exmar is negotiating alternative employment opportunities for the vessel. Exmar is also working with PEP on a second small floating gas processing barge at Wison. The vessel will be jointly owned by the two companies and is under construction as an FSRU with two storage tanks totalling 25,000m³ in capacity. The tanks have been built to IHI’s selfsupporting, prismatic IMO Type B (SPB) cargocontainment system design. The two completed aluminium units were shipped from IHI’s Aichi Works in Japan to Wison’s Nantong yard in December. Exmar states that the FSRU is due for delivery late this year and that various options for long-term employment of the unit are under negotiation. The barge will have the capacity to regasify up to 4 million tonnes per annum (mta) of LNG, the same as Exmar’s 150,900m³ FSRUs. For projects requiring higher gas flows the Exmar/PEP vessel will operate in tandem with an FSU.
Wärtsilä Mobile solution
Wärtsilä is also now offering a small-scale floating LNG regas package, Wärtsilä Mobile LNG. Combining the expertise of the company’s marine solutions and energy solutions businesses, the concept includes a jetty-based LNG-receiving facility and an LNG storage and a regasification barge. If required, the barge can be used in combination with a fixed or floating power plant with an installed capacity of up to 250MW. The LNG storage capacity of the Wärtsilä barge could be anything up to approximately 30,000m³, according to project demands. LNG
LNG World Shipping | May/June 2016
LNG-FUELLED SHIPS THAT ARE NOT LNG CARRIERS,
Total, seagoing, 74
TOTAL IN SERVICE, MARCH 2016 = 80 TOTAL ON ORDER, MARCH 2016 = 106
Total, inland waterway, 18
Total inland waterway, 6
Total fleet, 2016 = 186 vessels
Total, seagoing, 88
LNG-FUELLED SHIPS IN SERVICE AND ON ORDER, BY ENGINE MAKER
ENGINE MAKERS, FLEET IN SERVICE 2016
ENGINE MAKERS, FLEET ON ORDER 2016
ALL ENGINE MAKERS, 2016
100
80
60
40
20
LNG World Shipping | May/June 2016
Visedo
Unnamed
Proviridis
Anglo Belgian
GE gas turbine
MaK
Niigata
Scania
MAN
Mitsubishi
Wärtsilä
Rolls-Royce
Visedo
Niigata
Proviridis
MaK
Anglo Belgian
MAN
Rolls-Royce
Wärtsilä
Unnamed
MaK
Unnamed
Niigata
GE gas turbine
MAN
Scania
Mitsubishi
Wärtsilä
Rolls-Royce
0
For more articles visit www.lngworldshipping.com
IN SERVICE AND ON ORDER
Total, seagoing, 60
Total inland, 6
Total fleet, 2015 = 147 vessels
Total inland river craft, 2
TOTAL IN SERVICE, MARCH 2015 = 66 TOTAL ON ORDER, MARCH 2015 = 81
Total, seagoing, 79
LNG-POWERED SHIPS 2016, BY REGION, WHERE KNOWN (NUMBER OF VESSELS) SERVICE & SUPPLY VESSELS
PASSENGER SHIPS North Sea/Baltic Sea Southern Europe
IN SERVICE
North America South America
ON ORDER
Middle East Asia Deepsea/Int trading
CONTAINER, RO-RO & CARGO SHIPS
TANKERS & BULKERS
North Sea/Baltic Sea Southern Europe North America South America Middle East Asia Deepsea/Int trading
0
5
10
15
20
For more articles visit www.lngworldshipping.com
25
30 0
5
10
15
20
25
30
LNG World Shipping | May/June 2016
28 | PASSENGER SHIPS
Small-Scale LNG Supplement
Demand grows for LNG-fuelled passenger ships A
ll but eight of the 30 LNG-powered passenger ferries in service are small ships built to traverse the Norwegian fjords. Of the 22 fjord ships, all but three also carry cars and commercial vehicles. The Norwegian-flag contingent includes the 95m-long, 2000-built Glutra, the first LNG-fuelled vessel that was not an LNG carrier to go into service. The eight passenger vessels not shuttling across Norway’s fjords are distinctive ships in their own right. One, Francisco, is a highspeed catamaran transiting the mouth of the River Plate between Montevideo and Buenos Aires. It is the only LNG-fuelled vessel in service powered by a gas turbine and its 50-knot service speed makes it the world’s fastest commercial vessel. Two of the eight ships, Fjord Line’s 25,000gt Stavangerfjord and Bergensfjord, bunker at Risavika harbour in the Norwegian port of Stavanger utilising the world’s first jettymounted LNG bunkering arm. Another of the contingent, Viking Line’s Viking Grace, loads LNG fuel every morning in Stockholm harbour by means of ship-to-ship (STS) transfers from Seagas, still the world’s only dedicated, in-service LNG bunkering vessel. Over a year, the 57,000gt Viking Grace burns 23,000 tonnes of LNG on its daily Stockholm-Helsinki run. Delivered in 2013, Viking Grace was the 21st LNG-fuelled passenger vessel to go into service and the first to be equipped with dualfuel engines rather than the lean-burn, gas-only engines utilised on the earlier vessels. Dual-fuel
engines are gaining favour in the LNG-fuelled passenger vessel sector, chosen to power 20 of the 23 vessels of this type on order. The LNG-powered passenger vessel orderbook also shows that the concept is spreading out from Norway and that the average size of such ships is increasing. Seven of the newbuildings are earmarked for service in Canada and will join STQ Quebec’s 2015built FA Gauthier, North America’s first LNGfuelled passenger car ferry. Amongst the passenger ships on order are four 180,000gt cruise vessels building for members of the Carnival Group and delivery in 2019 and 2020. Each cruise ship will be 337m long, marginally less than that of a 266,000m3 Q-max vessel, the largest LNG carrier afloat, and will be equipped with three IMO Type C bunker tanks with an aggregate LNG capacity of 3,500m3. Other newbuildings will bring LNG-powered passenger ship technology to Scotland, Spain, Estonia and the Swedish island of Gotland for the first time. The Estonia contribution comes courtesy of Megastar, a 49,000gt ferry that the Meyer Turku yard is set to deliver to the Tallink Group in early 2017 for service on the busy Tallinn-Helsinki route. Megastar is designed for a service speed of 27 knots and the vessel’s Wärtsilä dual-fuel main engine complement will comprise three 12-cylinder and two 6-cylinder 50DF units. One year ago, when the Small-Scale LNG Supplement 2015 was published, there were 27 LNG-powered passenger ships in service and 16 on order. LNG
22 of the world’s 30 LNG-fuelled passenger ships are Norwegian fjord ships
LNG World Shipping | May/June 2016
LNG-fuelled passenger ships on order:
2016: 23 2015: 16 On-year % change:
43.8%
LNG-fuelled passenger ships in service:
2016: 30 2015: 27 On-year % change:
11%
For more articles visit www.lngworldshipping.com
PASSENGER SHIPS | 29
Small-Scale LNG Supplement
SHIP NAME
SHIP TYPE
DELIVERY DATE
OWNER
SHIPBUILDER
ENGINE
PROPULSION TYPE
CLASS SOCIETY
IN SERVICE Glutra
Car pax ferry
2000
Fjord1
Langstein
Mitsubishi
Gas
DNV
Bergensfjord
Car pax ferry
2006
Fjord1
Aker Yards
Rolls-Royce
Gas
DNV
Stavangerfjord
Car pax ferry
2007
Fjord1
Aker Yards
Rolls-Royce
Gas
DNV
Raunefjord
Car pax ferry
2007
Fjord1
Aker Yards
Rolls-Royce
Gas
DNV
Mastrafjord
Car pax ferry
2007
Fjord1
Aker Yards
Rolls-Royce
Gas
DNV
Fanafjord
Car pax ferry
2007
Fjord1
Aker Yards
Rolls-Royce
Gas
DNV
Tidekongen
Car pax ferry
2009
Tide Sjø
STX Europe Lorient
Mitsubishi
Gas + oil
DNV
Tidedronnigen
Car pax ferry
2009
Tide Sjø
STX Europe Lorient
Mitsubishi
Gas + oil
DNV
Tideprinsen
Car pax ferry
2009
Tide Sjø
STX Europe Lorient
Mitsubishi
Gas + oil
DNV
Moldefjord
Car pax ferry
2009
Fjord1
Remontowa
Mitsubishi
Gas + oil
DNV
Fannefjord
Car pax ferry
2010
Fjord1
Remontowa
Mitsubishi
Gas + oil
DNV
Romsdalfjord
Car pax ferry
2010
Fjord1
Remontowa
Mitsubishi
Gas + oil
DNV
Korsfjord
Car pax ferry
2010
Fjord1
Remontowa
Mitsubishi
Gas + oil
DNV
Selbjornsfjord
Car pax ferry
2010
Fosen Namsos Sjø
Fiskerstrand BLRT
Mitsubishi
Gas + oil
DNV
Tresfjord
Car pax ferry
2011
Fjord1
Fiskerstrand BLRT
Rolls-Royce
Gas
DNV
Boknafjord
Car pax ferry
2012
Fjord1
Fiskerstrand BLRT
Rolls-Royce
Gas
DNV
Landegode
Car pax ferry
2012
Torghatten Nord
Remontowa
Rolls-Royce
Gas
DNV
Vaerøy
Car pax ferry
2012
Torghatten Nord
Remontowa
Rolls-Royce
Gas
DNV
Barøy
Car pax ferry
2013
Torghatten Nord
Remontowa
Rolls-Royce
Gas
DNV
Lødingen
Car pax ferry
2013
Torghatten Nord
Remontowa
Rolls-Royce
Gas
DNV
Viking Grace
Car pax ferry
2013
Vking Line
STX Turku
Wärtsilä
DF
LR
Stavangerfjord
Car pax ferry
2013
Fjord Line
Remontowa
Rolls-Royce
Gas
DNV
Bergensfjord
Car pax ferry
2013
Fjord Line
Remontowa
Rolls-Royce
Gas
DNV
High-speed ferry
2013
Buquebus
Incat
GE gas turbine
Gas
DNV
Hardanger
Car pax ferry
2013
Norled
Remontowa
Mitsubishi
Gas
DNV
Ryfylke
Car pax ferry
2013
Norled
Remontowa
Mitsubishi
Gas
DNV
FA Gauthier
Car pax ferry
2015
STQ Quebec
Fincantieri
Wärtsilä
DF
LR
Ostfriesland*
Car pax ferry
2015
AG Ems
Cassen Eils
Wärtsilä
DF
GL
Helgoland
Car pax ferry
2015
AG Ems
Cassen Eils
Wärtsilä
DF
GL
Samsø
Car pax ferry
2015
Samsø Municipality
Remontowa
Wärtsilä
DF
DNV
Armand-Imbeau II
Car pax ferry
2016
STQ Quebec
Davie Sb
Wärtsilä
DF
LR
Jos-Deschênes II
Car pax ferry
2016
STQ Quebec
Davie Sb
Wärtsilä
DF
LR
Abel Matutes*
Car pax ferry
2016
Baleària
unnamed
Rolls-Royce
Gas
BV
unnamed
Car pax ferry
2016
Boreal Transport
Fiskerstrand
Rolls-Royce
Gas
DNV GL
unnamed
Car pax ferry
2016
Boreal Transport
Fiskerstrand
Rolls-Royce
Gas
DNV GL
unnamed
Car pax ferry
2016
Seaspan
Sedef
Wärtsilä
DF
LR
unnamed
Car pax ferry
2016
Seaspan
Sedef
Wärtsilä
DF
LR
Salish Orca
Car pax ferry
2016
BC Ferries
Remontowa
Wärtsilä
DF
LR
Salish Eagle
Car pax ferry
2017
BC Ferries
Remontowa
Wärtsilä
DF
LR
Salish Raven
Car pax ferry
2017
BC Ferries
Remontowa
Wärtsilä
DF
LR
unnamed
Car pax ferry
2017
Rederi AB Gotland Guangzhou International
Wärtsilä
DF
DNV GL
unnamed
Car pax ferry
2017
Rederi AB Gotland Guangzhou International
Wärtsilä
DF
DNV GL
Spirit of Vancouver Island*
Car pax ferry
2017
BC Ferries
unnamed
unnamed
DF
LR
Spirit of British Columbia*
Car pax ferry
2018
BC Ferries
unnamed
unnamed
DF
LR
Francisco
ON ORDER
Megastar
Car pax ferry
2017
Tallink
Meyer Turku
Wärtsilä
DF
BV
unnamed
Cruise ship
2019
AIDA (Carnival Group)
Meyer Papenburg
unnamed
DF
DNV GL
unnamed
Cruise ship
2020
AIDA (Carnival Group)
Meyer Papenburg
unnamed
DF
DNV GL
unnamed
Cruise ship
2019
Costa (Carnival Group)
Meyer Turku
unnamed
DF
unnamed
unnamed
Cruise ship
2020
Costa (Carnival Group)
Meyer Turku
unnamed
DF
unnamed
unnamed
Car pax ferry
2018
CalMac
Ferguson
unnamed
DF
unnamed unnamed
unnamed
Car pax ferry
2018
CalMac
Ferguson
unnamed
DF
unnamed
Car pax ferry
2019
Baleària
LaNaval
unnamed
DF
unnamed
unnamed
Car pax ferry
2019
Baleària
LaNaval
unnamed
DF
unnamed
* conversion project DF = medium-speed dual-fuel; HPLSDF = high-pressure low-speed dual-fuel; LPLSDF = low-pressure low-speed dual-fuel
For more articles visit www.lngworldshipping.com
LNG World Shipping | May/June 2016
30 | TANKERS AND BULKERS
Small-Scale LNG Supplement
Tankers and bulkers warm to LNG O
wners of tankers and bulk carriers to the LNG fuel option. On tankships LNG initially showed little bunker tanks can be positioned on deck, enthusiasm for the LNG ensuring that the underdeck cargofuel option. There are only carrying capacity of the vessel is six such vessels in service, not compromised in any way. comprising a cement Although bulk carriers carrier, two product also have cargo-free flush Number of tankers and three gas decks, it is difficult to ships that are not position LNG bunker tankers and LNG carriers. tanks on deck due to bulkers in service, Interest has the need for cargo picked up in recent hold access via wide 6. Total tankers years, however. deck openings. and bulkers on The orderbook The tanker for LNG-powered orderbook features two order, 24 tankers and bulkers series of four 15,000 dwt has grown to 24 vessels, newbuildings – one for from 19 a year ago. Denmark’s Terntank Rederi Shipyards now hold orders and the other for Groupe for eight product/chemical Desgangnés of Canada. All the tankers, one bitumen tanker, 13 gas ships will be product/chemical tankers carriers and two bulk carriers. except for the first Desgangnés vessel, which Oil, gas and chemical tankers enjoy one key will carry bitumen. advantage over other ship types when it comes The Terntank and Desgangnés quartets
There are only six tankers and bulkers in service; a cement carrier, two product tankers and three gas ships that are not LNG carriers
LEFT: The Norwegian cement-carrier Greenland refuels at Germany’s Port of Rostock
LNG World Shipping | May/June 2016
For more articles visit www.lngworldshipping.com
TANKERS AND BULKERS | 31
Small-Scale LNG Supplement
will be the first LNG-fuelled vessels to be propelled by two-stroke, low-pressure, dualfuel engines. The Wärtsilä RT-flex50DF engine specified for each ship is compliant with the IMO requirements governing Tier III nitrogen oxide (NOx) emissions without the need for exhaust gas cleaning systems.
New leader
The most notable feature of the tanker and bulker orderbook is the rise of gas carriers to the top spot. Eleven of the 13 gas ships are ethane carriers and the 12th is the world’s first compressed natural gas (CNG) carrier. The latter will also be Indonesia’s first dual-fuel ship. All the gas carriers, with the exception of one, are being built in China. The ethane carriers are being constructed for a new trade – the export of this shale-based liquefied gas from the US to petrochemical plants worldwide for use as
SHIP NAME
SHIP TYPE
DELIVERY DATE
feedstock. The LNG-powered ethane carriers ordered to date are in the 30-36,000m3 size range and will be used primarily for transatlantic shipments to chemical complexes in Europe. US shale has also boosted the country’s natural gas production and is making large quantities of LNG available, to the extent that supplying the ethane carriers with bunker fuel will not be a problem. Seven of the 11 ethane carriers are to be powered by MAN high-pressure ME-GI dualfuel engines while the propulsion system for the remaining four ships is still to be chosen. The two bulk carriers on order are 25,600 dwt, dual-fuel vessels being built for Finland’s ESL Shipping and service in the Baltic Sea commencing on delivery in early 2018. The ice-class 1A ships will be the world’s first handysize LNG-fuelled bulk carriers and are being built to Deltamarin’s B.Delta26LNG design. LNG
OWNER
SHIPBUILDER
Ethane carriers are being built for a new trade – the export of shalebased liquefied ethane from the US as feedstock to petrochemical plants worldwide
ENGINE
PROPULSION TYPE
CLASS SOCIETY
IN SERVICE Bit Viking*
Product tanker
2011
Tarbit
Oresundsvarvet
Wärtsilä
DF
GL
Coral Star
Ethylene carrier
2014
Anthony Veder
Avic Dingheng
Wärtsilä
DF
BV
Coral Sticho
Ethylene carrier
2014
Anthony Veder
Avic Dingheng
Wärtsilä
DF
BV
Product tanker
2015
Bergen Tankers
Noryards
Rolls-Royce
Gas
DNV
LPG carrier
2015
Chemgas Shipping
Hoogezand
Wärtsilä
DF
BV
Cement carrier
2015
JT Cement
Ferus Smit
Wärtsilä
DF
LR
BV
Bergen Viking* Sefarina Greenland ON ORDER Fure West*
Product tanker
2016
Furetank
Oresunsvarvet
MaK
DF
Sundowner
LPG carrier
2016
Chemgas Shipping
Hoogezand
Wärtsilä
DF
BV
Product/chemical tanker
2016
Terntank
Avic Dingheng
Wärtsilä
LPLSDF
BV
unnamed
Product/chemical tanker
2016
Terntank
Avic Dingheng
Wärtsilä
LPLSDF
BV
unnamed
Product/chemical tanker
2016
Terntank
Avic Dingheng
Wärtsilä
LPLSDF
BV
Ternsund
unnamed
Product/chemical tanker
2017
Terntank
Avic Dingheng
Wärtsilä
LPLSDF
BV
unnamed
CNG carrier
2016
CIMC Enric SZJ Gas
Jiangsu Hantong
Wärtsilä
DF
ABS/BKI
unnamed
Ethane carrier
2016
Ocean Yield
Sinopacific
MAN
HPLSDF
DNV GL
unnamed
Ethane carrier
2016
Ocean Yield
Sinopacific
MAN
HPLSDF
DNV GL
unnamed
Ethane carrier
2016
Ocean Yield
Sinopacific
MAN
HPLSDF
DNV GL
Bitumen tanker
2016
Groupe Desgangnés
Besiktas
Wärtsilä
LPLSDF
BV
Mia Desgangnés
Product/chemical tanker
2016
Groupe Desgangnés
Besiktas
Wärtsilä
LPLSDF
BV
unnamed
Product/chemical tanker
2017
Groupe Desgangnés
Besiktas
Wärtsilä
LPLSDF
BV
unnamed
Product/chemical tanker
2017
Groupe Desgangnés
Besiktas
Wärtsilä
LPLSDF
BV
unnamed
Ethane carrier
2016
Navigator Gas
Jiangnan
MAN
HPLSDF
ABS
unnamed
Ethane carrier
2016
Navigator Gas
Jiangnan
MAN
HPLSDF
ABS
unnamed
Ethane carrier
2016
Navigator Gas
Jiangnan
MAN
HPLSDF
ABS
unnamed
Ethane carrier
2016
Navigator Gas
Jiangnan
MAN
HPLSDF
ABS
unnamed
Bulk carrier
2018
ESL Shipping
Qingshan Shipyard
unnamed
DF
DNV GL
unnamed
Bulk carrier
2018
ESL Shipping
Qingshan Shipyard
unnamed
DF
DNV GL
unnamed
Ethane carrier
2018
Evergas
JHW Engineering
unnamed
unnamed
unnamed
Damia Desgangnés
unnamed
Ethane carrier
2018
Evergas
JHW Engineering
unnamed
unnamed
unnamed
unnamed
Ethane carrier
2018
Evergas
JHW Engineering
unnamed
unnamed
unnamed
unnamed
Ethane carrier
2019
Evergas
JHW Engineering
unnamed
unnamed
unnamed
* conversion project DF = medium-speed dual-fuel; HPLSDF = high-pressure low-speed dual-fuel; LPLSDF = low-pressure low-speed dual-fuel
For more articles visit www.lngworldshipping.com
LNG World Shipping | May/June 2016
32 | CONTAINER AND DRY CARGO SHIPS
Small-Scale LNG Supplement
The first LNG-powered container ships enter service TOTE has recently taken delivery of the 3,100 teu container ship Isla Bella from NASSCO
T
he first LNG-powered dry cargo ships to go into service were four fishfeed carriers for Norwegian owners. The fjords that punctuate Norway’s long western coastline are dotted with fish farms and keeping these fish stocks fed is now big business. The ships represent a new generation of fishfeed carrier, transporting upwards of 2,000 tonnes of fishfeed pellets in bulk rather than in traditional “big bags”. All the vessels are powered by Rolls-Royce lean-burn gas engines. Over the past year the four fishfeed carriers in service have been joined by inaugural pairs of LNG-fuelled container and roro ships. The fact that the latter types of vessel hold the greatest potential for growth in the LNG-powered dry cargo ship sector is highlighted by the current orderbook. In contrast to the single new fishfeed carrier that has been
LNG World Shipping | May/June 2016
contracted, there are 15 container ships and five roro vessels on order. The roro category includes two car carriers and two container/roro ships. Construction of the first two roro ships – NorLines’ Kvitbjørn and Kvitnos – in China posed some logistical challenges. Because the ships are powered by Rolls-Royce gas-only engines, the long maiden voyages to Norwegian home waters needed some
No new LNG-fuelled dry cargo vessel has been ordered over the past 12 months
For more articles visit www.lngworldshipping.com
CONTAINER AND DRY CARGO SHIPS | 33
Small-Scale LNG Supplement
carefully planned LNG bunkering stops en route. In the event the 400m3 fuel tank on each ship was refilled by LNG import terminals at Kochi in India and Cartagena in Spain on the 13,000-mile journey.
truck the bunker fuel from an LNG peak-shaving complex in Macon, Georgia. Soon to ply Europe’s shortsea container trades will be a distinctive series of six 1,400 teu ships building at the Yangzhou Guoyu yard in China for 2016-17 delivery and operation by Containerships of Finland. The newbuildings will be the first container ships to use two-stroke, low-pressure, dual-fuel propulsion, in the form of a Wärtsilä 7-cylinder RT-flex50DF engine. The ships feature an innovative design in which the LNG bunker tanks are positioned between two cargo holds to reduce the impact of gas fuel system on the container-carrying capacity. The auxiliary engine that generates electricity for each ship’s 300 reefer container slots will also be a dual-fuel unit. No new LNG-fuelled dry cargo vessel has been ordered over the past 12 months, with the result that the combined in-service and on-order fleet remains unchanged at 29 vessels. LNG
First-mover
Ordered by TOTE Maritime at the NASSCO yard in the US in December 2012, the recently delivered Isla Bella and Perla Del Caribe are the first newbuilding vessels with MAN’s ME-GI high-pressure, two-stroke, dual-fuel engines. With a 3,100 teu capacity, they are also the world’s first container ships and the largest dry cargo ships powered by LNG. Isla Bella and Perla Del Caribe are based in Jacksonville and serve Puerto Rico from the Florida port. A small liquefaction plant is being built in the port to provide LNG for the ships but, until that facility is completed later this year, TOTE is using a fleet of 25 cryogenic tank containers to
Number of container, ro-ro and cargo ships in service, 8. Number on order, 21
SHIP NAME
SHIP TYPE
DELIVERY DATE
OWNER
SHIPBUILDER
ENGINE
PROPULSION TYPE
CLASS SOCIETY
IN SERVICE Høydal
Fishfeed carrier
2012
Nordnorsk Shipping
Tersan
Rolls-Royce
Gas
DNV
Eidsvaag Pioneer
Fishfeed carrier
2013
Eidsvaag
STX OSV Aukra
Rolls-Royce
Gas
DNV
With Harvest
Fishfeed carrier
2014
Egil Ulvan
Fiskerstrand
Rolls-Royce
Gas
DNV
With Marine
Fishfeed carrier
2014
Egil Ulvan
Fiskerstrand
Rolls-Royce
Gas
DNV
Kvitbjørn
Container ro-ro
2015
NorLines
Tsuji Heavy Jianagsu
Rolls-Royce
Gas
DNV
Kvitnos
Container ro-ro
2015
NorLines
Tsuji Heavy Jianagsu
Rolls-Royce
Gas
DNV
Isla Bella
Container ship
2015
TOTE
NASSCO
MAN
HPLSDF
ABS
Perla del Caribe
Container ship
2016
TOTE
NASSCO
MAN
HPLSDF
ABS
unnamed
Container ship
2016
Brodosplit Navigation
Brodosplit
MAN
HPLSDF
DNV GL
unnamed
Container ship
2016
Brodosplit Navigation
Brodosplit
MAN
HPLSDF
DNV GL
unnamed
Container ship
2017
Brodosplit Navigation
Brodosplit
MAN
HPLSDF
DNV GL
unnamed
Container ship
2017
Brodosplit Navigation
Brodosplit
MAN
HPLSDF
DNV GL
unnamed
Ro-ro cargo
2016
SeaRoad
Flensburger
MaK
DF
DNV GL
Container ship
2016
Wessels Reederei
unnamed
MAN
HPLSDF
unnamed LR
ON ORDER
Wes Amelie* unnamed
Car carrier
2016
UECC
NACKS
MAN
HPLSDF
unnamed
Car carrier
2016
UECC
NACKS
MAN
HPLSDF
LR
unnamed
Container ship
2016
Containerships
Yangzhou Guoyu
Wärtsilä
LPLSDF
ABS
unnamed
Container ship
2016
Containerships
Yangzhou Guoyu
Wärtsilä
LPLSDF
ABS
unnamed
Container ship
2017
Containerships
Yangzhou Guoyu
Wärtsilä
LPLSDF
ABS
unnamed
Container ship
2017
Containerships
Yangzhou Guoyu
Wärtsilä
LPLSDF
ABS
unnamed
Container ship
2017
Containerships
Yangzhou Guoyu
Wärtsilä
LPLSDF
ABS
unnamed
Container ship
2017
Containerships
Yangzhou Guoyu
Wärtsilä
LPLSDF
ABS
Taino
Container ro-ro
2017
Crowley Maritime
VT Halter Marine
MAN
HPLSDF
DNV GL
El Coqui
Container ro-ro
2017
Crowley Maritime
VT Halter Marine
MAN
HPLSDF
DNV GL
unnamed
Fishfeed carrier
2018
Nordnorsk Shipping
Tersan
Rolls-Royce
Gas
DNV GL
Daniel K Inouye
Container ship
2018
Matson Navigation
Aker Philadelphia
MAN
HPLSDF
DNV GL
unnamed
Container ship
2018
Matson Navigation
Aker Philadelphia
MAN
HPLSDF
DNV GL
Midnight Sun*
Container ship
2018
TOTE
NASSCO
Wärtsilä
DF
ABS
North Star*
Container ship
2018
TOTE
NASSCO
Wärtsilä
DF
ABS
* conversion project DF = medium-speed dual-fuel; HPLSDF = high-pressure low-speed dual-fuel; LPLSDF = low-pressure low-speed dual-fuel
For more articles visit www.lngworldshipping.com
LNG World Shipping | May/June 2016
34 | SERVICE AND SUPPLY SHIPS
Small-Scale LNG Supplement
PSVs and tugs lead service ship fleet P
latform supply vessels (PSVs) and harbour tugs dominate the LNG-powered fleet of service and supply ships. PSVs account for 19 of the 30 LNG-fuelled service and supply ships in operation and for seven of the 20 on order. Six of the in-service fleet and six of the ships on order are tugs. All the early PSVs were built at yards in Norway for domestic owners and for service in the Norwegian sector of the North Sea. The orders for the ships were incentivised by the financial advantages afforded by the country’s NOx tax fund, which encourages investments in environment-friendly vessels. More recently, the LNGpowered concept has spread out to encompass different types of service and supply craft and owners in places as diverse as South Korea, Japan, China, the US, Belgium, the Netherlands and Finland. Among the array of new types of vessel under construction are a cable layer, a jackup rig and a series of dredgers for DEME; a semisubmersible crane vessel for Hereema; and an icebreaker named Polaris for the Finnish Transport Agency. Polaris is the first icebreaker to be powered by LNG, the first since 1987 to be designed for dedicated Baltic Sea service and the first true icebreaker designed with podded propulsion units at the bow and stern. ABB’s Azipod units fore and aft enable the ship to break ice while moving either forward or astern. Wärtsilä has supplied one 8-cylinder 20DF, two 9-cylinder 34DF and two 12-cylinder 34DF engines for the vessel. In August 2011 Harvey Gulf in the US Gulf state of Louisiana became the first nonNorwegian owner to order an LNG-powered PSV vessel. The company specified two 5,500 dwt newbuildings for service in the Gulf of Mexico but subsequently raised the total to six. Three of the sextet are now in service.
Harvey chose this fuel for the vessels after deciding that LNG offered the optimum route to compliance with the strict requirements laid down in the North American emissions-control area (ECA) regime. In February 2015 Harvey Energy, the first in the series, became the first vessel in North America to participate in a truck-to-ship LNG bunkering operation and the first US-flag, LNG-powered ship. It is also the first LNGfuelled vessel classed with ABS.
Total service/ supply in service, 30. Total on order, 20
LNG World Shipping | May/June 2016
All the early PSVs were financed by Norway’s NOx tax fund and built at Norwegian yards for domestic owners and for service in the Norwegian North Sea
Escort tugs
Most of the LNG-fuelled tugs in service and on order have been specified as sophisticated escort tugs, assisting gas carriers arriving and departing dedicated import and export terminals. A case in point is the order for three large escort tugs that Norwegian operator Østensjø Rederi placed at the Gondan yard in Spain in January 2015 for use at Statoil’s Snøhvit LNG export terminal near Hammerfest in northern Norway. Each tug will be powered by a six-cylinder Wärtsilä 34DF dual-fuel engine and be able to provide a bollard pull of 100 tonnes. Østensjø put the shipping industry’s first escort tug into service, back in 1993. LNG
BELOW: Harvey Energy was the first vessel in North America to participate in truck-to-ship LNG bunkering and the first US-flagged, LNG-powered ship
For more articles visit www.lngworldshipping.com
SERVICE AND SUPPLY SHIPS | 35
Small-Scale LNG Supplement
SHIP NAME
SHIP TYPE
DELIVERY DATE
OWNER
SHIPBUILDER
ENGINE
PROPULSION TYPE
CLASS SOCIETY
IN SERVICE Stril Pioneer
PSV
2003
Møkster
Kleven Ulsteinvik
Wärtsilä
DF
DNV
Viking Energy
PSV
2003
Eidesvik
Kleven Ulsteinvik
Wärtsilä
DF
DNV
Viking Queen
PSV
2008
Eidesvik
West Contractors
Wärtsilä
DF
DNV
Viking Lady
PSV
2009
Eidesvik
West Contractors
Wärtsilä
DF
DNV
Barentshav
Patrol vessel
2009
Remøy
Myklebust
Mitsubishi
Gas + oil
DNV
Bergen
Patrol vessel
2010
Remøy
Myklebust
Mitsubishi
Gas + oil
DNV
Sortland
Patrol vessel
2010
Remøy
Myklebust
Mitsubishi
Gas + oil
DNV
Skandi Gamma
PSV
2011
DOF
STX OSV Soviknes
Wärtsilä
DF
DNV
Normand Arctic
PSV
2011
Solstad
STX OSV Langen
Wärtsilä
DF
DNV
Viking Prince
PSV
2012
Eidesvik
Kleven Ulsteinvik
Wärtsilä
DF
DNV
Viking Princess
PSV
2012
Eidesvik
Kleven Ulsteinvik
Wärtsilä
DF
DNV
Island Crusader
PSV
2012
Solstad
STX OSV Brevik
Rolls-Royce
Gas
DNV
Island Contender
PSV
2012
Solstad
STX OSV Brevik
Rolls-Royce
Gas
DNV
Olympic Energy
PSV
2012
Solstad
STX OSV Aukra
Wärtsilä
DF
DNV
Rem Leader
PSV
2013
Remøy Shipping
Kleven Verft
Wärtsilä
DF
DNV
Harbour vessel
2013
Incheon Port Authority
Samsung
Wärtsilä
DF
KR
Tug
2013
CNOOC
Guangzhou Huangpu
Wärtsilä
DF
CCS
Econuri Hai Yang Shi You Hai Yang Shi You 521
Tug
2013
CNOOC
Guangzhou Huangpu
Wärtsilä
DF
CCS
Borgøy
Tug
2014
Buksér og Berging
Sanmar
Rolls-Royce
Gas
DNV
Bokn
Tug
2014
Buksér og Berging
Sanmar
Rolls-Royce
Gas
DNV
Turva
Patrol vessel
2014
Finnish Border Guard
STX Turku
Wärtsilä
DF
GL
Stril Barents
PSV
2015
Møkster
Hellesøy
Wärtsilä
DF
DNV
Harvey Energy
PSV
2015
Harvey Gulf
Trinity Offshore
Wärtsilä
DF
ABS
Harvey Power
PSV
2015
Harvey Gulf
Trinity Offshore
Wärtsilä
DF
ABS
Harvey Liberty
PSV
2016
Harvey Gulf
Trinity Offshore
Wärtsilä
DF
ABS
Rem Eir
PSV
2015
Remøy Shipping
Kleven Verft
Wärtsilä
DF
DNV
Hai Yang Shi You 525
Tug
2015
CNOOC
Zhenjiang
Rolls-Royce
Gas
CCS
Siem Symphony
PSV
2015
Siem Offshore
Hellesøy
Wärtsilä
DF
DNV
Siem Pride
PSV
2015
Siem Offshore
Hellesøy
Wärtsilä
DF
DNV
Sakigaki
Tug
2015
NYK Line
Keihin Dock
Niigata
DF
ClassNK
ON ORDER unnamed
Tug
2016
CNOOC
Zhenjiang
Rolls-Royce
Gas
CCS
Elemaratayeh
Tug
2016
Dubai Maritime City
DDW Dubai
Wärtsilä
DF
Tasneef
Harvey Freedom
PSV
2016
Harvey Gulf
Trinity Offshore
Wärtsilä
DF
ABS
Harvey America
PSV
2017
Harvey Gulf
Trinity Offshore
Wärtsilä
DF
ABS
Harvey Patriot
PSV
2017
Harvey Gulf
Trinity Offshore
Wärtsilä
DF
ABS
unnamed
PSV
2016
Siem Offshore
Remontowa
Wärtsilä
DF
DNV GL
Siem Harmony
PSV
2016
Siem Offshore
Remontowa
Wärtsilä
DF
DNV GL
Siem Melody
PSV
2016
Siem Offshore
Remontowa
Wärtsilä
DF
DNV GL
Siem Rhapsody
PSV
2016
Siem Offshore
Remontowa
Wärtsilä
DF
DNV GL
2016 Finnish Transport Agency
Arctech Helsinki
Wärtsilä
DF
LR
Royal IHC
Wärtsilä
DF
unnamed
Polaris
Icebreaker
Scheldt River
Dredger
2016
DEME
Minerva
Dredger
2016
DEME
Royal IHC
Anglo Belgian
DF
unnamed
Bonny River
Dredger
2017
DEME
Cosco Guangdong
Wärtsilä
DF
unnamed
Apollo
Jack-up rig
2017
DEME
LaNaval
unnamed
DF
unnamed
Livingstone
Cable-layer
2017
DEME
Uljanik
Wärtsilä
DF
unnamed
unnamed
Semisub crane vessel
2017
Heerema
Sembawang
unnamed
DF
unnamed
unnamed
Tug
2017
Østensjø Rederi
Astilleros Gondan
Wärtsilä
DF
unnamed
unnamed
Tug
2017
Østensjø Rederi
Astilleros Gondan
Wärtsilä
DF
unnamed
unnamed
Tug
2017
Østensjø Rederi
Astilleros Gondan
Wärtsilä
DF
unnamed
unnamed
Tug
2017
Ningbo Port Company
unnamed
Niigata
DF
CCS
* conversion project PSV = platform supply vessel; DF = medium-speed dual-fuel; HPLSDF = high-pressure low-speed dual-fuel; LPLSDF = low-pressure low-speed dual-fuel
For more articles visit www.lngworldshipping.com
LNG World Shipping | May/June 2016
36 | VIEWPOINT
Small-Scale LNG Supplement
CONTAINERISED TRANSPORT OF LNG – CREATING A VIRTUAL PIPELINE
T
Steven Miles is a Washington-based partner in the law firm of Baker Botts, where he chairs the energy-sector committee and heads the firm’s worldwide LNG practice. Gina Sagar is an associate in Baker Botts’ global projects department
he confluence of several factors in the LNG supply chain has created opportunities for small-scale transport of LNG to previously inaccessible markets. These include reduced natural gas prices, innovations in transport technology and regulatory developments in the US. Ultimately, these factors enable the replacement of higher-cost and lessenvironmentally friendly fuels in pipelineremote areas and markets that were previously not economically feasible to access. In the Caribbean, where electricity prices are up to three to four times higher than in Florida, the availability of natural gas as an alternative fuel for electricity generation has the potential to reduce energy costs, even in the current price environment. Further, when used to replace other fossil fuels in existing power plants, natural gas can also significantly reduce environmental pollutants. Indeed, substituting natural gas for coal can reduce power-plant emissions of carbon dioxide by half, nitrogen oxides by twothirds, and sulphur oxides by 99 per cent. Additionally, there is increased demand for natural gas from islands, both of the geographical kind and those areas with no access to gas, that face unique energy challenges because of their physical isolation and lack of indigenous fossil fuel resources. Hawaii Gas, for example, has announced plans to take delivery of LNG in ISO containers, which it could transport by truck or barge to other points in the state. Elsewhere, Carib Energy won a multi-year contract in 2014 to supply containerised LNG to Coca-Cola bottlers in Cidra, Puerto Rico. More recently, Carib Energy has announced that, in response to high customer demand, it has acquired 19 additional ISO containers to transport LNG to customers in Puerto Rico, the Caribbean and Central America. Small-scale transport of LNG via ISO container may also allow project sponsors to avoid significant investment in regulatory
LNG World Shipping | May/June 2016
compliance. Small-scale liquefaction projects may, under certain circumstances, be exempt from the US Federal Energy Regulatory Commission (FERC) permitting process, which can cost a project sponsor tens of millions of dollars and take approximately two to three years to complete. Existing liquefaction facilities that serve domestic markets may also receive expedited review from the US Department of Energy (DOE) for authorisation to export LNG to nonFree Trade Agreement (FTA) countries. Specifically, existing facilities that would not require any new construction to provide exports may be eligible for a categorical exclusion from National Environmental Policy Act (NEPA) review. Because the DOE will not issue a final authorisation until it has completed its NEPA review process, being categorically excluded from NEPA review can expedite the DOE/ FERC review of applications to export to non-FTA countries. Notably, however, smallscale liquefaction facilities and containerised transport may still be subject to the jurisdiction of other agencies, including the Department of Transportation’s Pipeline and Hazardous Materials Safety Administration and Federal Railroad Administration. In many cases, ISO containers may be shipped using existing, conventional freighters without the need for purpose-built vessels. Using existing conventional vessels not only reduces the cost of transportation, but may also enable the shipper to avoid the need to build and site expensive new facilities for unloading and storing LNG in the receiving location. Although challenges remain, including the need to ramp up production of ISO containers to meet the growing market demand, delivery of containerised LNG holds the potential for significant benefits, both to developers of small-scale liquefaction projects and to buyers of containerised LNG in smaller and geographically isolated markets. LNG
For more articles visit www.lngworldshipping.com
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BEST OF THE WEB | 33
BEST OF THE WEB LNG World Shipping's website covers the latest developments in shipping, project updates and new products and services. Our news coverage is now exclusively online and free to read. Here are some of the most popular stories that we covered since the autumn
Gate Terminal handles first LNG transhipment Rotterdam’s Gate Terminal has handled its first LNG transhipment, transferring a cargo from the unloading ship at one jetty to a loading ship at the second jetty without flowing through the onshore tanks. Gate modified its layout last year to make possible ship-to-ship transfers, which offer a higher flow rate and less boil-off production than traditional loading from tanks. Gate is seeking to position itself as the leading LNG hub in northwest Europe. http://bit.ly/gatetranship
FLNG costs under scrutiny as Indonesia opts for onshore venture Indonesia has decided against a US$15 billion FLNG project to tap the Masela offshore gas field and will instead process the gas on shore. Inpex and Shell had planned to develop a 7.5 million tonne a year (mta) FLNG venture – more than twice the size of Shell’s 3.6 mta Prelude FLNG venture off Western Australia. Abadi FLNG was expected to start production in 2020. There had been strong hints from Jakarta that ministers favoured an onshore project, seeing this as a cheaper, more energy-secure choice. However, critics fear that the decision to position the project on shore will lead to production delays. http://bit.ly/flngabadi
lngworldshipping.com
GIIGNL logs the LNG logjam breakthrough
Inaugural US ethane heralds a new gas trade
The 2015 International Group of LNG Importers (GIIGNL) report pinpoints when the logjam holding global LNG trade volumes static for the past five years began to clear, in a breakthrough that also heralded the return of Pacific Basin producers to the top LNG-exporters’ spot. That development was the dispatch of the inaugural cargo from Queensland Curtis LNG (QCLNG) terminal in Australia’s port of Gladstone early in 2015. GIIGNL reports that the QCLNG and GLNG shipments boosted global LNG movements in 2015 to a record 245.2 million tonnes, up 2.5 per cent on-year.
The departure of the first export cargo of US ethane from the Sunoco Logistics-operated Marcus Hook terminal near Philadelphia in Pennsylvania on 9 March signals the start of a new gas-carrier trade. The cargo was lifted by JS Ineos Intrepid, one of eight multipurpose LNG/ethane/ethylene carriers of 27,500m3 being built in China for Evergas and chartered to Ineos, which will ship US ethane to its petrochemical plants in Norway and Scotland as a low-cost feedstock alternative to naphtha.
http://bit.ly/giignl2015
GasLog appoints Larsen head of FSRU development
Engie wins Antwerp LNG bargebunkering concession Belgium’s Port of Antwerp has named Francebased energy and shipping giant Engie the winning bidder to build and operate an LNGbunkering station for barges under a 30-year concession to start in October. This will make LNG as marine fuel “permanently available” at the port. The concession starts on 1 October and runs for 30 years. http://bit.ly/antwerpengie
Lloyd’s Register launches guidance for drone inspections
http://bit.ly/usethane
GasLog has moved closer to entering the floating storage and regasification unit (FSRU) segment of the LNG shipping market, appointing Bruno Larsen head of FSRU development. GasLog has 27 wholly owned LNG carriers, including a live fleet of 19 and eight on order to 2019. It plans to increase its consolidated fleet to 40 vessels by the end of 2017 and has launched a front-end engineering and design (FEED) study at Singapore’s Keppel Shipyard on converting steam-powered and tri-fuel diesel-electric LNG carriers. http://bit.ly/gaslogfsru
UK-based classification society Lloyd’s Register (LR) has published new guidance to support safe and effective deployment of next-generation drones and unmanned aircraft systems (UAS) in inspections, to improve productivity, reduce risk exposure and in-service inspection costs and to speed up survey times. It says “eyes-in-the-sky technology” enables rapid, safe and repeatable inspections for offshore, shipping and onshore infrastructure that offer long-term benefits to the energy and marine sectors, delivering high levels of integrity, compliance and commercial advantage.
Gas and oil firms make only ‘moderate’ big data investment, says DNV GL
http://bit.ly/lrdrone
http://bit.ly/bigdatadnv
For more articles visit www.lngworldshipping.com
Just one in five oil and gas companies sees itself as highly digitalised, according to DNV GL, whose recent survey nevertheless also found that 45 per cent of industry professionals see solid or high potential for big data and analytics to transform the operating efficiency of the industry in 2016. Only 36 per cent of respondents were planning significant or moderate investment in this area this year. Cyber security is the IT-related technology in which most respondents expected significant or high investment.
LNG World Shipping | May/June 2016
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Transforming the LNG transfer zone S
Vincent Lagarrigue is global LNG manager at Trelleborg Oil and Marine
mall-scale LNG transfer, whether shipto-shore or offshore ship-to-ship, is in its relative infancy in terms of the development of infrastructure to meet increasing supply and demand. Yet, as the market has developed over the past decade, so too has new thinking around innovative means to transfer LNG. The onus has been on finding solutions that strike the balance between new means to improve operability and maintaining the highest safety standards. To date, small-scale LNG transfer has been utilised to reflect emerging demand threads, with significant growth in ship-to-shore for regasification, liquefaction and terminal loading and unloading, and gas-power generation loading and unloading. The ship-to-shore market, in particular, is spawning new innovation in loading and unloading transfer. Growing interest in the natural gas option from energy customers remote from the grid and with limited volume
requirements, is spurring interest in smallscale LNG, notably with coastal gas carriers and regional distribution terminals. The status quo for ship-to-shore transfer solutions to support regasification, liquefaction and terminal or gas power generation loading and unloading requires high capital investment to create a jetty infrastructure. Yet game-changing innovation has emerged at the ship-to-shore interface, for both regasification, liquefaction and terminal loading and unloading, as well as gas power generation. The traditional approach has been to build a permanent jetty, complete with breasting and mooring dolphins, fenders and loading arms, requiring capital expenditure costs as high as US$150 million. These jetties incur a high cost and are time-consuming to construct. And this is at odds with reliable and quick installation and improved operability, key elements in any new regasification, liquefaction, terminal, or power plant construction project.
Hose-in-hose One solution, now challenging the status quo, is Cryoline floating hose-in-hose solutions. In addition to capex savings, hose-in-hose solutions such as Trelleborg’s – the first to receive EN1474-2 accreditation for its Cryoline LNG hose – can extend to up to 600m from shore. With safety always paramount, Cryoline LNG hoses are designed for fatigue resistance in even the most hazardous conditions, are operable in all sea states and typically utilise only 12-inch to 16-inch hoses to cope with an LNG flow-
www.lngworldshipping.com For more articles visit www.lngworldshipping.com
rate of up to 10,000 m³/h. Rationalised operability is a crucial requirement for operators, and Trelleborg’s cryogenic floating hose is the only technology that improves operability by as much as 200 per cent, leading to less down time and higher productivity. The technology is designed for 500 loading or offloading operations, enabling safe operation for ten years without incurring decommissioning costs that run to millions of dollars
for LNG jetties. Because it is a clean, competitively priced, energy source, demand for LNG will only grow in new regions and locations. As these markets develop, so the frequency of multi-faceted loading and unloading transfers at the ship-to-shore interface will too. To keep pace, the intensity of life in the transfer zone needs new, flexible and innovative thinking to support growth acceleration and to minimise costs. LNG
World Shipping | May/June2016 2016 LNG LNG World Shipping | May/June
YOUR PARTNER IN SHIP PERFORMANCE MONITORING www.kyma.no
36 | STATISTICS
LNG carrier orders and deliveries Statistics as at 1 April 2016 showing the latest developments in the world fleet of LNG carriers
IN-SERVICE AND ON-ORDER LNGC FLEET BY PROPULSION SYSTEM No of vessels
Orderbook = 140
Exisiting LNG fleet = 462
300 250
in service
Two-stroke diesel 59 vessels
on order
Dual-fuel diesel-electric 76 vessels
200
Two-stroke dual fuel 2 vessels
Dual-fuel diesel-electric 131 vessels
Steam 19 vessels
150
Two-stroke diesel 1 vessel
100 50
Two-stroke dual-fuel 44 vessels
0 Dieselelectric
Low-speed diesel
Steam
Steam 270 vessels
Low speed dual-fuel
IN-SERVICE AND ON-ORDER LNGC FLEET BY CONTAINMENT SYSTEM No of vessels
Orderbook = 140
Existing LNG fleet = 462
200 Type C 13 vessels KC-1 2 vessels IHI SPB 4 vessels
existing
150
LNT A-Box 1 vessel
newbuild
GTT CS1 3 vessels
Type C 19 vessels
GTT Mk III 170 vessels
Moss 111 vessels
GTT Mk III 41 vessels
100
50
0
IHI SPB 2 vessels
Moss 24 vessels
GTT No 96 55 vessels GTT Mk III
GTT No 96
GTT CS1
Moss
IHI SPB
KC-1
Type C
GTT No 96 157 vessels
LNT A-Box
YEAR OF BUILD OF THE LNG FLEET BY NUMBER OF VESSELS No of vessels
6060 5050
Q-max
40
50–180,000m3
Q-flex
40
Up to 50,000m3
3030 2020 1010 2022
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
1985
LNG World Shipping | May/June 2016
1984
1983
1982
1981
1980
1979
1978
1977
1976
1975
1974
1973
1972
1971
1970
1969
00
For more articles visit www.lngworldshipping.com
Sin título-4 1
14/01/2013 8:17:27
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38 | STATISTICS
LNG NEWBUILDING COST, BY SHIP TYPE (average annual prices, US$ million) 350 small-scale, 30,000m3 LNGC
300 170,000m3 floating storage & regasification unit
250
steam-propelled LNGC, 145,000-177,000m3
200
Icebreaking LNGC, Yamal, 172,000m3
150
DFDE LNGC, 155,000-174,000m3
100
ME-GI propulsion, 174,000m3
diesel-propelled LNGC, 210,000m3
50 2000
2001 2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012 2013
2014
2015
LNG NEWBUILDING ORDERBOOK BY YARD OF BUILD Total number of vessels on order = 140 vessels Daewoo 43 vessels
Kawasaki 9 vessels
Wison 4 vessels
Imabari 6 vessels
Yangzijiang 2 vessels Neptun 1 vessel STX 1 vessel
JMU 4 vessels Bodewes 1 vessel Xiamen 1 vessel
Samsung 17 vessels
Hyundai 25 vessels
Cosco Dalian 1 vessel Qidong Fengshun 1 vessel Ningbo Xinle 1 vessel Sinopacific 3 vessels Mitsubishi 9 vessels
Hudong 11 vessels
LNG CARRIER ORDERS AND DELIVERIES PER YEAR No of vessels
8080 7070 6060 5050 4040 3030 2020 1010 00
orders per year deliveries per year
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
LNG World Shipping | May/June 2016
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40 | STATISTICS
LNG CARRIERS DELIVERED (1 OCTOBER 2014 – 1 APRIL 2016) vessel name
delivery
capacity m3
owner
builder
charterer
cont system
details
2015 deliveries Papua
1.2015
172,000
MOL
Hudong
ExxonMobil
GTTNo96
PNG exports
SCF Melampus
1.2015
170,000
Sovcomflot
STX Shipbuilding
Shell
GTTNo96
Shell business
BW Pavion Vanda
1.2015
155,000
BW/Pavilion
Hyundai
Sinopec
GTTMkIII
PNG exports
Golar Kelvin
1.2015
162,000
Golar LNG
Hyundai
Voyage charters
GTTMkIII
Cool Pool vessel
Asia Excellence
1.2015
155,000
Chevron
Samsung
Chevron
GTTMkIII
Gorgon exports
Cool Explorer
1.2015
160,000
Thenamaris
Samsung
Voyage charters
GTTMkIII
Spot trading
Golar Snow
1.2015
155,000
Golar LNG
Samsung
Voyage charters
GTTMkIII
Cool Pool vessel
Golar Ice
2.2015
160,000
Golar LNG
Samsung
Voyage charters
GTTMkIII
Cool Pool vessel
SCF Mitre
4.2015
170,000
Sovcomflot
STX Shipbuilding
Shell
GTTNo96
Shell business
Maran Gas Sparta
4.2015
163,700
Maran Gas
Hyundai Samho
BG Group
GTTMkIII
BG business
Hai Yang Shi You 301
4.2015
30,000
CNOOC
Jiangnan
CNOOC
Type C
China coast
Gaslog Salem
4.2015
155,000
GasLog
Samsung
BG Group
GTTMkIII
BG business
Asia Endeavour
6.2015
160,000
Chevron
Samsung
Chevron
GTTMkIII
Gorgon exports
Maran Gas Lindos
6.2015
155,900
Maran Gas
Daewoo
BG Group
GTTNo96
BG business
Southern Cross
6.2015
172,000
MOL
Hudong
ExxonMobil
GTTNo96
PNG exports
Amadi
7.2015
155,000
Brunei LNG
Hyundai
Brunei LNG
GTTMkIII
Brunei exports
Maran Gas Mystras
7.2015
155,900
Maran Gas
Daewoo
BG Group
GTTNo96
BG business
Clean Horizon
7.2015
162,000
Dynagas
Hyundai
Voyage charters
GTTMkIII
Cool Pool vessel
JS Ineos Insight
7.2015
27,500
Evergas
Sinopacific
Ineos
Type C
Ethane service
JS Ineos Ingenuity
7.2015
27,500
Evergas
Sinopacific
Ineos
Type C
Ethane service
BW Singapore
8.2015
170,000
BW Group
Samsung
EGAS
GTTMkIII
Egypt FSRU No 2
Maran Gas Troy
9.2015
155,900
Maran Gas
Daewoo
Voyage charters
GTTNo96
Spot trading
Maran Gas Alexandria
9.2015
163,700
Maran Gas
Hyundai Samho
BG Group
GTTMkIII
BG business
BW Pavilion Leeara
9.2015
162,000
BW/Pavilion
Hyundai
Sinopec
GTTMkIII
Sinopec use
Energy Atlantic
9.2015
160,000
Alpha Tankers
STX Shipbuilding
Cheniere Energy
GTTNo96
Sabine Pass exports
JS Ineos Intrepid
10.2015
27,500
Evergas
Sinopacific
Ineos
Type C
Ethane service
LNG Jurojin
11.2015
155,000
MOL
Mitsubishi
Kansai Electric
Moss
Kansai Electric use
LNG Finima II
11.2015
174,000
Nigeria LNG
Samsung
Nigeria LNG
GTTMkIII
Nigeria exports
Golar Tundra
11.2015
170,000
Golar LNG
Samsung
West African Gas
GTTMkIII
Ghana FSRU
Beidou Star
11.2015
172,000
MOL
Hudong
ExxonMobil
GTTNo96
Gorgon exports
LNG Bonny II
12.2015
170,000
Nigeria LNG
Hyundai
Nigeria LNG
GTTMkIII
Nigeria exports
LNG Port Harcourt II
12.2015
170,000
Nigeria LNG
Samsung
Nigeria LNG
GTTMkIII
Nigeria exports
2016 deliveries LNG Lagos II
1.2016
176,700
Nigeria LNG
Hyundai
Nigeria LNG
GTTMkIII
Nigeria exports
Maran Gas Achilles
1.2016
174,000
Maran Gas
Hyundai Samho
Nakilat
GTTMkIII
Nakilat business
Clean Vision
1.2016
162,000
Dynagas
Hyundai
Voyage charters
GTTMkIII
Cool Pool vessel
LNG Saturn
1.2016
155,000
MOL
Mitsubishi
Osaka Gas/Kyushu
Moss
OG/Kyushu use
Creole Spirit
2.2016
173,400
Teekay
Daewoo
Cheniere
GTTNo96
Sabine Pass exports
LNG Abuja II
3.2016
170,000
Nigeria LNG
Samsung
Nigeria LNG
GTTMkIII
Nigeria exports
Woodside Chaney
3.2016
174,000
Maran Gas
Hyundai Samho
Woodside
GTTMkIII
Woodside business
Gaslog Greece
3.2016
174,000
GasLog
Samsung
Shell
GTTMkIII
Shell business
LNG TANKER DELIVERIES BY COUNTRY OF BUILD (all sizes) not including FPSOs country Korea Japan China other total
2009 30 7 4
2010 22 3 1
2011 13 2 4
2012 1 – 1
2013 17 1 –
2014 30 4 –
2015 24 1 7
2016 31 7 10
2017 22 7 7
2018 38 11 2
2019 6 1 1
2020 2 – –
2021 – 1 –
2022 – 3 –
– 41
– 26
– 19
1 3
– 18
– 34
– 32
– 48
2 38
– 51
– 8
– 2
– 1
– 3
LNGC NEWBUILDINGS BY YEAR OF DELIVERY vessel category No of vessels delivered/due for delivery of which above 125,000m3 of which Yamal icebreaking LNGCs of which Excelerate FSRU of which Hoegh FSRU of which Golar FSRU of which BW Gas FSRU of which MOL FSRU of which Gazprom FSRU of which Shell FLNG of which Petronas FLNG of which Exmar FLRSU/FLNG
2009 41 39 – 2 – –
2010 26 24 – 2 1 –
2011 19 12 – – 1 –
2012 3 2 – – – –
2013 18 16 – – – –
2014 34 34 – 1 3 2
2015 32 28 – – – 1
2016 48 41 1 – 1 –
2017 38 32 3 – 1 1
2018 51 51 7 – 2 –
2019 8 8 3 – – –
2020 2 2 1 – – –
2021 1 1 – – – –
2022 3 3 – – – –
– – – – – –
– – – – – –
– – – – – –
– – – – – –
– – – – – –
– – – – – –
1 – – – – –
1 1 – – 1 1
1 – 1 1 – –
– – – – – 1
– – – – – –
– – – – 1 –
– – – – – –
– – – – – –
LNG World Shipping | May/June 2016
For more articles visit www.lngworldshipping.com
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STATISTICS | 41
LNG carriers on order LNG CARRIERS ON ORDER (AS AT 1 APRIL 2016) hull no
shipowner
capacity m3
delivery
charterer
containment
class
propulsion
details
5,800
2017
Skangas
Type C
BV
DFDE
bunker vessel
18,000
2017
Skangas
Type C
BV
DFDE
Baltic trading
Royal Bodewes, Hoogezand, The Netherlands –
Sirius/Veder
Neptun Werft, Rostock, Germany S.575
Anthony Veder
United Shipbuilding Corp, St Petersburg, Russia –
LNG-Gorskaya
7,300
2017
LNG-Gorskaya
GTTMkIII
RS
–
Baltic bunkering
–
LNG-Gorskaya
7,300
2017
LNG-Gorskaya
GTTMkIII
RS
–
Baltic bunkering
–
LNG-Gorskaya
7,300
2017
LNG-Gorskaya
GTTMkIII
RS
–
Baltic bunkering
Hudong-Zhonghua Shipbuilding, Shanghai, China 1673A
MOL
172,000
2016
ExxonMobil
GTTNo96
ABS/CCS
Diesel
Gorgon exports
1715A
CESI/MOL
174,000
2016
Sinopec
GTTNo96
LR/CCS
DFDE
APLNG exports
1716A
CESI/MOL
174,000
2016
Sinopec
GTTNo96
LR/CCS
DFDE
APLNG exports
1717A
CESI/MOL
174,000
2016
Sinopec
GTTNo96
LR/CCS
DFDE
APLNG exports
1718A
CESI/MOL
174,000
2017
Sinopec
GTTNo96
LR/CCS
DFDE
APLNG exports
1719A
CESI/MOL
174,000
2017
Sinopec
GTTNo96
LR/CCS
DFDE
APLNG exports
1720A
CESI/MOL
174,000
2017
Sinopec
GTTNo96
LR/CCS
DFDE
APLNG exports
1663A
CNOOC/CLNG/TK
174,000
2017
Shell
GTTNo96
ABS/CCS
DFDE
QCLNG exports
1664A
CNOOC/CLNG/TK
174,000
2018
Shell
GTTNo96
ABS/CCS
DFDE
QCLNG exports
1665A
CNOOC/CLNG/TK/BW
174,000
2018
Shell
GTTNo96
ABS/CCS
DFDE
QCLNG exports
1666A
CNOOC/CLNG/TK/BW
174,000
2019
Shell
GTTNo96
ABS/CCS
DFDE
QCLNG exports
28,000
2016
CNPC Kunlun
Type C
CCS
DFDE
China coast
30,000
2016
CNPC Kunlun
Type C
CCS
DFDE
China coast
14,000
2016
–
Type C
CCS
LSDF (LP)
China coast
Cosco Dalian Shipyard, Dalian, China N588
Dalian Inteh
Ningbo Xinle Shipbuilding, Ningbo, China XL-157
PetroChina
Qidong Fengshun Ship HI, Qidong, China FS-007A
Zhejiang Huaxiang
Sinopacific Offshore & Engineering (SOE), Qidong, China 1018
Evergas
27,500
2016
Ineos
Type C
BV
DFDE
Ethane service
1019
Evergas
27,500
2016
Ineos
Type C
BV
DFDE
Ethane service
1020
Evergas
27,500
2016
Ineos
Type C
BV
DFDE
Ethane service LNG FLRSU
Wison Offshore & Marine, Nantong, China –
Exmar
16,100
2016
–
Type C
BV
N/A
S-188
Exmar
25,000
2016
Pacific Rubiales
SPB
BV
N/A
FSRU
–
VGS
N/A
2017
VGS
N/A
–
N/A
LNG FRU
–
Exmar
25,000
2018
–
Type C
BV
N/A
LNG FPSO
45,000
2017
–
LNT A-Box
–
DFDE
China coast
Xiamen Shipbuilding, Xiamen, China –
Landmark Capital
Yangzijiang Shipbuilding, Jingjiang, China –
Evergas
27,500
2017
Ineos
Type C
BV
DFDE
Ethane service
–
Evergas
27,500
2017
Ineos
Type C
BV
DFDE
Ethane service GNF business
Imabari Shipbuilding, Imabari, Japan 8177
Elcano
174,000
2017
GNF
GTTMkIII
LR
LSDF (HP)
8188
Elcano
174,000
2017
GNF
GTTMkIII
LR
LSDF (HP)
GNF business
8200
K Line
178,000
2021
Mitsui & Co
GTTMkIII
ClassNK
LSDF (HP)
Cameron exports
8215
Unknown
178,000
2022
–
GTTMkIII
–
LSDF (HP)
open
8216
Unknown
178,000
2022
–
GTTMkIII
–
LSDF (HP)
open
8217
Unknown
178,000
2022
–
GTTMkIII
–
LSDF (HP)
open Cove Point exports
Japan Marine United, Kumamoto, Japan 5070
MOL/Tokyo LNG Tanker
165,000
2017
Tokyo Gas
SPB
ClassNK
DFDE
5071
NYK/Tokyo LNG Tanker
165,000
2017
Tokyo Gas
SPB
ClassNK
DFDE
Cove Point exports
5072
MOL/Tokyo LNG Tanker
165,000
2018
Tokyo Gas
SPB
ClassNK
DFDE
Cove Point exports
5073
MOL/Tokyo LNG Tanker
165,000
2018
Tokyo Gas
SPB
ClassNK
DFDE
Cove Point exports
Kawasaki Heavy Industries (KHI), Sakaide, Japan 1712
MOL
164,700
2016
Kansai Electric
Moss
ClassNK
UST
Kansai Electric use
1713
K Line
164,700
2016
Chubu Electric
Moss
ClassNK
UST
Chubu Electric use
1720
MOL
164,700
2016
Chubu Electric
Moss
ClassNK
UST
Chubu Electric use
1718
K Line
182,000
2016
Inpex Corp
Moss
BV
DFDE
Ichthys-Taiwan
1731
K Line
155,000
2017
-
Moss
ClassNK
UST
open
1728
MOL
155,000
2017
Mitsui & Co
Moss
ClassNK
DFDE
Cameron exports
For more articles visit www.lngworldshipping.com
LNG World Shipping | May/June 2016
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42 | STATISTICS
LNG CARRIERS ON ORDER (AS AT 1 APRIL 2016) hull no
shipowner
capacity m3
delivery
charterer
containment
class
propulsion
details
1729
MOL
155,000
2018
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
Mitsubishi Heavy Industries (MHI), Nagasaki, Japan 2296
MOL/Osaka Gas
155,000
2016
Osaka Gas
Moss
ClassNK
UST
Osaka Gas use
2310
K Line
155,000
2016
Inpex Corp
Moss
ClassNK
UST
Ichthys exports
2316
NYK
155,000
2017
Tokyo Electric
Moss
ClassNK
UST
Wheatstone exports
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
Daewoo Shipbuilding & Marine Engineering (DSME), Okpo, Korea 2412
Maran Gas
173,400
2016
–
GTTNo96
ABS
DFDE
open
2413
Maran Gas
173,400
2016
–
GTTNo96
ABS
DFDE
open
2414
Maran Gas
173,400
2016
–
GTTNo96
ABS
DFDE
open
2415
Maran Gas
173,400
2016
–
GTTNo96
LR
DFDE
open
2456
Maran Gas
173,400
2018
–
GTTNo96
LR
LSDF (HP)
open
2457
Maran Gas
173,400
2018
–
GTTNo96
DNV GL
LSDF (HP)
open
2458
Maran Gas
173,400
2018
–
GTTNo96
–
LSDF (HP)
open
2459
Maran Gas
173,400
2018
–
GTTNo96
–
LSDF (HP)
open
6302
Petronas
180,000
2016
Petronas
GTTNo96
DNV GL
N/A
Kanowit FLNG
2408
Teekay
173,400
2016
Cheniere
GTTNo96
DNV GL
LSDF (HP)
Sabine Pass exports
2411
Teekay
173,400
2016
Shell
GTTNo96
DNV GL
LSDF (HP)
Shell use
2416
Teekay
173,400
2017
Shell
GTTNo96
DNV GL
LSDF (HP)
Shell use
2417
Teekay
173,400
2017
Shell
GTTNo96
DNV GL
LSDF (HP)
Shell use
2453
Teekay
173,400
2018
Shell
GTTNo96
DNV GL
LSDF (HP)
Shell use
2454
Teekay
173,400
2018
Shell
GTTNo96
DNV GL
LSDF (HP)
Shell use
2455
Teekay
173,400
2018
–
GTTNo96
DNV GL
LSDF (HP)
open
2461
Teekay
173,400
2018
Bahrain LNG
GTTNo96
DNV GL
LSDF (HP)
Bahrain FSU
2419
MOL
263,000
2018
Engie/Marubeni
GTTNo96
BV
DFDE
Gas Sayago FSRU
2418
Sovcomflot
172,000
2016
Yamal LNG
GTTNo96
BV/RS
DFDE
icebreaking LNGC
2421
Dynagas
172,000
2017
Yamal LNG
GTTNo96
BV/RS
DFDE
icebreaking LNGC
2422
Dynagas
172,000
2017
Yamal LNG
GTTNo96
BV/RS
DFDE
icebreaking LNGC
2427
Dynagas
172,000
2018
Yamal LNG
GTTNo96
BV/RS
DFDE
icebreaking LNGC
2428
Dynagas
172,000
2018
Yamal LNG
GTTNo96
BV/RS
DFDE
icebreaking LNGC
2429
Dynagas
172,000
2018
Yamal LNG
GTTNo96
BV/RS
DFDE
icebreaking LNGC
2426
CSDC/MOL
172,000
2018
Yamal LNG
GTTNo96
BV/RS
DFDE
icebreaking LNGC
2432
CSDC/MOL
172,000
2018
Yamal LNG
GTTNo96
BV/RS
DFDE
icebreaking LNGC
2434
CSDC/MOL
172,000
2019
Yamal LNG
GTTNo96
BV/RS
DFDE
icebreaking LNGC
2423
Teekay/CLNG
172,000
2017
Yamal LNG
GTTNo96
BV/RS
DFDE
icebreaking LNGC
2424
Teekay/CLNG
172,000
2018
Yamal LNG
GTTNo96
BV/RS
DFDE
icebreaking LNGC
2425
Teekay/CLNG
172,000
2018
Yamal LNG
GTTNo96
BV/RS
DFDE
icebreaking LNGC
2430
Teekay/CLNG
172,000
2019
Yamal LNG
GTTNo96
BV/RS
DFDE
icebreaking LNGC
2431
Teekay/CLNG
172,000
2019
Yamal LNG
GTTNo96
BV/RS
DFDE
icebreaking LNGC
2433
Teekay/CLNG
172,000
2020
Yamal LNG
GTTNo96
BV/RS
DFDE
icebreaking LNGC
2447
Frontline
174,000
2017
–
GTTNo96
–
LSDF (HP)
open
2448
Frontline
174,000
2017
–
GTTNo96
–
LSDF (HP)
open
2449
Korea Line
174,000
2017
Kogas
GTTNo96
–
DFDE
Sabine Pass exports
2450
Korea Line
174,000
2017
Kogas
GTTNo96
–
DFDE
Sabine Pass exports
2451
Hyundai LNG
174,000
2018
Kogas
GTTNo96
–
DFDE
Sabine Pass exports
2452
Hyundai LNG
174,000
2018
Kogas
GTTNo96
–
DFDE
Sabine Pass exports
2435
BW Group
173,400
2017
–
GTTNo96
DNV GL
LSDF (HP)
open
2436
BW Group
173,400
2018
–
GTTNo96
DNV GL
LSDF (HP)
open
2488
BW Group
174,000
2018
–
GTTNo96
–
LSDF (HP)
open
2499
BW Group
174,000
2019
–
GTTNo96
–
LSDF (HP)
open
2460
Chandris/K Line
173,400
2018
BP
GTTNo96
LR
LSDF (HP)
BP business
2464
Chandris/K Line
173,400
2018
BP
GTTNo96
LR
LSDF (HP)
BP business
2441
BP Shipping
173,400
2018
BP
GTTNo96
LR
LSDF (HP)
BP business
2442
BP Shipping
173,400
2018
BP
GTTNo96
LR
LSDF (HP)
BP business
2443
BP Shipping
173,400
2018
BP
GTTNo96
LR
LSDF (HP)
BP business
LNG | May/June 2016 LNGWorld WorldShipping Shipping | May/June 2016
www.lngworldshipping.com For more articles visit www.lngworldshipping.com
YOUR PARTNER IN SHIP PERFORMANCE MONITORING www.kyma.no
STATISTICS | 43
LNG CARRIERS ON ORDER (AS AT 1 APRIL 2016) hull no
shipowner
capacity m3
delivery
charterer
containment
class
propulsion
details
2444
BP Shipping
173,400
2018
BP
GTTNo96
LR
LSDF (HP)
BP business
2445
BP Shipping
173,400
2018
BP
GTTNo96
LR
LSDF (HP)
BP business
2446
BP Shipping
173,400
2018
BP
GTTNo96
LR
LSDF (HP)
BP business
2462
MOL/Itochu
180,000
2018
E.ON
GTTNo96
–
LSDF (HP)
E.ON business
5,100
2016
Engie
Type C
BV
DFDE
bunker vessel
Hanjin Heavy Industries, Yeongdo, Korea –
NYK/Engie
Hyundai Heavy Industries, Ulsan, Korea 2551
Höegh LNG
170,000
2016
SPEC
GTTMkIII
DNV GL
DFDE
FSRU: SPEC LNG
2552
Höegh LNG
170,000
2017
–
GTTMkIII
DNV GL
DFDE
FSRU
2865
Höegh LNG
170,000
2018
–
GTTMkIII
DNV GL
DFDE
FSRU
–
Höegh LNG
170,000
2018
–
GTTMkIII
DNV GL
DFDE
FSRU
2612
Tsakos Energy
174,000
2016
–
GTTMkIII
ABS
DFDE
open
2729
MISC
150,000
2016
Petronas
Moss
ABS
UST
Petronas projects
2730
MISC
150,000
2016
Petronas
Moss
ABS
UST
Petronas projects
2731
MISC
150,000
2016
Petronas
Moss
LR
UST
Petronas projects
2732
MISC
150,000
2016
Petronas
Moss
LR
UST
Petronas projects
2735
MISC
150,000
2017
Petronas
Moss
LR
UST
Petronas projects
2733
Knutsen/NYK Line
176,300
2016
GNF
GTTMkIII
LR
LSDF (HP)
GNF business
2734
Knutsen/NYK Line
176,300
2016
GNF
GTTMkIII
LR
LSDF (HP)
GNF business
2633
India LNG Transport
173,000
2016
Petronet
GTTMkIII
BV
DFDE
Gorgon-India
2800
GasLog
174,000
2017
–
GTTMkIII
DNV GL
LSDF (LP)
open
2801
GasLog
174,000
2017
–
GTTMkIII
DNV GL
LSDF (LP)
open
2813
Hyproc Shipping
170,000
2016
Sonatrach
GTTMkIII
LR
DFDE
Algerian exports
2814
Hyproc Shipping
170,000
2017
Sonatrach
GTTMkIII
LR
DFDE
Algerian exports
2854
Gazprom
174,000
2017
Gazprom
GTTMkIII
RS
DFDE
Kaliningrad FSRU open
Hyundai Samho Heavy Industries (HSHI), Samho-Myun, Korea S690
Maran Gas
174,000
2016
–
GTTMkIII
ABS
DFDE
S691
Maran Gas
174,000
2016
–
GTTMkIII
LR
DFDE
open
S734
Maran Gas
174,000
2016
Shell
GTTMkIII
LR
DFDE
Shell business
S735
Maran Gas
174,000
2016
Shell
GTTMkIII
DNV GL
DFDE
Shell business
S856
Teekay
164,000
2019
BP
GTTMkIII
–
DFDE
BP business
S857
Teekay
164,000
2019
BP
GTTMkIII
–
DFDE
BP business
Samsung Heavy Industries (SHI), Geoje, Korea 2189
Golar LNG
170,000
2017
–
GTTMkIII
DNV GL
DFDE
FSRU
2073
GasLog
174,000
2016
Shell
GTTMkIII
ABS
DFDE
Shell business
2102
GasLog
174,000
2016
Shell
GTTMkIII
ABS
LSDF (HP)
Shell business
2103
GasLog
174,000
2016
Shell
GTTMkIII
ABS
LSDF (HP)
Shell business
2130
GasLog
174,000
2017
Shell
GTTMkIII
ABS
LSDF (HP)
Shell business
2131
GasLog
174,000
2017
Shell
GTTMkIII
ABS
LSDF (HP)
Shell business
2069
Chevron
160,000
2016
Chevron
GTTMkIII
ABS
DFDE
Gorgon exports
2070
Chevron
160,000
2016
Chevron
GTTMkIII
ABS
DFDE
Gorgon exports
2076
Bonny Gas Transport
170,000
2016
Nigeria LNG
GTTMkIII
BV
DFDE
NLNG exports
2077
Bonny Gas Transport
170,000
2016
Nigeria LNG
GTTMkIII
BV
DFDE
NLNG exports
2079
Bonny Gas Transport
170,000
2016
Nigeria LNG
GTTMkIII
BV
DFDE
NLNG exports
2080
SK Shipping/Marubeni
180,000
2017
Total
GTTMkIII
BV
LSDF (LP)
Ichthys exports
2081
SK Shipping/Marubeni
180,000
2017
Total
GTTMkIII
BV
LSDF (LP)
Sabine Pass exports
2107
Flex LNG
174,000
2017
–
GTTMkIII
ABS
LSDF (HP)
open
2108
Flex LNG
174,000
2018
–
GTTMkIII
ABS
LSDF (HP)
open
2030
Shell
220,000
2017
Shell Prelude
GTTMkIII
–
N/A
LNG FPSO
–
Petronas
180,000
2020
Petronas
GTTMkIII
–
N/A
LNG FPSO
2148
MOL/NYK Line
174,000
2018
Mitsui & Co
GTTMkIII
–
DFDE
Cameron exports
2149
MOL/Mitsui & Co
174,000
2018
Mitsui & Co
GTTMkIII
–
DFDE
Cameron exports
2150
MOL/Mitsui & Co
174,000
2018
Mitsui & Co
GTTMkIII
–
DFDE
Cameron exports
2153
SK Shipping
174,000
2018
Kogas
KC-1
–
DFDE
Sabine Pass exports
2154
SK Shipping
174,000
2018
Kogas
KC-1
–
DFDE
Sabine Pass exports
6,500
2017
Shell
Type C
LR
DFDE
bunker vessel
STX Offshore & Shipbuilding, Jinhae, Korea –
Shell
Table includes FSRUs and LNG FPSOs; 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) Source: LNG World Shipping
For more articles visit www.lngworldshipping.com
LNG World Shipping | May/June 2016
44 | VIEWPOINT
SOURCING THE RIGHT VALVES FOR FSRUs
F Duncan Gaskin: supplying cryogenic globe and check valves to Höegh’s South Koreabuilt FSRUs
“Valves must withstand constant cooling and warming during operation – and a marine environment where salt water can have detrimental effects on exposed parts”
LNG World Shipping | May/June 2016
loating regasification and storage units (FSRUs) offer a flexible, cost-effective solution for countries to import and store LNG. They can be developed more quickly than onshore regasification facilities and more cost-effectively, at a pricetag of around US$200 million. An FSRU can move between ports, giving countries the flexibility to provide gas where and when it is needed. From order to delivery can take around two years, from commissioning to providing gas. These vessels are low-cost, flexible and quickly available, making them attractive to countries eager to increase their use of gas to reduce the negative environmental effects of burning other types of fuel. Growing demand for FSRUs will require cryogenic globe and check valves that can meet a tough specification. FSRUs require robust, safe and reliable cryogenic valves that operate within the piping to safely transfer LNG to the onboard tanks, and to the regasification equipment. Taking into account the extremely low temperatures of LNG during this process, it is easy to see why the right valves are essential – to optimise safety, offer longevity and withstand the individual conditions of that application. Valves for FSRUs have to meet the requirements of marine applications and to secure type approvals from the four main classification societies. The valves must withstand constant cooling and warming during operation – and perform in a marine environment where salt water can have detrimental effects on any exposed parts, if valves are not manufactured to the highest standards. Designing a cryogenic valve is not straightforward when it has to tolerate LNG applications and the effects of the marine environment. The solution is to manufacture the valves in stainless steel 316L, CF3M for weld connections or CF8M for flanged applications. All components are aqua-blasted to reduce the risk of surface contamination and surface corrosion and pitting.
The stainless steel used for the bodies and headworks of these valves must be sourced from type-approved foundries and each component has to have full 3.2 traceability. This involves a class surveyor witnessing the pouring of castings at a foundry and the physical and chemical testing of castings or steel bar. The 3.2 certification process is extremely strict and ensures the stainless steel used in cryogenic globe and check valves is to the correct standard and that the valves operate correctly and are leak-free. A standard FSRU may require 1,000 globe and check valves in a wide range of sizes and operating pressures for the regasification system or for the cargo-handling system. This represents a significant scope of supply and requires exceptional project management to meet the delivery schedules. Parker Bestobell Marine has been a main supplier of cryogenic globe and check valves for the series of FSRUs that shipowner Höegh is having built at Hyundai Heavy Industries’ shipyard in South Korea. So far, six vessels have been contracted and two more are likely, soon. The valves were a combination of manual, pneumatic actuated globe valves and various check valves in sizes DN15 to DN100, approved by class society DNV GL. The valves will operate in sampling and purging applications in the cargo-handling system and in the regasification trains. The number of FSRUs in service will increase in coming years as more countries look to meet temporary or permanent energy needs by contracting their first FSRU installation or additional ones to increase gas supply. This is opening opportunities for cryogenic globe and check valves that are firesafe and fully approved by the classification societies, to ensure that the FSRU sector retains its reputation for safety. LNG
Duncan Gaskin is market-development manager at Parker Bestobell Marine, part of motion and control technologies and systems manufacturer Parker Hannifin.
www.lngworldshipping.com
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