LNG World Shipping November/December 2018

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Arctic LNG logistics challenges

Record year for LNG shipyards Blossoming South Asia LNG imports

“FSRU and FSU operational options need to be enabled and supported by the best technical insight and, vitally, compliance with appropriate regulatory regimes and standards�

Carlos Guerrero, global market leader tankers & gas carriers, Bureau Veritas, see page 40

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Contents

November/December 2018 volume 40 issue 6

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10

Comment

5 Having waited patiently for new LNG production to catch up with their expanding global fleet, shipowners are now reaping the rewards

Area report – South Asia infographic

6 Map locations and key details of all the in-service and under-construction LNG import terminals in Pakistan, India and Bangladesh

Area report – South Asia review

7 The seven LNG import terminals in operation in Pakistan, India and Bangladesh are about to be joined by a new tranche of facilities, including many FSRUs

20 LNG repair and conversion

10 Keppel LNG carrier conversions set the benchmark 15 Navantia foremost amongst Atlantic Basin LNG repairers 16 Chantier Naval de Marseille yard bolsters LNG credential

Ship management

18 Ship manager Northern Marine had staff on both sides of the ship/shore interface when Stena Blue Sky delivered ENN Zhoushan’s inaugural cargo

24

Arctic LNG logistics

20 Early completion of the second and third trains at the Yamal LNG plant is raising logistics challenges for operator Novatek

LNG shipping market

22 As of early November 2018, LNG carriers active in the spot market were commanding record-high returns, exceeding the previous 2012 peak

Training simulators for bunkering

32

24 The training regime for seafarers engaged in LNG bunkering operations includes simulator courses that can substitute for part of mandated shipboard experience

Ship/shore links for bunkering

26 The development of ship-to-ship communications and emergency shutdown link systems for LNG bunkering operations is driven by special considerations

Emergency release couplings

28 Suppliers of LNG cargo transfer equipment are seeking safety integrity level 2 (SIL2) ratings as part of the drive to build customer confidence

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LNG World Shipping | November/December 2018

Contents November/December 2018 volume 40 issue 6

Gastech 2018 review

30 Small-scale LNG projects and ship-to-ship transfers of LNG bunker fuel were the shipping issues under greatest scrutiny at Gastech 2018

Statistics – fleet developments

32 For LNG shipbuilders 2018 has been a year like no other, with newbuilding deliveries and new contracts neck and neck and both running at a brisk pace

Statistics – LNGCs on order and delivered

36 BBi-monthly update of the LNG carrier orderbook and ships delivered over the past 14 months brings the statistics up to date, as of 1 November 2018

www.lngworldshipping.com Editor: Mike Corkhill t: +44 1825 764 817 e: mike.corkhill@rivieramm.com Production Editor: Kevin Turner t: +44 20 8370 1737 e: kevin.turner@rivieramm.com Brand Manager: Ian Pow t: +44 20 8370 7011 e: ian.pow@rivieramm.com Sales: Kaara Barbour Southeast Asia & Australasia Representative t: +61 414 436 808 e: kaara.barbour@rivieramm.com Head of Sales – Asia: Kym Tan t: +65 6809 1278 e: kym.tan@rivieramm.com

Viewpoint

Production Manager: Ram Mahbubani t: +44 20 8370 7010 e: ram.mahbubani@rivieramm.com

Next Issue:

Chairman: John Labdon Managing Director: Steve Labdon Finance Director: Cathy Labdon Operations Director: Graham Harman Head of Content: Edwin Lampert Head of Production: Hamish Dickie

40 Carlos Guerrero of BV looks at the options available to the developers of LNG import terminal projects considering the use of FSRUs and FSUs

The January/February 2019 issue of LNG World Shipping will cover: • Middle East: terminals & markets • Floating LNG • Ice-class & polar shipping • Escort tugs & emergency response • Cargo monitoring & control systems

Front cover image: Vladimir Rusanov at PetroChina’s Rudong terminal, after delivering the first cargo of Yamal LNG direct to Asia in July 2018

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COMMENT | 5

A PERFECT STORM OF LNG CARRIERS AND CARGOES

T Mike Corkhill, Editor

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he year to date has been exceptional in terms of LNG carrier completions, skyrocketing freight rates and the commissioning of new production capacity.

Over the past decade the LNG industry has developed in fits and starts. Unforeseen events, such as the global financial meltdown in 2008 and the 2011 earthquake and tsunami in Japan, played havoc with attempts to align shipbuilding schedules and the demand for LNG carrier (LNGC) tonnage with the construction and commissioning of new liquefaction projects.

One knock-on effect of the financial crisis was a four-year period of stagnation in the worldwide movement of LNG earlier in the decade. At the same time the global LNGC fleet continued to grow, a result of vessels ordered speculatively; inevitably, freight rates took a nosedive.

However, even as trade levels began to stagnate, there was a resurgent interest in new export terminals by forward-looking project developers who perceived a growing demand for gas, not least in Asia. Between November 2010 and January 2012 final investment decisions (FIDs) were taken on six new Australian LNG projects.

Then, in July 2012, Cheniere Energy decided to build two liquefaction trains at its largely idle LNG import terminal at Sabine Pass in the US state of Louisiana, giving it a bi-directional capability. This was followed, in May 2013, by FIDs on Trains 3 and 4 and later in the year Novatek and its partners sanctioned the Yamal LNG project in the Russian High Arctic.

Cheniere managed to steal a two-year march on its compatriots. However, in the second half of 2014 three more energy companies gave the green light to the construction of liquefaction trains at existing US LNG import terminals, as they too sought to capitalise on the country’s shale gas windfall.

Unfortunately, the majority of LNGCs ordered to service this wide range of new projects were completed while construction

work on the export plants still had some way to go. The resultant fleet oversupply prompted a steep drop in freight rates.

During the shipping market lows of 2016 and early 2017, owners of LNGCs in the spot market were unable to command much above US$25,000/day for their services, well below breakeven level.

By the end of 2017, however, the freight market was strengthening, a result of rising LNG imports by China and Korea and the extent to which ships engaged in carrying Sabine Pass cargoes on long voyages to Asia were absorbing fleet capacity.

This year promises to be the busiest ever for shipyard deliveries of LNGCs. Statistics maintained by LNG World Shipping show that 47 LNGCs had been completed during the first 10 months of 2018, comprising 42 conventional-size LNGCs, seven small-scale tankers, two mid-size ships and one floating storage and regasification unit (FSRU). An additional 10 ships are due to be handed over during the final two months of the year.

With such an influx of new tonnage, instinct tells us that freight rates are going to suffer; in fact, just the opposite has happened.

Spot rates have remained strong throughout the year and in late summer began to go into overdrive. By early November 2018 ships were commanding over US$200,000/day, the highest ever level in the LNG market.

Fortunately for shipowners, LNG production is now catching up with fleet growth. The final pair of the new tranche of Australian LNG export projects are now coming onstream and Yamal LNG is ahead of schedule, with two of three large-scale trains now in service.

Furthermore, four new liquefaction trains in the US Gulf, with a rated output of 18M tonnes per annum (mta) of LNG, will be in service by April 2019. The commissioning of a further 20 mta of liquefaction capacity in the US in the latter part of 2019 will propel the country into third place in the league table of LNG exporters.

At last, growth in both the LNG fleet and LNG export capacity is aligned. LNG

LNG World Shipping | November/December 2018

6 | AREA REPORT South Asia

Research: Mike Corkhill Asia with Countries by FreeVectorMaps.com terminals in service terminals under construction

South Asia LNG receiving terminals

(terminals in service and under construction)

PAKISTAN

Exquisite

INDIA

BW Integrity

BANGLADESH

Mundra Dahej Hazira

Digha

Jafrabad

Moheshkhali Floating LNG Summit LNG

Dhamra

Jaigargh Dabhol

Ennore

INDIA (terminals in service) Kochi

Dahej Operator: Petronet Capacity: 15 mta Location: Dahej, Gujarat state Start-up date: 2004

Hazira Operator: Shell Capacity: 5 mta Location: Hazira, Gujarat state Start-up date: 2005

BANGLADESH (terminals in service)

INDIA

Moheshkhali Floating LNG (FSRU)

(terminals under construction)

Mundra

Dhamra

Operator: GSPC/Adani Capacity: 5 mta Location: Mundra, Gujarat state Start-up date: 2018

Operator: Adani Capacity: 5 mta Location: Dhamra, Odisha state Start-up date: 2021

PAKISTAN (terminals in service)

Dabhol

Ennore

Jafrabad (FSRU)

Exquisite (FSRU)

Operator: Ratnigiri Capacity: 5 mta Location: Dabhol, Maharashtra state Start-up date: 2007

Operator: IOC Capacity: 5 mta Location: Ennore, Tamil Nadu state Start-up date: 2018

Operator: Swan LNG Capacity: 5 mta Location: Jafrabad, Gujarat state Start-up date: 2020

Operator: Engro Elengy Terminal Pakistan Capacity: 4.5 mta Location: Port Qasim Start-up date: 2015

Kochi

Jaigarh (FSRU)

Digha

BW Integrity (FSRU)

Operator: Petronet Capacity: 5 mta Location: Kochi, Kerala state Start-up date: 2013

Operator: H-Energy Capacity: 3.7 mta Location: Jaigarh, Maharashtra state Start-up date: 2019

Operator: H-Energy Capacity: 5 mta Location: Digha, West Bengal state Start-up date: 2020

Operator: Pakistan GasPort Capacity: 4.5 mta Location: Port Qasim Start-up date: 2017

mta – million tonnes per annum of LNG (processing capacity)

Operator: Excelerate/ Petrobangla/IFC Capacity: 3.5 mta Location: Moheshkhali Island Start-up date: 2018

BANGLADESH (terminals under construction)

Summit LNG (FSRU) Operator: Summit Corp/Mitsubishi Corp Capacity: 3.5 mta Location: Moheshkhali Island Start-up date: 2019

South Asia AREA REPORT | 7

Indian subcontinent ramps up LNG import capacity India, Pakistan and Bangladesh are all now importing LNG. Cargo discharge volumes are set to mushroom and FSRUs will be key to growth

I

ndia began importing LNG in 2004, Pakistan in 2015 and Bangladesh in 2018. The three South Asian nations have populations of 1,340M, 200M and 160M, respectively, and the gas market in all three is characterised by rising demand and dwindling domestic reserves.

While India is the established LNG player, cargo purchases by its east and west near-neighbours are poised to rise rapidly. LNG shipments to Pakistan and Bangladesh, however, are unlikely to ever match India’s import volumes. The majority of new LNG import terminal projects currently underway on the subcontinent are located in India.

India is the world’s fourth largest LNG importer. While the 19.22M tonnes purchased in 2017 was only 1.3% ahead of the previous year’s total, import volumes in 2018 are once again growing strongly.

Imports for the period April-July 2018 reached 7.46M tonnes, a 20.3% jump on the same period a year earlier. Utilisation rates at Dahej, the largest of the country’s four import terminals, with a capacity of 15M tonnes per annum (mta) of LNG, have been running at over 100% throughout this year.

All four Indian receiving terminals are located on the country’s

west coast; the other facilities are at Hazira, Dabhol and Kochi.

Over the next few years, the existing network will be joined by at least half a dozen new import terminals, three of which are set for an imminent start to operations within the end-2018/ beginning-2019 timeframe.

The new 5 mta Mundra terminal, Gujarat’s third LNG receiving facility, is expected to receive its first cargo before the end of 2018.

Gujarat State Petroleum Corp (GSPC) owns a 75% stake in the project and the private Adani Group 25%. GSPC has expressed interest in selling a part of its shareholding in the project, while Indian Oil Corp (IOC) has indicated an intention to acquire whatever stake might become available.

While IOC weighs up its options regarding involvement with Mundra LNG, the opening of its own new LNG receiving facility at Ennore in Tamil Nadu state is also at hand. Scheduled for a Q4 2018 start, the 5 mta Ennore terminal will be the first LNG receiving terminal on India’s east coast.

As is the case with Mundra LNG, up to 50% of the shareholding in the project is on offer to one or more strategic partners, such as an LNG supplier. This share of the equity is currently held by two Indian development banks anxious to divest their interests. In the meantime, IOC controls a 45% stake in the project while TIDCO, a Tamil Nadu government enterprise, holds 5%.

As is the case for several of the new LNG import schemes in India, Ennore is unlikely to operate at anything near full capacity for at least a year, and possibly two. Like Mundra, Ennore does not yet have any long-term LNG purchase contracts in place to ensure steady employment for its regasification capacity. The terminal will depend on spot cargoes initially.

IOC also has an involvement with another Indian east coast LNG scheme and, as is the case with Mundra, Gautam Adani’s

Utilisation rates at the Dahej import terminal have been running at more than 100% over the course of 2018

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LNG World Shipping | November/December 2018

8 | AREA REPORT South Asia

Adani Group is the project leader. Adani Ports and Special Economic Zone (APSEZ), the group’s specialist port infrastructure developer, plans to build a 5 mta LNG import terminal at Dhamra in Odisha state.

IOC has signed an agreement with APSEZ giving it access to 3 mta worth of regasification services on a ‘use or pay’ basis over a period of 20 years. The state gas utility GAIL India Ltd has a similar arrangement in place with IOC, for 1.5 mta over a period of 20 years. The Dhamra terminal is under construction and is scheduled to commence operations in the second half of 2021.

Indian floating receivers

Like the Adani Group, H-Energy Pvt Ltd has also set out to develop Indian west and east coast LNG receiving terminals. And, as is the case with the Adani initiatives, the start-up of H-Energy’s west coast terminal, at the port of Jaigarh in Maharashtra state, is imminent, while the east coast project is a few years away from the start of commercial operations.

A unit of the Hiranandani real estate group, H-Energy is making use of the Höegh LNG-owned, 145,000 m3 floating storage and regasification unit (FSRU) GDF Suez Cape Ann to realise its Jaigarh scheme. H-Energy is taking the ship under a sublet arrangement from Total for a minimum of five years.

The 2010-built GDF Suez Cape Ann has the capacity to regasify up to 3.7 mta. The ship made a familiarisation visit to its Jaigarh jetty last May and is now at a Singapore repair yard for final modification work, prior to the start of operations early in 2019.

H-Energy expects to be processing around 2 mta of LNG at Jaigarh in the initial stages of the project, some of which will be supplied by Petronas under contractual terms that have yet to be announced. As part of its initiative, H-Energy will build a 635 km coastal pipeline, in stages, to open up new gas markets on India’s west coast.

H-Energy’s planned east coast terminal, for an offshore location near Digha in West Bengal, would also make use of an FSRU, although the final arrangement for the facility is still under review.

A Q3 2020 start date has been targeted for the Digha terminal.

H-Energy has agreed to form a joint venture with K Line of Japan covering the provision of the required regas vessel.

H-Energy has signed a heads of agreement with North West

LNG World Shipping | November/December 2018

Berthed in Port Qasim waters, BW Integrity entered service as Pakistan’s second LNG import terminal in November 2017

Power Generation Co Ltd (NWPGCL), a Bangladesh Power Development Board-owned utility, for 1 mta of LNG offtake at Digha.

Another supporter of the floating LNG import terminal approach is Swan LNG. The company is having a 5 mta, 180,000 m3 FSRU built at Hyundai Heavy Industries; on completion, it will be stationed at a purpose-built jetty at Jafrabad to become Gujarat’s fourth LNG terminal.

Commercial operations are expected to start early in 2020.

Mitsui OSK Lines has acquired an 11% stake in the Swan LNG scheme and will operate not only the FSRU, but also an existing LNG carrier that has been modified for use at the terminal as a floating storage unit (FSU).

Swan LNG has already booked 60% of the FSRU’s regas capacity. IOC and two other state-owned oil companies – Oil and Natural Gas Corp (ONGC) and Bharat Petroleum Corp (BPC) – each plan to import 1 mta of their own LNG and pay Swan a tolling fee for processing it.

Pakistan picks up speed

Pakistan imported 4.62M tonnes of LNG in 2017, a 56.6% jump on the previous year. Although it has taken the country three years to import its first 10M tonnes of LNG, the intention is to buy three times that volume annually by 2025 Pakistan began receiving LNG in March 2015, when the 150,900 m3, 2009-built FSRU Exquisite, based at Port Qasim in the wetlands just to the east of Karachi, regasified its inaugural cargo.

The first Pakistan terminal is operated by Engro Elengy Terminal Pakistan Ltd (EETP). In July 2018 Vopak acquired a 29% stake in the project, joining Engro and International Finance Corp (IFC) as an EETP partner.

The country’s second LNG terminal, Pakistan GasPort (PGP), commenced operations in November 2017 and also makes use of an FSRU stationed at Port Qasim. The 170,000 m3, 2017-built BW Integrity, like Exquisite, has the capacity to process 4.5 mta of LNG and is employed under a 15-year charter with the PGP consortium.

The government is embarking on an investment of US$8Bn in new gas transmission pipelines and combined-cycle gas turbine (CCGT) power stations to meet the country’s growing demand for gas.

Six additional LNG import projects have been proposed for Pakistan by the likes of ExxonMobil, Shell, Trafigura, Total, Mitsubishi

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South Asia AREA REPORT | 9

and the Bahria Foundation. Most are planned for Port Qasim locations. If only four of the new schemes come to fruition, annual LNG deliveries to the country could reach the 30 mta level by 2025.

Of the proposed new LNG terminals, a project being developed by a joint venture comprising Shell, Engro, Gunvor and Fatima Group is closest to a final investment decision (FID). The plan calls for another 4.5 mta FSRU to be based at Port Qasim; Excelerate Energy, supplier of the EETP FSRU, has been lined up to provide the vessel.

The project partners are aiming for a Q2 2020 start date. Unlike the country’s first two FSRU projects, which sell regasified cargoes to government agencies under guaranteed arrangements, this second Engro scheme and all the other proposed new Port Qasim facilities are targeting the private sector.

Bangladesh in at No 42

Bangladesh is one of two countries to commence LNG imports this year, the other being Panama. Regasified cargo from Excelerate Energy’s Moheshkhali Floating LNG (MLNG) terminal began reaching customers in the Chittagong region for the first time on 18 August, at which point Bangladesh became the world’s 42nd LNG import nation.

Excelerate Energy is making use of its 138,000 m3, 2005-built FSRU Excellence to bring LNG to Bangladesh. The MLNG project utilises, as the point of entry for regasified LNG, a submerged turret loading (STL) buoy positioned off Moheshkhali Island in the Bay of Bengal.

Excellence, which has the capacity to regasify up to 3.5 mta of LNG, connects with the STL buoy by means of a moonpool arrangement in its bow and delivers regasified cargo ashore via a subsea pipeline.

Petrobangla, the country’s oil and gas company, is purchasing the necessary LNG import volumes in the world market. So far, it has signed 15-year sale and purchase agreements (SPAs) with Qatar for the supply of 2.5 mta and with Oman for 1 mta. The term coincides with the length of the Excellence charter. The MLNG

project was jointly developed by Petrobangla, Excelerate Energy and IFC. Bangladesh has turned to LNG imports to meet a gas supply deficit, now estimated at 20% and growing. A number of additional LNG receiving terminal projects have been tabled and, among these, a second is in its construction phase and set to augment Excelerate Energy’s MLNG scheme.

The Summit LNG (SLNG) project, which will make use of another Excelerate Energy FSRU on a 15-year charter, is due to commence operations in March 2019. The Summit FSRU will also utilise an STL buoy, to be positioned 6 km off Moheshkhali Island, not far from the MLNG project’s buoy.

The similarities do not end there; the SLNG project will also have the capacity to process up to 3.5 mta of LNG. And like the Excelerate Energy commitment to the MLNG scheme, Summit is developing the SLNG project on a build-own-operate-transfer (BOOT) basis. The facility will transfer to Petrobangla after a period of 15 years.

In August 2018 Mitsubishi Corporation (MC) agreed to acquire a 25% interest in Summit LNG Terminal Co. Following the deal, Summit Corp Ltd now holds a 75% stake in the SLNG project and MC the remaining 25%.

In the face of a continued depletion of domestic reserves, further LNG imports will be required on top of these projects to meet the rising demand for gas in Bangladesh. It is estimated that the country could be importing upwards of 20 mta of LNG by 2030.

Of four further world-scale and two small-scale LNG import projects that had originally been tabled for Bangladesh, three world-scale schemes remain in play. The proposals put forward

by Petronet and Powercell call for the construction of shorebased terminals, while the final project, a Petronas initiative, would utilise an FSRU. As outlined above, there is also the possibility that Bangladesh could import piped gas from India, delivered in the form of LNG to H-Energy’s Digha FSRU in West Bengal. LNG

The Excellence FSRU operation in Bangladesh makes use of ship-to-ship transfers and a submerged turret loading link to a subsea pipeline

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LNG World Shipping | November/December 2018

10 | LNG REPAIR AND CONVERSION

Keppel LNG carrier conversions set the benchmark Keppel Shipyard’s experience as the go-to facility for floating LNG production and regasification vessel conversions is in demand once again

In the early days the majority of LNG carrier drydockings at Keppel involved spherical tank ships

I

n July 2018, Keppel Shipyard once again demonstrated its ability to breathe new life into conventional LNG carriers (LNGCs) through conversion. BW LNG contracted the yard to reconfigure its 162,500 m3, 2009-built BW GDF Suez Paris as a floating storage and regasification unit (FSRU).

To be completed by the end 2018, the project will be the Singapore yard’s fourth and the world’s sixth FSRU conversion.

Sembawang in Singapore and Drydocks World Dubai are the only other yards to have completed an LNGC-to-FSRU conversion.

Keppel has another LNG conversion feather in its cap. Late last year the yard

LNG World Shipping | November/December 2018

completed the transformation of the 1975-built, 125,000 m3 LNG carrier Hilli into Hilli Episeyo, the world’s first converted floating LNG production (FLNG) vessel.

The LNG carrier FSRU and FLNG projects augment the Singapore facility’s extensive experience in the conversion of oil tankers into floating production storage and offloading (FPSO) and floating storage and offloading (FSO) vessels.

Three decades of repairs

Keppel is also an established player in the repair of LNG carriers, handling everything from routine drydockings to more rigorous life-extension projects. The yard handled

its first LNGC repair in 1990 and, in the early days, was known for its expertise in the repair of Moss spherical tank LNGCs. However, GTT membrane tank cargo containment systems are now featuring much more prominently in the annual tally of completed projects. The workload aligns with the growing popularity of membranes, to the extent that membrane-tank ships now account for 70% of the global LNGC fleet.

In addition to the LNGC repair work it carries out in Singapore, Keppel is a partner in another major LNGC servicing facility.

Operated by the Nakilat-Keppel Offshore & Marine (N-KOM) joint venture, the Erhama Bin Jaber Al Jalahma Shipyard is a

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LNG REPAIR AND CONVERSION | 11

purpose-built facility located in the Qatari port of Ras Laffan, across the harbour from the country’s large LNG export complex.

Nakilat, with a fully- or part-owned fleet of 65 LNGCs, four large LPG carriers and an FSRU, is a major customer of N-KOM’s gas carrier repair services.

However, a number of other LNGC owners, including Shipping Corporation of India (SCI), Maran Gas Maritime, Teekay, Shell, Mitsui OSK Lines, K Line and NYK Lines, also make use of the Ras Laffan yard for scheduled drydockings.

N-KOM handled its first LNGC repair in April 2011 and since that date has successfully delivered in excess of 800 marine and offshore projects of all types. Between them, Keppel Shipyard and N-KOM handle more than one-third of the world’s routine LNGC drydockings each year.

Current FSRU work

BW LNG is having BW GDF Suez Paris converted into a floating regas vessel at the Keppel yard in Singapore on a speculative basis. The vessel is to be provided with the capacity to regasify up to 5.6M tonnes per annum (mta) of LNG, a healthy output level even for a newbuilding FSRU. There is currently a resurgence of interest in such vessel upgrade contracts, as LNGC conversions offer an even quicker and cheaper route to LNG import project realisation than FSRU newbuildings.

Cost is a critical factor in any endeavour but is particularly so for those LNG projects where initial import requirements are likely to be modest and the development of market demand slow and uncertain.

For example, the Alexandoupolis FSRU scheme in northern Greece, the Croatia LNG initiative tabled for Krk Island and Total’s plan for an LNG terminal at Vridi near Abidjan in Ivory Coast are proposed projects for which FSRU conversions are said to be an attractive option, due to the pressure to adhere to tight budgets.

As regards Keppel’s BW GDF Suez Paris contract, conventional thinking has it that older LNGCs make the best FSRU conversion candidates. As ageing LNGCs do not command freight rates as high as those offered to newer vessels in conventional trading, a switchover to regasification duties offers a veteran a new lease of life, as well as a healthy and steady late-in-life revenue stream for the owner.

Yet BW GDF Suez Paris, a GTT NO 96 membrane tank ship built by Daewoo Shipbuilding & Marine Engineering (DSME), is not that old. Also, it is powered

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by a dual-fuel diesel-electric (DFDE) propulsion system, an arrangement that still commands relatively healthy freight rates in the conventional LNGC sector.

In fact, four-stroke DFDE propulsion systems are favoured for FSRUs, even recently contracted newbuildings. The improved fuel consumption figures provided by the new generation of dual-fuel, twostroke engines are not so critical for regas vessels, due to the predominantly stationary nature of their employment.

Because the DFDE propulsion system only began to make its mark in the LNGC fleet midway through the previous decade, ships so powered are relatively young.

Thus, there should be no need to carry out an extensive design evaluation of the ship structure and membrane tank containment system if considering such a vessel for an FSRU conversion. The new intended service life as a regas vessel should not exceed the 40 years’ fatigue life to which the cargo containment system has been designed.

Those membrane tank ships whose cargo containment system was provided with enhanced reinforcements at the newbuilding stage, in order to minimise the risk of sloshing damage, would be looked upon with special favour as an FSRU conversion candidate.

The converted FSRU’s power plant will also need to be able to handle the excess boiloff gas (BOG) volumes generated during the ship-to-ship transfers of LNG from

the delivery tanker. The possibility of these likely BOG volumes being over and above the ability of the vessel’s gas combustion unit (GCU) to cope with will need to be studied before proceeding with a conversion.

Solutions include a re-evaluation of the membrane tank containment system, to see if the tanks could be safely assigned a higher maximum vapour pressure rating (of up to 0.7 bar) and the provision of a means to oxidise any excess vapour still arising.

Cost-effective solution

Golar LNG gave Keppel Shipyard the go-ahead to commence work converting its Moss spherical tank LNG carrier Hilli into an FLNG vessel in August 2014. The project, which was completed in September 2017, served to strengthen Keppel’s ties with Golar, as all three of the FSRU conversions handled by the yard to date were for this shipowner.

Following testing and associated commissioning procedures, the FLNG vessel commenced commercial operations in benign waters 14 km off the coast of Cameroon in West Africa in June 2018. Hilli Episeyo is moored by means of an external frame turret arrangement which allows it to weathervane.

Cargo transfers to loading LNGCs are being carried out with the two vessels positioned side-by-side (SBS).

Hilli Episeyo is only the LNG industry’s second FLNG vessel to go into service, following the pioneering Petronas floater

Keppel workers celebrate completion of work to upgrade Hilli into a floating LNG production vessel

LNG World Shipping | November/December 2018

12 | LNG REPAIR AND CONVERSION

PFLNG Satu. A newbuilding FLNG vessel, PFLNG Satu was ordered in March 2012 and began producing LNG at its station off Malaysia’s Sarawak coast in December 2016.

The conversion of a spherical tank LNGC into an FLNG vessel has both advantages and disadvantages. Chief among the advantages is the robustness of the cargo containment system; the aluminium spheres are not prone to cargo sloshing damage, irrespective of the tank filling level.

The main disadvantage with the conversion of a spherical tank ship is the lack of main deck space to mount all the required liquefaction and associated process equipment. On Moss ships, most of the top half of each spherical cargo tank protrudes above the main deck.

Golar and Keppel got around this problem by constructing large sponsons on each side of Hilli, according to a design patented by Moss Maritime, the developer of the ship’s spherical tank containment system.

Each of Hilli Episeyo’s two sponsons is 206 m long and 10.5 m wide. Among the modules that Keppel mounted on these structures were four Black & Veatch liquefaction trains, each able to produce 0.6 mta of LNG. Among the 37,000 tonnes of new steel and equipment that Keppel added to Hilli Episeyo were 9,000 tonnes of process equipment and 8,900 tonnes of steelwork, utilised in the fabrication of the

sponsons and the bow mooring structure.

The shipyard also pulled 1,800 km of new cabling onboard and installed 250 MW of power-generating equipment.

From a manpower point of view, 4,300 Keppel and subcontractor personnel attended the vessel during the three-year conversion project. A total of 15M man-hours were logged through to project completion.

Conversion costs

The capital cost of the Hilli Episeyo project in Cameroon is put at US$1.2Bn, yielding a very low cost per tonne of LNG produced and highlighting the attractiveness of FLNG conversions as a route to rapid and cost-effective LNG exports from relatively small gas fields in remote, offshore locations.

Comparisons with tonnes per annum (tpa) costs of other LNG liquefaction projects, both onshore and offshore, show that the Cameroon scheme’s cost of US$500/tpa is a best-in-class performance.

The figure is below even that for a low-cost, integrated onshore project where a new train is added to an existing export terminal.

In this case, the availability of a readymade, company-owned LNGC hull and the use of the Black & Veatch low-weight, single-mixed refrigerant liquefaction technology were key contributors in achieving the low-cost performance.

Another factor was the availability of a specialised facility like Keppel Shipyard,

where the necessary skills and resources for a complex conversion project are readily to hand. Fabricating a complete floating liquefaction facility at dedicated premises also avoids the many challenges associated with erecting a plant in remote onshore locations.

Golar LNG has two further spherical tank LNGCs in its fleet, both of similar age to Hilli, which it has earmarked as future FLNG conversion candidates.

Keppel has a standing agreement with Golar under which the Singapore yard will handle any further FLNG conversions that may be required.

While Fortuna LNG – a planned Equatorial Guinea export project seeking to make use of a converted Golar LNGC – appears to have stalled, another possible scheme gathering strength and weighing up the converted FLNG option is the joint Mauritania/Senegal initiative to develop the offshore Tortue field.

BP is leading the 2.5 mta Tortue project and has struck a preliminary deal with Golar covering the provision of an FLNG vessel. Golar has identified Gimi, a sister ship to Hilli, as the most likely conversion candidate for this scheme. BP and project partner Kosmos Energy have indicated that a final investment decision (FID) on Tortue by the end of 2018 is the target, to enable the Golar floater’s first LNG to flow before the end of 2021.

For its part, Golar points out that the success of Hilli Episeyo has stirred interest in its FLNG conversion technology and that other possible projects are being assessed.

The evolving scenario could reap major rewards for Keppel.

Membrane partnership

Keppel completed regas plant installation work on Golar Spirit, the world’s first FSRU conversion, in June 2008

LNG World Shipping | November/December 2018

In September 2018 Keppel further strengthened its ties with GTT when it signed a technical assistance and license agreement (TALA) with the designer of the market-leading Mark III and NO 96 LNG membrane containment systems.

Under the terms of the agreement, the global network of 17 shipyards under the Keppel Offshore & Marine (Keppel O&M) group umbrella will be able to offer GTT's LNG membrane systems in projects involving the design, construction and maintenance of LNGCs, LNG bunker vessels, LNG-fuelled vessels and FSRUs. The shipyards within the Keppel O&M group are involved in not only LNGC repairs and conversions but also the construction of LNGC, LNG bunker vessel and LNG-fuelled ship newbuildings. LNG

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LNG REPAIR AND CONVERSION | 15

Navantia foremost amongst Atlantic Basin LNG repairers While the number of LNG carriers serviced annually by Navantia is down from its historic 2010 high, the yard is still the Atlantic Basin’s top performer, writes Selwyn Parker

W

ith 13 LNG carriers (LNGC) down and at least another three to go, the 2018 LNGC servicing workload is anything but slow for Navantia Ship Repairs.

When the year is done and the last three LNG vessels contracted for Q4 are finished, the completed workload will represent an increase of more than 50% in gas carrier contracts compared with 2017.

Last year the Spanish group undertook 10 LNG repair projects at El Ferrol and carried out one LNGC servicing at its Cadiz facility.

This year’s orderbook cements Navantia’s position as the main Atlantic Basin LNG repair centre and also its place among the top five specialists worldwide, a status it has held for over a decade.

Navantia’s two biggest LNG customers for the year to date have been BW Fleet Management and BP Shipping, each with

three ships. In addition, Hyproc Shipping has sent two vessels to El Ferrol, while Shell and MOL LNG Transport have booked one vessel each.

The MOL vessel was the 155,000 m3, 2015-built LNG Jurojin and the Shell ship the 137,000 m3, 2004-built Gemmata, both Moss spherical tank vessels. Shell’s G-class ship also made the news earlier in the year when it lifted the first export cargo from Dominion Energy’s Cove Point terminal on the US East Coast.

Although the company does not disclose the specific work done at the yard, the repair centre is nothing if not versatile. “We cover absolutely all types of work associated with LNG repairs,” commercial manager Jose Manuel Noya told LNG World Shipping.

Central to the yard’s LNGC servicing portfolio is the general overhaul of propulsion plants, cargo containment systems and

Cheikh el Mokrani is one of a new generation of Hyproc LNGCs to be serviced at Navantia

www.lngworldshipping.com

cryogenic equipment, such as pumps, valves and lines. In addition, major structural repair and modification work as well as lifeextension projects and emergency repairs are occasionally carried out.

Navantia first became involved with LNGC repairs and refits in 1992. Hyproc Shipping was the yard’s original client, booking the 1977-built 129,500 m3 Larbi Ben M’hidi and the 1980-built 126,000 m3 Mourad Didouche in for scheduled drydockings.

The Algerian owner, which is the shipping arm of the Sonatrach state oil and gas company, remains one of Navantia’s most enduring clients. One of its vessels, the 1976-built, 125,000 m3 Mostefa Ben Boulaid, reported back to the Ferrol estuary no less than 13 times for servicing.

The Hyproc trio formed part of a quintet of early GTT membrane tank LNGCs built in France some 40 years ago. Larbi Ben M’hidi and Mostefa Ben Boulaid have been scrapped in recent years as part of Hyproc’s fleet rejuvenation programme. Mourad Didouche is also expected to be dispatched for recycling in the not-too-distant future.

In the years since 1992, Navantia has repaired 97 LNGCs for 35 clients as part of a servicing logbook featuring well over 250 individual bookings. The peak year for LNG repairs was 2010, with 28 vessels.

In July 2018 Navantia appointed a woman to the helm for the first time.

The shipyard is now led by Susan Sarria Sopena, an engineer by training, who took over from veteran shipbuilder Esteban Garcia.

The state-owned group is in the middle of a digital transformation dubbed Navantia 4.0, intended to introduce artificial intelligence, including 3D manufacturing, into all aspects of the business. Last year, Navantia spent €100M (US$115M) on the project. LNG

LNG World Shipping | November/December 2018

16 | LNG REPAIR AND CONVERSION

Marseille yard bolsters LNG credentials The revitalised Chantier Naval de Marseille repair yard is targeting LNG carrier refit and maintenance work as an important market sector

S

ince the acquisition of the yard by San Giorgio del Porto of Genoa in 2010, developments at the French Mediterranean repair yard of Chantier Naval de Marseille (CNM) in the port city of Marseille have gathered pace.

The refurbished Dock No 10 – the largest drydock in the Mediterranean and one of the biggest in the world – has opened for business, while Costa Cruises, part of the Carnival Group, has acquired a 33.3% stake in the yard.

Following the purchase by Costa of its one-third stake in August 2016, the cruise ship operator and San Giorgio del Porto signed a strategic partnership agreement, under which both parties pledged to invest further in the facility.

The arrangement holds the promise of a growing volume of service work on the cruise ship fleet of Costa and other Carnival Group operators, including what will be the Mediterranean’s first LNG-powered cruise vessels when they enter into service in 2019.

CNM’s immediate goal in the LNG sector is to establish itself as an acknowledged global player in the repair of conventional-size LNG carriers (LNGCs). CNM has been certified by Gaztransport & Technigaz (GTT) to carry out repairs to its LNGC membrane tanks and two of the yard’s three drydocks are able to accommodate conventional-size LNGCs. Since San Giorgio del Porto became involved with the yard in 2010, the CNM facility has carried out a number of LNGC repairs, including on ships operated by LNG Shipping and Hyproc and those chartered by Engie.

Since that early work, emphasis has been placed on the necessary preparations for a breakthrough as a recognised repair facility among the worldwide community of LNGC owners.

CNM has worked to consolidate its relationships with the

relevant suppliers of cryogenic LNGC equipment and to train its core LNG team on the latest developments with dual-fuel propulsion technology and cargo containment systems. The yard has also worked closely with the Marseilles Fos Port Authority on the safety and contingency measures that need to be in place for the handling of LNG, either as vessel cargo or fuel.

As part of the marketing drive, CNM is promoting its strategic location on the busy Mediterranean shipping routes. It is also looking to the rapidly growing global fleet of LNGCs and the current, strengthening freight market in the LNGC sector; it cites these as positive factors that will help it become established as a viable European player in the competitive worldwide LNGC repair market.

The in-house expertise gained by the yard through the servicing of conventional-size LNGCs should percolate down quickly into other, related market segments. These would include the routine and special circumstances drydocking of both LNG-fuelled vessels – as highlighted by the Carnival Group connections – and regional LNG bunker vessels and coastal distribution tankers.

The capabilities of the third and smallest CNM drydock would be relevant in the context of the latter vessels.

Following on from the servicing of LNGCs, LNG bunker vessels and LNG-fuelled ships, CNM would also be in a position to undertake LNG-related conversion work.

Such conversion projects could entail the retrofit of regasification or reliquefaction plants on existing LNGCs; the conversion of conventionally powered ships to running on LNG; or the upgrade of a propulsion system on an existing LNGC, from steam turbine to a dual-fuel diesel-electric system for example. For shipowners, the current strengthening LNGC freight market boosts the attractiveness of such modification work. LNG

Previous LNGC repair work at CNM included the servicing of the Engie-chartered regas vessel GDF Suez Neptune

LNG World Shipping | November/December 2018

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18 | SHIP MANAGEMENT

Northern Marine handles inaugural LNG cargo for ENN Zhoushan

SHIP MANAGEMENT | 19

W

hen the Northern Marinemanaged Stena Blue Sky delivered a commissioning cargo to ENN Energy’s new Xin’ao terminal at Zhoushan in Zhejiang province in August, it marked the opening of China’s first privatelyowned LNG import terminal.

The arrival of the 2006-built, 145,500 m3 LNG carrier and the inauguration of the terminal turned out to be quite an occasion, attracting media attention as well as the attendance of five tugs, one ship from the Chinese navy and two coastguard vessels.

The ENN Zhoushan terminal is designed to receive up to 3M tonnes per annum of LNG. In addition to its import role it is also able to load LNG bunker vessels, LNG coastal distribution tankers and roro cargo ships carrying LNG road tankers and ISO tank containers dispatched from the facility’s vehiclefilling bays.

As Stena Blue Sky’s skipper, Capt Marko Skoric, explained, considerable responsibility is attached to delivering a commissioning cargo. Because every element of the terminal’s equipment is being put into operation for the first time, each step of the discharge had to be taken one at a time, including gassing up, cooling down and, finally, cargo transfer.

Glasgow-based Northern Marine Management (NMM), which is responsible for the technical management of Stena Blue Sky, was also present on the other side of the ship/shore interface during the terminal inauguration event.

To back up the onboard crew, NMM had deployed several of its superintendents in onshore roles to assist terminal staff with the initial cargo-handling operation.

“It took resourcefulness, patience and a problem-solving attitude to overcome the bumps along the way,” Capt Skoric said later. As well as being caught up in the pomp of the event, the vessel also underwent a port state control inspection while at the terminal,

Ship manager Northern Marine had staff on both sides of the ship/shore interface to handle the recent inaugural cargo discharge at China’s first privately-owned LNG terminal, writes Selwyn Parker

OPPOSITE PAGE: Stena Blue Sky’s firebreathing dragon logo caught the attention of the LNG carrier’s Chinese hosts

receiving zero observations.

Northern Marine’s ship agency affiliate Austen Maritime was also on hand to help ensure that Stena Blue Sky’s historic visit to Zhoushan went smoothly.

Austen Maritime expanded its agency services in 2017 by establishing new operations in Indonesia, China, South Korea and Hong Kong.

As part of the Northern Marine Group, NMM is responsible for the management of gas carriers and oil and chemical tankers. The company also manages two other Stena Bulk LNG carriers, the 173,000 m3, 2011-built sisters Stena Crystal Sky and Stena Clear Sky. Northern Marine is part of the Stena organisation and, although Stena is an important customer for the ship manager, some three-quarters of the ships in the Northern Marine fleet are managed on behalf of third-party owners.

At the beginning of 2018 the managed fleet stood at 175 vessels, of which 109 were under full technical management. Oil and gas tankers account for approximately two-thirds of the fullymanaged ships.

The company employs 8,600, comprising 800 shore personnel, 3,600 seafarers on Stena ships and 4,200 seafarers on third-party vessels.

Tritec Marine, a ship design consultancy, is another subsidiary of Northern Marine Group. The company has begun to use virtual reality (VR) technology in several ship design projects, including for the development of an innovative LNG bunkering and feeder vessel concept.

VR is enabling Tritec engineers to scrutinise the design’s three-dimensional geometry, before preparing final plans and arrangements. VR also enables the complexities of the bunker vessel design to be communicated to potential customers. It also helps demonstrate how the design complies with various aspects of a continuously tightening regulatory regime governing vessel emissions. LNG

Northern Marine’s ship agency affiliate Austen Maritime was also on hand to help ensure that Stena Blue Sky’s historic visit to Zhoushan went smoothly

www.lngworldshipping.com

LNG World Shipping | November/December 2018

20 | ARCTIC LNG LOGISTICS

Norway transhipments to ease Yamal LNG winter logistics challenges

A

ligning LNG carrier (LNGC) deliveries with the phased build-up of a new LNG export project is fraught with difficulties. Both ship and plant construction are subject to their own sets of variables and prone to unplanned events that upset project schedules.

In general terms liquefaction plant construction is a more complex, timeconsuming and bespoke process than shipbuilding. In the majority of cases it is the LNG export terminal that falls foul of delays and cost over-runs. As a result, the ships dedicated to the project, completed on schedule, require alternative employment until such time as their appointed scheme is producing enough LNG to fill their cargo tanks.

Yamal plant success

With its Yamal LNG project in the Russian Arctic, Novatek is currently experiencing the exact opposite to what would normally be expected. The terminal has three principal liquefaction trains, each with a capacity to produce 5.5M tonnes per annum (mta), and Train 1 was commissioned on schedule.

Completion of the liquefaction trains at Novatek’s Yamal LNG plant in the Russian Arctic is running ahead of deliveries of the facility’s dedicated icebreaking LNGCs

However, Train 2 has just entered service, well ahead of schedule, while Train 3 is also poised for a start-up much earlier than originally planned.

For most LNG projects an early plant start-up would not be a problem. Cargo buyers and sellers can simply go to the global pool of LNGCs and take the required tonnage on short-term charter until the project’s dedicated ships are completed.

However, the US$27Bn Yamal LNG scheme is different. The plant is located at Sabetta in Ob Bay, a part of the world where ice begins to form and thicken around mid-October each year. Sabetta’s port icebreakers are kept busy for over seven months, until late June, keeping the channel to the LNG terminal’s two jetties clear.

Arc7 fleet operations

Novatek is chartering a fleet of 15 icebreaking LNGCs with an ice class of Arc7, the highest such rating awarded to a merchant ship. The total orderbook was based on the assignment of five of the 172,600 m3 Arc7 ships to each of the three 5.5 mta trains.

Daewoo Shipbuilding & Marine

The Novatek LNG shipping masterplan calls for the Arc7 ships to be operating in ice and icy waters as much as possible

LNG World Shipping | November/December 2018

www.lngworldshipping.com

ARCTIC LNG LOGISTICS | 21

Engineering (DSME) in South Korea is building all 15 ships. As of mid-October 2018, seven of the complement had been completed.

Novatek also has a secondary charter fleet of 11 LNGCs to work on the Yamal scheme. The majority of the vessels in this additional fleet are built to the lesser Arc4 ice class, while a handful are conventional LNGCs. Ships in the secondary fleet are employed in less onerous ice conditions, such as westbound runs from Sabetta to Europe. They are also utilised for the onward transport of cargoes that are transhipped from the Arc7 ships at the earliest possible opportunity. Such an operation enables the Arc7 ships to optimise their time in the ice – the working environment for which they were designed.

Novatek’s fleet utilisation strategy for the Arc7 ships is to send cargoes westbound to Europe during the winter heavy ice-cover season. Westbound shipments in Arc7 ships, even in the Arctic winter months of November to June, do not require costly icebreaker escorts, whereas such escorts are stipulated for Arc7 ships travelling east from Sabetta to Asia during this period.

In the summer months, when the ice cover thins, the Arc7 LNGCs are able to travel eastbound along the Northern Sea Route (NSR) without the need for a dedicated icebreaker escort. Asia is the principal market for LNG and the ability of these specialised ships to make direct eastbound deliveries during the summer months is set to be well utilised.

Novatek is also planning to build its own fleet of up to four LNG-powered Arctic icebreakers. The availability of these inhouse vessels to escort LNGCs sailing to Asia would enable the eastern NSR sailing season to be extended.

Aligning trains and ships

The commencement of operations with Train 1 at the Yamal terminal went smoothly.

The first cargo was loaded on the first Arc7 ship, Christophe de Margerie, in December 2017 and output from the liquefaction unit built up rapidly, in tandem with the delivery of the remaining four vessels in the initial five-ship tranche of Arc7 newbuildings.

DSME completed all five ships by January 2018, although the last to leave the yard had long delivery voyages to Sabetta via the Suez Canal ahead of them.

Construction work on Yamal Trains 2 and 3 continued apace while Train 1

www.lngworldshipping.com

The icebreaking LNGC Eduard Toll was delivered in December 2017, in alignment with the start of Yamal Train 1

cargoes were being dispatched. Progress was so good that Novatek was able to commence operations with Train 2 in early August, six months ahead of schedule.

By late September 2018 Yamal had been able to load 5M tonnes of LNG, including a small, early contribution from Train 2, since opening for business. With two trains now up and running, Yamal’s output capacity stands at 11 mta; that equates to 0.9 mta, or nearly 15 cargoes, per month.

Train 3 construction work is also ahead of schedule to a similar degree and is set to begin producing LNG no later than early 2019.

The trouble with these early starts for Trains 2 and 3 is that they are in advance of the scheduled deliveries for the second and third tranches of Arc7 ships. Novatek has asked DSME if it could expedite deliveries of the remaining Arc7 ships, but speeding up construction schedules at a yard with a busy orderbook - not least a large number of LNGCs for a range of owners worldwide - poses challenges.

Of the second tranche of five Arc7 LNGCs, for use in the service of Train 2, two had been delivered by October 2018 and the full quintet are scheduled to be completed by February 2019. After allowing for the need to make longdistance wintertime delivery voyages via the Suez Canal, it is likely to be April 2019 before the full five-ship complement of Train 2 vessels is lifting Yamal cargoes.

The arrival of five Train 3 ships will be even further out of sync with the start of the operations with the Yamal liquefaction unit for which they are intended. DSME is scheduled to hand over the last tranche of

five Arc7 vessels between July 2019 and March 2020.

Transhipment solution

The lack of alignment between ship deliveries and rising LNG output at Sabetta poses logistics challenges for Novatek, especially over the coming winter months when the availability of Arc7 vessels needs to be at its optimum.

Novatek is establishing Arc7 transhipment points in Arctic Norway; this is an important way to reduce misalignments between production and export capacity and to optimise cargo flows. Transferring cargo to its secondary charter fleet vessels in such high latitudes obviates the need for Arc7 ships to sail to terminals in North West Europe to carry out such operations; it also enables the ships to maximise their ice operations in the western stretches of the NSR to the greatest extent possible.

Novatek has signed an agreement with Tschudi Shipping under which the Norwegian shipping and logistics company will handle Arc7 transhipments near Honningsvåg, close to the Russian border, over the next two to three years.

During that time Novatek will construct its own permanent western transhipment hub facility on the Russian side of the border with Norway. Ural Guba Bay on the Kola Peninsula, about 50 km west of Murmansk, has been identified as a suitable site for the facility. Novatek also plans to build an eastern terminal hub in Kamchatka to handle LNG transfers from Arc7 LNGCs completing eastbound voyages from Sabetta along the NSR. LNG

LNG World Shipping | November/December 2018

22 | LNG SHIPPING MARKET

LNG spot cargo rates reach record levels As of early November 2018, LNG carriers active in the spot market were receiving US$200,000/day for their services, exceeding the US$180,000/day peak achieved in 2012

W

ho would have thought it? After several years of a depressed freight market and an unprecedented level of newbuilding deliveries so far in 2018, LNG carrier (LNGC) owners are currently commanding spot cargo rates that are 45% up on mid-September 2018 levels, 100% ahead of those pertaining at the height of last winter and higher than the previous peak level, achieved in 2012.

The current situation is in stark contrast to the market lows of 2016 and early 2017, when shipowners had to be satisfied with sums as low as US$25,000/day for spot voyages. That figure was below the breakeven level but, with up to 50 ships free on the spot market, there was no upward pressure on freight rates.

As of early November 2018, S&P Global Platts assessed Asia Pacific and Atlantic Basin average day rates for LNG vessels at US$170,000/day and $140,000/ day, respectively, up from US$140,000/ day and $130,000/day just two weeks earlier. The buoyant upward trend indicates that the growing fleet capacity is unable

to match the expansion of current global LNG production output.

Despite the shipyard completions of a large number of newbuildings in 2018, there is currently a lack of prompt LNGC availability in both the Pacific and Atlantic Basins. As of 1 November, the tally of LNGC completions for the year stood at 47 and, by our reckoning, another 10 are due for delivery before year end. A total of 57 completions would make 2018 the busiest year ever for newbuilding additions to the global LNGC fleet.

According to brokers, there are currently no LNGCs controlled by independent owners available for hire in either the Pacific or Atlantic regions. Charterers are having to look for any relets that portfolio players and traders are willing to make available to the market.

With newbuilding deliveries set to continue briskly through to year end and into 2019, optimistic charterers could be forgiven for thinking that fleet supply will soon swing into the black and the upward pressure on freight rates will ease in the months ahead.

However, LNG supply is also in the midst of a growth surge and the new tonnage coming onstream will soon be absorbed by the market. New projects are set to make up to 27M tonnes per annum (mta) of additional LNG production available in the months ahead, including 18 mta from four new liquefaction trains in the US Gulf.

Further additional US production facilities will soon follow. Between now and the end of 2019 a total of 38 mta of new US LNG export capacity is expected to be onstream. US shipments, especially to Asia, mean longer delivery voyages, adding to tonne-mile figures and the demand for tonnage.

The increased call on LNG shipping capacity, which is inevitable during the winter season, provides some explanation for the current shortage of ships and rising freight rates. However, the fundamentals are in place for the present bull run for LNGC owners to be sustained through 2019.

Benefits from the buoyant freight market are even percolating down to older vessels powered by steam turbines.

The low fuel efficiency of this propulsion system compared to LNGCs propelled by dual-fuel diesel-electric systems and twostroke engines has meant that steam ships have been the least-favoured vessels in the spot market.

However, in the exceptional circumstances currently pertaining, even the prospects for available steam turbine LNGCs are on the rise. Some vessels of this type have been fixed at rates of over US$100,000/day in recent weeks. LNG

LEFT: Available tonnage is in short supply in the current buoyant LNG freight market

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Project1_Layout 1 17/10/2018 15:22 Page 1

24 | TRAINING SIMULATORS FOR BUNKERING

Gas-powered ships add new dimension to LNG training The training regime for seafarers engaged in LNG bunkering operations includes simulator courses that can substitute for part of mandated shipboard experience

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nsuring the safe delivery of cargo is the primary aim of the LNG shipping industry. A mark of the success achieved by the LNG maritime community in meeting this goal is the exemplary safety record built up over the 54 years that such cargoes have been moved by sea. Over that period no LNG carrier (LNGC) cargo containment system has been breached and no one has lost their life as a result of coming into contact with LNG carrier cargo.

That safety record, unmatched in any other maritime sector, is also a sound indicator of the robustness of the training regime in place for personnel responsible for safely delivering LNG. Various competence standards have been set, appropriate to an individual’s specific involvement with LNGC operations, and this level must be achieved and verified prior to receiving the necessary certification.

The LNG supply chain has spread rapidly in recent years, into the offshore and small-scale sectors, but the use of LNG as marine fuel is now causing a greater diversification of the LNG-handling network than any other activity.

Quite aside from the staff on the LNG bunker vessel (LNGBV),

Simulator training courses replicate LNG bunkering operations carried out on board ship

LNG World Shipping | November/December 2018

terminal, or road tankers delivering the LNG fuel to the gaspowered ship, personnel on the ship being fueled – including the vessel’s master, engineer, manifold watchman and hose watchman – are also brought into the LNG-handling loop. Then there are third parties, such as emergency responders, port authority representatives and national authority inspectors, that need to be familiar with handling LNG to an appropriate level.

A new training regime

Using LNG as marine fuel has necessitated the development of a new training regime, capable of instilling the same high regard for the safe handling of LNG as the established scheme governing LNGC operations. An incident involving LNG fuel on a gas-powered ship would have negative repercussions for the entire LNG shipping industry.

The design and operation of LNG-powered ships are governed by the provisions laid down in the International Code of Safety for Ships using Gases or other Low-flashpoint Fuels (IGF Code), adopted by IMO in 2015. Among the operational provisions are those dealing with training; these were made mandatory in January 2017 when a new Regulation V/3 – “Mandatory minimum requirements for the training and qualifications of masters, ratings and other personnel on ships subject to the IGF Code” – in IMO’s International Convention on Standard of Training, Certification and Watchkeeping for Seafarers (STCW Convention) entered into force.

Training service providers are assisting shipowners in complying with their STCW Regulation V/3 requirements by providing basic and advanced courses for mariners on IGF Code ships. These are usually three-day courses and some establishments offer combined basic/advanced five-day courses.

The basic course is designed as an entry-level training package for seafarers responsible for designated safety duties associated with the care, use and emergency response to the LNG fuel on board IGF ships. Advanced courses provide a more intensive level of training and are aimed at masters, officers and other personnel with immediate responsibility for the care and use of fuels and fuel systems on IGF ships.

Maritime administrations are also laying down their own conditions governing training, namely that mariners, as part of their Regulation V/3 certification regime, spend 30 sea days on an IGF ship.

To achieve an advanced certificate endorsement, these sea days must include participation in at least three LNG bunkering operations. The IGF Code states that one of the three fuelling

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TRAINING SIMULATORS FOR BUNKERING | 25

The Transas engine control room simulator at Finland’s Aboa Mare training centre can be configured to represent either medium- or slow-speed engines running on LNG

operations can be substituted with a separate IGF simulator course and some flag states allow the use of a simulator as a replacement for two of the three bunkering operations.

Baltic and North Sea trainers

As can be expected in the regions that introduced the first emission control areas (ECAs) and where LNG-powered ships are more prevalent than anywhere else, maritime training establishments in the countries bordering the North and Baltic Seas have been at the forefront in offering IGF training.

Aboa Mare was the first maritime academy in Finland to provide basic and advanced IGF courses. Ship masters, engineer officers and crew involved in bunkering operations on Viikki and Haaga – the two 25,600-dwt LNG-powered bulk carriers built by the Jinling Shipyard at Nanjing in China for ESL Shipping – participated in a combined basic/advanced IGF course as well as in an IGF simulator course at Aboa Mare and Wärtsilä Land and Sea Academy in Turku, Finland in October 2017.

The two dual-fuel bulkers recently made their maiden voyages to their home waters in the northern Baltic Sea by means of a westbound run along the Northern Sea Route in the Russian Arctic.

Each ship filled its 400 m3 bunker tank with LNG at a Yangtze River fuelling station before departing China.

Towards the end of 2017, Rotterdam’s STC Group became the first Dutch training institute to commission a bunkering simulator for use with its IGF Code advanced course. The model was developed

by Kongsberg Digital as an adjunct to its K-Sim dual-fuel engine simulator platform. The Dutch Human Environment and Transport Inspectorate has accredited the STC LNG bunker simulator set-up.

Bureau International Marine (BIM) of Antwerp has also introduced LNG bunkering simulator training following a link-up with the Exmar Academy. Recognised by the Belgian Maritime Inspectorate, the training package includes a one-day simulator course aimed at advanced IGF trainees that replaces two of the three bunkering operations required to obtain an endorsement of the relevant certificate of proficiency.

An important client for BIM has been DEME, the Belgian dredging and marine engineering group that has ordered a range of LNG-powered dredging and cable-laying vessels. Combined IGF

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basic/advanced and simulator courses have been carried out at the shipowner’s premises in Antwerp.

Titan LNG is poised to put its new LNG bunkering pontoon FlexFueler 1 into service by the end of the year. To be based in Amsterdam, the vessel will be equipped with two 380 m3 tanks and will deliver LNG fuel, by means of ship-to-ship (STS) transfers, to gas-powered vessels throughout the Amsterdam, Rotterdam and Antwerp region.

In June 2018, Titan LNG concluded a long-term training contract with a consortium comprising Simwave, Transafe and Falck Safety Services. Simwave provides specialist training utilising Kongsberg simulators and will offer Titan LNG and its customers courses on LNGBV ship handling, STS fuel transfers and engineroom resource management.

As part of the Titan LNG arrangement, a full seven-day LNG bunkering safety training programme has been put together, in which the Simwave simulator offerings feature prominently.

Simwave has recently opened a new maritime training centre in the Rotterdam suburb of Barendrecht where it now holds the majority of its courses.

Simulator net spreads

As LNG use spreads globally, so does the range of training establishments offering IGF training, including simulator courses.

AMC Search, the commercial arm of the University of Tasmania’s Australian Maritime College, is the first training provider in Australia to be accredited by the Australian Maritime Safety Authority for its IGF Code training. Crews of Searoad Mersey II, a dual-fuel roro cargo ship serving on the Tasmanian Sea crossing, and the LNGpowered Siem Thiima, an offshore supply vessel active off Western Australia, have received training provided by AMC Search.

In the US, the American Maritime Officers (AMO) Simulation Training Assessment and Research (STAR) Center has worked with the Republic of the Marshall Islands (RMI) maritime administrator to prepare an IGF training package. In April 2018 the AMO STAR Center’s gas-fuelled vessel course was approved by the RMI, the world’s largest registry for gas carriers. RMI now issues the appropriate STCW endorsements to individuals completing the course at the Dania Beach, Florida training institute. LNG

LNG World Shipping | November/December 2018

26 | SHIP/SHORE LINKS FOR BUNKERING

Safety links for LNG bunker transfers Trelleborg’s Andrew Stafford* examines the development of ship-to-ship communications and emergency shutdown link systems for LNG bunkering operations

This includes the provision of additional ESD signals in relation to the gas sendout or other plant requirements.

The key advancement of these systems has been the ability to transfer bulk quantities of data, such as process data communication, CCTV, internet and other Ethernet-type signals. The link itself is based around synchronous optical networking (SONET) communications protocols, which make it both sustainable in the future, expandable and open for others to interface with.

Solutions to bunkering links

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he LNG industry’s traditional ship/ shore interface, where vessel and cargo-handling operations are at their most intense, is expanding in tandem with the increasing diversification of the LNG supply chain.

A key LNG interface element, essential when handling substantial flows of cryogenic liquid, is the linked ship/shore emergency shutdown (ESD) arrangement.

ESD systems are designed in accordance with recommendations developed by the Society of International Gas Tanker and Terminal Operators (SIGTTO).

Ship-to-ship cargo transfers between vessels at offshore and nearshore locations represented the first new activity to come under the growing interface umbrella.

Now, as the use of LNG as marine fuel increases, it is the turn of LNG bunkering to fall within the aegis of the safety regime governing “ship/shore interface” activity.

As is the case when terminal and LNG

carrier staff are simultaneously engaged in a cargo loading or discharge operation, effective communication between the parties involved in LNG bunkering is critical to ensuring safety. All those involved require a common understanding of the entire fuel transfer process.

The linking of ESD systems during LNG transfers has been commonplace since the earliest such operations took place. In 2006 the latest fibre optic digital ship/shore link (SSL) was developed and has since been used in the vast majority of floating storage and regasification unit (FSRU) and floating storage unit (FSU) applications when a jetty connection has been required. The digital link supports the primary ESD and secondary telecoms that have become standard.

However, in the more complex process arrangements of these floating installations, further integration of the terminals and vessels has been required.

Unfortunately, the majority of large-scale LNG link systems utilise a great deal of legacy technology and connectors. These add substantial cost to systems, something that cannot be borne by the LNG fuelling vessels.

The process of bunkering LNG is generally performed on one side by a welltrained operator. Such personnel handle LNG either at a shore facility or from a bunker vessel, with routine LNG transfers taking place at regular intervals, during either bulk loading or bunkering offtakes.

On the other side, on the vessels being fuelled, there are crew who are suitably trained but may not have the experience of handling LNG or cryogenic liquids. To ensure a safe, efficient and cost-effective transfer, it is vital that the process is transparent and the bunker provider is able to control the transfer with real-time information.

To meet this requirement, the digital fibre optic link offers the basic ESD requirement and can be utilised for telecommunications, process data transfer and other future data transfer requirements.

LNG bunker barge Clean Jacksonville takes up station in the Florida port of the same name

LNG World Shipping | November/December 2018

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SHIP/SHORE LINKS FOR BUNKERING | 27

For the first time in link technology, the system would be future-proofed to allow additional functionality as required.

With a fibre optic primary, the SIGTTO electric link can be utilised as an ESD-only backup, as the link system is referenced by SIGTTO, Oil Companies International Marine Forum (OCIMF) and Chemical Distribution Institute (CDI) guidelines. Additionally, while its functionality is currently fixed to just ESD, there may be future options to expand the system to utilise some spare connector cores for a limited system upgrade. This, however, would require the agreement of all stakeholding parties.

In ship-to-ship operations the SIGTTO electric link base systems are the same on both sides of the transfer. However, the interposing relay interface is typically only installed in shore systems and has historically been carried out by specific hazardous area relay modules, which were not only expensive but also not freely available in the market.

The solution for bunkering, therefore, was to redesign the output of the link circuit around the rest of the circuitry so it formed part of a single system. This, therefore, allowed the relay interfaces to be switched in or out of circuit, depending on the mode of operation - master (shore or supplier type) or slave (ship or receiver type).

Pneumatic links have been identified as a solution, but only for lower volume transfers (ISO 20519). However, there are inherent issues in the pneumatics around calibrating system volumes, operating at common pressure settings, both in healthy conditions and at defining a mutual trip pressure.

The pneumatic link is a very simple system comprising a hose linking the two ESD systems. Each side will monitor the hose pressure via a pressure switch or transmitter to detect an ESD initiated by the connected system and will have control of a solenoid valve to allow the pressure to be released in the case of an ESD generated on the local system.

All of these link options, together with the original large-scale solutions, can be packaged in numerous ways to suit a vessel’s intended trading or bunkering pattern.

A Harvey Gulf offshore support vessel takes on LNG bunkers at the company’s Port Fourchon fuelling station in Louisiana

linked ESD interface to be able to connect to the bunkering vessels and large-scale terminals it may be required to load from.

The number of LNG bunker vessels is increasing rapidly, and these considerations need addressing.

The SIGTTO ESD guidelines clearly state that the SIGTTO electric link system has not been adopted by any major international LNG projects. What this points to is bunker vessels either having to install low-cost equipment purely for bunkering

(which limits loading to a few specialist facilities), or to install a variety of systems to enable trouble-free connection compatibility.

The bunker vessel is the equivalent of a small-scale LNG carrier, it just happens to also provide bunkering services.

To accommodate these crossover type installations, in 2017 Trelleborg launched the GEN3 SmartPort-enabled ship-shore link which allows all known link types to be available via a single cabinet. The use of a new common electronics infrastructure means separate complete system modules are no longer required. These have been reduced to single circuit boards per system, expandable to suit the vessel’s operation, simplifying the installations required in the more complex arrangements.

The LNG bunkering market is not standing still. The global LNG bunker vessel (LNGBV) fleet is already comprised of purpose-built tankers, converted small LNG carriers and bunker barges, either pushed, towed or self-propelled.

It is vital that the LNGBV sector does not settle on a lowest common safety factor.

It needs to continue to push for the safest solutions, not only in emergency protection via ESD, but also through processes that can be integrated in the future to enable more oversight, more automation and enhanced safety within the LNG transfer application space. LNG

Andrew Stafford (Trelleborg Marine Systems): “It is vital that the LNGBV sector does not settle on a lowest common safety factor”

*Andrew Stafford is Trelleborg Marine Systems UK’s technical director. The article is based on a presentation he made at the Gastech 2018 event.

Bunker vessel considerations

When specifying LNG bunker vessels, further in-depth analysis of current and future potential trading patterns is required to ensure that the vessel is not only capable of physically berthing at the terminals it may trade with, but also has the correct

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LNG World Shipping | November/December 2018

28 | EMERGENCY RELEASE COUPLINGS

Enhancing the safety credentials of emergency shutdown systems For suppliers of LNG cargo transfer systems, achieving a safety integrity level 2 (SIL2) rating is a key step in building customer confidence

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afety management systems that reduce and monitor risk help operating companies meet their legal obligations to ensure safety in the workplace. Under such systems a safety case, justifying the risk management position, must be completed for inspection by the regulatory authorities.

One of the most safety-critical features of gas carrier operations is the emergency shutdown (ESD) of the cargo transfer process. Among the basic requirements for the vessel’s ESD system – as laid down in the International Code for the Construction and Equipment of Ships carrying Liquefied Gases in Bulk (IGC Code) – is the provision that the system be initiated by manual trips or thermal devices. However, operating conditions at most liquefied gas ship/

MannTek’s lightweight LNG transfer system is utilised by Coralius as it fuels the LNGpowered tanker Fure West

LNG World Shipping | November/December 2018

shore interfaces mean that these core initiators need to be supplemented with other techniques.

Linking ship and shore ESD

The IGC Code has no jurisdiction over the activation of a shore installation’s ESD system. However, it does require that ship and shore agree cargo transfer procedures and adjust loading rates to limit the surge pressures generated when valves close in an emergency. Invariably, gas ship and shore ESD systems are linked, so that the activation of a shutdown trip on the ship will send an ESD signal to shore, and vice versa.

In recent years, the industry has begun to place greater emphasis on the quality and performance of critical safety systems over their entire lifecycle. A safety-instrumented system (SIS) must be capable of providing the level of improvement claimed in the safety case.

Conformity with either of two International Electrotechnical Commission (IEC) standards – IEC 61508 or IEC 61511 – is accepted as an effective way of demonstrating that the safety-instrumented protection measures can provide the claimed reduction in risk.

IEC 61508 is a generic standard for functional safety using electronic and programmable electronic equipment, while IEC 61511 is the standard for functional safety systems within the process industry sector.

The standards cover all stages of an equipment application project, from initial concepts and hazard studies through to operation, maintenance and modification.

Provisions dealing with SIS design are laid down, as are those for safety integrity level (SIL) analysis.

SIL ratings are a measure of a safety system’s performance; the SIL2 rating is of particular relevance to gas carrier ESD systems and emergency release couplings.

SIL2 is a globally recognised standard which requires an extensive testing and assessment programme to demonstrate

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EMERGENCY RELEASE COUPLINGS | 29

the safety, integrity and reliability of the technology in question.

SIL2 in practice

Leading suppliers of LNG coupling systems have introduced steps to demonstrate that their equipment conforms to SIL2 safety requirements. Attainment of the relevant certification provides customers with an additional measure of confidence in the long-term performance capabilities of the equipment in question.

KLAW LNG has had an LNG safety integrated level safety instrumented system (SILSIS) in operation in Jamaica for two years. The company claims it is the world’s first SIL2-compliant automated system specifically designed for managing LNG transfers and emergency situations in flexible hose operations.

The system has been in place at the Micro LNG terminal in Jamaica’s Montego Bay since October 2016. The initial SILSIS ship-to-shore flexible hose transfers involved the discharge of LNG cargo from the 6,500 m3 Coral Anthelia to the shoreside cylindrical pressure vessel storage tanks utilised by the JPS Bogue power station.

SILSIS provides continuing system diagnostics, both before and during LNG transfers, while monitoring operations and offering complete control over ESD1 and ESD2 procedures and providing black-box records of transfer data. It also ensures the LNG transfer operation is always maintained at SIL2, is highly “available” and in a “ready for transfer” condition.

ESD1 and ESD2 represent the twostage sequence in an emergency shutdown scenario. In the ESD1 part of the procedure, the cargo transfer operation is stopped in a quick and controlled manner, while in the rapid follow-up ESD2 phase the emergency release system is activated.

KLAW LNG’s Julian Fairman explained: “To be SIL2-compliant, operations and procedures must also maintain SIL2 compliance over the operational life of the system. SILSIS is a fully-automated, programme logiccontrolled (PLC) system and removes many human elements from the transfer process.

This maximises cost-efficient availability.

“SILSIS offers minimal operational disruption by being able to proof test and diagnose issues without the need for invasive inspection. In addition, its easyto-use, real-time interface ensures that operators can follow systematic procedures without the risk of distraction.”

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The emergency release system shown here is part of the KLAW SILSIS system in place at the Micro LNG terminal in Jamaica’s Montego Bay

More SIL2 certifications

In recent months Alpha Process Controls (APC) has achieved a SIL2 certification for its marine emergency release coupling (ERC). APC’s SIL2 rating confirms the coupling’s consistent ability to prevent loss of product during the transfer of hazardous materials, including LNG. APC’s coupling systems are deployed across ship-to-ship, ship-to-shore and bunkering applications.

The company’s marine ERC employs a mechanical, rather than hydraulic, release activation and features a two-stage ESD1 and ESD2 operation that enables the controlled shutdown of internal valves and the coupling separation. The ERC coupling can be operated mechanically, or through a remote operator-activated switch.

APC’s ERC can be specified with a pre-ESD1 alarm, which detects ship separation, and can be linked to the ship’s ESD1 shutdown process. This safety feature complements the ERC’s innovative, in-built damping system to reduce the effects of pressure spikes should the coupling be called upon to separate during full-flow transfer.

This would typically occur in the case of a vessel drifting off during LNG transfer.

Available in sizes from 4-to-10 inches in diameter, APC’s marine ERC has secured class-society approval. It also meets the requirements of BS EN 1474-1 (2008), Installation and equipment for liquefied natural gas – Design and testing of marine transfer systems. The company reports that certification to this recognised industry standard further demonstrates the efficacy

of the system.

The SIL2 assessment and certification of APC’s marine ERC was undertaken by UK consultancy Technis, led by Dr David J Smith. Dr Smith chairs the Chartered Institution of Gas Engineers and Managers (IGEM) panel, which develops guidelines on safety-related systems and was a founder member of the Safety Critical Systems Committee of the Institution of Electrical Engineers (now IET).

In September 2017 the Swedish coupling manufacturer MannTek introduced a smallscale LNG transfer system that it claimed was up to 50% lighter than other such systems then available on the market. Developed with LNG bunkering as a particular target market, the weight-saving package was designed to make it safer and easier for operators to manually lift and manoeuvre the connection.

The lightweight transfer system consists of MannTek’s dry cryogenic couplings (DCCs), cryogenic breakaway couplings, LNG hoses, an ESD system and a highpressure nitrogen system. Following successful completion of a factory acceptance test, the system was first deployed on Coralius, the 5,800 m3 Baltic and North Sea LNG bunker vessel, jointly owned by Sirius Shipping and Anthony Veder.

MannTek said that its new transfer system complies with the relevant standards set by international associations, institutes and regulatory bodies and has class approval from DNV GL, BV and Lloyd's Register.

The package can also be provided with a SIL2 certification. LNG

LNG World Shipping | November/December 2018

30 | GASTECH 2018 REVIEW

Seen and heard at Gastech 2018 In terms of shipping, this year’s Gastech event in Barcelona turned the spotlight on two pressing issues, small-scale LNG projects and bunkering

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ttending Gastech so soon after SMM 2018 was a lesson in contrasts. SMM is considerably bigger (30,000 vs 50,000 attendees) and the 700 exhibitors at Gastech are spread over a much larger area.

This, coupled with the event’s proximity to Barcelona, leant Gastech a more relaxed atmosphere than its Hamburg counterpart.

LNG shipping received much attention at Gastech, albeit as part of the overall supply chain. During discussions on the high-level aspects of gas trades, two interesting themes became apparent: the first was small-scale LNG, which one engineering company chief executive described as the products we have been developing while waiting for the bigger projects to be financed; the other was LNG bunkering.

regasification modules can be added.

The two technologies are water bath-type vaporisation (WBV ) and fan ambient air vaporisation.

WBV utilises fire tubes to transfer heat to a bath of water by convective and conductive heat transfer. The combustion gas never directly contacts the water.

Small-scale projects

AG&P vice president of process engineering and operations Nancy Ballout spoke exclusively to LNG World Shipping on the technology behind the Houston-based company’s small-scale LNG regasification modules: “I am originally from Latin America and I have seen the issue of getting gas to customers that are off the grid; this is the puzzle AG&P set out to solve.”

Ms Ballout explained that while AG&P is recognised as a fabricator, it is currently moving into the engineering sector. Its solution to the above-mentioned ‘puzzle’ uses two different technologies that are packaged in modules; this means that as its clients’ requirements grow, additional

LNG World Shipping | November/December 2018

Nancy Ballout (AG&P): Modularisation ensures faster fabrication and easier transportation, so facilities are up and running sooner

To minimise emissions and improve efficiency, the design can also include low NOx burner technology and a waste heat recovery economiser, increasing efficiency without the complexity associated with other systems.

According to AG&P, this design is flexible and suitable for offshore and onshore applications where space is limited. It is also ideal for cold climates and environmentally-regulated sites, including those where an open-loop system is not feasible. The company also noted that while designed to be used in offshore/floating applications, the system is comparable to submerged combustion vaporisers (SCVs) normally used onshore in cold climates.

AG&P has also developed an advanced fan ambient air vaporisation (FAV) technology for subtropical and tropical locations with ambient air temperatures greater than 15°C. The technology simplifies the design of the regasification train, its operations and maintenance, according to AG&P. Other benefits include reduced size, as the FAV regasification trains have been designed to be relatively small and simple, allowing for a faster build and easier installation. The modules can also be split into two, or stick-built and installed onsite, making it suitable for sites that cannot be accessed with a single, prefabricated module.

TGE Marine Gas Engineering is a long-time developer of small-scale LNG and at Gastech its general manager sales and development Björn Munko announced a contract to design and supply the cargo handling system and tank material package for one of the world’s first small-scale floating storage and regasification units.

Elaborating on the hose-based gas transfer system, Mr Munko said: “There are five regas units that have a send-out rate of 335 tonnes per hour, or approximately 2.9M tonnes per annum at a send-out pressure of 65 bar. There is also a recondenser and

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GASTECH 2018 REVIEW | 31

boil-off compressor. All the gas-related equipment is delivered by TGE.” The unit also has 28,000 m3 storage and was ordered by TEMA LNG, which is backed by Helios Investment from London. It will be stationed in Ghana once completed by Jiangnan Shipyard Group.

These units are aimed at developing energy supply to islands and supply areas which have no pipeline access. The hoses will be supplied by Gutteling BV of Rotterdam.

Bunkering in the spotlight

On the LNG bunkering side, ABS hosted a presentation by probunkers, the LNG bunkering start-up founded by Alexander Prokopakis.

Speaking at Gastech, Mr Prokopakis revealed that the project to build a global network of LNG bunkering stations has significant backing from the Greek shipping community.

ABS is to provide technical support as it embarks on designing a fleet of specialist LNG bunker vessels for key ports around the world.

ABS vice president for global business development Peter Fitzpatrick said: “With its low sulphur emissions, LNG is an attractive proposition for shipowners and operators responding to the 2020 sulphur cap. However, lack of bunkering infrastructure has been one of the key constraints on its adoption.”

From its headquarters in Athens, probunkers aims to design, build, own and operate a fleet of LNG supply vessels in seven ports initially: Houston; Rotterdam (or, alternatively, Antwerp); Gibraltar; Singapore; Hong Kong; Busan and Fujairah. The design of the LNG bunker barge will be standardised as much as possible, under the ethos of “design it once, build it many times.”

Another LNG bunkering barge announcement came from Spanish engineering and technology group SENER. DNV GL presented SENER with an approval-in-principle (AiP) certificate for an LNG-fuelled bunkering vessel.

The new innovative design complies with DNV GL class rules and all current and upcoming regulations, including the new emissions control regulations and the IGF Code for fuel with a low flashpoint.

Two separate AiPs have been issued, covering the design of the SENER LNG bunkering vessel family, which consists of a small unit with a bunker capacity of 4,000 m3, and a larger unit with bunkering capacity of 8,000 m3.

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Alexander Prokopakis (probunkers): “ABS is providing technical support. probunkers is designing the LNG bunkering vessel”

“We have focused our design on the optimisation of cost, safety, efficiency and bunkering processes, by minimising operating expenses and capital costs, reducing the risks during loading and bunkering operation, and managing and reducing the boil off,” said SENER general manager of marine Rafael de Góngora.

“LNG is emerging in several ship sectors and has great potential but should be accompanied by the necessary port facilities and infrastructure capable of providing quick and efficient gas refuelling, in which LNG bunkering vessels will play an important role.”

DNV GL area manager Iberia and France Lucas Ribeiro added: “[This design] offers our customers a flexible, safe and future-proof solution as well as the opportunity to facilitate LNG bunkering, while contributing to the decarbonisation of the maritime industry and further elimination of the emission of greenhouse gases.”

The approval process included reference to LNG-specific design issues, such as cargo handling (liquid and vapour), hazardous zones and risk assessment, mooring arrangements and quick release, manifold, transfer arms and hoses, as well as boil-off.

“The safety aspects of LNG bunkering are being tackled through two industry bodies, the Society for International Gas Tanker and Terminal Operators (SIGTTO) and the Society for Gas as Marine Fuel (SGMF). SIGTTO is responsible for the LNG bunker vessel side of the equation while the SGMF focus is on the gas-fuelled ship. It will be interesting to see the positive influence these bodies will have on the traditional bunkering trade, which generally does not enjoy a good reputation for safety. LNG

Rafael de Gongora (SENER) and Lucas Ribeiro (DNV GL): SENER general manager of marine Rafael de Góngora receives the agreement in principle from DNV GL area manager Iberia & France Lucas Ribeiro

LNG World Shipping | November/December 2018

32 | STATISTICS fleet developments

A year like no other for LNG shipyards LNG shipbuilders have never known a year like it, with newbuilding deliveries and new contracts neck-and-neck and both running at a brisk pace

LNG World Shipping | November/December 2018

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Delivered in 2017, Cardissa is one of five seagoing LNG bunker vessels now in service; a further 11 such ships are on order

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his year has been unprecedented for LNG newbuilding activity. The LNG carrier (LNGC) orderbook at 1 November 2018 stood at virtually the same level as it did on 1 January, as the large number of ships delivered during the year has been matched, and a little more, by a wave of newbuilding orders.

The LNGC orderbook as of 1 November stood at 123 vessels, comprising 97 conventional-size carriers, 11 floating storage and regasification units (FSRUs), 11 small-scale tankers

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fleet developments STATISTICS | 33

and four mid-size ships. All the smallscale ships will be able to carry out LNG bunkering operations.

types, in the LNGC sector Korean yards are still the favoured option for owners placing newbuilding contracts.

For the year to date, Korean builders have won all 42 of the orders placed for conventional-size LNGCs and clinched the FSRU deal. Chinese yards have secured the orders for six of the seven small-scale tankers and both mid-size ships, while Japan has only won one LNGC order so far this year, for a smallscale LNG bunker vessel.

Daewoo Shipbuilding and Marine Engineering (DSME) and Samsung Heavy Industries (SHI) share the honours for the most LNGC contracts for the year to date, both booking 12 ships. Hyundai Heavy Industries (HHI) and affiliate Hyundai Samho Heavy Industries (HSHI) are not far behind, each winning nine vessels.

HHI also secured the FSRU booking.

Of the total 123-ship orderbook, Korea will build 88, China 19 and Japan 16. Of the Korean yards, DSME possesses the largest LNGC orderbook, with 35 ships, while SHI and HHI have 21 each and HSHI 11.

Independent Greek shipowners continue to be well represented among the contractors of new LNG tonnage.

Greeks are responsible for 24 of the 42 conventional-size LNGCs booked so far in 2018.

TMS Cardiff Gas has been the most active member of this community this year, with orders for six newbuildings, while GasLog, Alpha Tankers, Maran Gas and Thenamaris have all opted to contract between two and four new ships to augment their existing gas fleets.

The Greek LNGC-owning club has been joined by two new shipping company members this year: Evangelos Marinakis established a new venture, Capital Gas Carrier Corp, during the summer to order four ships at HHI while the Andreos Martinos-led Minerva Maritime has taken the LNG plunge with orders for two vessels at DSME and one at SHI.

Korea in the driving seat

Propulsion trends

Over the first 10 months of 2018, 47 LNGCs have been delivered and 52 new ships ordered. The new additions to the orderbook comprise 42 conventional-size LNGCs, seven small-scale tankers, two mid-size ships and one FSRU. While China may now be outperforming rival Korea as the world’s top shipbuilding nation for all vessel

One notable trend evident on surveying LNGC deliveries and orders in 2018 is the emergence of Winterthur Gas & Diesel’s Generation X Dual-Fuel (X-DF) engines as an attractive propulsion system option.

Two-stroke dual-fuel engines have become the propulsion system of choice for modern, conventional LNGCs. Their superior fuel efficiency over the earlier

LNG World Shipping | November/December 2018

34 | STATISTICS fleet developments

steam turbine and medium-speed dual-fuel diesel-electric (DFDE) systems accords well with the improved cargo tank insulation performance and lower cargo boil-off gas (BOG) rates characteristic of today’s newbuildings.

Owners of LNGCs and other gaspowered ships have two candidates to choose from when specifying a two-stroke dual-fuel propulsion system. Besides the X-DF engine, there is MAN Energy Solutions’ M-type, electronically controlled, gas-injection (ME-GI) unit.

MAN’s ME-GI engines, in which natural gas is supplied to the combustion chamber at high pressure, made the early running, following an inaugural order for the propulsion system for two of its ships

by Teekay in December 2012. However, the X-DF option, which relies on a much lower gas supply pressure, quickly gained ground on entering the market.

The extent to which the ME-GI option established an early market lead can be seen in a breakdown of the propulsion systems of the ships delivered so far in 2018. Of the 25 LNGCs with two-stroke propulsion systems entering service, 19 have ME-GI units and only six X-DF engines.

However, the new orders logged in 2018 reveal a different picture. A total of 43 of the 52 ships contracted so far this year will be propelled by two-stroke dual-fuel engines; the complement comprises 29 X-DF and 14 ME-GI ships.

The leading Korean LNGC shipyards are aligning themselves with either one or the other of the two systems. DSME, which designed its own fuel gas supply system (FGSS) and partial reliquefaction plant to be compatible with the performance of the ME-GI units, is supporting the MAN option.

All 12 newbuilding orders secured by DSME this year will have ME-GI engines.

The X-DF engines of Winterthur Gas & Diesel (WinGD), in turn, have the backing of SHI, HHI and HSHI. Of the 29 X-DF ships contracted in 2018, SHI will build 12, HSHI nine and HHI eight.

The DFDE propulsion system is well represented among the 2018 completions;

The DFDE system, however, is no longer favoured for the propulsion of conventional LNGCs

LNG World Shipping | November/December 2018

Gaslog Genoa – one of three LNG carriers with an X-DF propulsion system delivered

by Samsung this year

the system is driving 15 of the 47 vessels that have been handed over to date.

DFDE, which utilises medium-speed fourstroke diesels, is the system of choice for FSRUs, small-scale LNGCs and the icebreaking LNGCs being built to serve the Yamal LNG project in the Russian High Arctic. An aggregate of seven vessels falling into these categories has been completed so far in 2018.

The DFDE system, however, is no longer favoured for the propulsion of conventional LNGCs, as evidenced by the specification of two-stroke engines for 43 of the 52 ships ordered so far this year.

It appears, from early reports, that even the sole FSRU contracted in 2018 will be provided with two-stroke engines.

The bunker vessel buzz

Activity in the small-scale LNGC sector has been notable this year. Although only one carrier of this type has been delivered so far in 2018, the 7,500 m3 Kairos, seven such ships have been ordered, building the small-scale LNGC orderbook to 11 vessels.

All 11 small-scale ships are being built as LNG bunker vessels (LNGBVs). Interest in LNGBVs is being prompted by the large LNG-powered container ships, tankers and cruise vessels currently under construction.

The arrival of this new breed of dualfuel ships over the next few years will

require the ship-to-ship (STS) transfer of large volumes of bunker fuel safely, efficiently and quickly to ensure the commercial viability of their operation.

LNGBVs come in all shapes and sizes, reflecting the bespoke nature of both the growing fleets of LNG-fuelled ships and inland waterway vessels and their operating environments.

At the smaller end of the LNGBV scale, for example, Spain has put two new vessels into service this year, one, Oizmendi, a conversion and the other, Bunker Breeze, a newbuilding. Both are multi-fuel bunker vessels, their underdeck oil fuel tanks being augmented by deckmounted cylindrical tanks to also give them an LNG-fuelling capability.

Also completed this year was Clean Jacksonville, a 2,200 m3 non-propelled LNG barge that will be employed fuelling vessels in the US port of Jacksonville, Florida.

LNG World Shipping does not include these small specialist port-oriented bunker vessels in its LNGC listings. Rather, our LNGBV focus is on seagoing vessels of 3,000 m3 and above which can handle STS transfers outside port waters and also function as coastal LNG distribution carriers as the need arises. In addition to the 11 such LNGBVs on order, with the recent delivery of Kairos, there are now five in service. LNG

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36 | STATISTICS

LNG CARRIERS ON ORDER LNGC ORDERBOOK AS OF 1 NOVEMBER 2018 SOUTH KOREA Hull no

Shipowner

Capacity, m3

Delivery

Charterer

Containment

Class

Propulsion

Details

Daewoo Shipbuilding & Marine Engineering (DSME), Okpo 2456

Maran Gas

173,400

2019

Shell

GTT No96

DNV GL

LSDF (HP)

Shell business

2457

Maran Gas

173,400

2019

–

GTT No96

LR

LSDF (HP)

open

2459

Maran Gas

173,400

2019

Shell

GTT No96

LR/CCS

LSDF (HP)

Shell business

2466

Maran Gas

174,000

2019

–

GTT No96

ABS

LSDF (HP)

open

2467

Maran Gas

174,000

2019

–

GTT No96

LR

LSDF (HP)

open

2468

Maran Gas

174,000

2020

–

GTT No96

DNV GL

DFDE

FSRU; open

2478

Maran Gas

174,000

2020

–

GTT No96

–

LSDF (HP)

open

2486

Maran Gas

174,000

2021

–

GTT No96

–

LSDF (HP)

open

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

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

2432

CSDC/MOL

172,000

2020

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

2443

BP Shipping

173,400

2018

BP

GTT No96

LR

LSDF (HP)

BP business

2444

BP Shipping

173,400

2019

BP

GTT No96

LR

LSDF (HP)

BP business

2445

BP Shipping

173,400

2019

BP

GTT No96

LR

LSDF (HP)

BP business

2446

BP Shipping

173,400

2019

BP

GTT No96

LR

LSDF (HP)

BP business

2470

Flex LNG

173,400

2019

–

GTT No96

ABS

LSDF (HP)

open

2471

Flex LNG

173,400

2019

–

GTT No96

ABS

LSDF (HP)

open

2479

Flex LNG

174,000

2020

–

GTT No96

–

LSDF (HP)

open

2480

Flex LNG

174,000

2020

–

GTT No96

–

LSDF (HP)

open

2490

BW Group

174,000

2020

–

GTT No96

–

LSDF (HP)

open

2491

BW Group

174,000

2020

–

GTT No96

–

LSDF (HP)

open

2483

Alpha Shipping

173,400

2020

–

GTT No96

–

LSDF (HP)

open

2484

Alpha Shipping

173,400

2020

–

GTT No96

–

LSDF (HP)

open

2485

Alpha Shipping

173,400

2021

–

GTT No96

–

LSDF (HP)

open

2481

Minerva Marine

174,000

2021

–

GTT No96

–

LSDF (HP)

open

2482

Minerva Marine

174,000

2021

–

GTT No96

–

LSDF (HP)

open

2492

Seatankers

174,000

2020

–

GTT No96

–

LSDF (HP)

open

Samsung Heavy Industries (SHI), Geoje 2189

Golar Power

170,000

2018

Golar Power

GTT MkIII

DNV GL

DFDE

Sergipe FSRU

2131

GasLog

174,000

2018

Shell

GTT MkIII

ABS

LSDF (LP)

Shell business

2212

GasLog

180,000

2019

Centrica

GTT MkV

ABS

LSDF (LP)

Sabine Pass exports

2213

GasLog

180,000

2019

–

GTT MkV

–

LSDF (LP)

open

Petronas

180,000

2020

Petronas

GTT MkIII

–

N/A

LNG FPSO

2149

MOL/Mitsui & Co

174,000

2018

Mitsui & Co

GTT MkIII

ABS

LSDF (LP)

Cameron exports

2150

MOL/Mitsui & Co

174,000

2018

Mitsui & Co

GTT MkIII

ABS

LSDF (LP)

Cameron exports

2220

Höegh LNG

170,000

2019

–

GTT MkIII

–

DFDE

FSRU; open

2233

Korea Line

7,500

2019

Kogas

KC-1

KRS

DFDE

South Korea coast

–

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Samsung Heavy Industries (SHI), Geoje 2234

Korea Line

7,500

2019

Kogas

KC-1

KRS

DFDE

South Korea coast/

2255

Pertamina consortium

170,000

2019

Pertamina

GTT MkIII

–

DFDE

Indonesia FSRU

2274

GasLog

180,000

2020

–

GTT MkIII

ABS

LSDF (LP)

open

2271

TMS Cardiff Gas

174,000

2020

–

GTT MkIII

–

LSDF (LP)

open

2272

TMS Cardiff Gas

174,000

2020

–

GTT MkIII

–

LSDF (LP)

open

2275

TMS Cardiff Gas

174,000

2020

–

GTT MkIII

–

LSDF (LP)

open

2276

TMS Cardiff Gas

174,000

2020

–

GTT MkIII

–

LSDF (LP)

open

2297

Celsius Tankers

180,000

2021

–

GTT MkIII

–

LSDF (LP)

open

2298

Celsius Tankers

180,000

2021

–

GTT MkIII

–

LSDF (LP)

open

2300

GasLog

174,000

2020

Cheniere Energy

GTT MkIII

–

LSDF (LP)

Cheniere exports

2301

GasLog

174,000

2020

Cheniere Energy

GTT MkIII

–

LSDF (LP)

Cheniere exports

2304

Minerva Marine

174,000

2021

–

GTT MkIII

–

LSDF (LP)

open

2302

NYK Line

180,000

2021

Total

GTT MkIII

–

LSDF (LP)

Total business

bunkering

Hyundai Heavy Industries (HHI), Ulsan 2909

Höegh LNG

170,000

2018

Global Energy

GTT MkIII

DNV GL

DFDE

Pakistan FSRU

2854

Gazprom

174,000

2018

Gazprom

GTT MkIII

RS

DFDE

Kaliningrad FSRU

2937

SK Shipping

180,000

2019

SK E&S

GTT MkIII

ABS

LSDF (LP)

Freeport exports

2938

SK Shipping

180,000

2019

SK E&S

GTT MkIII

ABS

LSDF (LP)

Freeport exports

2945

Kolin/Kalyon

170,000

2019

Kolin/Kalyon

GTT MkIII

BV

DFDE

Turkey FSRU

2963

Knutsen OAS

180,000

2020

Iberdrola

GTT MkIII

–

LSDF (HP)

Corpus Christi exports

2964

Knutsen OAS

180,000

2020

Endesa

GTT MkIII

–

LSDF (HP)

Corpus Christi exports

3086

Knutsen OAS

180,000

2020

Endesa

GTT MkIII

–

LSDF (HP)

Corpus Christi exports

2993

Triumph Offshore

180,000

2019

Swan Energy

GTT MkIII

–

DFDE

Jafrabad FSRU

3020

TMS Cardiff Gas

174,000

2020

Total

GTT MkIII

BV

LSDF (LP)

Total business

3021

TMS Cardiff Gas

174,000

2020

Cheniere Energy

GTT MkIII

–

LSDF (LP)

Cheniere exports

3022

TMS Cardiff Gas

174,000

2020

–

GTT MkIII

–

LSDF (LP)

open

3037

TMS Cardiff Gas

174,000

2021

–

GTT MkIII

–

LSDF (LP)

open

3038

TMS Cardiff Gas

174,000

2021

–

GTT MkIII

–

LSDF (LP)

open

3095

Turkiye Petroleum

180,000

2020

Botas

GTT MkIII

–

DFDE

Turkey FSRU

3096

Thenamaris

180,000

2020

–

GTT MkIII

–

LSDF (LP)

open

3126

Thenamaris

180,000

2021

–

GTT MkIII

–

LSDF (LP)

open

3105

Capital Gas Carrier

174,000

2020

–

GTT MkIII

–

LSDF (LP)

open

3106

Capital Gas Carrier

174,000

2020

–

GTT MkIII

–

LSDF (LP)

open

3107

Capital Gas Carrier

174,000

2021

–

GTT MkIII

–

LSDF (LP)

open

3108

Capital Gas Carrier

174,000

2021

–

GTT MkIII

–

LSDF (LP)

open

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

Teekay

164,000

2019

BP

GTT MkIII

–

DFDE

BP business

S857

Teekay

164,000

2019

BP

GTT MkIII

–

DFDE

BP business

S970

Unknown

174,000

2020

–

GTT MkIII

–

LSDF (LP)

open

8006

Sovcomflot

174,000

2020

Total

GTT MkIII

BV

LSDF (LP)

open

8007

Sovcomflot

174,000

2020

–

GTT MkIII

BV

LSDF (LP)

open

8008

Sovcomflot

174,000

2021

–

GTT MkIII

BV

LSDF (LP)

open

8010

Flex LNG

174,000

2020

–

GTT MkIII

–

LSDF (LP)

open

8011

Flex LNG

174,000

2020

–

GTT MkIII

–

LSDF (LP)

open

8012

Flex LNG

174,000

2021

–

GTT MkIII

–

LSDF (LP)

open

8013

Flex LNG

174,000

2021

–

GTT MkIII

–

LSDF (LP)

open

8029

NYK Line

174,000

2020

EDF

GTT MkIII

BV

LSDF (LP)

EDF business

JAPAN Mitsubishi Heavy Industries (MHI), Nagasaki 2321

MOL

177,000

2018

Mitsui & Co

Moss

ClassNK

StaGE

Cameron exports

2323

MOL

177,000

2018

Mitsui & Co

Moss

ClassNK

StaGE

Cameron exports

177,000

2019

Mitsui & Co

Moss

ClassNK

StaGE

Cameron exports

Mitsubishi Heavy Industries (MHI), Nagasaki 2322

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Mitsubishi Heavy Industries (MHI), Nagasaki 2326

MOL/Chubu Electric

180,000

2018

Jera

Moss

ClassNK

StaGE

2327

NYK/Chubu Electric

180,000

2018

Jera

Moss

ClassNK

StaGE

Freeport exports Freeport exports

2332

Mitsubishi Corp

165,000

2019

Mitsubishi

Moss

ClassNK

StaGE

Mitsubishi business

Kawasaki Heavy Industries (KHI), Sakaide 1729

MOL

155,000

2019

Mitsui & Co

Moss

ClassNK

DFDE

Cameron exports

1734

MOL/Chubu Electric

177,000

2018

Jera

Moss

ClassNK

DFDE

Freeport exports

1735

NYK/Chubu Electric

177,000

2018

Jera

Moss

ClassNK

DFDE

Freeport exports

CLS Japan Corp

3,500

2020

CLMF Japan Corp

–

ClassNK

–

Japan LNGBV

–

Imabari Shipbuilding, Imabari 8215

Unknown

178,000

2022

–

GTT MkIII

–

LSDF (HP)

open

8216

Unknown

178,000

2022

–

GTT MkIII

–

LSDF (HP)

open

8217

Unknown

178,000

2022

–

GTT MkIII

–

LSDF (HP)

open

Japan Marine United, Kumamoto 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 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

1786A

Dynagas

174,000

2020

TBC

GTT No96

–

DFDE

FSRU; open

1787A

Dynagas

174,000

2021

TBC

GTT No96

–

DFDE

FSRU; open

1817A

Total/MOL

18,600

2020

Total

GTT MkIII

BV

TBC

Rotterdam bunkering

Jiangnan Shipyard, Shanghai –

Jovo Group

80,000

2021

Jovo Group

TBC

CCS

TBC

Jovo imports

–

Jovo Group

80,000

2021

Jovo Group

TBC

CCS

TBC

Jovo imports

28,000

2018

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

Cosco Dalian Shipyard, Dalian N588

Dalian Inteh

Wison Offshore & Marine, Nantong –

VGS

China Merchant Heavy Industry, Nantong 188

Landmark Capital

Shipping Dalian Shipbuilding Industry Company, Dalian –

Xinao Marine

8,500

2020

ENN Energy

Type C

–

DFDE

Zhoushan LNGBV

6,500

2020

Eesti Gas

Type C

BV

DFDE

Baltic LNGBV

Damen Yichang Shipyard, Yichang –

Eesti Gas

Keppel Singmarine, Nantong H400

Stolt-Nielsen

7,500

2019

TBC

Type C

–

DFDE

Coastal Europe

H401

Stolt-Nielsen

7,500

2019

TBC

Type C

–

DFDE

Coastal Europe

H402

Stolt-Nielsen

7,500

2020

TBC

Type C

–

DFDE

Coastal Europe

H403

Stolt-Nielsen

7,500

2020

TBC

Type C

–

DFDE

Coastal Europe

–

Keppel/Shell

7,500

2020

Shell

Type C

–

DFDE

Singapore bunkering

Table includes newbuilding FSRUs, LNG FPSOs and LNG bunker vessels.

Propulsion key: DFDE = dual-fuel diesel-electric; ST = steam turbine; UST = ultra steam turbine; StaGE = steam turbine and gas engine; LSDF (HP) = low-speed dual-fuel (high-pressure); LSDF (LP) = low-speed dual-fuel (low-pressure) Vessel type key: LNGBV = LNG bunker vessel; FSRU = floating storage and regasification unit; FRU = floating regasification unit; FPSO = floating production storage and offloading vessel LNG World Shipping, data as of 1 November 2018

LNG World Shipping | November/December 2018

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STATISTICS | 39

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LNG CARRIER NEWBUILDINGS DELIVERED 1 SEPTEMBER 2017 – 1 NOVEMBER 2018 Vessel name

Delivery

Capacity, m3

Owner

Builder

Charterer

Containment

Details

2017 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 Vilkitsy

10.2017

172,000

Dynagas

Daewoo

Yamal LNG

GTTNo96

Yamal exports

Macoma

10.2017

173,400

Teekay

Daewoo

Shell

GTTNo96

Shell business

Fedor Litke

11.2017

172,000

Dynagas

Daewoo

Yamal LNG

GTTNo96

Yamal exports

Murex

11.2017

173,400

Teekay

Daewoo

Shell

GTTNo96

Shell business

Eduard Toll

12.2017

172,000

Teekay/CLNG

Daewoo

Yamal LNG

GTTNo96

Yamal exports

Bishu Maru

12.2017

164,700

K Line

Kawasaki

Jera

Moss

Jera business

TBC

12.2017

25,000

Exmar

Wison

TBC

IHI SPB

FSRU; TBC

SK Resolute

1.2018

180,000

SK Shipping/Marubeni

Samsung

Total

GTTMkIII

Sabine Pass exports

Patris

1.2018

174,000

Chandris/K Line

Daewoo

BP

GTTNo96

BP business

Cesi Wenzhou

1.2018

174,000

CESI/MOL

Hudong

Sinopec

GTTNo96

APLNG exports

Pan Americas

1.2018

174,000

CNOOC/CLNG/TK

Hudong

Shell

GTTNo96

QCLNG exports

GasLog Houston

1.2018

174,000

Hyundai

Shell

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

Enel Trade

GTTNo96

12-month T/C

BW Tulip

1.2018

173,400

BW Group

Daewoo

Total

GTTNo96

Total business

Vladimer Rusanov

1.2018

172,000

CSDC/MOL

Daewoo

Yamal LNG

GTTNo96

Yamal exports

Coral EnergICE

1.2018

18,000

Anthony Veder

Neptun

Skangas

Type C

Baltic trading

SK Serenity

2.2018

174,000

SK Shipping

Samsung

Kogas

KC-1

Sabine Pass exports

Magdala

2.2018

173,400

Teekay

Daewoo

Shell

GTTNo96

Shell business

Seri Camar

2.2018

150,000

MISC

Hyundai

Petronas

Moss

Petronas projects

LNG Sakura

2.2018

177,000

NYK/Kepco

Kawasaki

Kansai Electric

Moss

Cove Point exports

SK Spica

3.2018

174,000

SK Shipping

Samsung

Kogas

KC-1

Sabine Pass exports

Pacific Mimosa

3.2018

155,000

NYK

Mitsubishi

Jera

Moss

Wheatstone exports

Gaslog Genoa

3.2018

174,000

GasLog

Samsung

Shell

GTTMkIII

Shell business

Gaslog Hong Kong

3.2018

174,000

GasLog

Hyundai

Total

GTTMkIII

Total business

Pacific Breeze

3.2018

182,000

K Line

Kawasaki

Inpex

Moss

Ichthys-Taiwan

Castillo de Merida

3.2018

178,000

Elcano

Imabari

GNF

GTTMkIII

GNF business

BW Lilac

3.2018

173,400

BW Group

Daewoo

BP

GTTNo96

BP business

Hoegh Esperanza

4.2018

170,000

Höegh LNG

Hyundai

CNOOC

GTTNMkIII

FSRU; CNOOC charter

Marvel Falcon

4.2018

174,000

NYK

Samsung

Mitsui & Co

GTTMkIII

Cameron exports

Oceanic Breeze

4.2018

155,000

K Line

Mitsubishi

Inpex Corp

Moss

Ichthys exports

Seri Cemara

4.2018

150,000

MISC

Hyundai

Petronas

Moss

Petronas projects

Cesi Lianyungang

5.2018

174,000

CESI/MOL

Hudong

Sinopec

GTTNo96

APLNG exports

Myrina

5.2018

173,400

Teekay

Daewoo

Shell

GTTNo96

Shell business

British Partner

5.2018

174,000

BP

Daewoo

BP

GTTNo96

BP business

Castillo de Caldedas

6.2018

178,000

Elcano

Imabari

GNF

GTTMkIII

GNF business

LNG Schneeweisschen

6.2018

180,000

MOL/Itochu

Daewoo

Uniper

GTTNo96

Freeport exports

Diamond Gas Orchid

6.2018

165,000

NYK

Mitsubishi

Mitsui & Co

Moss

Cameron exports

Flex Ranger

6.2018

174,000

Flex LNG

Samsung

Voyage charters

GTTMkIII

open

Xinle 30

6.2018

30,000

PetroChina

Ningbo Xinle

CNPC Kunlun

Type C

China coast

Megara

7.2018

173,400

Teekay

Daewoo

Yamal LNG

GTTNo96

Yamal cargoes

Maran Gas Spetsos

7.2018

174,000

Maran Gas

Daewoo

Shell

GTTNo96

Shell business

Flex Rainbow

7.2018

174,000

Flex LNG

Samsung

Voyage charters

GTTMkIII

open

Pan Europe

7.2018

174,000

CNOOC/CLNG/TK/BW

Hudong

Shell

GTTNo96

QCLNG exports

Diamond Gas Rose

8.2018

165,000

NYK

Mitsubishi

Mitsui & Co

Moss

Cameron exports

Enshu Maru

8.2018

164,700

K Line

Kawasaki

Jera

Moss

Freeport exports

Bahrain Spirit

8.2018

173,400

Teekay

Daewoo

Bahrain LNG

GTTNo96

Bahrain FSU

Rudolf Samoylovich

8.2018

172,000

Teekay/CLNG

Daewoo

Yamal LNG

GTTNo96

Yamal exports Baltic bunker vessel

2018

Kairos

10.2018

7.500

Babcock Schulte

Hyundai Mipo

Nauticor/SGD

Type C

Marvel Eagle

10.2018

155,000

MOL

Kawasaki

Mitsui & Co

Moss

Cameron exports

Energy Liberty

10.2018

165,000

MOL/Tokyo Gas

Japan Marine Utd

Tokyo Gas

IHI SPB

Cove Point exports

Kinisis

10.2018

173,400

Chandris/K LIne

Daewoo

BP

GTTNo96

BP business

Vladimir Vize

10.2018

172,000

CSDC/MOL

Daewoo

Yamal LNG

GTTNo96

Yamal exports

British Achiever

10.2018

173,400

BP Shipping

Daewoo

BP

GTTNo96

BP business

LNG World Shipping, data as of 1 November 2018

40 | VIEWPOINT

Floating LNG import infrastructure – what’s best for you?

FSRUs and FSUs provide a fast and flexible approach to developing gas terminal infrastructure, explains BV global market leader tankers & gas carriers Carlos Guerrero

Carlos Guerrero (BV): FSRU and FSU decisions must be supported by the best technical insight and compliance with regulatory regimes

LNG World Shipping | November/December 2018

O

perators considering a floating terminal approach to meeting LNG import infrastructure requirements have a number of options to consider: • Conversion or newbuild?

• Near-shore or offshore location?

• Preference for a fixed location?

• FSRU/FSU – a ship or a regasification/ storage barge?

• Storage only?

These operational options need to be enabled and supported by the best technical insight and, vitally, compliant with appropriate regulatory regimes and standards.

From our perspective, the fundamental issue is whether to follow a ‘marine’ approach to addressing risk, akin to the risks addressed through classification ship rules and under SOLAS, or to adopt a risk approach more like that of the offshore industry.

Simply put, the marine approach would be suitable for an LNG carrier which, with some modification, could be used as a floating reception and storage terminal. However, at the offshore end of the spectrum, a floating storage and regasification unit (FSRU) or floating storage unit (FSU) newbuilding might have no propulsion capability and a non-hydrodynamic hull form. It would effectively be a floating barge envisioned, and intended, to be moved only very seldom and designed to be moored in very sheltered waters.

Location is important for the design and regulatory options, as well as operational requirements. Trading LNG carriers are designed to sail either in a fully laden condition – from the export to the import gas terminal – or almost empty, with a slight ‘heel’ of LNG to keep tanks cool and to provide bunker fuel when they return to load. LNG carriers do not generally sail with cargo tanks partially filled. Loading and discharging are performed at sheltered

gas terminals where the ship is stationary.

But a regasification LNG carrier acting as an FSRU will normally be expected to operate with tanks at all ranges of fill level.

The sloshing of the cargo may generate huge impact loads on tank bulkheads, containment system boundaries and pump towers, which must be designed and reinforced accordingly.

And the further away the mooring is from the shore, the more exposed the ship is to significant sea states and wave conditions.

In the calm, protected environment of a port, transferring liquefied gas by flexible hoses from one ship to another is certainly not a picnic party; but it is no more complicated than discharging to an onshore LNG terminal.

The crew of an LNG carrier is well trained for the ship-to-ship (STS) transfer operation and fully aware of the potential dangers, not only for the people on deck, but also the risks of leaking liquefied gas which, at -160˚C, which may cause severe damage to the steel deck structure.

Class and statutory rules for ships could be too conservative for operations in very mild weather areas and inadequate in others.

Class rules for offshore units usually allow design optimisation against actual site and operational conditions.

Seen from the perspective of the shipowner, there might be an opportunity to save unnecessary steel weight or to gain cargo capacity. Terminal siting and mooring are specific areas of expertise that require expert support and modelling, combining analysis of location, weather and sea conditions, marine traffic and geophysical conditions.

With one leg in ‘marine’ and one in ‘offshore’, most FSRU/FSU projects raise technical, regulatory, operational and environmental issues and questions – from all stakeholders. LNG

The crew of an LNG carrier is well trained for the shipto-ship transfer operation and fully aware of the potential dangers

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