LNG World Shipping May/June 2018 by rivieramaritimemedia

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contents

May/June 2018 volume 40 issue 2

33 Regulars

5 COMMENT Marmara Ereglisi

Alexandroupolis LNG

Operator: Gastrade Capacity: 4.5 mta Location: Alexandroupolis

Operator: Botas Capacity: 5.9 mta Location: Marmara Ereglisi

Saros LNG

Operator: Turkish/Qatari JV Capacity: 3.7 mta Location: Gallipoli

Industry review

Operator: DESFA Capacity: 4.7 mta (by end 2018) Location: Revithoussa/Athens

Area report Etki LNG

Operator: Kolin/Kalyon Capacity: 4.3 mta Location: Aliaga FSRU: Neptune

Existing import terminals (FRSUs) Existing import terminals (shore-based) Existing export terminals (shore-based)

7 GIIGNL annual reports provide the industry’s best summaries of the LNG sector. Mike Corkhill reviews the Group’s latest, on activities in 2017 Aliaga LNG 10 INFOGRAPHIC: GIIGNL highlights key LNG industry developments in 2017 Operator: Egegaz Capacity: 4.6 mta Location: Aliaga

Revithoussa

Planned import terminals (FRSUs)

DŲrtyol LNG

Operator: Botas Capacity: 4.3 mta Location: Iskenderun FSRU: MOL FSRU Challenger

13 New regional gas discoveries are enhancing prospects for the emergence of the Eastern Mediterranean as a gas and LNG hub. Mike Corkhill reports 18 INFOGRAPHIC: East Med LNG terminals existing and under development, encompassing shore and FSRU-based import projects and export facilities Cynergy LNG

Operator: DEFA Cyprus Capacity: 3.7 mta Location: Vasilikos

LNG-Fuelled fleet – Overview 21 The orderbook for LNG-powered vessels has grown by 36% over the past year. IdkuMike Corkhill looks at how large vessels are dominating the latest round Operator: Egyptian LNG Capacity: 7.2 mta of contracts Ain Sokhna No 1

Operator: EGAS Capacity: 4.5 mta Location: Ain Sokhna FSRU: Hoegh Gallant

Ain Sokhna No 2

Operator: EGAS Capacity: 6.2 mta Location: Ain Sokhna FSRU: BW Singapore

PLACEHOLDER TITLE 41

LNG-fuelled fleet – service and supply ships Damietta

Operator: SEGAS Services Capacity: 5.0 mta

Hadera LNG

Operator: Israel Electric Capacity: 3.7 mta Location: Offshore Hadera FSRU: Excellence

24 Owners of specialist vessels, covering everything from dredgers and jack-up rigs to cable layers and heavy-lift crane vessels, are starting to opt for LNG fuel

LNG-fuelled fleet – tankers and bulkers LNG 26 The orderbook for tanker and bulkers, at 43Aqaba ships, is the largest amongst the Operator: NEPCO Capacity: 6.0 mta Location: Aqaba four segments into which LNG World Shipping breaks down the LNG-fuelled fleet FSRU: Golar Eskimo

LNG-Fuelled fleet – passenger ships 28 The number of LNG-powered cruise liners under construction has increased by 38% over the past 12 months, from 13 to 18 vessels

LNG-fuelled fleet – container and cargo ships 0 The order by CMA CGM in late 2017 for nine LNG-powered container ships of 3 22,000 TEU capacity raised the bar for the use of LNG as marine fuel at a stroke

Shipowner interview 33 In his review of the Maran Gas fleet, Craig Jallal focuses on the company’s approach to issues such as FSRUs, propulsion systems and crew training

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LNG World Shipping | May/June 2018

contents Opinion 37 John Barnes of UniversalPegasus examines how LNG import terminal operators can gain advantage by choosing the jetty-based regasification option

Containment system

May/June 2018 Editor: Mike Corkhill t: +44 1825 764 817 e: mike.corkhill@rivieramm.com

41 GTT continuously develops its established Mark III and NO96 membrane tank technologies to accommodate the rapidly evolving LNG shipping industry

Contributing Editor: Craig Jallal t: +44 7974 935 477 e: craig.jallal@rivieramm.com

Statistics – fleet developments

Brand Manager: Ian Pow t: +44 20 8370 7011 e: ian.pow@rivieramm.com

47 Japanese charterers, owners and yards have been involved with one-half the LNG carriers completed over the past two months. Mike Corkhill investigates

Statistics – LNGCs on order and delivered 50 Bi-monthly update of the LNG carrier orderbook and ships delivered over the past 16 months brings the statistics up to date, as of 30 April 2018

Viewpoint 56 Børge Nogva of Høglund Marine Automation considers the importance of the ‘integration’ aspect of LNG carrier integrated automation systems

Next issue July/August 2018 issue of LNG World Shipping: Area report: Atlantic Coast Europe & Iberia Technical: ballast water treatment Offshore: innovations in vessel and cargo-handling Class societies: expertise for new vessel concepts Equipment: cargo transfer systems LNG bunkering: developments in Jacksonville

Production Manager: Ram Mahbubani t: +44 20 8370 7010 e: ram.mahbubani@rivieramm.com Subscriptions: Sally Church t: +44 20 8370 7018 e: sally.church@rivieramm.com Chairman: John Labdon Managing Director: Steve Labdon Finance Director: Cathy Labdon Operations Director: Graham Harman Head of Content: Edwin Lampert Executive Editor: Paul Gunton Head of Production: Hamish Dickie Published by: Riviera Maritime Media Ltd Mitre House 66 Abbey Road Enfield EN1 2QN UK

Read the latest international LNG Shipping news at www.lngworldshipping.com www.rivieramm.com

ISSN 1746-0603 (Print) ISSN 2051-0616 (Online)

Front cover image: Maria Angelicoussis of Maran Gas Maritime

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LNG World Shipping | May/June 2018

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 – YEAR OF ACTION SURPASSES EXPECTATIONS

T Mike Corkhill, Editor

www.lngworldshipping.com

he current year was always going to be an upbeat period for the LNG industry, what with exports from recently commissioned liquefaction trains continuing to ramp up and new projects scheduled to come onstream. However the pace of new developments – the tabling of potential export plants, LNG carrier construction, the emergence of new markets and more receiving terminal projects, the tightening of the marine environment protection regulatory regime, and the use of LNG as marine fuel – has caught even the optimists by surprise. As of 1 May, 23 LNG carriers had been completed in the year to date and 18 new LNG carriers had been ordered. All the newly contracted ships were conventional-size LNG carriers in the 174,000 to 180,000 m3 range, with the exception of an LNG bunker vessel (LNGBV), at 18,600 m3, the largest such vessel ever ordered. All the conventional-size LNG carriers ordered so far this year will be powered by dual-fuel, two-stroke engines. High-pressure ME-GI engines and lowpressure X-DF units are roughly equal in popularity as a propulsion system for the newbuildings. This issue features LNG World Shipping’s annual review of ships using LNG as fuel. Among other things, it highlights that the world fleet of in-service and on-order LNG-powered ships has increased by 26.5% over the past 12 months, reaching 253 vessels. The 132 ships on order represent a 36% jump in the size of the orderbook. So far this year, the Cove Point terminal on the US East Coast, with capacity to produce 5.1 million tonnes per annum (mta) of LNG, has entered service, while three further export projects – the 8.9 mta Ichthys, the 1.2 mta Cameroon LNG and the 3.7 mta Prelude facilities – have recently received cooldown cargoes. These shipments signal that the start of commercial operations is imminent. Cameroon LNG and Prelude are set to follow

the pioneering Malaysian PFLNG Satu venture, becoming the second and third floating LNG production (FLNG) vessel projects to come to fruition. Floating production vessels have also been ordered for the 3.4 mta Coral FLNG and 1.5 mta PFLNG2 projects, both at Samsung Heavy Industries; these schemes are set to start in 2020 and 2021, respectively. Final investment decisions (FIDs) could well be forthcoming for three more FLNG projects in 2018. These are the 2.2 mta Fortuna FLNG scheme planned for offshore Equatorial Guinea; the first of four 3.7 mta FLNG vessels proposed by Delfin LNG for the US Gulf; and the Greater Tortue project which calls for the development of an offshore field that straddles the territorial waters of Senegal and Mauritania. Another FID possible for 2018 is by Shell and partners for the LNG Canada initiative in the Canadian province of British Columbia. Most of the LNG export projects planned for Canada’s west coast have fallen by the wayside in recent years, but following its takeover of the BG Group, Shell now intends to consolidate the separate projects that the two companies were developing. In 2017 Petronas abandoned its own Pacific NorthWest scheme, scheduled for the same province; it is now rumoured to be a potential additional LNG Canada partner. Its presence would increase the already-strong likelihood of a FID this year. On the gas buyer side, Bangladesh is poised to become the world’s 41st LNG import nation. Gas processed by the 138,000 m3 floating storage and regasification unit (FSRU) Excellence, moored off Moheshkhali Island, was expected to reach Chittagong via connecting pipeline by late May 2018. Summit LNG, a second FSRU-based Bangladeshi import project, is scheduled to start operations later in the year. As you can see, it has been a busy year so far, and we are only a third of the way into it. LNG

LNG World Shipping | May/June 2018

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LNG INDUSTRY REVIEW | 7

GIIGNL ENCAPSULATES THE WORLD OF LNG GIIGNL’S ANNUAL REPORTS PROVIDE THE INDUSTRY’S BEST SUMMARIES OF THE LNG SECTOR AND THE GROUP’S LATEST, ON ACTIVITIES IN 2017, IS NO EXCEPTION

The commissioning of the two new liquefaction units in Australia in 2017, including Gorgon Train 3, helped the country achieve a 24% year-on-year export growth

n its recently published Annual Report 2018, the International Group of LNG Importers (GIIGNL) confirms that the global trade in LNG in 2017 recorded its highest annual growth rate since 2010, rising by 9.9% to reach 289.8M tonnes. And behind this headline-grabbing fact lies a wealth of intriguing detail. As the document states, 2017 was a year for pioneers. The first floating LNG production (FLNG) vessel entered into service; the industry’s first three purpose-built LNG bunker vessels (LNGBVs) commenced operations; and the first LNG shipments from the Arctic region were loaded on board a fleet of powerful icebreaking LNG carriers. Another significant development last year was an order for a fleet on nine ultra-large container ships to be powered by LNG. Although not involving LNGCs per se, this contract heralded a significant new era in ship propulsion, one in which LNG will play a key role as a marine fuel. It also prompted an order for what will be, at 18,600 m3 in capacity, the world’s largest LNGBV.

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SUPPLY-SIDE DEVELOPMENTS

A total of 25.4 million tonnes per annum (mta) of new LNG production capacity was added to the global slate in 2017, building it to the 365 mta level. This was achieved through the commissioning of five shore-based liquefaction trains and the PFLNG Satu vessel in Malaysia, the world’s first FLNG project mentioned above. The five shore trains brought onstream in 2017 were Gorgon Train 3 and Wheatstone Train 1 in Australia, Sabine Pass Trains 3 and 4 in the US and Yamal Train 1 in the Russian Arctic. The new plants added 10.7M tonnes to Australia’s production capacity last year and 9.6M tonnes to that of the US. But trade growth was not due solely to new facilities. Better performance by existing liquefaction plants in Algeria, Angola and Nigeria added an aggregate 6.2 mta of output to global trade in 2017. By region, the Pacific Basin remained the largest source of LNG in 2017, accounting for 131.4M tonnes, or 45.3% of the

LNG World Shipping | May/June 2018

8 | LNG INDUSTRY REVIEW

global total. Middle East producers supplied 31.5%, with Qatar alone responsible for 27%, and Atlantic Basin liquefaction plants 23.2%. Worldwide there are 19 countries exporting LNG. Cameroon is on track to join the club in 2018 while Mozambique will become a member in 2021, when the Coral South FLNG project is commissioned. Elsewhere, there is anticipation that a final investment decision (FID) will be made this year on one of the five proposed Canadian export projects still on the table. Four planned Canadian LNG liquefaction plants were cancelled in 2017. There is also a possibility that Iran could finally become an exporter in the next year or so, after almost five decades of seeking to mount an LNG scheme. If current negotiations are finalised, it would be a small-scale endeavour, making use of a 0.5 mta FLNG vessel built for Exmar. Developments last year in two LNG export nations, the US and Egypt, are particularly notable. Having brought onstream in 2016 the first two trains of Sabine Pass LNG, the first liquefaction plant in the lower 48 states, Cheniere Energy commissioned two more units in 2017. As a result of growing output from Sabine Pass, the US exported 12.2M tonnes to world markets last year. Of this total, 40% was despatched to Asia, 34% to the Americas, 15% to Europe and 11% to the Middle East. Although Egypt received a healthy 6.2M tonnes of LNG in 2017, at the two floating storage and regasification units (FSRUs) moored at Ain Sokhna on the Red Sea coast, the total was 1.3M tonnes less than the previous year. Furthermore, Egyptian LNG imports are continuing to fall away rapidly in 2018. Egypt’s two LNG export plants, at Damietta and Idku on the Mediterranean, were mothballed earlier in the decade, a result of the country’s surging demand for gas and dwindling domestic reserves. However, significant new offshore gas fields have recently been discovered and LNG exports from Idku have started anew. There is a possibility that the available gas feed could be sufficient to drive both Idku and Damietta at their nameplate capacities early on in 2020. At the end of 2017, approximately 89 mta of new LNG production capacity was under construction worldwide, 49 mta of which is in the US and 17 mta in Australia. In 2018 around 38 mta of new production capacity is expected to come online, 13 mta of which will be US output.

Enige Zeebrugge is one of the world’s first three purpose-built LNG bunker vessels; all were completed in 2017

NOTABLE IMPORTERS

Purchases by Asia - the world’s largest LNG import region, with a 72.9% share of the global market - grew by 10.2% in 2017, to reach 211.2M tonnes. While Korea and Taiwan both recorded 10% expansion rates, China’s LNG imports jumped by 42.3%. The rise in Chinese LNG volumes followed a 39.6% leap in 2016. The government’s decision to promote the use of gas over coal to reduce air pollution in major cities helped maintain the balance between LNG supply and demand in the global marketplace in 2017. The 39.1M tonnes of LNG purchased by China means the country leapfrogs Korea to become the world’s second-largest LNG importer. An astonishing 10.2M tonnes of the Chinese total was despatched from the receiving terminals in the form of LNG in cryogenic road tankers for inland distribution. Pakistan, a relative newcomer to the LNG importers club, has nevertheless made impressive strides. The country, which commissioned its second floating storage and regasification unit (FSRU) in Q4 2017, overtook Thailand and Indonesia to become Asia’s sixth largest market, with 4.6M tonnes imported last year. In 2017 Europe logged a 7.5M tonne, or 19.5%, increase in net imports, calculated after deducting reloads. The growth was driven primarily by demand for gas in power generation. European growth was concentrated in the southern part of the region, in countries like Portugal, Spain, France, Italy, Greece and Turkey, where a combination of low hydropower, hot summer weather and low nuclear production in France pushed up imports by an aggregate 9.1M tonnes. In contrast, net imports by the northern European countries of the UK, Belgium and the Netherlands declined by a combined 2.1M tonnes. Despite the growth in European net imports in 2017, the

The layout of most of China’s busy import terminals allows plenty of room for expansion

LNG World Shipping | May/June 2018

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10 | LNG INDUSTRY REVIEW

region’s share of the global market has fallen by almost 50% since 2010, to 15.9%. Quite aside from the strong rise in LNG purchases by Asian customers, the overall demand for gas in Europe is in decline and pipeline imports from a variety of sources provide a competitive alternative. The GIIGNL report points out that the volume of ‘pure spot’ cargoes reached 59M tonnes in 2017, accounting for 20% of global trade. ‘Pure spot’ imports are defined as LNG deliveries

which occurred less than three months from the cargo purchase transaction date. Spot imports were facilitated by LNG contracts with destination flexibility, by increased contracting for portfolio trade and by the growing volumes handled by traders. The largest growth in spot imports was recorded by China and Korea, where such purchases accounted for 21% and 22%, respectively, of their inbound cargoes last year.

REVIEWING THE FLEET

LNG IMPORTERS COUNTRY

VOLUME (MILLION TONNES)

CHANGE 2016-17 (%)

Japan

83.52

0.2

China Korea India Taiwan Pakistan Thailand Indonesia Singapore Malaysia

39.1 37.83 19.22 16.61 4.62 3.95 2.64 2 1.8

42.3 10.6 1.3 10.2 56.6 32.1 -18.3 -2.6 36.4

211.18

10.2

12 7.35 7.33 6 5 2.71 1.28 1.27 0.88 0.85 0.77 0.32 0.23 0.05 45.98

19 32.4 34 30.1 -34.8 106.9 141.5 54.9 11.4 -15 108.1 33.3 N/A 150 19.5

Mexico Argentina Chile Brazil USA Puerto Rico Dominican Republic Canada Jamaica Colombia Americas (Total)

4.78 3.35 3.27 1.62 1.49 0.94 0.87 0.29 0.17 0.03

16.6 -2 2.2 11 -6.3 -24.8 8.8 26.1 1,700.00 -50

Egypt Kuwait Jordan UAE Israel Middle East (Total)

6.18 3.51 3.31 2.47 0.38 15.85

-17.6 0.6 8.2 -20.3 35.7 -9.1

289.91

9.9

Asia (Total) Spain France Turkey Italy UK Portugal Greece Poland Belgium Lituania Netherlands Sweden Malta Finland Europe (Total)

World (Total) Source: GIIGNL

LNG World Shipping | May/June 2018

The shipping section of the GIIGNL report counts a fleet of 511 LNG vessels, with an aggregate capacity of 73.9M m3 as at the end of 2017. The total includes 28 FSRUs and 38 vessels of less than 50,000 m3 in size. The average spot charter rate for a 160,000 m3 LNGC last year was US$46,058/day, up from an average of US$33,528/day in 2016. A total of 34 ships were delivered during 2017, including four FSRUs and seven vessels of less than 50,000 m3, while two ships built in the 1970s were scrapped. The orderbook was swelled by 19 newbuilding contracts in 2017, including six FSRUs and five vessels of less than 50,000 m3. At the end of 2017, the LNG orderbook comprised 120 vessels, 109 of which were above 50,000 m3 in size. The 2018 delivery schedule shows 72 vessels due to be handed over. GIIGNL reports that, of the 511-ship fleet as at the end of 2017, 30 vessels were laid-up, idle or otherwise out of service. In addition, three vessels were idle, awaiting conversion. Some 71 vessels in the fleet are over 20 years of age. LNG

LNG EXPORTERS VOLUME (MILLION TONNES)

CHANGE 2016-17 (%)

Nigeria

20.34

14.4

Algeria USA Trinidad Norway Angola Equatorial Guinea Egypt

12.34 12.24 10.19 3.9 3.53 3.83 0.78

7.9 363.6 -2.6 -13.1 364.5 13.6 52.9

Atlantic Basin (Total)

67.15

30.6

Qatar Oman UAE Middle East (Total)

77.5 8.24 5.59 91.33

-2.7 1.5 -4.6 -2.4

Australia Malaysia Indonesia Russia Papua New Guinea Brunei Peru Pacific Basin (Total)

55.56 26.87 18.71 11.49 6 6.88 3.72 131.35

23.8 7.1 -6.2 7.4 9.4 -7.2 10.8

World (Total)

289.91

9.9

COUNTRY

Source: GIIGNL

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INTERNATIONAL GROUP OF LIQUEFIED NATURAL GAS IMPORTERS

* mta â&#x20AC;&#x201C; million tonnes per annum of LNG

Eastern Mediterranean AREA REPORT | 13

EAST MED GAS DISCOVERIES REDEFINE LNG PLAYING FIELD The Eastern Mediterranean is fast becoming a gas hub, with numerous LNG projects on the go, plentiful recent gas finds and further discoveries likely

ewly discovered offshore gas deposits in the exclusive economic zones (EEZs) of Egypt, Israel and Cyprus, coming on top of similar major finds in recent years, are poised to alter the energy map of the Eastern Mediterranean irrevocably. LNG projects, which already play a key role in the region’s gas distribution logistics, will be impacted by the upcoming development of the Eastern Mediterranean gas fields. Most LNG projects in the area are import schemes. Floating storage and regasification units (FSRUs) have proved the most popular route to securing access to new gas supplies quickly and at relatively low cost. Turkey, Egypt, Israel and Jordan make use of FSRUs to import LNG, while Greece, Cyprus

and Lebanon are evaluating FSRU projects. There are also two liquefaction plants in the region; both are in Egypt and both have lain largely idle in recent years, due to the lack of sufficient feed gas. However, the discovery of new gas fields in Egyptian and neighbouring waters hints at an imminent turnaround in fortunes for the two LNG export facilities. Egypt and Turkey are the region’s biggest and fastest-growing natural gas consumers by a wide margin, with annual gas usage in both countries around the 50 billion cubic metres (bcm) mark. Israel consumes approximately 10 bcm per year and Jordan 3.5 bcm, while Greek gas use has slumped by 30% in recent years, to 2.8 bcm.

LNG IN THE MIX Greece’s only LNG terminal, on the small islet of Revithoussa to the west of Athens, has been in service since February 2000. DESFA, Greece’s state-owned gas transmission authority, is adding a third in-ground tank at the site and the regas capacity is being boosted by 40%, to 4.7 million tonnes per annum (mta) of LNG. The expansion project is set for completion by the end of 2018. The Greek government is seeking to promote the country as a transit hub, in terms of both LNG terminals and gas pipelines. The privatisation of certain state assets, including a significant shareholding in DESFA, is also on the cards. In addition to the Revithoussa expansion in the south, plans for two FSRU-based LNG terminals

The FSRU Golar Eskimo nears completion at the Samsung yard prior to departure for Aqaba and life as Jordan’s LNG import terminal

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LNG World Shipping | May/June 2018

14 | AREA REPORT Eastern Mediterranean

in the northern part of the country have been tabled, as part of the drive to establish Greece as a gas hub. The most advanced is the 4.5 mta Alexandroupolis facility, a project being led by gas utility Gastrade and in which GasLog has a 20% stake and is set to provide the required 170,000 m3 FSRU. The aim is to integrate the Alexandroupolis FSRU operation with the planned Trans-Adriatic Pipeline (TAP) and Greece-Bulgaria Gas Interconnector (IGB) links. However, an expected final investment decision on the scheme has recently been delayed to late 2018. Earlier in the decade DEPA, Greece’s state-owned gas company and parent of DESFA, had also proposed

a 3.7 mta FSRU terminal for the northeastern part of the country. But the need for such a facility – to be known as Aegean LNG and located in the Kavala Bay region – was obviated when Gastrade moved ahead with its proposed Alexandroupolis FSRU scheme at a nearby location. TURKEY TURNS TO EXPANSIONS Turkey has a large and wellestablished gas market and, like Greece, depends almost exclusively on imports to meet its gas needs. Pipeline deliveries from Russia, Iran and Azerbaijan predominate, but LNG purchases are growing in importance as the country seeks to diversify its energy supplies. Turkey began importing

LNG in August 1994 when the Botas-operated Marmara Ereglisi terminal, 100 km west of Istanbul, opened for business. The 5.9 mta facility on the Sea of Marmara features three 85,000 m3 storage tanks. Turkey’s second shorebased import terminal, the 4.6 mta EgeGaz facility at Aliaga, features two 140,000 m3 storage tanks. The terminal did not receive its inaugural cargo until December 2006, despite being commissioned more than three years earlier. It was the world’s first LNG-receiving terminal to be constructed without firm capacity contracts in place. Turkey has recently committed to expanding its two shore terminals, in addition to building three new FSRUbased projects, to boost its LNG

Exports from Egypt’s Idku terminal were restarted in 2016 after a two-year shutdown

LNG World Shipping | May/June 2018

import capabilities. Throughput capacity at both the Marmara Ereglisi and EgeGaz Aliaga terminals will be increased by two-thirds, in 2020 and 2021 respectively, through the provision of an additional storage tank and increased regasification capabilities. Two of the Turkish FSRU terminals are already in service, while the third is planned for Saros on the Gallipoli peninsula’s northern coast. Etki LNG in Aliaga’s Candarli Bay, the first FSRU terminal, came onstream in December 2016 and makes use of the 145,000 m3 Neptune. Dörtyol LNG at Iskenderun on eastern Turkey’s Mediterranean coast commenced operations in February 2018 and utilises the 263,000 m3 MOL FSRU Challenger, the world’s largest FSRU, under a three-year charter to Botas. Turkey received 7.33M tonnes of LNG in 2017, a 34% jump on the previous year. The surge pushed Turkey into third spot among European LNG importers, just a shade less than France’s 7.35M tonnes. EGYPTIAN UPS AND DOWNS The discovery of sizeable gas fields off its Mediterranean coast enabled Egypt to construct two LNG export terminals, both of which were commissioned in 2005. Damietta despatched its inaugural cargo in January while Idku commenced operations in May. During their peak year of 2008 the two facilities exported an aggregate 10M tonnes of LNG to world markets. However, field depletion was faster than anticipated and burgeoning domestic demand forced Egypt to shut down its LNG and pipeline gas exports and implement FSRU-based import projects to meet gas needs. Damietta ceased export

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16 | AREA REPORT Eastern Mediterranean

More recently, new offshore Mediterranean gas finds have signaled yet another turnaround in Egypt’s fortunes. In addition to some newly found BP deposits, Eni discovered the

n t a l ly

envi

n d ly

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e nm

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2015, BW Singapore commenced regasification operations in the same Red Sea port. In 2016, the peak year for Egyptian imports, the two 170,000 m3 FSRUs regasified 7.5M tonnes of LNG.

shipments in February 2013 and Idku followed suit 12 months later. The FSRU Hoegh Gallant went on station at Ain Sokhna in April 2015 and in October

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Alternative Energies

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Zohr field in 2015. With 30 trillion cubic feet (tcf ) of gas reserves, Zohr is the largest gas deposit in the Mediterranean. Zohr holds the promise of not only bringing an end to LNG imports and meeting local demand for gas, but also supporting a rebound in LNG exports. LNG import volumes handled by the two Ain Sokhna FSRUs are already in steep decline and there is a possibility that both Damietta and Idku could be operating at their nameplate LNG export capacity by the end of 2019. Idku exported 0.78M tonnes of LNG in 2017, an increase of 52.9% over the previous year. Jordan is another country that turned to LNG imports when Egypt’s gas fields began to rapidly deplete earlier in the decade. Jordan had depended on pipeline imports from Egypt to meet most of its gas needs. But following terrorist attacks on the line in the midst of Egypt’s civil strife, Jordan began to look elsewhere for its gas. LNG came to the rescue in May 2015, when the 160,000 m3 FSRU Golar Eskimo was positioned in the port of Aqaba on a 10-year charter. Import levels grew rapidly and it was not long before Jordan was sending some of its regasified LNG to Egypt, reversing the direction of the earlier pipeline flow. Jordan imported 3.31M tonnes of LNG in 2017, an 8.2% rise on the previous year. LNG purchases have enabled the country to meet upwards of 90% of its electricity-generating requirements with clean-burning gas, easing Jordanian reliance on fuel oil and diesel imports. ISRAELI EXPORT OPTIONS In January 2014 Israel became the world’s 30th LNG import nation, when Excelerate Energy stationed its 138,000 m3 FSRU Excellence 10 km off the coast near Hadera. Back in 2010, Israel had depended on

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Eastern Mediterranean AREA REPORT | 17

Egyptian pipeline deliveries to meet 40% of its gas needs, but Egypt’s gas difficulties put paid to this supply and prompted FSRU imports. Like Egypt, Israel has had the good fortune to discover major deposits of gas offshore in recent years. The most notable of these is the 22 tcf Leviathan field, but Tamar, with its 10 tcf of reserves, is another major new play. Whereas Leviathan gas is still to flow, Tamar’s riches are already being pumped ashore via a subsea pipeline to Israel. The Hadera FSRU contract has been extended by a further two years, to September 2019, to serve as a backup measure should the Tamar flow be disrupted for any reason. The Israeli government has been studying the best ways to realise the value of the Leviathan and Tamar deposits, which are well beyond the needs of Israel itself. Jordan has already signed up for pipeline deliveries from the two fields, to supplement its Aqababased FSRU imports, while negotiations are underway for similar subsea links to Egypt, Turkey and Europe. The pipelines to Egypt would be directed to Shell’s Idku and Gas Natural Fenosa’s Damietta LNG export terminals, providing an additional source of gas for liquefaction at these plants. The gas for Europe would arrive in Italy via the proposed EastMed Pipeline, which would make use of Cypriot and Israeli gas, delivering via Crete and Greece. The Shell Idku proposal would draw on both Leviathan pipeline gas and that from the newly discovered 4 tcf Aphrodite field in the nearby Cyprus offshore EEZ. As a final twist in the Cypriot LNG tale, irrespective of how the Aphrodite gas ultimately plays out, the island EUmember state will commence

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LNG imports under the CyprusGas2EU project banner by 2020, to meet its EU clean environment obligations. The FSRU will be based in the port of Vasilikos.

In the meantime, back in Israel two further new gas finds have recently been made. Although the proven reserves of the Karish and Tanin fields are in aggregate just 2.4 tcf,

the Greek-based Energean Oil and Gas has proposed the construction of a floating LNG production (FLNG) vessel to enable gas production and LNG exports in 2021. LNG

LNG World Shipping | May/June 2018

Alexandroupolis LNG

Operator: Gastrade Capacity: 4.5 mta Location: Alexandroupolis

Saros LNG

Operator: Turkish/Qatari JV Capacity: 3.7 mta Location: Gallipoli

Revithoussa

Etki LNG

Operator: DESFA Capacity: 4.7 mta (by end 2018) Location: Revithoussa/Athens

Operator: Kolin/Kalyon Capacity: 4.3 mta Location: Aliaga FSRU: Neptune

Ain Sokhna No 2 Ain Sokhna No 1

Operator: EGAS Capacity: 4.5 mta Location: Ain Sokhna FSRU: Hรถegh Gallant

Operator: EGAS Capacity: 6.2 mta Location: Ain Sokhna FSRU: BW Singapore

EAST MEDITERRANEAN LNG IMPORT AND EXPORT TERMINALS

Planned import terminals (FRSUs) Existing import terminals (FRSUs)

Marmara Ereglisi

Operator: Botas Capacity: 5.9 mta Location: Marmara Ereglisi

Existing import terminals (shore-based) Existing export terminals (shore-based)

Research: Mike Corkhill Infographic: James Millership

Aliaga LNG

Operator: Egegaz Capacity: 4.6 mta Location: Aliaga

Dรถrtyol LNG

Operator: Botas Capacity: 4.3 mta Location: Iskenderun FSRU: MOL FSRU Challenger

Cynergy LNG

Operator: DEFA Cyprus Capacity: 3.7 mta Location: Vasilikos

Idku

Operator: Egyptian LNG Capacity: 7.2 mta

Damietta

Operator: SEGAS Services Capacity: 5.0 mta

Hadera LNG

Operator: Israel Electric Capacity: 3.7 mta Location: Offshore Hadera FSRU: Excelsior

Aqaba LNG

Operator: NEPCO Capacity: 6.0 mta Location: Aqaba FSRU: Golar Eskimo

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overview LNG-FUELLED FLEET | 21

Big boys join the LNG-fuelled fleet The orderbook for LNG-powered vessels has grown by 36% over the past 12 months; the majority of the new contracts have been for large vessels with bunker tanks of unprecedented size

he global fleet of in-service and on order LNG-fuelled vessels has grown by 26.5% since LNG World Shipping’s previous comprehensive review of the use of LNG as marine fuel 12 months ago. As of 1 May 2018 the world fleet totalled 253 vessels, comprising 121 ships in service and 132 on order. Over the past 12 months 18 LNG-powered ships have taken to the seas, increasing the in-service fleet by 17%, while the orderbook has been boosted by a total of 35 new ships, representing a 36% growth. On top of this fleet, DNV GL lists 110 vessels that have been, or are being, built as ‘LNG-ready’ ships. Such vessels are primed for straightforward conversion to duel-fuel running at a time the owner deems appropriate.

The two deck-mounted LNG bunker tanks on each of the four AET dual-fuel Aframax shuttle tankers newbuildings will enable a month of operations between refuellings

Fleet segments

LNG World Shipping breaks the LNG-powered fleet into four segments: tankers and bulkers, container and cargo ships, passenger ships and supply and service vessels. The year-on-year growth of the in-service and on order fleets for the four segments is shown in the table below.

GROWTH IN THE LNG-FUELLED FLEET OVER THE PAST YEAR (NUMBERS OF VESSELS) FLEET SEGMENT

1 MAY 2017

1 MAY 2018

Tankers and bulkers In service

On order

Container and cargo ships In service

On order

In service

On order

In service

On Order

In service

103

121

On Order

132

Passenger ships

Supply and service vessels

Fleets (Total)

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The most dynamic of the four segments over the past 12 months has been tankers and bulk carriers. Following the delivery of five ships, there are now 24 such tankers and bulkers in service. Contracts for 20 new vessels over the past year have boosted the tanker and bulker orderbook to 43 ships. Most of the new orders have been for Aframax and Suezmax tankers of 110,000 dwt and above. These vessels require large bunker tanks and will ensure the volume of LNG consumed by the tanker and bulker segment will jump significantly compared to the current fleet of LNG-powered coastal distribution tankers. The rise in the orderbooks of the passenger ship and container and cargo ship segments has also been due mainly to newbuilding contracts for large-size vessels. Most cruise ships ordered over the past 12 months have been specified with dual-fuel engines while CMA CGM’s order in November 2017 for nine ultra-large container ships of 22,000 TEU carrying capacity signalled a breakthrough order in the box ship segment. The dual-fuel vessels ordered by the Carnival group typify recent activity in the cruise ship segment. To be among the largest such vessels ever ordered, the ships will be provided with 3,600 m3 of bunker tank capacity. For the new Aframax tankers ordered over the past year upwards of 5,000 m3 of LNG bunker tank space will be needed. The new CMA CGM container ships will be world beaters on a number of fronts. They will not only be the largest such vessels ever ordered but also powered by the largest gas engines ever built. The 18,600 m3 membrane-type LNG bunker tank with which each CMA CGM ship will be fitted is five times larger than any specified for a previously contracted LNG-powered ship. It also

LNG World Shipping | May/June 2018

22 | LNG-FUELLED FLEET overview

marks the first use of a non-Type C containment system in an LNGfuelled vessel. The supply and service vessel segment of the LNG-fuelled fleet is comprised primarily of comparatively small offshore supply vessels and tugs. Yet even here, larger vessels are beginning to make their presence felt. Among the recent additions to the orderbook is a massive, dual-fuel, heavy-lift crane vessel that will require tankage for approximately 6,000 m3 of LNG bunkers. The step change in LNG fuel requirements is spurring the development of bunkering infrastructure worldwide. Investments are being made in LNG bunker vessels, LNG fuelling depots and the adaptation of existing LNG receiving terminals to enable the loading of small LNG vessels and road tankers. The latest progress with each of the four LNG-fuelled fleet segments is reviewed in the following pages.

Fuel decision time

The choice that shipowners must make between low-sulphur marine gas oil, LNG and the continued use of heavy fuel oil in tandem with an exhaust gas scrubber has been brought more finely into focus with the latest session of IMO’s Marine Environment Protection Committee (MEPC). Prior to that meeting, the decision still loomed large due to the reduction in IMO’s permissible fuel sulphur content, from 3.5% to 0.5%, that will come into effect on 1 January 2020. Despite the implementation of this notable global sulphur cap, the maritime community has remained under pressure to continue to develop the regime controlling ship atmospheric pollution. In response, IMO agreed at the 72nd session of MEPC (MEPC 72), held in London in March 2018, to reduce the allowable emissions of carbon dioxide (CO2) from ships by 50% by 2050 compared to 2008 levels. This will be a precursor to phasing out all greenhouse gas emissions from shipping as soon as possible in this century. While 2050 seems a somewhat distant target date, shipowners primarily play the long game, investing heavily in an asset with a working life of 20-plus years. The new deadline will be a factor impacting the choice of fuel for all future newbuilding, perhaps

comparatively slight initially but steadily gaining in importance over the coming decade. While LNG is the cleanest-burning of the fossil fuels, the gas option has proved a difficult choice to date for most shipowners. LNG-powered newbuildings are priced at an estimated 20% premium compared to vessels running on conventional oil fuel, due to the costs of dual-fuel engines, LNG bunker tanks and fuel gas supply systems. The cost of an exhaust gas scrubber, in contrast, requires an outlay of only about 20-25% of the LNG premium. Against this background, it has been estimated that LNG fuel is unlikely to be chosen for more than 5% of the world fleet of merchant vessels, with interest limited primarily to newbuildings. While several more optimistic industry pundits predicted that LNG could be the fuel of choice for perhaps 7-8% of the fleet, even they had to admit that very few owners would be opting to convert existing vessels to dual-fuel running. But even 5% of a merchant fleet of 55,000 ships of over 500 gt, ie 2,750 vessels, is not an inconsequential number. Now, following MEPC 72, additional optimism about the LNG option is creeping in. Meeting the 50% reduction in CO2 emissions by 2050 will require significant expenditure by the shipping industry. The recent rise in oil prices and worries about the corrosion and waste disposal issues attached to the use of scrubbers are increasing awareness that perhaps the capital costs associated with the use of LNG are not so onerous in the context of ship lifecycles. LNG is not a silver bullet when it comes to reduced emissions of CO2 emissions. Its use can only achieve reductions of 20-25% compared to the burning of oil fuels. However, the choice of LNG, in tandem with the other environment-friendly ship design features that owners are already introducing in the drive to achieve the GHG emission reduction goals – as laid down in the Energy Efficiency Design Index/Ship Energy Efficiency Management Plan regime developed by IMO - offer one of the best routes to compliance with the 2050 goal. The technological advances in ship fuel efficiency that will inevitably continue to be made in the years ahead are expected to increase the attractiveness of dual-fuel engines as a propulsion system choice. LNG

Amongst the 17 LNG-ready container ships that UASC has in service are Barzan and five other 18,800 TEU vessels

LNG World Shipping | May/June 2018

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24 | SERVICE AND SUPPLY SHIPS

SPECIALIST VESSELS POPULATE SERVICE SHIP FLEET

ollowing 11 completions over the past 12 months, there are now 44 vessels in the worldwide fleet of LNG-powered service and supply craft. Of the four segments into which LNG World Shipping breaks down the global total of LNG-fuelled merchant vessels, this fleet is now the largest. Platform supply vessels (PSVs) and tugs still dominate the service and supply fleet in terms of numbers. However, while LNG-powered tugs continue to be ordered, no new dual-fuel PSV has been contracted over the past 12 months. The PSV market has been through a tough time of late, with diminished offshore oil and gas exploration and production activity sending a large number of support vessels into layup. The difficulties experienced by the PSV sector were clearly demonstrated in March this year, when Harvey Gulf filed for Chapter 11 bankruptcy protection in the US. The company, which has six LNG-powered PSVs in its 50-vessel fleet, is seeking to restructure its debts.

Specialist vessels

A new feature of the LNG-powered service and supply ship fleet is the emergence of the specialist vessel, covering everything from dredgers and jack-up rigs to cable layers and heavy-lift crane vessels. The Belgian dredging group DEME has been a major player in this new sector, with

The LNG bunker tank on DEME’s Scheldt River provides one week of autonomous operation

LNG World Shipping | May/June 2018

The platform supply vessel sector has struggled in recent years. Will the emergence of specialist vessels help revive its fortunes?

Among the LNG-powered newbuildings that DEME has under construction is the 164 m Spartacus, earmarked for delivery by Royal IHC in 2019. With a total installed power of 44,180 kW and a Type C bilobe LNG bunker tank of 2,000 m3, Spartacus will be the most powerful cutter suction dredger ever built. It will also be the first dual-fuel dredger of this type and able to dredge in water depths of up to 45 m, well up on the present upper limit of 35 m.

Dual-fuel conversions

nine vessels contracted to date. The first two dual-fuel DEME ships – Scheldt River and Minerva – have recently entered service. Both are trailing suction hopper dredgers and both were built for European operations by Royal IHC. Wärtsilä engines and an LNG bunker tank of 630 m3 were chosen for the larger Scheldt River, while the smaller Minerva, which will carry out dredging in shallow waters, is powered by Anglo Belgian units and has a 200 m3 LNG bunker tank.

Van Oord and Van der Kamp also have dredgers under construction while Dragages Ports, part of the DEME group, has embarked on a project to convert the propulsion system of its largest trailing suction hopper dredger, the 177 m Samuel de Champlain, to dual-fuel running. Van der Kamp’s Ecodelta will be provided with a 325 m3 LNG bunker tank and will work in Rotterdam harbour while Van Oord’s smaller Werkendam, the owner’s first LNG-powered vessel, will have a 38 m3 LNG tank. At the same time as it ordered Spartacus, DEME also contracted the windfarm installation vessel Orion at the Cosco yard in China. With the same installed power as Spartacus, Orion’s LNG bunker fuel is supplied by means of two 1,000 m3 Type C tanks to provide three weeks of autonomous operations. As impressive as the LNG fuelling arrangements on board DEME’s specialist vessels are, they will be superseded by the requirements of a new generation of dualfuel heavy-lift ships ordered recently by Heerema, Jumbo and OOS International. TGE Marine has been contracted to supply eight, vertically mounted, cylindrical, IMO Type C LNG bunker tanks of 1,000 m3 each that will be required for Heerema’s 220 m semi-submersible crane vessel Sleipnir. MAN will supply the 12 fourstroke, dual-fuel engines situated in the four separate engine rooms that encompass the vessel’s diesel-electric propulsion system. It claims that, with the exception of power barges, Sleipnir’s engine installations represent the largest power pack ever provided for a single ship. LNG

www.lngworldshipping.com

SERVICE AND SUPPLY SHIPS | 25

LNG-FUELLED SERVICE & SUPPLY SHIPS (AS AT 1 MAY 2018) Ship name

Ship type

Delivery date

Owner

Shipbuilder

Engine

Propulsion

Class Society

PSV

2003

Møkster

Kleven Ulsteinvik

Wärtsilä

DNV GL

PSV PSV PSV Patrol vessel Patrol vessel Patrol vesslk PSV PSV PSV PSV PSV PSV PSV PSV Harbour vessel Tug Tug Tug Tug Patrol vessel PSV PSV PSV PSV PSV PSV Tug PSV PSV Tug Icebreaker PSV Tug

2003 2008 2009 2009 2010 2010 2011 2011 2012 2012 2012 2012 2012 2013 2013 2013 2013 2014 2014 2014 2015 2015 2015 2016 2017 2015 2015 2015 2015 2015 2016 2017 2017

Eidesvik Eidesvik Eidesvik Remøy Remøy Remøy DOF Solstad Eidesvik Eidesvik Solstad Solstad Solstad Remøy Incheon Port Authority CNOOC CNOOC Buksér og Berging Buksér og Berging Finish Border Guard Møkster Harvey Gulf Harvey Gulf Harvey Gulf Harvey Gulf Remøy CNOOC Siem Offshore Siem Offshore NYK Line Finnish Transport Agency Siem Offshore Dubai Maritime City

Kleven Ulsteinvik West Contractors West Contractors Myklebust Myklebust Myklebust STX OSV Soviknes STX OSV Langen Kleven Ulsteinvik Kleven Ulsteinvik STX OSV Brevik STX OSV Brevik STX OSV Aukra Kleven Verft Samsung Guangzhou Huangpu Guangzhou Huangpu Sanmar Sanmar STX Turku Hellesøy Trinity Offshore Trinity Offshore Trinity Offshore Trinity Offshore Kleven Verft Zhenjiang Hellesøy Remontowa Keihin Dock Artech Helsinki Remontowa DDW Dubai

Wärtsilä Wärtsilä Wärtsilä Mitsubishi Mitsubishi Mitsubishi Wärtsilä Wärtsilä Wärtsilä Wärtsilä Rolls-Royce Rolls-Royce Wärtsilä Wärtsilä Wärtsilä Wärtsilä Wärtsilä Rolls-Royce Rolls-Royce Wärtsilä Wärtsilä Wärtsilä Wärtsilä Wärtsilä Wärtsilä Wärtsilä Rolls-Royce Wärtsilä Wärtsilä Niigata Wärtsilä Wärtsilä Wärtsilä

DF DF DF Gas & oil Gas & oil Gas & oil DF DF DF DF Gas Gas DF DF DF DF DF Gas Gas DF DF DF DF DF DF DF Gas DF DF DF DF DF DF

DNV GL DNV GL DNV GL DNV GL DNV GL DNV GL DNV GL DNV GL DNV GL DNV GL DNV GL DNV GL DNV GL DNV GL KR CCS CCS DNV GL DNV GL DNV GL DNV GL ABS ABS ABS ABS DNV GL CCS DNV GL DNV GL ClassNK LR DNV GL Tasneef

Tug

2017

CNOOC

Zhenjiang

Rolls-Royce

Gas

CCS

PSV PSV PSV PSV Tug Tug Tug Dredger Dredger

2017 2017 2018 2018 2017 2017 2017 2017 2017

Siem Offshore Siem Offshore Harvey Gulf Harvey Gulf Østensjø Rederi Østensjø Rederi Østensjø Rederi DEME DEME

Remontowa Remontowa Trinity Offshore Trinity Offshore Astilleros Gondan Astilleros Gondan Astilleros Gondan Royal IHC Royal IHC

Wärtsilä Wärtsilä Wärtsilä Wärtsilä Wärtsilä Wärtsilä Wärtsilä Wärtsilä Anglo Belgian

DF DF DF DF DF DF DF DF DF

DNV GL DNV GL ABS ABS BV BV BV BV BV

IN SERVICE Stil Pioneer Viking Energy Viking Queen Viking Lady Barentshav Bergen Sortland Skandi Gamma Normand Arctic Viking Prince Viking Princess Island Crusader Island Contender Olympic Energy Rem Leader Econuri Hai Yang Shi You 521 Hai Yang Shi You 522 Børgoy Bokn Turva Stril Barents Harvey Energy Harvey Power Harvey Liberty Harvey Freedom Rem Eir Hai Yang Shi You 525 Siem Symphony Siem Pride Sakigaki Polaris Siem Thiima Elemarateyah Hai Yang Shi You ? Siem Melody Siem Rhapsody Harvey America Harvey Patriot Dux Pax Audax Scheldt River Minerva ON ORDER Bonny River

Dredger

2018

DEME

Cosco Guangdong

Wärtsilä

unnamed

Apollo

Jack-up rig

2018

DEME

LaNaval

unnamed

Living stone

Cable-layer

2018

DEME

Uljanik

Wärtsilä

unnamed

Dredger

2019

DEME

Royal IHC

Wärtsilä

unnamed

Semi-sub crane vessel

2019

Heerema

Sembawang

MAN

unnamed

Werkendam

Dredger

2018

Van Oord

Neptune Shipyards

Man Rollo

unnamed

Ecodelta

Dredger

2018

Van der Kamp

Barkmeijer

Anglo Belgian

unnamed

Survey ship

2018

German Maritime Authority

Fassmer

Wärtsilä

unnamed

Tug

2018

Ningbo Port Co

unnamed

Niigata

CCS

KST Liberty

Tug

2018

Keppel Smit Towage

Keppel Singmarine

unnamed

Spartacus Sleipnir

Atair

unnamed

Tug

2018

Maju Maritime

Keppel Singmarine

unnamed

Windfarm installation vessel

2019

DEME/GeoSea

Cosco

Wärtsilä

unnamed

Dredger

2018

DEME/Dragages Ports

Damen

MAN

Tug

2019

Mitsui OSK Lines

Kanagawa

Yanmar

ClassNK

Heavylift crane vessel

2020

Jumbo

China Merchants

unnamed

Semi-sub crane vessel

2022

OOS International

China Merchants

unnamed

Tug

2019

PSA Marine

PaxOcean

Wärtsilä

unnamed

Tug

2019

PSA Marine

PaxOcean

Wärtsilä

unnamed

Dredger

2019

DEME/Dragages Ports

Socarenam

Wärtsilä

unnamed

Orion Samuel de Champlain* unnamed Stella Synergy OOS Zeelandia

L'Ostrea

www.lngworldshipping.com

LNG World Shipping | May/June 2018

26 | TANKERS AND BULK CARRIERS

Aframaxes and Suezmaxes extend LNG-fuelled tanker envelope

ontracts for 20 new vessels over the past year have boosted the tanker and bulker orderbook to 43 ships. Of the four segments into which LNG World Shipping breaks down the LNG-fuelled fleet for this annual review, the tanker and bulker segment has the largest orderbook. There have been two notable ship completions in this segment so far in 2018. In April China’s Avic Dingheng yard handed over Fure Vinga to Furetank Rederi AB. The 17,999 dwt chemical/product tanker is the lead vessel in a series of six LNG-fuelled sisterships that the shipbuilder is constructing for operation within the Gothia Tanker Alliance (GTA) pool. In February, Hyundai Mipo Dockyard (HMD) delivered the 50,000 dwt Ilshin Green Iris to Ilshin Shipping for charter to the Korean steelmaker POSCO. The largest LNG-powered bulk carrier yet built, Ilshin Green Iris sports a 500 m3 bunker tank manufactured from a new cryogenic high-manganese

In terms of LNGfuelled newbuilding completions and orders over the past 12 months, the most dynamic segment has been tankers and bulk carriers. Following the delivery of five ships, there are now 24 such tankers and bulkers in service

Teekay is helping to introduce LNG as a propulsion system fuel for North Sea shuttle tanker operations

LNG World Shipping | May/June 2018

steel developed by POSCO. The majority of orders for new vessels in this segment over the past year are for Aframax and Suezmax oil tankers of over 100,000 dwt. There are now 19 such tankers under construction on behalf of Sovcomflot, AET, Teekay and Rosneft. All but four will be powered by low-pressure, twostroke engines from Winterthur Gas & Diesel (WinGD). AET of Singapore and Vancouver-based Teekay Offshore have each contracted four newbuildings at Samsung Heavy Industries (SHI). Two of the four 113,000 dwt AET ships will be built as North Sea shuttle tankers, while all four 130,000 dwt Teekay ships will serve in such a role. Shuttle tankers, which load crude oil at offshore facilities and ferry the cargoes to shoreside refineries, are extensively used in the North Sea. Wärtsilä has been contracted to supply its volatile organic compounds (VOC) recovery technology, LNG fuel gas handling systems and the auxiliary engines

for the two AET and the four Teekay shuttle tankers. AET has chosen two-stroke WinGD units as the main engines for its vessels, while Teekay has opted for a propulsion system in which four-stroke, dual-fuel Wärtsilä engines drive electric main propulsion motors. The AET and Teekay shuttle tankers will operate on LNG as the primary fuel, but the VOCs – the gas evaporating from the oil cargo tanks – will also be utilised as fuel by mixing it with the LNG. Wärtsilä states that by recovering the VOCs and combining them with LNG from dedicated bunker tanks, each ship can save up to 3,000 tonnes of fuel per annum. The LNG/VOCs mix can be utilised as fuel in the shuttle tankers’ dual-fuel main and auxiliary engines. Statoil is chartering the two AET shuttle tankers, as well as two of Teekay’s 130,000 dwt quartet. Although bunker tank capacities for the shuttle tankers have not been revealed, they could be less than that required by dual-fuel Aframax tankers engaged in more general trading, due to the relative proximity of North Sea LNG fuelling stations and bunker vessels. The second pair in the AET quartet of LNG-powered Aframaxes have been taken on long-term charter by Shell for crude oil transport operations centred in the Atlantic Basin. It is estimated that LNG-fuelled Aframax tankers engaged in open market trading would require upwards of 5,000 m3 of LNG bunker tank space to enable autonomous operations of required duration between refuellings. LNG

www.lngworldshipping.com

TANKERS AND BULK CARRIERS | 27

LNG-FUELLED TANKERS & BULKERS (AS AT 1 MAY 2018) Ship name

Ship type

Delivery date

Owner

Shipbuilder

Engine

Propulsion

Class Society

Product tanker Ethylene carrier Ethylene carrier Product tanker LPG carrier Cement carrier Cement carrier Product tanker LPG carrier CNG carrier Chemical/product tanker Chemical/product tanker Chemical/product tanker Chemical/product tanker Ethane carrier Ethane carrier Ethane carrier Ethane carrier Bitumen tanker Chemical/product tanker Ethane carrier

2011

Tarbit

Oresundsvarvet

Wärtsilä

DNV GL

2014 2014 2015 2015 2015 2016 2016 2016 2016 2016 2016 2016 2017 2016 2016 2016 2017 2016 2017 2017

Anthony Veder Anthony Veder Bergen Tankers Chemgas Shipping JT Cement JT Cement Furetank Chemgas Shipping CIMC Enric SZJ Gas Terntank Terntank Terntank Terntank Ocean Yield Navigator Gas Navigator Gas Navigator Gas Groupe Desgagnés Groupe Desgagnés Ocean Yield

Avic Dingheng Avic Dingheng Noryards Hoogezand Ferus Smit Ferus Smit Oresundvarvet Hoogezand Jiangsu Hantong Avic Dingheng Avic Dingheng Avic Dingheng Avic Dingheng Sinopacific Jiangnan Jiangnan Jiangnan Besiktas Besiktas Sinopacific

Wärtsilä Wärtsilä Rolls-Royce Wärtsilä Wärtsilä Wärtsilä MaK Wärtsilä Wärtsilä Winterthur G&D Winterthur G&D Winterthur G&D Winterthur G&D MAN MAN MAN MAN Winterthur G&D Winterthur G&D MAN

DF DF Gas DF DF DF DF DF DF LPLSDF LPLSDF LPLSDF LPLSDF HPLSDF HPLSDF HPLSDF HPLSDF HPLSDF LPLSDF LPLSDF

BV BV DNV GL BV LR LR BV BV ABS/BKI BV BV BV BV DNV GL ABS ABS ABS BV BV DNV GL

Ethane carrier

2017

Navigator Gas

Jiangnan

MAN

HPLSDF

ABS

Bulk carrier Chemical/product tanker

2018 2018

Ilshin Shiiping Furetank

Hyundai Mipo Avic Dingheng

MAN Wärtsilä

HPLSDF DF

LR/KR BV

IN SERVICE Bit Viking Coral Star Coral Sticho Bergen Viking* Sefarina Greenland Ireland Fure West* Sundowner Jayanti Baruna Ternsund Ternfjord Tern Sea Tern Ocean Gaschem Beluga Navigator Aurora Navigator Eclipse Navigator Nova Damia Desgagnes Mia Desgagnes Gaschem Orca Navigator Prominence Ilshin Green Iris Fure Vinga

ON ORDER unnamed

Oil bunker vessel

2018 Harley Marine Consortium

Huangpu Wenchong

unnamed

unnamed unnamed Viikki Haaga unnamed unnamed unnamed unnamed unnamed unnamed unnamed unnamed unnamed unnamed unnamed unnamed unnamed unnamed unnamed unnamed unnamed unnamed unnamed unnamed unnamed unnamed unnamed unnamed unnamed unnamed unnamed unnamed unnamed unnamed unnamed unnamed unnamed unnamed unnamed unnamed unnamed

Oil bunker vessel Oil bunker vessel Chemical/product tanker Chemical/product tanker Ethane carrier Ethane carrier Ethane carrier Ethane carrier Ethane carrier Chemical/product tanker Chemical/product tanker Chemical/product tanker Chemical/product tanker Chemical/product tanker Chemical/product tanker Chemical/product tanker Chemical/product tanker Chemical/product tanker Chemical/product tanker Aframax tanker Aframax tanker Aframax tanker Aframax tanker Aframax tanker Aframax tanker Aframax tanker Aframax tanker Aframax shuttle tanker Aframax shuttle tanker Chemical/product tanker Chemical/product tanker Chemical/product tanker Chemical/product tanker Suezmax shuttle tanker Suezmax shuttle tanker Suezmax shuttle tanker Suezmax shuttle tanker Aframax tanker Aframax tanker Aframax tanker Aframax tanker

2018 Harley Marine Consortium 2019 Sinanju Tankers 2018 Groupe Desgagnés 2018 Groupe Desgagnés 2018 ESL Shipping 2018 ESL Shipping 2018 Evergas 2018 Evergas 2018 Evergas 2018 Evergas 2018 Furetank 2019 Ålvtank 2019 Thun Tankers 2018 Furetank 2019 Ålvtank 2018 Thun Tankers 2019 Thun Tankers 2019 Thun Tankers 2020 Thun Tankers 2018 Sovcomflot 2018 Sovcomflot 2019 Sovcomflot 2019 Sovcomflot 2019 Sovcomflot 2019 Sovcomflot 2018 AET 2019 AET 2019 AET 2020 AET 2019 Thun Tankers 2019 Thun Tankers 2020 Thun Tankers 2020 Thun Tankers 2019 Teekay Offshore 2020 Teekay Offshore 2020 Teekay Offshore 2020 Teekay Offshore 2021 Rosneft 2021 Rosneft 2022 Rosneft 2022 Rosneft

Huangpu Wenchong Keppel Singmarine Besiktas Besiktas Jingling Shipyard Jingling Shipyard JHW Engineering JHW Engineering JHW Engineering JHW Engineering Avic Dingheng Avic Dingheng Avic Dingheng Avic Dingheng Avic Dingheng Ferus Smit Ferus Smit Ferus Smit Ferus Smit Hyundai Samho Hyundai Samho Hyundai Samho Hyundai Samho Hyundai Samho Hyundai Samho Samsung Samsung Samsung Samsung Avic Dingheng Avic Dingheng Avic Dingheng Avic Dingheng Samsung Samsung Samsung Samsung Zvezda Zvezda Zvezda Zvezda

unnamed unnamed Winterthur G&D Winterthur G&D MAN MAN unnamed unnamed unnamed unnamed Wärtsilä Wärtsilä Wärtsilä Wärtsilä Wärtsilä Wärtsilä Wärtsilä Wärtsilä Wärtsilä Winterthur G&D Winterthur G&D Winterthur G&D Winterthur G&D Winterthur G&D Winterthur G&D Winterthur G&D Winterthur G&D Winterthur G&D Winterthur G&D Wärtsilä Wärtsilä Wärtsilä Wärtsilä Wärtsilä Wärtsilä Wärtsilä Wärtsilä Winterthur G&D Winterthur G&D Winterthur G&D Winterthur G&D

unnamed unnamed LPLSDF LPLSDF DF DF unnamed unnamed unnamed unnamed DF DF DF DF DF DF DF DF DF LPLSDF LPLSDF LPLSDF LPLSDF LPLSDF LPLSDF LPLSDF LPLSDF LPLSDF LPLSDF DF DF DF DF DF DF DF DF LPLSDF LPLSDF LPLSDF LPLSDF

unnamed BV BV BV DNV GL DNV GL unnamed unnamed unnamed unnamed BV BV BV BV BV BV BV BV BV DNV GL DNV GL DNV GL DNV GL DNV GL DNV GL ABS ABS DNV GL DNV GL BV BV BV BV DNV GL DNV GL DNV GL DNV GL RS RS RS RS

unnamed

Aframax tanker

Zvezda

Winterthur G&D

LPLSDF

www.lngworldshipping.com

2022

Rosneft

LNG World Shipping | May/June 2018

28 | PASSENGER SHIPS

CRUISE SHIPS ADD NEW DIMENSION TO LNG PASSENGER FLEET INCLUDING NEWBUILDING ORDERS, THERE ARE MORE PASSENGER SHIPS IN THE LNG-POWERED FLEET THAN ANY OTHER TYPE OF VESSEL

AIDA Cruises is preparing to put the world’s first LNG-powered cruise ship into service later this year

he latest LNG World Shipping review of LNG-fuelled ships worldwide, which breaks the fleet into four segments, shows that as of 1 May 2018 there were 41 such passenger ships in service, compared to 40 a year ago, and 42 on order (up from 32). In terms of vessel numbers, the passenger ship total of in-service and on-order vessels is 24% greater than the next largest segment, tankers and bulk carriers. As is the case for the other fleet segments, passenger ships ordered over the last 12 months have tended to be larger vessels. The number of cruise liners under construction has increased by 38% over the past 12 months, from 13 to 18 vessels. AIDA Cruises and P&O Cruises have each added one vessel to their respective orderbooks, boosting the number of cruise liners

LNG World Shipping | May/June 2018

that the Carnival Group has under construction to nine vessels. In addition, Disney Cruise Line has joined the LNG-fuelled cruise ship bandwagon, ordering three dual-fuel newbuildings. The first of the three AIDA Cruises newbuildings, AIDAnova, will be delivered by the Papenburg yard of Germany’s Meyer Werft in autumn 2018 as the world’s first LNG-powered cruise ship. The 183,900 gt vessel will have 2,700 cabins and a crew of 1,500. The engineroom modules for AIDAnova have been constructed separately, at Meyer’s Rostock facility. The units contain the entire engineroom for the ship, complete with four dual-fuel Caterpillar/ MaK engines, the LNG bunker tanks and all related machinery systems and installations. The vessel’s bunker tank arrangement is comprised of three 1,200 m3 IMO Type C pressure vessel units. AIDA Cruises already has experience of handling LNG. The engine complement on each of two recently built cruise ships, AIDAprime and AIDAperla, contains a single dual-fuel engine, although the vessels are not fitted with LNG bunker tanks. The arrangement enables the two vessels to meet their hotel load requirements with LNG while berthed in port. LNG is delivered to the moored ships in road tankers, regasified and used in the shipboard dual-fuel engine. To date LNG has been delivered in this manner to AIDAprime and AIDAperla in the ports of Southampton, Le Havre, Zeebrugge, Rotterdam, Barcelona, Marseilles, Civitavecchia and Funchal. An LNG regasification barge is employed to do the same job in Hamburg. In contrast, AIDAnova will be fully powered by LNG and the large volume of LNG bunkers required by the ship will need to be transferred from a dedicated LNG bunker vessel in a ship-to-ship operation. Shell has been contracted to fuel the cruise ship in this way, as part of a larger agreement between the energy major and the Carnival Group to bunker a number of cruise ships in the fleet with LNG, both in Europe and North America. Another recent cruise vessel contract of note is that by Ponant of France for the luxury polar expedition cruise ship Ponant Icebreaker. Fincantieri’s Vard shipyard will build the Polar Class 2, 30,000 gt ship, for delivery in 2021. The world’s first electric hybrid cruise vessel with icebreaker characteristics, Ponant Icebreaker will have Wärtsilä duel-fuel engines, ABB Azipod propulsion units, highcapacity batteries and a GTT membrane LNG bunker tank. LNG

www.lngworldshipping.com

PASSENGER SHIPS | 29

LNG-FUELLED PASSENGER SHIPS (AS AT 1 MAY 2018) Ship name

Ship type

Delivery date

Owner

Shipbuilder

Engine

Propulsion

Class Society

Car pax ferry Car pax ferry Car pax ferry Car pax ferry Car pax ferry Car pax ferry Passenger ferry Passenger ferry Passenger ferry Car pax ferry Car pax ferry Car pax ferry Car pax ferry Car pax ferry Car pax ferry Car pax ferry Car pax ferry Car pax ferry Car pax ferry Car pax ferry Car pax ferry Car pax ferry Car pax ferry High-speed ferry High-speed ferry Car pax ferry Car pax ferry Car pax ferry Car pax ferry Car pax ferry Car pax ferry Car pax ferry Car pax ferry Car pax ferry Car pax ferry Car pax ferry Car pax ferry Car pax ferry Car pax ferry Car pax ferry Car pax ferry

2000 2006 2007 2007 2007 2007 2009 2009 2009 2009 2010 2010 2010 2010 2011 2012 2012 2012 2013 2013 2013 2013 2013 2013 2013 2013 2015 2015 2015 2015 2015 2015 2016 2016 2016 2017 2017 2017 2017 2017 2017

Fjord1 Fjord1 Fjord1 Fjord1 Fjord1 Fjord1 Tide Sjø Tide Sjø Tide Sjø Fjord1 Fjord1 Fjord1 Fjord1 FosenNamsos Sjø Fjord1 Fjord1 Torghatten Nord Torghatten Nord Torghatten Nord Torghatten Nord Viking Line Fjord Line Fjord Line Buquebus Norled Norled STQ Quebec AG Ems Samsø Municipality Samsø Municipality Boreal Transport Boreal Transport STQ Quebec STQ Quebec Seaspan Seaspan Baleària BC Ferries BC Ferries Tallink BC Ferries

Langstein Aker Yards Aker Yards Aker Yards Aker Yards Aker Yards STX Europe Lorient STX Europe Lorient STX Europe Lorient Remontowa Remontowa Remontowa Remontowa Fiskerstrand BLRT Fiskerstrand BLRT Fiskerstrand BLRT Remontowa Remontowa Remontowa Remontowa STX Turku Remontowa Remontowa Incat Remontowa Remontowa Fincantieri Cassen Eils Remontowa Remontowa Fiskerstrand Fiskerstrand Davie Sb Davie Sb Sedef Sedef unnamed Remontowa Remontowa Meyer Turku Remontowa

Mitsubishi Rolls-Royce Rolls-Royce Rolls-Royce Rolls-Royce Rolls-Royce Mitsubishi Mitsubishi Mitsubishi Mitsubishi Mitsubishi Mitsubishi Mitsubishi Mitsubishi Rolls-Royce Rolls-Royce Rolls-Royce Rolls-Royce Rolls-Royce Rolls-Royce Wärtsilä Rolls-Royce Rolls-Royce GE gas turbine Mitsubishi Mitsubishi Wärtsilä Winterthur G&D Wärtsilä Wärtsilä Rolls-Royce Rolls-Royce Wärtsilä Wärtsilä Wärtsilä Wärtsilä Rolls-Royce Wärtsilä Wärtsilä Wärtsilä Wärtsilä

Gas Gas Gas Gas Gas Gas Gas + oil Gas + oil Gas + oil Gas + oil Gas + oil Gas + oil Gas + oil Gas + oil Gas Gas Gas Gas Gas Gas DF Gas Gas Gas Gas Gas DF DF DF DF Gas Gas DF DF DF DF Gas DF DF DF DF

DNV GL DNV GL DNV GL DNV GL DNV GL DNV GL DNV GL DNV GL DNV GL DNV GL DNV GL DNV GL DNV GL DNV GL DNV GL DNV GL DNV GL DNV GL DNV GL DNV GL LR DNV GL DNV GL DNV GL DNV GL DNV GL LR GL GL DNV GL DNV GL DNV GL LR LR BV BV BV LR LR BV LR

Car pax ferry Car pax ferry Car pax ferry Car pax ferry Car pax ferry Car pax ferry Car pax ferry Car pax ferry Car pax ferry High-speed ferry Car pax ferry High-speed ferry High-speed ferry Car pax ferry Car pax ferry Car pax ferry Car pax ferry Car pax ferry Car pax ferry Car pax ferry Car pax ferry Car pax ferry Car pax ferry Cruise ship Cruise ship Cruise ship

2018 2018 2018 2018 2018 2019 2019 2019 2019 2018 2018 2018 2018 2019 2019 2019 2019 2018 2019 2019 2020 2020 2020 2018 2021 2023

Rederi AB Gotland Rederi AB Gotland CalMac CalMac Torghatten Nord Torghatten Nord Torghatten Nord Torghatten Nord Torghatten Nord Fred Olsen Caronte Doeksen Doeksen Baleària Baleària Baleària Baleària BC Ferries BC Ferries Brittany Ferries Viking Line Polferries Polferries AIDA (Carnival Group) AIDA (Carnival Group) AIDA (Carnival Group)

Guangzhou International Guangzhou International Ferguson Ferguson Vard Vard Tersan Tersan Tersan Navantia Sefine Shipyard Strategic Marine Strategic Marine CN Visentini CN Visentini Navantia Navantia Remontowa Remontowa Flensburger Xiamen Shipbuilding MRS Gryfia MRS Gryfia Meyer Papenburg Meyer Papenburg Meyer Papenburg

Wärtsilä Wärtsilä Wärtsilä Wärtsilä Rolls-Royce Rolls-Royce Rolls-Royce Rolls-Royce Rolls-Royce Caterpillar unnamed MTU MTU Wärtsilä Wärtsilä Wärtsilä Wärtsilä Wärtsilä Wärtsilä unnamed unnamed unnamed unnamed Caterpillar/MaK Caterpillar/MaK Caterpillar/MaK

DF DF DF DF Gas Gas Gas Gas Gas DF DF Gas Gas DF DF DF DF DF DF DF DF DF DF DF DF DF

DNV GL DNV GL LR LR DNV GL DNV GL DNV GL DNV GL DNV GL DNV GL RINA LR LR unnamed unnamed unnamed unnamed LR LR BV DNV GL PRS PRS DNV GL DNV GL DNV GL

unnamed

Cruise ship

2019

Costa (Carnival Group)

Meyer Turku

unnamed

RINA

unnamed

Cruise ship

2021

Costa (Carnival Group)

Meyer Turku

unnamed

RINA

unnamed unnamed

Cruise ship Cruise ship

2020 P&O Cruises (Carnival Group) 2022 P&O Cruises (Carnival Group)

Meyer Papenurg Meyer Papenurg

unnamed unnamed

DF DF

unnamed unnamed

IN SERVICE Glutra Bergensfjord Stavangerfjord Raunefjord Mastrafjord Fanafjord Tidekongen Tidedronnigen Tideprinsen Moldefjord Fannefjord Romsdalfjord Korsfjord Sebjornsford Tresfjord Boknafjord Landegode Værøy Barøy Lødingen Viking Grace Stavangerfjord Bergebsfjord Francisco Hardanger Ryfylke FA Gauthier Osfriesland Helgoland Samsø Hasvik Bergsfjord Armand-Imbeau II Jos-Deschênes II Seaspan Swift Seaspan Reliant Abel Matutes* Salish Orca Salish Eagle Megastar Salish Raven ON ORDER Visborg Thjelvar Glen Sannox unnamed unnamed unnamed unnamed unnamed unnamed Bencomo Express* unnamed unnamed unnamed Hypatia de Alejandra unnamed unnamed unnamed Spirit of British Columbia Spirit of Vancouver Island Honfleur unnamed Wulkan Nowy unnamed AIDAnova unnamed unnamed

www.lngworldshipping.com

LNG World Shipping | May/June 2018

30 | CONTAINER AND CARGO SHIPS

CMA CGM box ships raise the bar for the LNG bunkering industry

he container and cargo ship segment is the smallest, in terms of the number of ships in service and on order, of the four segments into which LNG World Shipping groups LNG-powered vessels. However, it has recently been the focus of some dramatic news as regards the use of LNG as marine fuel. In November 2017 the French liner service operator CMA CGM specified dual-fuel engines for nine new 22,000 TEU container ships. They will be not only the largest vessels of this type ever ordered, but also the largest ships that are not LNG carriers to be powered by LNG. Five of the ships will be built at the Hudong-Zhonghua yard and four at the neighbouring Shanghai facility of Waigaoqiao. All will be delivered between the end of 2019 and the end of 2020. These breakthrough ships will be propelled by the largest gas-burning engines ever built and boast an 18,600 m3 LNG bunker tank of the GTT Mark III

The CMA CGM container ships will be powered by an X-DF unit which will be the most powerful dual-fuel engine ever built

LNG World Shipping | May/June 2018

The orderbook for the container and cargo ship segment of the LNG-fuelled fleet has doubled over the past 12 months, from 14 to 28 vessels, potentially ushering in a new era for LNG as marine fuel

membrane type. The dual-fuel propulsion units chosen for the vessels are Winterthur Gas & Diesel Ltd (WinGD) low-pressure, two-stroke 12X92DF engines. The 12-cylinder, 92 cm bore engine on each ship is rated 63,840 kW at 80 rpm. The bunker tank capacity on the BVclassed CMA CGM ships is five times larger than any yet specified for an LNG-powered ship. The GTT contract also marks the first time a non-Type C containment system has been specified for an LNG bunker tank. Total will provide the 300,000 tonnes of LNG per annum that will be required to fuel the nine vessels. It is estimated that this volume is equal to that consumed by the entire existing fleet of 121 gaspowered ships. The entry into service of the new CMA CGM fleet of dual-fuel ultra-large container ships (ULCS) will spur major developments in the provision of LNG fuelling infrastructure worldwide, including the largest ever gas bunkering vessel. LNG as marine fuel is about to enter a new era. Total and Mitsui OSK Lines (MOL) have jointly ordered, from the HudongZhonghua yard, the 135 m LNG bunker vessel (LNGBV) that will be required to service the CMA CGM box ships. It will have the same capacity and utilise the same membrane containment system as the bunker tank on the container ships. The Total/MOL vesselâ&#x20AC;&#x2122;s 18,600 m3 capacity will make it over three times the size of the largest LNGBV currently in

service. The Hudong yard, incidentally, is also building the Mark III membrane bunker tanks for all nine of the container ships. The LNGBV, which will be based in North West Europe, has been sized to ensure that each ULCS can make an Asia/ Europe round trip on a single fuelling. It is likely that such large LNGBVs will not be required in future because the anticipated spread of LNG bunkering infrastructure will provide a wide range of fuelling locations from which to choose. Where CMA CGM and its LNG fuel suppliers lead, others will follow. The bunkering arrangements put in place for the ULCSs will also be able to service a wide range of vessels with more modest bunkering requirements. In addition, the bold moves by CMA CGM, Total and MOL reinforce similar initiatives by Shell, Engie (now part of Total), ExxonMobil and many others and will lead to further investments in LNG bunkering infrastructure. Shellâ&#x20AC;&#x2122;s list of LNG customers, for example, continues to grow. In October 2017 Siem Car Carriers signed up with the energy major for the supply of LNG fuel for two pure car and truck carriers (PCTCs) it is having built at Xiamen Shipyard for charter to Volkswagen, for the carriage of Volkswagen vehicles from Europe to North America, starting in 2019. Shell will bunker the vessels in North West Europe and at a second supply point in the US by means of ship-to-ship transfers from dedicated LNGBVs. Each of the 200 m car carriers will have space for up to 6,500 vehicles and be fitted with a pair of IMO Type C bunker tanks with a total capacity of 3,600 m3 supplied by Gloryholder Liquefied Gas Machinery. MAN Diesel & Turbo will supply the M-type, electronically controlled, gasinjection engine that will power each ship. The high-pressure, two-stroke, dual-fuel units will develop 12,600 kW, making them the most powerful dual-fuel PCTCs yet built. They will also be the first LNGpowered PCTCs employed on long-haul international routes. LNG

www.lngworldshipping.com

CONTAINER AND CARGO SHIPS | 31

LNG-FUELLED PASSENGER SHIPS (AS AT 1 MAY 2018) Ship name

Ship type

Delivery date

Owner

Shipbuilder

Engine

Propulsion

Class Society

Høydal

Fishfeed carrier

2012

Nordnorsk Shipping

Tersan

Rolls-Royce

Gas

DNV GL

Eidsvaag Pioneer

Fishfeed carrier

2013

Eidsvaag

STX OSV Aukra

Rolls-Royce

Gas

DNV GL

With Harvest

Fishfeed carrier

2014

Egil Uvan

Fiskerstrand

Rolls-Royce

Gas

DNV GL

With Marine

Fishfeed carrier

2014

Egil Uvan

Fiskerstrand

Rolls-Royce

Gas

DNV GL

Kvitbjørn

Container ro-ro

2015

Samskip

Tsuji Heavy Jiangsu

Rolls-Royce

Gas

DNV GL

Kvitnos

Container ro-ro

2015

Samskip

Tsuji Heavy Jiangsu

Rolls-Royce

Gas

DNV GL

Isla Bella

Container ship

2015

TOTE

NASSCO

MAN

HPLSDF

ABS

Perla del Caribe

Container ship

2016

TOTE

NASSCO

MAN

HPLSDF

ABS

Ro-ro cargo

2016

SeaRoad

Flensburger

MaK

DNV GL

Auto Eco

Car carrier

2016

UECC

NACKS

MAN

HPLSDF

Auto Energy

Car carrier

2016

UECC

NACKS

MAN

HPLSDF

Wes Amelie*

Container

2017

Wessels

German Dry Docks

MAN

El Coqui

Container ship

2018

Crowley Maritime

VT Halter Marine

MAN

HPLSDF

DNV GL

Taino

Container ship

2018

Crowley Maritime

VT Halter Marine

MAN

HPLSDF

DNV GL

unnamed

Container ship

2018

Brodosplit Shipping

Brodosplit

MAN

HPLSDF

DNV GL

unnamed

Container ship

2018

Brodosplit Shipping

Brodosplit

MAN

HPLSDF

DNV GL

unnamed

Container ship

2018

Brodosplit Shipping

Brodosplit

MAN

HPLSDF

DNV GL

unnamed

Container ship

2018

Brodosplit Shipping

Brodosplit

MAN

HPLSDF

DNV GL

Nord

Container ship

2018

Containerships

Guangzhou Wenchong

Winterthur G&D

LPLSDF

ABS

unnamed

Container ship

2018

Containerships

Guangzhou Wenchong

Winterthur G&D

LPLSDF

ABS

unnamed

Container ship

2019

Containerships

Guangzhou Wenchong

Winterthur G&D

LPLSDF

ABS

unnamed

Container ship

2019

Containerships

Guangzhou Wenchong

Winterthur G&D

LPLSDF

ABS

Nyksund

Fishfeed carrier

2018

Nordnorsk Shipping

Tersan

Rolls-Royce

Gas

DNV GL

Midnight Sun*

Container ship

2018

TOTE

NASSCO

Wärtsilä

ABS

North Star*

Container ship

2018

TOTE

NASSCO

Wärtsilä

ABS

unnamed

Reefer vessel

2018

SEoIL Agency

unnamed

Container ship

2020

Pasha Hawaii

Keppel AmFELs

unnamed

Container ship

2020

Pasha Hawaii

Keppel AmFELs

unnamed

Car carrier

2019

Siem Car Carriers

Xiamen

MAN

HPLSDF

ABS

unnamed

Car carrier

2019

Siem Car Carriers

Xiamen

MAN

HPLSDF

ABS

unnamed

Container ship

2019

CMA CGM

Hudong-Zhongua

Winterthur G&D

LPLSDF

unnamed

Container ship

2019

CMA CGM

Hudong-Zhongua

Winterthur G&D

LPLSDF

unnamed

Container ship

2020

CMA CGM

Hudong-Zhongua

Winterthur G&D

LPLSDF

unnamed

Container ship

2020

CMA CGM

Hudong-Zhongua

Winterthur G&D

LPLSDF

unnamed

Container ship

2020

CMA CGM

Hudong-Zhongua

Winterthur G&D

LPLSDF

unnamed

Container ship

2019

CMA CGM

Shanghai Waigaoqiao

Winterthur G&D

LPLSDF

unnamed

Container ship

2020

CMA CGM

Shanghai Waigaoqiao

Winterthur G&D

LPLSDF

unnamed

Container ship

2020

CMA CGM

Shanghai Waigaoqiao

Winterthur G&D

LPLSDF

unnamed

Container ship

2020

CMA CGM

Shanghai Waigaoqiao

Winterthur G&D

LPLSDF

unnamed

Fish wellboat

2019

Nordlaks

Tersan

unnamed

IN SERVICE

Searoad Mersey II

ON ORDER

*conversion project DF = medium-speed dual-fuel; HPLSDF = high-pressure low-speed dual-fuel; LPLSDF = low-pressure low-speed dual-fuel

www.lngworldshipping.com

LNG World Shipping | May/June 2018

Maran Gas SHIPOWNER | 33

THE MARAN GAS RECIPE FOR SUCCESS Maran Gas Maritime (MGM) is the youngest company in the Angelicoussis stable, but already its LNG fleet has travelled the equivalent of circumnavigating the globe over 500 times. Craig Jallal reviews the Maran Gas formula for success

aran Gas Maritime Inc was founded in 2003 as the gas shipping unit of Angelicoussis Shipping Group (ASGL), the Greek shipping company established by Antonis Angelicoussis in 1947. John Angelicoussis, son of Antonis, has led the company since 1989, adding oil and LNG shipping segments to the original bulk carrier fleet. John’s daughter, Maria, who trained as a medical doctor, joined the company in 2009 and is now actively involved in all aspects of what is probably the largest privately held shipping group in the world. ASGL ships are primarily Greek flagged, with Greek officers and Filipino ratings. Of the 132 vessels on the water, 26 are LNG vessels, while nine of the 20 under construction are LNG ships. The LNG newbuilding complement comprises eight conventional vessels and one floating storage and regasification unit (FSRU). The average age of the in-service LNG fleet is 3.5 years.

Long-term relationships

MGM owes much of its success to the solid long-term relationships John Angelicoussis has forged with key clients, RasGas, Shell and Woodside. This has driven growth, a recent example being the agreement to scale up the

www.lngworldshipping.com

Nakilat-Maran Gas cooperative arrangement into a joint venture of 15 LNG carriers. A key aspect to the client relationship, according to MGM, is the private nature of the business. Without having to manage quarterly earning cycles, the company can concentrate on customer requirements and build long-term relationships. While the majority of MGM LNG ships are serving on long-term charters, those off-charter are currently working the spot market. According to a company spokesperson, MGM has a four-person commercial team that handles all term, spot and FSRU chartering activities. Brokers are used where they provide value, but the company does not charter-in vessels or manage them on behalf of third parties.

Engine consideration

Daewoo Shipbuilding & Marine Engineering (DSME) has been a popular choice of yard for MGM, having built 16 of the 26 LNG vessels in service and having secured all nine vessels currently on order. When it comes to the propulsion system for its LNG carrier (LNGC) newbuildings ordered against charters, MGM reports that the choice is down to its customers. A spokesman for MGM said: “DSME has the capability to build vessels with either ME-GI or X-DF engines. From MGM’s perspective, we understand enough of both technologies to operate them efficiently and we are willing to employ whichever propulsion type a customer requests.” However, MGM does have a preference. “For our speculative newbuild orders, we have selected ME-GI engines as our preferred option. Compared to X-DF, our ME-GI arrangement offers a lower operating cost for the same capex spend. Therefore, it is the most economical and efficient solution for customers wishing to employ the vessel.” The company said its ME-GI vessels were equipped with two compressors, a full reliquefaction system and a full gas combustion unit (GCU) to provide a valuable

Maria Angelicoussis: the “secret to our success” is our people

level of redundancy. They also include exhaust gas treatment systems to ensure Tier III compliance. Furthermore, the ME-GI engine does not suffer from methane slip, which is an issue for the X-DF option.

Maintenance challenges of diesel engines

MGM believes there are still challenges to overcome with regards the maintenance of diesel engines compared to steam turbines. The introduction of diesel engines has lowered the delivered fuel cost required to ship 1 m3 of LNG by about 50%, according to the company. However, in MGM’s opinion, this improvement in LNG vessel efficiency has come with increased maintenance requirements to support the diesel propulsion plant. Whereas for steam vessels, main engine maintenance would take place during regularly scheduled dry-dock periods, much of the maintenance for the diesel engines needs to be done based on running hours and

LNG World Shipping | May/June 2018

34 | SHIPOWNER Maran Gas

will occur while the vessels are in service. According to MGM, the LNG industry as a whole needs to appreciate these maintenance requirements and adjust vessel scheduling to allow for such maintenance and/or vendor attendances, to help ensure reliable vessel operations.

to coordinate its rapidly growing internal knowledge base. MGM is confident that secure employment for its first FSRU will be sealed before the vessel is delivered in 2020. It believes its LNG expertise and experience will provide it with the credentials to compete with existing FSRU providers.

4 Sep 2003

First steam LNG vessel order

29 Jul 2005

First steam LNG vessel delivery

New ventures

Crew training centre

29 Jul 2005

Start of Maran Nakilat Joint Venture (four ships)

The company has scoped out the potential of moving up or downstream within the LNG sector. While there are no plans to enter downstream into terminals or LNG trading, MGM has been asked by customers to provide marine advice on LNG bunkering matters. One new venture on the horizon involves entry into the FSRU sector. The first FSRU ordered by Maran Gas is due for delivery in Q1 2020. MGM sees this venture as serving the strategy already laid out by the oil majors, which are entering the power markets to create sustainable demand-driven growth for their gas. MGM sees FSRUs as another facet of that strategy, by fast-tracking a floating terminal, rather than an onshore terminal, to connect to a growing power grid. “The demand is there, our aim is to serve it,” it says. The MGM FSRU is being actively marketed and the company is entering into tenders as well as direct discussions. MGM has contracted experts with significant commercial and technical FSRU expertise to expedite its entry into this sector and

Maria Angelicoussis, seen here with her father, John, is taking on a more prominent role in the group

LNG World Shipping | May/June 2018

The specialist requirements of the LNG shipping sector represent one of the major barriers to entry for newcomers. Having a dedicated LNG shipping training unit is an important differential in this regard. In 2001, ASGL established the Den Norske Veritas Germanischer Lloydaccredited Delphic Maritime Training Centre (DMTC) as a shared department, providing training services to all Group companies, including MGM. Among its portfolio of courses, DMTC offers certified SIGTTO training for MGM’s LNG officers and relevant shore staff. The Centre has a full bridge simulator, cargo simulator, engine room simulator and other computer-based training aids. DMTC is also an authorised training centre for electronic chart display and information systems (ECDIS). DMTC held 593 training sessions with 6,265 attendees in 2017 and, according to MGM, the dedicated training regime is paying dividends. It’s retention rate for seagoing and shore personnel is 97%; for the seagoing personnel these rates are 91% for officers and 99% for ratings. DMTC and the provision of training are aspects of the company which are particularly close to the heart of the future leader of the group, Maria Angelicoussis. ”Although Maran Gas is the youngest of our three ASGL companies, it is the fastest growing,” she told LNG World Shipping. She added: “It is also a shipping industry sector where top-quality operations and expertise are both greatly valued. “Early on at Maran Gas, we moved all our commercial and technical management in-house and, through our initial relationships, we quickly acquired solid trading experience. The combination of in-house expertise and strong relationships with our customers gives us a competitive advantage in the market today,” she said. “The ‘secret to our success’ is our people, both ashore and at sea,” concluded Maria Angelicoussis. “With a state-of-the-art training centre and a retention rate of over 90%, we are investing in the future of our people to continue the growth and expansion of MGM.” LNG

MARAN GAS MILESTONES

29 Aug 2005

First cargo loaded

23 May 2008

100th cargo loaded

25 Mar 2011

First TFDE LNG vessel order

25 Jun 2013

First expansion of Maran Nakilat joint venture to include two Non-Qatari chartered Ships

1 Jul 2013

First TFDE LNG vessel delivery

23 May 2014

10th LNG vessel delivered

29 Dec 2014

First MEGI LNG vessel order

22 Jul 2016

20th LNG vessel delivered

25 Jul 2016

First ever LNG vessel to cross Panama Canal – Maran Gas Apollonia

19 Sep 2017 6 Dec 2017 28 Feb 2018

1 Mar 2018

1,000th cargo loaded First FSRU vessel order Most recent expansion to Maran Nakilat joint venture, adding two ships Total ships in Maran Nakilat joint venture – 15

Apr 2018

Total Panama Canal crossings by MGM vessels to date – 36

Apr 2018

Around 1,150 cargoes loaded

Apr 2018

157 FSRU calls

Apr 2018

11,690,418 NM total distance sailed

Apr 2018

540 circumnavigations of the equator

19 Jun 2018

30th LNG vessel delivery expected

Jun 2018

First MEGI LNG vessel delivery expected

Mar 2020

First FSRU vessel delivery expected

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OPINION | 37

PUTTING JETTY-BASED LNG REGASIFICATION INTO PERSPECTIVE JOHN E BARNES OF UNIVERSALPEGASUS INTERNATIONAL WEIGHS UP THE ADVANTAGES TO BE GAINED FROM LNG IMPORT TERMINAL OPERATORS CHOOSING THE JETTY-BASED REGASIFICATION OPTION

he global network of LNG import terminals continues to spread. According to the International Group pf LNG Importers’ (GIIGNL) recently published Annual Report 2018, there are now 40 LNG import countries worldwide which, between them, offer 850 million tonnes per annum (mta) of LNG regasification capacity. LNG import terminals have three major components: LNG storage, LNG regasification and the marine berth; and there are three principal terminal configurations for the regasification function, as follows: 1. floating storage and regasification unit (FSRU terminal); 2. onshore regasification plant (onshore terminal); and 3. marine berth-mounted regasification plant, in tandem with a floating storage unit (marine berth regas/FSU terminal). This article highlights the advantages of the marine berth regas/FSU terminal option in terms of capital cost, schedule and commercial flexibility compared to the alternative configurations. For the comparison, all three configurations are based on a storage capacity for 150,000 m3 of LNG, a regasification rate of 300 million standard cubic feet per day (mmscfd) and a location in either harbours or other sheltered mooring locations. Each marine berth will have mooring and breasting dolphins, a loading platform and a bridge connection with the shore. For the purposes of this report, the external heat for the regasification process is provided by utilising seawater. In cold climate locations, the burning of boil-off gas would be utilised for the vaporisation heat source. Terminal configurations In the FSRU terminal configuration, the FSRU, which is permanently moored at the marine berth, serves as both the LNG storage and regasification unit. LNG is delivered to the terminal by means of an LNG carrier that moors to the seaward side of the FSRU and discharges the cargo to the FSRU storage tanks by means of a ship-to-ship (STS) transfer. The regasification system is mounted on the deck of the FSRU and integrated into the vessel’s systems. The regasification equipment is typically installed in a shipyard and classed by one of the classification societies. The natural gas vaporised from the LNG will

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The Petronas marine berth regas/FSU terminal in the Malaysian port of Malacca makes use of two FSUs

be metered and discharged to a pipeline. For onshore terminals, LNG is stored in free-standing tanks constructed at the onshore site. LNG is delivered to the terminal by LNG carriers which moor at the marine berth and discharge cargo to the onshore storage tanks. The regasification system is constructed close to the terminal’s LNG storage tanks, utilising skidded equipment components. Again, natural gas vaporised from the LNG is metered and discharged to a pipeline. For marine berth regas/FSU terminals, LNG is stored in an LNG carrier which is adapted for service as an FSU and permanently moored at the marine berth. LNG is delivered to the terminal by means of an LNG carrier that moors either to the seaward side of the FSU and transfers cargo to the FSU in an STS operation, or on the other side of the jetty for a cross-jetty transfer. The regasification system in marine berth regas/FSU terminals is constructed as a single-lift module installed on the loading platform. As with the other terminal configurations, natural gas vaporised from the LNG is metered and discharged to a pipeline. Cost and schedule The capital costs for each of the three configurations are presented in Table 1. Although FSUs and FSRUs can be purchased or leased, only purchasing is considered to simplify this comparison.

LNG World Shipping | May/June 2018

38 | OPINION

Table 1 – Capital cost comparison

250

Marine berth

Contingency 25%

TOTAL

350

Onshore terminal 150,000m3 storage tankage Regas equipment Insulated piping Marine berth

396 20 3 112

TOTAL

558

Marine berth regas/FSU terminal 150,000m3 LNG carrier

Regas equipment

Marine berth

TOTAL

26 128

Due to the high cost of the onshore LNG storage tanks, the onshore terminal configuration is the most expensive, followed by the FSRU terminal configuration. The marine berth regas/FSU terminal arrangement is the least expensive alternative. The project schedule durations for the three terminal configurations shown in Table 2 represent the time from the initiation of engineering to the end of commissioning and start of commercial operations. The marine berth regas/FSU terminal configuration has the shortest project schedule; this is because shipyard construction and integration work can be minimised by fabricating the regas module in an oil and gas fabrication facility for subsequent mounting on the loading platform. Also, the adaptation of a surplus LNG carrier for its FSU role is a straightforward job. Table 2 – Project schedule comparisons MONTHS FSRU terminal : • Conversion of existing LNG carrier to FSRU

26-28 months

• Newbuild FSRU

30-32 months

Onshore terminal

36-38 months

Marine berth regas/ FSU terminal

20-22 months

Commercial flexibility The ability of the terminal owner to select the facility’s primary components from a variety of contractors to foster competition and reduce costs gives a measure of the commercial flexibility of a regasification terminal. Commercial flexibility also includes the ability to react to market changes during the project’s life by redeploying the

LNG World Shipping | May/June 2018

REGUS MODULE NG PIPELINE TO USERS

Contingency 25%

FSU

OFFSHORE

FSRU

Cost (US$M)

ONSHORE

FSRU terminal

LNG CARRIER

Marine berth regas/FSU terminal configuration

terminal to a secondary location. FSRUs are typically deployed with a long-term lease or charter for 10 years or more, partially due to the need to recover the large capital expense of constructing the vessel (approximately US$250M). Typically, the terminal owner is bound to a long-term commercial arrangement. The FSRU market is characterised by limited competition and is dominated by a few main players. There are more than 25 FSRUs operating worldwide and almost all are on long-term charters. If market conditions at the original site become unfavourable, the FSRU can be relocated to a secondary site. At onshore terminals, storage tanks and the regasification facility require a significant capital expenditure. Due to the design requirements of these project components, the facility cost is much higher than the other two options. The payout is a long-term proposition, subject to market changes and other uncertainties. If market conditions at the original site become unfavourable, it is not cost-effective and usually not practicable to relocate the terminal components to a secondary site. The marine berth regas/FSU terminal concept not only entails a relatively low capital cost, but also provides significant commercial flexibility compared to the other two configurations. Many surplus LNG carriers are available, with relatively inefficient steam turbine propulsion systems that make good candidates for possible use as FSUs. As a result, favourable purchase or lease terms can be negotiated with a number of shipowners. The jetty-mounted regasification module can be constructed at most oil and gas fabrication facilities, while there are many construction contractors able to undertake marine berth fabrication and installation, as well as regasification module installation and hookup. The contractor community includes those in less developed areas, providing host-country content if needed. Further, if market conditions at the original site become unfavourable, the regasification module and FSU can be relocated to a secondary site. Compared to FSRUs and onshore terminals, the marine berth regas/FSU configuration provides a terminal owner with the option of developing an LNG regasification facility with a significantly lower capital cost or lease rate, the shortest project execution schedule and much greater commercial flexibility. John E Barnes is senior vice president - project management at UniversalPegasus International, a company offering expertise, efficiency and value in project and construction management and engineering to the energy industry. LNG

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CONTAINMENT SYSTEMS | 41

THE MARCH OF THE GTT MEMBRANE GTT has been developing its established Mark III and NO96 membrane tank technologies to accommodate the changes sweeping through the LNG shipping industry

TT membrane tanks â&#x20AC;&#x201C; whether of the Mark III or NO96 types â&#x20AC;&#x201C; represent the most popular choice of cargo containment system for LNG vessels. Of the approximately 500 conventional LNG carriers (LNGCs) and floating storage and regasification units (FSRUs) currently in service, 75% are equipped with GTT membrane technology. Of this total there is a fairly even split between Mark III and NO96 ships. The orderbook for such ships presently stands at around 110 vessels, and GTT membranes have been specified for 80% of these. While the NO96 system will be fitted on about 60% of the current slate of GTT newbuildings, the actual percentage split between the NO96 and Mark III options for new ships at any one time is more to do with the choice of shipbuilder, rather than any advantages one system may have over the other.

Dealing with change

Over the past 15 years the LNG shipping industry has been characterised by change. Global LNG trade and the fleet serving it have expanded rapidly, supporting a growing community of LNG terminal and ship operators. At the same time, gas buyers and sellers have adopted a more flexible approach to their sales negotiations, engendering more spot and short-term cargoes and opening up possibilities as to where shipments might be discharged. The LNG supply chain has also been extended dramatically. Floating LNG production and regasification vessels have opened up new gas export and import opportunities, while the fleet of coastal distribution tankers continues to grow. In addition, the first purpose-built LNG bunker vessels are now in service and more shipowners outside the gas carrier sector are choosing to

The distinctive waffled stainless steel primary barrier of a GTT Mark III membrane tank

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LNG World Shipping | May/June 2018

42 | CONTAINMENT SYSTEMS

order LNG-fuelled ships. For a designer of ship systems like GTT, advances in LNG carrier technology have been as important as the commercial changes impacting the industry. In addition to the 40% increase in the size of an average conventional LNG carrier, new ship propulsion systems have underpinned important gains in fuel efficiency. The introduction of four-stroke dual-fuel diesel-electric (DFDE) propulsion systems early in the new millennium marked an important advance on traditional steam turbine power units. More recently, two-stroke dual-fuel engines have enabled further reductions in fuel bills and have become the most popular propulsion system for LNG carrier newbuildings. The lower fuel requirements of these new propulsion systems have allowed GTT to improve the thermal performance of its traditional Mark III and NO96 systems, using new versions of the technologies yielding lower cargo boil-off rates. “With more efficient propulsion systems, less natural boil-off is required to feed the engines,” explained GTT commercial vice president David Colson. “At lower ship speeds, say less than 16 knots, our established containment systems may yield too much boiloff gas. We have developed new versions of our Mark III and NO96 systems which allow operation with no lost boil-off at lower speeds, thereby increasing the vessel’s operational flexibility.”

Mark III and NO96 step changes

GTT’s original Mark III membrane tank design, with its characteristic waffled stainless steel primary barrier, has been further developed in recent years through the introduction of the Mark III Flex and the Mark III Flex+ versions. Table 1 shows the evolution of the Mark III membrane and highlights the difference in thermal performance between the three versions of the design. With the Mark III Flex+ system, the guaranteed daily natural cargo boil-off rate (BOR) is down to 0.07% of the tank volume per day. The reduced BOG rate achieved by the Mark III Flex+ is obtained by increasing the insulation thickness to 480 mm, from the Mark III Flex’s 400 mm. Also, the assembly of the secondary barrier below the top bridge pads has been further developed with the Flex+ solution, through the addition of a supplementary layer of rigid triplex. This increases the strength of the barrier against thermal and mechanical loads. GTT’s long-serving NO96 membrane design, with its distinctive invar

TABLE 1: EVOLUTION OF THE GTT MARK III MEMBRANE CONTAINMENT SYSTEM MARK III MARK III FLEX BOR* Main insulating material Primary membrane Secondary membrane Thickness

0.135%

0.07%

Reinforced Polyurethane foam

Stainless steel corrugated membrane

270 mm

Strengthened by doubling triplex 400 mm

480 mm

*Typical value for a 175,000 m LNG carrier in % of cargo volume/day. BOR is project-dependent due to vessel size, tank arrangement and reinforcements 3

LNG World Shipping | May/June 2018

NO96

NO96 GW

NO96 L03

NO96 L03+

BOR*

0.15%

0.125%

0.11%

0.10%

Main insulating material

Perlite

Glass wool

Glass wool and foam 130 kg/m3

Membranes

Support

Invar 0.7 mm

Boxes with bulkheads plywood

Boxes primary and top secondary with bulkheads: plywood Panels lower secondary: foam & plywood

Thickness

Boxes with bulkheads in plywood Panels: foam & plywood

530 mm (primary box: 230 mm + secondary box: 300 mm)

*Typical value for a 175,000 m3 LNG carrier in % of cargo volume/day. BOR is project-dependent due to vessel size, tank arrangement and reinforcements

36% nickel steel primary and secondary barriers, has also been further developed in recent years, in the quest for improved thermal performance. The basic NO96 system has now been augmented by the NO96 GW, the NO96 LO3 and the NO96 LO3+ versions of the design. Table 2 shows the differences in thermal performance between the various NO96 options. Mark NO96 L03+ offers the best performance among the four NO96 versions; the guaranteed daily natural cargo BOR falls to 0.1% of the tank volume per day. There are two main differences between NO96GW and the NO96 L03 or L03+ versions. With NO96GW the insulation material in the boxes backing the system’s two metallic barriers is glass wool (GW). With LO3 and LO3+ the insulation in the primary insulation boxes is still GW, but the secondary insulation is split into two different layers. For L03, there is a box insulated with GW attached to a panel assembled from plywood and reinforced polyurethane foam (much like Mark III); for L03+, both secondary layers are made up of plywood and polyurethane foam.

Key FSRU considerations

MARK III FLEX+

0.085%

Single triplex

TABLE 2: EVOLUTION OF THE GTTNO96 MEMBRANE CONTAINMENT SYSTEM

GTT membranes have been chosen as the cargo containment system for all the floating storage and regasification unit (FSRU) newbuildings completed to date. As a general rule, FSRU owners have tended to opt for the older, established Mark III and NO96 versions of the two membranes for their vessels. The choice has been mainly determined by owners of FSRUs and conventional LNG carriers having different expectations in terms of BOR. FSRU owners and operators generally have no great incentive to reduce their BOR and therefore favour the standard technologies, such as NO96 and Mark III, for economical and space availability reasons. LNG carrier owners, in contrast, are now opting for the more refined GTT technologies, such the NO96GW & Mark III Flex membranes, as part of their efforts to reduce cargo BOR below those offered by the designer’s standard technologies. “Notwithstanding this general observation, we are now >>>

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CONTAINMENT SYSTEMS | 45

beginning to see owner inquiries for FSRUs requiring lower BOR, possibly because the vessels are intended for projects with a comparatively low or intermittent send-out and where cargo retention will be required,” said Mr Colson. >>>

Building relationships

The ability to match fuel requirements and containment system BOR demands an understanding of the vessel’s operational profile, as well as the performance of the ship’s propulsion and cargo-handling system packages. Achieving the right balance between a ship’s operational profile and the performance of its systems necessitates a close liaison between GTT and other key stakeholders, including shipowners, shipyards, engine manufacturers and designers of fuel gas supply systems (FGSSs) and reliquefaction systems. A lack of integration between the various systems, particularly in the LNG-fuelled vessel market, can pose a challenge. While reliability is a given priority, shipowners and shipyards also need systems that are integrated. A wide range of solutions exist and often yards will have to turn to multiple suppliers - engine makers, FGSS integrators, tank manufacturers and designers - to meet their needs. These multiple interfaces between the various systems add complexity and risk. GTT has addressed this concern by arranging strategic partnerships with Wärtsilä Gas Solutions and DSEC, both of which were finalised in December 2017. The alliance with Wärtsilä provides customers with a complete service that combines their respective fields of expertise. GTT’s capabilities in developing cryogenic membrane containment solutions are complemented by Wärtsilä’s know-how in dual-fuel engines and LNG FGSS applications. The integrated packages available from the partners can be provided in modular configurations and include, if required, an in-service element to facilitate smooth ship operations. The GTT/ Wärtsilä initiative is aimed particularly at the LNG-powered vessel sector, where ship bunkering arrangements can vary widely according to the type of vessel and the trade route it serves. Formerly part of Daewoo Shipbuilding & Marine Engineering (DSME), DSEC is a Korean marine engineering company which has decades of experience in working with GTT’s membrane tank technologies, as well as expertise in LNG fuel gas supply and cargohandling systems. Under a new technical assistance agreement, DSEC has become a licensed outfitter of GTT membrane tanks, including for use in storing bunkers on LNG-fuelled vessels. DSEC is thus able to install GTT containment systems on behalf of shipyards that wish to subcontract the membrane tank erection work. With these two partnerships in place, GTT aims to facilitate a shipowner’s decision to switch to LNG fuel, thanks to the fully integrated and low-risk nature of the overall package.

Seeking optimum solutions

“As important as the various industry relationships, including the two strategic partnerships, are, they in themselves are not enough,” stated Mr Colson. “GTT needs to be the lead expert in matters dealing with cargo containment and BOR and proactive in finding optimum solutions.” He continued: “We have been working on an R&D programme with Airbus for more than two years to increase our knowledge of boil-off gas generation and pressure rise during a vessel’s lifecycle. We believe we are among the few actors in the industry that have reached this level of understanding concerning LNG behaviour in marine applications. This knowledge enables us to perform studies for a wide variety of owners to advise them on the optimum choices, covering

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Cutaway showing the elements of a GTT Mark III Flex+ membrane containment system

both membrane systems and other technologies, for their operations.” Mr Colson added: “While safety is the overriding consideration in all our technology offerings, we also need to propose cost-effective solutions. One such example of this is the LNG Brick prefabricated tank concept, launched in March 2018.” The LNG Brick approach enables a membrane tank in the 300 to 3,000 m3 size range to be constructed at the specialised premises of GTT licensees, for subsequent delivery in a “ready-to-install” condition at the shipyard. Particularly suitable as an LNG bunker tank option for an LNG-powered ship, LNG Brick allows smalland medium-size shipyards with limited access to personnel skilled in LNG systems and no specific knowledge of membrane tank technology, to tender for the construction of such ships.

Designs for the future

GTT’s work to improve the thermal performance and strength characteristics of its classic Mark III and NO96 membrane designs targets operational benefits coupled with competitive pricing. The advances anticipate further improvements in dual-fuel engine efficiencies, however incremental they may be. In addition, the increased strength of the membrane tank containment systems will permit the use of GTT technologies in projects characterised by harsher in-service conditions. These include applications involving tandem ship-to-ship transfers and on FSRUs and floating LNG production vessels operating at open sea locations. Because membrane tanks are integrated with the ship’s structure, achieving higher tank pressure ratings requires reinforced hull scantlings, strengthened tank openings in way of the liquid and gas domes and adapted pressure relief valve settings. Membrane tanks with higher pressure ratings are particularly desirable on vessels that experience extended periods of idle time during normal operations, such as LNG bunker vessels and dualfuel bulk carriers, or on ships requiring greater handling flexibility. Ships with GTT membrane tanks rated for higher pressures can accommodate the boil-off gas generated by a mix of pressure increases and gas consumption in the engines. GTT’s goal of anticipating the LNG shipping industry’s needs requires constant innovation. One-quarter its employees work in research and development, on programmes aimed at ensuring GTT retains and extends its competitive edge in the rapidly evolving LNG shipping sector. LNG

LNG World Shipping | May/June 2018

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analysis STATISTICS | 47

JAPAN PROMINENT IN LATEST LNG FLEET SURGE JAPANESE CHARTERERS, OWNERS AND/OR BUILDERS HAVE BEEN INVOLVED WITH 50% OF LNG CARRIER COMPLETIONS OVER THE PAST TWO MONTHS

here has been no let-up in the pace of LNG carrier shipyard activity so far in 2018. In the two months since LNG World Shipping’s previous fleet review, 10 LNG carriers have been handed over to their owners and nine further such vessels have been ordered. In the four months to 30 April 2018, 23 LNG carriers were delivered and 18 vessels added to the orderbook. Japanese owners, charterers and shipbuilders have been at the fore in the latest batch of ship completions. The portfolio of ships delivered in the last two months includes the first Moss spherical tank LNG carrier to be powered by a dual-fuel diesel-electric (DFDE) propulsion system and the largest Moss spherical tank ship ever built. Both breakthrough vessels were constructed by the Sakaide yard of Kawasaki Heavy Industries (KHI) in Japan. All the large, conventional-size LNG carriers built by KHI to date have Moss containment systems and, prior to the recent deliveries, all KHI-built LNG carriers had been steam-turbine-powered.

KAWASAKI LANDMARKS

KHI’s first DFDE ship is LNG Sakura, a 177,000 m3 vessel delivered to a 70/30 joint venture partnership comprising Kansai Electric Power (Kepco) and NYK Line, respectively. Kepco will charter the ship for 20 years, to lift cargoes from Dominion Energy’s newly commissioned Cove Point export terminal in the US, among other facilities, while NYK Line will operate the vessel. KHI has utilised its proprietary polyurethane foam Kawasaki Panel System to insulate the four spherical tanks on the

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twin-screw LNG Sakura (Sakura means “cherry blossom” in Japanese). The technology yields a comparatively low cargo boil-off gas (BOG) rate of 0.08% per day, an attractive attribute considering the long transpacific voyages on which the vessel will be engaged. LNG Sakura departed Cove Point on 22 April with its inaugural cargo from the facility. The construction of a 5.1 million tonnes per annum (mta) liquefaction train at what was previously an LNG import terminal has given the Maryland facility a bi-directional capability. While LNG Sakura marks a step up in size from KHI’s earlier LNG carriers, its next completion, the 182,000 m3 Pacific Breeze commissioned a few weeks later, is the world’s largest Moss ship. Achieving LNG Sakura’s cargo-carrying capacity of 177,000 m3 - up from the 165,000 m3 characteristic of previous KHI LNG carriers - was made possible by marginal increases to both the tank

diameter and the height of the equatorial ring. It is not possible to increase tank diameters further if transit of the Panama Canal’s new locks is required. So KHI achieved the record-breaking Pacific Breeze capacity by adding 1.6 m deep cylindrical equatorial rings to the two aftermost of the ship’s four tanks. Pacific Breeze is owned by K Line and chartered by IT Marine Transport, a joint Inpex/Total shipping operation, for use in the carriage of LNG from the new 8.9 mta Ichthys LNG export terminal near Darwin in Australia to Taiwan’s CPC Corporation. As a result of the ship’s capacity and the relatively short voyage distance, the charterers anticipate that Pacific Breeze will lift 1.75 mta at the Ichthys terminal. Like LNG Sakura, Pacific Breeze is powered by a DFDE propulsion system and its Kawasaki Panel System insulation yields a cargo BOG rate of 0.08%. As part of the Ichthys LNG terminal commissioning process, Pacific Breeze

LNG World Shipping | May/June 2018

48 | STATISTICS analysis

delivered a cooldown cargo loaded in Singapore to the Darwin site on 26 April 2018. Pacific Breeze remains in the area following discharge of the cooldown shipment and there is a possibility that the vessel is lined up to load the inaugural Ichthys LNG export cargo.

MORE JAPANESE CHARTERS

In March 2018 the Nagasaki yard of Mitsubishi Heavy Industries (MHI) delivered a Moss spherical tank ship for service with a new Australian export project. MHI handed over the 155,000 m3 Pacific Mimosa to LNG Marine Transport, a ship operating company in which Jera holds a 70% stake, Mitsubishi Corp 15% and NYK Line 15%. NYK is responsible for the ship’s technical management. The vessel has been taken on long-term charter by Jera for lifting cargoes from the Chevron-led, 8.9 mta Wheatstone LNG project in northwestern Australia. Jera, a joint venture responsible for the combined LNG marketing activities of Tokyo Electric Power and Chubu Electric Power, is the largest buyer of Wheatstone’s output and lifted its first cargo from the project in November 2017. Pacific Mimosa is powered by an ultra-steam-turbine (UST) propulsion system that makes use of reheated steam to achieve fuel efficiency gains of 15% over traditional steam turbines. With the UST technology the boiler generates high-pressure steam at 12 MPa and 565˚C by transferring the heat from the

combustion of the cargo BOG. To the non-LNG community there is no immediate indication that Pacific Mimosa has four cargo tanks. In contrast to traditional Moss ships, where almost one-half of each spherical cargo tank protrudes above the main deck, the newbuilding is one of the new generation of “peas-in-a-pod” Sayaendo system design from MHI. That means that the top half of each cargo tank is obscured by the continuous tank cover the extends the length of the main deck in way of the cargo tanks. The cover not only protects the cargo tanks and deck pipework, but also adds to the vessel’s structural integrity. Two other recent newbuildings have Japanese connections. Castillo de Merida is the first of a pair of 178,000 m3 newbuildings for Spain’s Naviera Elcano from the Saijo yard of Imabari, while the Samsung-built Marvel Falcon is destined to lift Cameron LNG exports under charter to Mitsui & Co and the technical management of NYK Line. The capacity of Castillo de Merida marks a significant step up from the 154,000 m3 size of the previous LNG carriers built by Imabari. Castillo de Merida and its imminent Imabari newbuilding sistership, Castillo de Caldelas, have been taken on charter by Gas Natural Fenosa (GNF) for the lifting of Sabine Pass LNG cargoes in the US state of Louisiana; as an ability to optimise Panama Canal transit opportunities is paramount, the principals have decided

on the 178,000 m3 size for the pair. Castillo de Merida is propelled by a pair of MAN Diesel & Turbo’s M-type electronically controlled gas-injection (ME-GI) engines, a two-stroke propulsion system particularly popular in the LNG carrier sector at the moment. The ship also has GTT Mark III Flex membrane tanks, a containment system that provides a reduction in cargo BOG rates down to the 0.10% level. While Imabari has achieved considerable success in the domestic shipbuilding sector in recent years, not least in the construction of next-generation ultra-large container ships for domestic shipowners, the fabrication of the latest LNG carriers has caused difficulties and the deliveries of Castillo de Meridas and Castillo de Caldedas were nine months later than originally planned. The 174,000 m3 Marvel Falcon was delivered by Samsung Heavy Industries (SHI) to NYK Line in April 2018. The ship is the first in a fleet of eight new vessels that Mitsui & Co is taking on 25-year charters, primarily to lift cargoes from the planned Cameron LNG export terminal in Louisiana. Marvel Falcon is powered by a pair of Generation X, low-pressure, dual-fuel, two-stroke (X-DF) engines developed by Winterthur Gas & Diesel (WinGD). Twostroke engines are now the propulsion system of choice for conventional-size LNG carriers and, of the new ships ordered so far this year, preferences have been split fairly evenly between the ME-GI and X-DF engine types. LNG

Built to lift Wheatstone cargoes, Pacific Mimosa has a Sayaendo deck cover to protect the top halves of the spherical cargo tanks and reinforce the vessel’s structural strength

LNG World Shipping | May/June 2018

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LNG CARRIERS ON ORDER LNGC ORDERBOOK AS OF 30 APRIL 2018

SOUTH KOREA Hull no

Shipowner

Capacity, m3

Delivery

Charterer

Containment

Class

Propulsion

Details

Shell business

Daewoo Shipbuilding & Marine Engineering (DSME), Okpo 2456

Maran Gas

173,400

2019

Shell

GTT No96

DNV GL

LSDF (HP)

2457

Maran Gas

173,400

2019

–

GTT No96

LSDF (HP)

open

2458

Maran Gas

173,400

2018

Shell

GTT No96

ABS/CCS

LSDF (HP)

Shell business

2459

Maran Gas

173,400

2019

Shell

GTT No96

LR/CCS

LSDF (HP)

Shell business

2466

Maran Gas

174,000

2019

–

GTT No96

ABS

LSDF (HP)

open

2467

Maran Gas

174,000

2019

–

GTT No96

LSDF(HP)

open

2468

Maran Gas

173,400

2020

–

GTT No96

DNV GL

DFDE

FSRU; open

2416

Teekay

173,400

2017

Shell

GTT No96

DNV GL

LSDF (HP)

Shell business

2417

Teekay

173,400

2018

Shell

GTT No96

DNV GL

LSDF (HP)

Shell business

2454

Teekay

173,400

2018

Shell

GTT No96

DNV GL

LSDF (HP)

Shell business

2455

Teekay

173,400

2019

Yamal LNG

GTT No96

DNV GL

LSDF (HP)

Yamal cargoes

2461

Teekay

173,400

2018

Bahrain LNG

GTT No96

DNV GL

LSDF (HP)

Bahrain FSU

2421

Dynagas

172,000

2018

Yamal LNG

GTT No96

BV/RS

DFDE

icebreaking LNGC

2422

Dynagas

172,000

2017

Yamal LNG

GTT No96

BV/RS

DFDE

icebreaking LNGC

2427

Dynagas

172,000

2019

Yamal LNG

GTT No96

BV/RS

DFDE

icebreaking LNGC

2428

Dynagas

172,000

2019

Yamal LNG

GTT No96

BV/RS

DFDE

icebreaking LNGC

2429

Dynagas

172,000

2019

Yamal LNG

GTT No96

BV/RS

DFDE

icebreaking LNGC

2426

CSDC/MOL

172,000

2019

Yamal LNG

GTT No96

BV/RS

DFDE

icebreaking LNGC

2432

CSDC/MOL

172,000

2020

Yamal LNG

GTT No96

BV/RS

DFDE

icebreaking LNGC

2423

Teekay/CLNG

172,000

2018

Yamal LNG

GTT No96

BV/RS

DFDE

icebreaking LNGC

2425

Teekay/CLNG

172,000

2018

Yamal LNG

GTT No96

BV/RS

DFDE

icebreaking LNGC

2430

Teekay/CLNG

172,000

2019

Yamal LNG

GTT No96

BV/RS

DFDE

icebreaking LNGC

2431

Teekay/CLNG

172,000

2020

Yamal LNG

GTT No96

BV/RS

DFDE

icebreaking LNGC

2433

Teekay/CLNG

172,000

2020

Yamal LNG

GTT No96

BV/RS

DFDE

icebreaking LNGC

2434

Teekay/CLNG

172,000

2020

Yamal LNG

GTT No96

BV/RS

DFDE

icebreaking LNGC

2488

BW Group

174,000

2019

–

GTT No96

DNV GL

LSDF (HP)

FSRU; open

2489

BW Group

174,000

2019

–

GTT No96

DNV GL

LSDF (HP)

open

2464

Chandris/K Line

173,400

2018

GTT No96

LSDF (HP)

BP business

2441

BP Shipping

173,400

2018

GTT No96

LSDF (HP)

BP business

2442

BP Shipping

173,400

2018

GTT No96

LSDF (HP)

BP business

2443

BP Shipping

173,400

2018

GTT No96

LSDF (HP)

BP business

2444

BP Shipping

173,400

2019

GTT No96

LSDF (HP)

BP business

2445

BP Shipping

173,400

2019

GTT No96

LSDF (HP)

BP business

2446

BP Shipping

173,400

2019

GTT No96

LSDF (HP)

BP business

2462

MOL/Itochu

180,000

2018

Uniper

GTT No96

–

LSDF (LP)

Uniper business

2470

Flex LNG

173,400

2019

–

GTT No96

ABS

LSDF(HP)

open

2471

Flex LNG

173,400

2019

–

GTT No96

ABS

LSDF(HP)

open

2480

Flex LNG

174,000

2020

–

GTT No96

–

LSDF(HP)

open

2490

BW Group

174,000

2020

–

GTT No96

DNV GL

LSDF (HP)

open

2491

BW Group

174,000

2020

–

GTT No96

DNV GL

LSDF (HP)

open

2483

Alpha Shipping

173,400

2020

–

GTT No96

DNV GL

LSDF (HP)

open

2484

Alpha Shipping

173,400

2020

–

GTT No96

–

LSDF (HP)

open

–

Minerva Marine

174,000

2021

–

GTT No96

–

LSDF (HP)

open

–

Minerva Marine

174,000

2021

–

GTT No96

–

LSDF (HP)

open

LNG World Shipping | May/June 2018

www.lngworldshipping.com

STATISTICS | 51

YOUR PARTNER IN SHIP PERFORMANCE MONITORING www.kyma.no

Samsung Heavy Industries (SHI), Geoje 2189

Golar Power

170,000

2018

Golar Power

GTT MkIII

DNV GL

DFDE

Sergipe FSRU

2131

GasLog

174,000

2017

Shell

GTT MkIII

ABS

LSDF (LP)

Shell business

2212

GasLog

180,000

2019

Centrica

GTT MkV

–

LSDF (LP)

Sabine Pass exports

2213

GasLog

180,000

2019

–

GTT MkV

–

LSDF (LP)

open

2107

Flex LNG

174,000

2018

–

GTT MkIII

ABS

LSDF (HP)

open

2108

Flex LNG

174,000

2018

–

GTT MkIII

ABS

LSDF (HP)

open

–

Petronas

180,000

2020

Petronas

GTT MkIII

–

N/A

LNG FPSO

2149

MOL/Mitsui & Co

174,000

2018

Mitsui & Co

GTT MkIII

–

LSDF (LP)

Cameron exports

2150

MOL/Mitsui & Co

174,000

2018

Mitsui & Co

GTT MkIII

–

LSDF (LP)

Cameron exports

2220

Höegh LNG

170,000

2019

–

GTT MkIII

DNV GL

DFDE

FSRU; open

2233

Korea Line

7,500

2019

Kogas

KC-1

KRS

DFDE

South Korea coast

2234

Korea Line

7,500

2019

Kogas

KC-1

KRS

DFDE

South Korea coast/

Pertamina consortium

170,000

2019

Pertamina

GTT MkIII

–

DFDE

Indonesia FSRU

2274

GasLog

180,000

2020

–

GTT MkIII

ABS

LSDF (LP)

open

2275

GasLog

180,000

2020

Centrica

GTT MkIII

ABS

LSDF (LP)

Centrica business

2271

TMS Cardiff Gas

174,000

2021

–

GTT MkIII

–

LSDF (HP)

open

–

TMS Cardiff Gas

174,000

2021

–

GTT MkIII

–

LSDF (HP)

open

bunkering –

Hyundai Heavy Industries (HHI), Ulsan 2909

Höegh LNG

170,000

2018

Global Energy

GTT MkIII

DNV GL

DFDE

Pakistan FSRU

2735

MISC

150,000

2018

Petronas

Moss

UST

Petronas projects

2854

Gazprom

174,000

2017

Gazprom

GTT MkIII

DFDE

Kaliningrad FSRU

2937

SK Shipping

180,000

2019

SK E&S

GTT MkIII

–

LSDF (LP)

Freeport exports

2938

SK Shipping

180,000

2019

SK E&S

GTT MkIII

–

LSDF (LP)

Freeport exports

2945

Kolin/Kalyon

170,000

2019

Kolin/Kalyon

GTT MkIII

–

DFDE

Turkey FSRU

2963

Knutsen OAS

180,000

2020

Iberdrola

GTT MkIII

–

LSDF (HP)

Corpus Christi exports

2964

Knutsen OAS

180,000

2020

Endesa

GTT MkIII

–

LSDF (HP)

Corpus Christi exports

3086

Knutsen OAS

180,000

2020

Endesa

GTT MkIII

–

LSDF (HP)

Corpus Christi exports

2993

Triumph Offshore

180,000

2019

Swan Energy

GTT MkIII

DFDE

Jafrabad FSRU

3020

TMS Cardiff Gas

174,000

2020

Total

GTT MkIII

–

LSDF (LP)

Total business

3021

TMS Cardiff Gas

174,000

2020

Cheniere

GTT MkIII

–

LSDF (LP)

Cheniere business

3022

TMS Cardiff Gas

174,000

2020

–

GTT MkIII

–

LSDF (LP)

open

Sovcomflot

174,000

2020

–

GTT MkIII

–

LSDF (LP)

open

BP business

–

Hyundai Samho Heavy Industries (HSHI), Samho-Myun S856

Teekay

164,000

2019

GTT MkIII

DNV GL

DFDE

S857

Teekay

164,000

2019

GTT MkIII

DNV GL

DFDE

BP business

S970

NYK

174,000

2020

EDF

GTT MkIII

LSDF (LP)

EDF business

8006

Sovcomflot

174,000

2020

Total

GTT MkIII

LSDF (LP)

Total business

7,500

2018

Nauticor/SGD

Type C

DFDE

Baltic bunker vessel

Hyundai Mipo Dockyard, Ulsan –

Bernhard Schulte

JAPAN Mitsubishi Heavy Industries (MHI), Nagasaki 2310

K Line

155,000

2018

Inpex Corp

Moss

ClassNK

UST

Ichthys 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

2332

Mitsubishi Corp

165,000

2019

Mitsubishi

Moss

ClassNK

StaGE

Mitsubishi business

164,700

2017

Chubu Electric

Moss

ClassNK

UST

Chubu Electric use

Kawasaki Heavy Industries (KHI), Sakaide 1713

K Line

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LNG World Shipping | May/June 2018

52 | STATISTICS

YOUR PARTNER IN SHIP PERFORMANCE MONITORING www.kyma.no

Kawasaki Heavy Industries (KHI), Sakaide 1720

MOL

164,700

2018

Chubu Electric

Moss

ClassNK

UST

Chubu Electric use

1728

MOL

155,000

2018

Mitsui & Co

Moss

ClassNK

DFDE

Cameron exports

1729

MOL

155,000

2019

Mitsui & Co

Moss

ClassNK

DFDE

Cameron exports

1734

MOL/Chubu Electric

177,000

2018

Chubu Electric

Moss

ClassNK

DFDE

Freeport exports

1735

NYK/Chubu Electric

177,000

2018

Chubu Electric

Moss

ClassNK

DFDE

Freeport exports

Imabari Shipbuilding, Imabari 8188

Elcano

174,000

2018

GNF

GTT MkIII

LSDF (HP)

GNF business

8200

K Line

178,000

2021

Mitsui & Co

GTT MkIII

ClassNK

LSDF (HP)

Cameron exports

8215

Unknown

178,000

2022

–

GTT MkIII

–

LSDF (HP)

open

8216

Unknown

178,000

2022

–

GTT MkIII

–

LSDF (HP)

open

8217

Unknown

178,000

2022

–

GTT MkIII

–

LSDF (HP)

open

Japan Marine United, Kumamoto 5070

MOL/Tokyo LNG Tanker

165,000

2017

Tokyo Gas

SPB

ClassNK

DFDE

Cove Point exports

5071

NYK/Tokyo LNG Tanker

165,000

2018

Tokyo Gas

SPB

ClassNK

DFDE

Cove Point exports

5072

MOL/Tokyo LNG Tanker

165,000

2019

Tokyo Gas

SPB

ClassNK

DFDE

Cove Point exports

5073

MOL/Tokyo LNG Tanker

165,000

2019

Tokyo Gas

SPB

ClassNK

DFDE

Cove Point exports

CHINA Hudong-Zhonghua Shipbuilding, Shanghai 1720A

CESI/MOL

174,000

2018

Sinopec

GTT No96

LR/CCS

DFDE

APLNG exports

1665A

CNOOC/CLNG/TK/BW

174,000

2018

Shell

GTT No96

ABS/CCS

DFDE

QCLNG exports

1666A

CNOOC/CLNG/TK/BW

174,000

2019

Shell

GTT No96

ABS/CCS

DFDE

QCLNG exports

1810A

MOL

174,000

2019

Yamal LNG

GTT No96

–

DFDE

Yamal cargoes

1811A

MOL

174,000

2020

Yamal LNG

GTT No96

–

DFDE

Yamal cargoes

1812A

MOL

174,000

2020

Yamal LNG

GTT No96

–

DFDE

Yamal cargoes

1813A

MOL

174,000

2020

Yamal LNG

GTT No96

–

DFDE

Yamal cargoes

–

Dynagas

174,000

2020

TBC

GTT No96

–

DFDE

FSRU; open

–

Dynagas

174,000

2021

TBC

GTT No96

–

DFDE

FSRU; open

Total/MOL

18,600

2020

Total

GTT MkIII

TBC

Bunker vessel

30,000

2017

CNPC Kunlun

Type C

CCS

DFDE

China coast

28,000

2017

CNPC Kunlun

Type C

CCS

DFDE

China coast

N/A

2018

VGS

TBC

–

N/A

LNG FRU

45,000

2018

Saga LNG

LNT A-Box

ABS

DFDE

China coast

1817A

Ningbo Xinle Shipbuilding, Ningbo XL-157

PetroChina

Cosco Dalian Shipyard, Dalian N588

Dalian Inteh

Wison Offshore & Marine, Nantong –

VGS

China Merchant Heavy Industry, Nantong 188

Landmark Capital

Shipping Keppel Singmarine, Nantong –

Stolt-Nielsen

7,500

2018

TBC

Type C

DNV GL

DFDE

Coastal Europe

–

Stolt-Nielsen

7,500

2018

TBC

Type C

DNV GL

DFDE

Coastal Europe

Table includes newbuilding FSRUs, LNG FPSOs and LNG bunker vessels. Propulsion key: DFDE = dual-fuel diesel-electric; ST = steam turbine; UST = ultra steam turbine; StaGE = steam turbine and gas engine; LSDF (HP) = low-speed dual-fuel (high-pressure); LSDF (LP) = low-speed dual-fuel (low-pressure) LNG World Shipping, data as of 30 April 2018

LNG World Shipping | May/June 2018

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STATISTICS | 55

YOUR PARTNER IN SHIP PERFORMANCE MONITORING www.kyma.no

LNG CARRIER NEWBUILDINGS DELIVERED 1 JANUARY 2017 – 30 APRIL 2018 Vessel name

Delivery

Capacity, m3

Owner

Builder

Charterer

Containment

Details

Cesi Qingdao

1.2017

174,000

CESI/MOL

Hudong

Sinopec

GTTNo96

APLNG exports

Maran Gas Roxana

1.2017

173,400

Maran Gas

Daewoo

Shell

GTTNo96

Shell business

Maran Gas Ulysses

1.2017

174,000

Maran Gas

Hyundai Samho

Shell

GTTMkIII

Shell business

Seri Cenderawasih

1.2017

150,000

MISC

Hyundai

Petronas

Moss

Petronas projects

JS Ineos Innovation

1.2017

27,500

Evergas

Sinopacific

Ineos

Type C

Ethane service

Torben Spirit

2.2017

173,400

Teekay

Daewoo

Shell

GTTNo96

Shell business

Maran Gas Olympias

2.2017

173,400

Maran Gas

Daewoo

Shell

GTTNo96

Shell business

Asia Integrity

2.2017

160,000

Chevron

Samsung

Chevron

GTTMkIII

Gorgon exports

Ougarta

3.2017

170,000

Hyproc Shipping

Hyundai

Sonatrach

GTTMkIII

Algerian exports

BW Integrity

3.2017

170,000

BW Group

Samsung

Pakistan GasPort

GTTMkIII

Port Qasim FSRU

JS Ineos Intuition

3.2017

27,500

Evergas

Yangzijiang

Ineos

Type C

Ethane service

SM Eagle

4.2017

174,000

Korea Line

Daewoo

Kogas

GTTNo96

Sabine Pass exports

Hoegh Giant

4.2017

170,000

Höegh LNG

Hyundai

Quantum Power

GTTMkIII

Tema FSRU

JS Ineos Independence

4.2017

27,500

Evergas

Sinopacific

Ineos

Type C

Ethane service

Engie Zeebrugge

4.2017

5,100

Fluxys/Gas4Sea

Hanjin

Engie

Type C

Zeebrugge bunkering

Hyundai Princepia

5.2017

174,000

Hyundai LNG

Daewoo

Kogas

GTTNo96

Sabine Pass exports

SM Seahawk

5.2017

174,000

Korea Line

Daewoo

Kogas

GTTNo96

Sabine Pass exports

JS Ineos Invention

5.2017

27,500

Evergas

Yangzijiang

Ineos

Type C

Ethane service

Cesi Beihai

6.2017

174,000

CESI/MOL

Hudong

Sinopec

GTTNo96

APLNG exports

Cardissa

6.2017

6,500

Shell

STX

Shell

Type C

Rotterdam bunkering

Hyundai Peacepia

6.2017

174,000

Hyundai LNG

Daewoo

Kogas

GTTNo96

Sabine Pass exports

Prelude

6.2017

220,000

Shell

Samsung

Shell

GTTMkIII

Prelude FPSO

Seri Cempaka

7.2017

150,000

MISC

Huyundai

Petronas

Moss

Petronas projects

SK Audace

7.2017

180,000

SK Shipping/Marubeni

Samsung

Total

GTTMkIII

Ichthys exports

Asia Venture

7.2017

160,000

Chevron

Samsung

Chevron

GTTMkIII

Gorgon exports

Caribbean FLNG

7.2017

16,100

Exmar

Wison

TBC

Type C

FLRSU; open

Coralius

7.2017

5,800

Sirius/Veder

Royal Bodewes

Skangas

Type C

N Europe bunkering

Cesi Tianjin

9.2017

174,000

CESI/MOL

Hudong

Sinopec

GTTNo96

APLNG exports

Pan Asia

10.2017

174,000

CNOOC/CLNG/TK

Hudong

Shell

GTTNo96

QCLNG exports

MOL FSRU Challenger

10.2017

263,000

MOL

Daewoo

Botas

GTTNo96

Turkey FSRU

Boris Vilkitsky

10.2017

172,000

Dynagas

Daewoo

Yamal LNG

GTTNo96

Yamal exports

Macoma

10.2017

173,400

Teekay

Daewoo

Shell

GTTNo96

Shell business

Fedor Litke

11.2017

172,000

Dynagas

Daewoo

Yamal LNG

GTTNo96

Yamal exports

Murex

11.2017

173,400

Teekay

Daewoo

Shell

GTTNo96

Shell business

Eduard Toll

12.2017

172,000

Teekay/CLNG

Daewoo

Yamal LNG

GTTNo96

Yamal exports

Bishu Maru

12.2017

164,700

K Line

Kawasaki

Jera

Moss

Jera business

TBC

12.2017

25,000

Exmar

Wison

TBC

IHI SPB

FSRU; TBC

SK Resolute

1.2018

180,000

SK Shipping/Marubeni

Samsung

Total

GTTMkIII

Sabine Pass exports

Patris

1.2018

174,000

Chandris/K Line

Daewoo

GTTNo96

BP business

Cesi Wenzhou

1.2018

174,000

CESI/MOL

Hudong

Sinopec

GTTNo96

APLNG exports

Pan Americas

1.2018

174,000

CNOOC/CLNG/TK

Hudong

Shell

GTTNo96

QCLNG exports

Gaslog Houston

1.2018

174,000

GasLog

Hyundai

Shell

GTTMkIII

Shell business

Flex Endeavour

1.2018

173,400

Flex LNG

Daewoo

Uniper

GTTNo96

Uniper business

Flex Enterprise

1.2018

173,400

Flex LNG

Daewoo

Voyage charters

GTTNo96

open

BW Tulip

1.2018

173,400

BW Group

Daewoo

Voyage charters

GTTNo96

open

Vladimir Rusanov

1.2018

172,000

CSDC/MOL

Daewoo

Yamal LNG

GTTNo96

Yamal exports

Coral EnergICE

1.2018

18,000

Anthony Veder

Neptun

Skangas

Type C

Baltic trading

SK Serenity

2.2018

174,000

SK Shipping

Samsung

Kogas

KC-1

Sabine Pass exports

Magdala

2.2018

173,400

Teekay

Daewoo

Shell

GTTNo96

Shell business

Seri Camar

2.2018

150,000

MISC

Hyundai

Petronas

Moss

Petronas projects

LNG Sakura

2.2018

177,000

NYK/Kepco

Kawasaki

Kansai Electric

Moss

Cove Point exports

SK Spica

3.2018

174,000

SK Shipping

Samsung

Kogas

KC-1

Sabine Pass exports

LNG World Shipping, data as of 30 April 2018

www.lngworldshipping.com

LNG World Shipping | May/June 2018

56 | VIEWPOINT

Høglund on smart automation for smooth operations

T Børge Nogva: A solid understanding of automation at the outset will pay dividends

LNG World Shipping | May/June 2018

he January/February 2018 issue of LNG World Shipping highlighted the work of SIGTTO’s Human Element Committee on LNG carrier (LNGC) cargo control room (CCR) ergonomics, with special reference to alarm-system management. This initiative was triggered by investigations into several LNGC ship-to-shore interface mishaps in recent years, which revealed that difficulties can arise in interpreting CCR screens and alarms. The article rightly noted that LNGCs make use of some of the most complex integrated automation systems (IAS) in commercial shipping. This ties into a topic that is very important to us at Høglund Marine Automation – the need to make sure that a vessel’s automated systems enhance the operations on board, rather than create new tasks. In this instance, current IMO guidance is not specific enough to correctly prioritise the sequence of different alarms that can occur. Variability in alarm sequencing can mean different things in different contexts and lead to misinterpretations about how cargo-handling operations are progressing. This introduces two wider, underlying issues: IAS are often not given adequate consideration at the design stage; and many automated systems are not covered by adequate guidance to ensure their proper use in service. Inattention to IAS detail at the design stage and the lack of proper guidance are both likely to cause problems further down the line. For LNGCs, including LNG bunker vessels (LNGBVs), it is essential that both issues be given due consideration. A recent addition to the LNGC fleet, LNGBVs are called upon to perform a particularly intense set of cargo-handling operations. The range of subsystems that can be handled by an IAS on an LNGBV includes the following: • the fuel gas supply system (FGSS) that provides cargo boil-off gas as engine fuel. • the alarm and monitoring of the gas containment system. • the emergency shutdown (ESD) system covering cargo-handling operations, as well as the machinery and accommodation spaces. • the gas detection system, again covering cargo,

machinery and accommodation spaces. • cargo-handling and monitoring, including valves, pumps and sensors. At the start of many newbuilding projects it is often unclear as to which of these systems should be included in the integrated package. Often, the functions are divided and the basic IAS deals only with the machinery systems. Gas containment suppliers, for example, may wish to supply their own alarm, control, monitoring and ESD systems dealing solely with the gas area. The shipbuilder may thus be required to find another IAS supplier for the gas detection and machinery shutdown systems. In such circumstances, managing and prioritising alarms is made even more difficult, as it requires co-ordination between multiple systems and data formats. Generally, the greater the level of IAS integration at an early stage the better, not least because it makes software upgrades, replacement and fine-tuning easier and gives owners and operators a single point of contact for service. Likewise, when it comes to interfaces and system mimics, the optimum solution is to recommend at an early stage that any shipboard system provide its data in a format with an interface that can be received by the IAS. While the various parties involved in the design and procurement of the LNGC – the owner, the yard and the naval architects – may not afford IAS the same priority as, say, the choice of a propulsion system, a solid understanding of automation at the outset will pay dividends. SIGTTO is correct to identify an automation issue which needs more attention from all parties involved. Not only can thinking about automation simplify the crew’s response to dealing with alarms, it can also lead to increased performance, reliability and, perhaps most importantly, better access to operational data that can be used for further optimisation. LNG Børge Nogva is CEO of Høglund Marine Automation, a company with a focus on the development of automation and gas-handling systems for LNGCs