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Ethane Shipping: Global Chemicals & Petrochemicals Summit K P Roy, GTT Mumbai- 11-12 November 2019
Ethane Shipping:Global Chemicals & Petrochemicals Summit
K P Roy, GTT Mumbai- 11-12 November 2019
CONFIDENTIAL
Agenda
• About GTT
• Generalities on ethane market
• Experience and lessons learned from the world’s first VLECs
• Next generation of VLECs
• Conclusions
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Generalities on ethane Market
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Source: Fearnresearch
What about ethane?
• Ethylene production
dominated by North America,
Middle East, Northeast Asia
• USA is only country currently
able to massively export
ethane4
Ethylene production by feedstock (2014)
Source: IHS Chemicals
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Global demand for ethylene is rising due to increasing population growth and rising GDP
5
Worldwide ethylene demand by end use
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High yield and price advantage helping ethane case
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Ethane generates substantially
higher yields than other feedstock
sources when producing ethylene
Source: Global Sight, 2018
Yields by feedstock when producing ethylene
LDPE
LLDPE
Ethylene
US Ethane
Prices evolution since 2007
Naphtha
Lower and more stable natural gas
price vs. recovering oil price has
reinitiated ethane shipping interest
after “O&G crisis”
Source:
American Ethane
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US to India & China ethane shipping could be the next big move in this (nascent) industry
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New ethane crackers projects
• Most large ethane
crackers are in China
• Mid-size ethane crackers
in Europe & India
• 98k~150k ethane carriers
under consideration
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Industry-first VLECs
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The “Ethane Crystal” during Sea trial, near Goeje Island, Korea 10
• Ethane export from Enterprise Morgan’s Point export facility
• Reliance Industries (RIL) imports up to 1.6 mtpa since 2016
• Ethane is used as feedstock for RIL’s crackers in India
• A fleet of 6X innovative 87k m3 VLEC managed by Mitsui O.S.K.
Lines (MOL) was purpose-built by Samsung Heavy Industry (SHI)
shipyard in Korea• Very compact design: LOA 228m and Breadth 36.5m
• Equipped with proven GTT Mark III membrane CCS
Enterprise & Reliance Project
CONFIDENTIAL
Tank technology comparison
Membrane Type AType B
prismatic Type B Moss Type C
Pros
• Extensive experience on LNG
carriers
• Light and best space efficient
volume occupation
• Offered by several shipyards in
Japan, Korea and China
• Most cost & schedule
competitive tank type for
VLEC size
• Compatible for LPG, Ethylene
and LNG with no extra cost
• Low BOR
• Extensive experience in
type- A prismatic for
VLGC
• Very robust
• Good space efficiency
• Centerline bulkhead
prevents sloshing
• Very robust
• Good space efficiency
• Only partial
secondary barrier is
required
• Centerline bulkhead
prevents sloshing
• Very robust
• Extensive
experience on LNG
carriers
• Only partial
secondary barrier
is required
• No bulkhead
• Tank shape
prevents sloshing
• Very robust
• Can maintain
pressure
• No secondary barrier
required
• No double hull
required
Cons • Partial filling restrictions
• Requires an
independent secondary
barrier
• Still under development
for cryogenic gases
below -55°C.
• No ship currently in
operation for gases
colder than -55°C
• Higher CAPEX and
OPEX
• Very limited
experience
• Technology and
experience only
available in Japan
• Higher CAPEX and
OPEX
• Very poor space
efficiency
• Technology and
experience mainly
available in Japan
• Very poor space
efficiency
• Very heavy.
• Not economical for
VLGC size
• High BOR
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• GTT Membrane has been selected for the world’s first VLEC:
1. Safety & track record
2. Volumetric efficiency, cost & schedule advantage
3. Wide offering from several shipyards
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Successful VLEC deliveries
• First cargos have been
successfully loaded at
Morgan’s point (TX) and
delivered to India
• As of August 31st, 95
cargoes have been
delivered to Reliance
• MOL recently acquired
stake in Reliance VLECs
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2nd generation VLECs
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Ongoing project
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• Zhejiang Satellite Chemicals (China)
• 3.2 MTPA ethane feedstock ethylene cracker
• Ethane receiving terminal and cracker under construction in
Lianyungang (Jiangsu province)
• Dedicated export terminal in Nederland, TX (US) to supply the
ethane is under construction
• 2nd generation: 6+6 VLEC under construction
• Delivery end of 2020 onwards
CONFIDENTIAL
2nd generation VLEC (under construction)
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World’s first VLEC (6 units) 2nd generation VLEC (6+6 units)
Owner Reliance Zhejiang Satellite
Length 227.85m 230m
Breadth 36.5m 36.5m & 36.6m
Draft 11.5m 11.7m & 11.8m
Main Cargo Tank Type GTT’s Membrane Mark III (High Density)
Cargo tank capacity 87,200m3 (at 100%) + 400m3 deck tank 98,150m3 (at 100%) without deck tank
Liquid cargo type design Butane, Propane, LPG mix, Propylene,
Ethane
Butane, Propane, LPG mix, Propylene,
Ethane, Ethylene, LNG cargo ready
Cargo pump type Submerged pump Deep Well PumpRe-liquefaction type Cascade type
Main Engine (MAN B&W) 6G60ME-C9.5 6G60ME-C9.5-GIE & 7G60ME-C9.5-GIE
Speed 16.75 knots 17.85 knots & 18.3 knotsShipyard Samsung Heavy Industries (SHI) Samsung Heavy Industries (SHI)
& Hyundai Heavy Industries (HHI)
Ship management MOL Fleet Management
• Improved capacity and design speed (+ one full cargo per year)
• Improved BOR (-20%), additional cargo capacity (ethylene and LNG Cargo
ready)
• Deep Well Pump and Dual Fuel engine (ethane as fuel)
CONFIDENTIAL
Potential ethane composition for new projects
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• Upcoming ethane exports projects in US considering ethane
supply with 2%mol methane content (from 0.8% to 2%/mol)
• Boiling temperature may reduce from -92 to apprx -100 deg
• To accommodate the change, cargo tank needs to be designed
accordingly
• Adding de-methanizer equipment to gas process facility to
achieve this can require additional $250M investment
• Minor adjustment for membrane VLEC:
• Reliquefaction system needs to be updated, see example (https://www.sgmf.info/posts/babcock-brings-ecoethn-a-new-ethane-boil-off-gas-
technology-to-market)
• Membrane tank is already compatible with 2%mol methane
content
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Next generation of VLECs
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4
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150k m3 VLEC « Morgan’s Point Max »
• Max ship size that could load at Enterprise’s ethane export terminal
• Several design from various yards and design institutes
• Ethane as fuel in case of ethane shipping
• LNG as fuel in case of LNG shipping18
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Ultra Large Ethane Carriers being LNG Ready?
• SHI, GTT, ABS perform a Join Development Project aiming at the
definition of the most efficient design for ULEC being LNG Ready
• Capacity: up to 180k m3, 2 stroke MEGI-E
• Adapted to terminal constraints and long routes (US / China/ India)
• Containment system, piping design compatible with ethane and LNG
• This JDP will result in the definition of an efficient ship design
considering ethane and LNG as a cargo
• Expected results targeted by end 2019
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Conclusions on ethane
• Many drivers support the case for ethane shipping:
• Ethylene solid demand
• Ethane high yield
• US Ethane low price
• Already existing and trading VLECs
• New generation of large ethane ships to optimize shipping cost
• New trends to enhance ethane shipping competitiveness:
• Membrane VLEC is the only proven solution
• Membrane VLEC can carry from propylene to ethylene
• More optimized “VLGC” ethane ship up to 98k, from LPG to
ethylene + LNG tank ready
• ULEC (Ultra Large Ethane carrier), ethane & LNG
GTT is committed to supporting the NGLs logistics
chain 20
CONFIDENTIAL
Image courtesy of STX, Engie, Excelerate, SCF Group, Shell, CMA CGM, Matthieu Pesquet, Conrad
Thank you for your attentionK.P Roy•
