LNG bunkering – Why, How and When

Nigel Draffin

Technical Manager LQM Petroleum Services Inc.

SOx, NOx,CO2 and PM

• Environmental protection legislation is targeting atmospheric pollution.

• Sulphur oxides (linked to sulphur content in the fuel).

• Nitrous oxides (linked to engine design)

• Carbon dioxide (linked to quantity of fuel burned

• Particulate matter (linked to sulphur content)

Methane – the advantages • Regulations

– No sulphur – NOx, burning methane gives lower NOx. – CO2 levels are lower because of fuel chemistry – PM very low because there is no sulphur.

• Operations – No fuel heating, purifiers, hot filters – No compatibility issues – No sludge, catalyst fines or dodgy cutterstock – Excellent ignition and combustion

• Maintenance – Much less fuel system maintenance – Reduced maintenance of pistons, cylinders, valves and turbochargers – Cleaner waste heat units

• Commercial – Potentially cheaper than all of the alternatives – Especially in USA and North Europe

Methane - the disadvantages

• Because our ship moves we have to store the gas under high pressure (200 bar) CNG or at very low temperature (-162 deg C) LNG

• Compressed gas storage is viable for motor cars but as the engines get bigger, the fuel tank gets heavier and storing as a liquid becomes the only real option.

• The space required for LNG storage on board is at least 130% to 150% of the space for fuel oil

• Methane is a low flash point fuel and requires additional safety precautions

• Capital cost is about 125% of a conventional vessel.

Pricing (Apr 2015)

• Comparing $ mmBTU (fuel $300 pmt delivered)

– 1 mt of 380 cSt fuel = 38.1 mmBTU

– so $7.87 mmBTU

– LNG = $6.71 mmBTU basis Zeebruge

– LNG = $2.47 mmBTU basis Lake Charles

– LNG = $7.85 mmBTU basis Tokyo

• These levels are based FOB bulk at these terminals, the costs or redistribution and retail delivery must be added on.

Storing Methane

• 1 cubic metre of LNG will expand 600 times as it turns to gas.

• We can store at atmospheric pressure at -162 deg C as a liquid .

• We can store the liquid at a pressure up to 10 bar at temperatures up to -130 deg C

• We can store at the vapour at 200 bar at ambient temperature.

Pipeline

• LNG will be transferred directly from a storage tank via pipeline and hose (or flowboom) to the receiving ship.

• For lower flow rates pressure differential between supply facility tank and receiving ship tank will be used, for higher flow rates, the pump will be used.

Simple flowboom

RTW supply

• The RTW will load the LNG at a storage terminal and deliver to the receiving ship at the quayside.

• The delivery will almost always be by pressure differential although some RTW will have a pump fitted.

• Connection will always be via a hose

RTW supplying ferry

Barge supply

• The barge will be , in effect, an LNG tanker and will have to comply with the IGC code.

• The barge will load at an LNG terminal and the connection to the ship will be either by hose or by flowboom.

• For flow rates exceeding 200 mt/hr it is probable that there will need to be a vapour return line from the ship to the barge to manage the generation of boil off gas in the vessel tanks.

Viking Grace and Seagas

IMO

• The committee dealing with certification of seafarers is considering the training requirements.

• The topics are split into Basic and Advanced

• Basic for all personnel (officers and ratings, deck and engine)

• Advanced for officers (deck and engine) and any ratings involved in bunker transfer.

• Related to the work on the IGF code

Training topics

• LNG and methane gas physical and chemical properties

• LNG and methane gas risks, hazards and precautions for storage and transfer.

• LNG and methane gas risks, hazards and precautions for use as fuel.

• Safety equipment , safe zones, personnel safety, firefighting and spill precautions

• Bunkering procedures • Emergency procedures

Relevance

• The proposed training is based on the requirements for LNG carriers and may be too complex and detailed for ratings and some junior officers.

• LNG bunker barges will have to comply with the rules for LNG carriers

• Training for ordinary ships is likely to be addressed over the next two years.

• This training will be controlled by STCW and by the IGF code , both of which are mandated under the SOLAS convention.

Current fleet

• 82 plus vessels in service – Cruise liner – Passenger ferries – Oil Tankers – Offshore support vessels – Barges

• 63 plus vessels on order – Container ships – RoRo – Tankers – Patrol vessels

So how many ships ? (Feb 2015)

• In service 88 vessels + over 365 LNG tankers

• On order 66 vessels + over 45 LNG tankers

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roro ferry psv tanker gen cargo tug ropax barge patrol

LNG fuelled in service

What do we know for sure

• Small scale LNG is spreading all over Europe, that means the LNG will be available.

• Short sea and inland shipping will be the first players, Rotterdam has two RTW locations in use now and has a planned barge terminal due in 2015.

• Once the IGF is “settled” shipping companies can do the maths on newbuildings.

• Retrofit is unlikely for deep sea.

In service now - Kvitbjørn

Kvitbjørn – delivery passage

• This vessel was built in Jiangsu, China.

• It has gas engines (it cannot burn any other fuel)

• She arrived in Norway on 29th March 2015.

• En route she took called at Shanghai, Singapore, Cochin, Barcelona and Fredrikstad

• She took on LNG fuel at Jiangsu, Cochin and Barcelona.

And Turkey?

• With two LNG import terminals (Eregli and Aliaga) the product is available.

• Possibility of future LNG export at Enez. Gas supplies from Azerbaijan and Russia.

• Asayaport container terminal will have LNG storage nearby and its road vehicles will store and use LNG fuel.

• Watch this space