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Setting the Standard for an automated Bunker Delivery NoteGastech 2019, Houston

Jeremy Shiflett, LNG Activity Lead – Pacesetting and Downstream Support, Shell LNGClaudia Beumer, Sales & Marketing Manager Wärtsilä Corporation

Copyright of Shell Trading and Supply

3. Proven and reliable LNG engine technology availability

4. LNG Availability, Safe and reliable supply chain

1. Cost competitive fuel 2. Cleaner burning fuelCan contribute to lower local exhaust emissions and global greenhouse gas emissions

LNG offers a compelling value proposition

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LNG ATB 4,000 m3

Cardissa 6,500 m3

Coral Methane 7,500 m3

Pioneer Knutsen 1,000 m3

LNG London 3,000 m3

In line with growing customers demand, Shell is investing in its LNG bunkering portfolio and infrastructure

FueLNG(Shell/Keppel)

7,500 m3

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WÄRTSILÄ STRATEGY

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ENERGYINCREASING DEMAND FOR CLEAN AND FLEXIBLE ENERGY

MARINEDEMAND FOR SMART AND

SAFE TRANSPORTATION

ENABLING SUSTAINABLE

SOCIETIESWITH SMART

TECHNOLOGY

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WÄRTSILÄ PURPOSE IS ENABLING SUSTAINABLE SOCIETIES WITH SMART TECHNOLOGY.

WÄRTSILÄ PURPOSE

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CLEAN ENVIRONMENTProtection of the environment plays a bigger role than ever before. Driving sustainability contributes to reduced emissions, compliance and ensures a clean future. Integrating environmental issues to business planning creates a competitive edge.

MARKET SHAPING & INNOVATIONIdeas, information and intelligence are needed to navigate through the digital era. Market shaping and innovation means embracing and enabling new kind of business and technology innovations and staying on the pulse of what’s new.

ENERGY INTELLIGENCEEnergy intelligence is about optimizing lifecycle costs and ensuring efficiency throughout the value chain. Operations can be optimized by choosing most optimal technology and using assets in the most efficient way. Digital technologies and data intelligence enable continuous monitoring and optimization of operations and opens doors for new business models.

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INTRODUCTION

LNG - Cleaner, affordable and available fuel to supply the global marine market

LNG SUPPLY IS AVAILABLE IN KEY MARKETS GLOBALLY THE MARINE SEGMENTS ARE ADOPTING LNG

Container Tanker Bulker PCCT OSV Ferry

KEY DOWNSTREAM INFRASTRUCTURE IS BEING DEVELOPED

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• Goal - to bring suppliers, manufacturers and end users together to develop and integrate the equipment required for a proven, accurate and transparent BDN

• As the industry is still in the early stages, there are many critical challenges that need to be overcome in order to help move the industry forward

INTRODUCTION

Shell and Wartsila are working together to provide solutions for the LNG Bunkering Industry

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New Bunkering Solutions demand New Measurement Solutions

• Traditional BDNs for fuel oil are simplistic and transparent• Load Port quality (Density) – stable• Mature and proven quantity measurement procedures (Flow Meter)• Sales and Purchases are in MT

• LNG BDNs have multiple variables and require transparency• Load port quality effect from natural boil off – unstable• Proven quantity measurements are limited• Sales/Purchases are in Energy – requiring detailed calculations

DIFFERENCES

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CHALLENGES

LNG Bunkering is not the same as FO Bunkering or even traditional LNG measurement

• LNG Bunkering requires changes for measurement• Smaller volumes• LNG traded in energy content instead of mass• Commercial agreements with new specifications (MN)

• Traditional fuel quality remains stable over time, quality of LNG can differ over time

Custody Transfer of LNG requires different equipment, procedures and methodology to ensure tamperproof and reliable measurements

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CHALLENGES

How can we produce an accurate and transparent LNG BDN?

• Transparency?• 3rd party validation?• Tamper-proof measurement systems?

• Accuracy?• Energy calculations?• Quality determination?

• Standardized?• Consistent procedures?• Documents?

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THE SOLUTION

How can the industry solve this challenge?

• Integration of multiple outputs to deliver the energy value• Suppliers of sub components to work together and ensure compatibility of

measurement signals and communication protocols• System integrators to adapt the traditional fuel bunkering best practices to LNG

bunkering

• Validation of physical measurements but also the energy calculation behind it..• Reference conditions to be identified and possibly standardized• Industry accepted energy calculations• System needs to be transparent and validated

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THE SOLUTION

How can we develop, align and implement the solution?

• Identify the requirements• Data• Formats

• Validate the process• Energy calculations, formulas, standards• Independent 3rd Party endorsement

• Develop and integrate the measurement system• Closed CTMS, meter, quality measurement systems• Eliminate manual entry or override • Establish shared communication link (web-based)

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NEXT STEPS

LNG Bunkering is here to stay, so what is the way forward?

• There is a need for standardized the procedures and measurement for LNG bunkering, but who will take the lead?

• Who is going to monitor and regulate this moving forward?

• Currently all parties have their own BDN, but there is a need for a standardized format, containing the same commercial and technical information