Poseidon Med IIGeorge Polychroniou
Poseidon Med II - Project Manager
Executive Director
Strategy, Business Development, Administration & IT
DEPA – Public Gas Corporation S.A.
LNG: The meeting point for Marine Transport & Energy sectors in CyprusLimassol Cyprus
September 29, 2017
I. LNG as Marine Fuel
II. Poseidon Med II project
III.LNG in Cyprus
Content
I. LNG as Marine Fuel
II. Poseidon Med II project
III.LNG in Cyprus
4
International regulation on the emission control
…in ECA have use fuel oil with a sulphurcontent of no more than 0.10% since
1 January 2015.
…outside (ECA), the current limit for sulphur content of fuel oil is 3.50%,
falling to 0.50% m/m on after 1 January 2020
Ships trading…
5
Alternatives based on MARPOL Annex VI
MARPOL - Annex VI
• Recent decision of IMO/MEPC will speed up developments
• LNG competition with Low Sulphur Bunker Fuels and EGCS (scrubbers) but:
Competition depends on oil price level and LNG decoupling
LNG can offer compliance with potential future environmental regulation
(NOx, PM, COx)
Conversion Investments payback often < 5 years
LNG could be the most beneficial option for:
− Smaller vessels
− New builds
− Vessels operating on fixed routes (e.g. Container vessels, Ferries,
Cruise ships)
• Other issues also matter (safety, reliability)
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LNG as marine fuel
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LNG fuelled Vessels
Excluding LNG carriers & inland waterway vessels
Source: DNV-GL, May 2017
There are currently 221 confirmed LNG ship fuel projects
1 1 3 3 3 4 8 9 15 21 25 35 4556
7597 106
34
73
98 108 110 113 113 115
10
50
100
150
200
250
Axi
s Ti
tle
Ships in operation Ships on order
106 LNG fuelled ships in operation worldwide today
115 confirmed LNG fuelled newbuilds in 2024
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LNG fuelled ships cover large area
The heat map is based on the LNG fuelled fleet’s AIS positions from 15.05.2017 – 25.05.2017
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LNG Demand for Bunkering
Different views often diverging.Drivers that could speed up the
demand:
New environmental regulations
Availability and cost of ownership for other bunker fuels
Optimization of the SSLNG supply chain
1
2
3
LNG Consumption as a bunker fuel
Source: Forecasting the future of Marine fuel, BCG, 2015
263 252 210155 116
23143
191 237
7
86
174
0
100
200
300
400
500
600
2014 2015 2020 2025 2030
Shipping Industry
Conventional HFO cleaned by scrubbers LNG
Tons (millions)
I. LNG as Marine Fuel
II.Poseidon Med II project
III.LNG in Cyprus
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LNG at Ports
Piraeus
Patra
Heraklion
Igoumenitsa
Limassol
Venice
3 Countries
6 Ports
Greece
Italy
Cyprus
Duration: Jun.2015 – Dec.2020
Budget: ~€53M
Coordinator: DEPA
Technical Coordinator:
DESFA
Partenrs: 26
Co-financed: 50% by EU - CEFConnecting EuropeFacility
0
12
Partners
13
Activities
01Studies for Ports
02Designs of Vessels
03Regulation
04Financial
Synergies
Infrastructure at Revithoussa LNG terminal -
LNG infrastructure at 5 ports -
- Financial assessment
- Financial tools for investments Adaptation of regulatory framework -
Environmental impact assessment -
- LNG fuelled vessels (newbuilds & retrofit)
- LNG bunkering and feeder
I. LNG as Marine Fuel
II. Poseidon Med II project
III.LNG in Cyprus
15
Need for Synergies
LNG as marine fuel Road transport sector
Off grid areas individual/remote consumers,
potential distribution companies
Power Generation Plants Vasilikos power plant/ Greek Aegean islands
LimassolVassilikos
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LNG in Cyprus
LNG to be transferred from FSRU in Vassilikos…
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