The Future Use of Natural Gas as Vessel Fuel(Illustration by I.M. Skaugen)

Ken Smith Marine Chemist Association's

Asst. Division Chief - General Engineer 54th Annual Seminar

Office of Vessel and Facility Operating Standards Chicago, IL

U.S. Coast Guard Headquarters 14 August, 2012

Outline

LNG Marine Activity Past and Present Driving Factors LNG Interests Delivery Options Regulations and Standards Gaps

2003 - 2007 Outlook

0

5

10

15

20

1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025

Source: EIA - Annual Energy Outlook 2005

LNG Imports (BCF)

1990-2011

EIA Annual Energy Outlook 2012

Driving Factors for use of LNG

Lower cost compared to ultra low sulpher marine diesel

ECA (Emission Control Area) requirements:

Maximum level of sulphur in fuel, all ships: 10,000 ppm by 1st July 2010 1,000 ppm by 1st January 2015

Nitrogen emission for newbuilds: 80% reduction in NOx emission

from 2016 on.

Current US Interests

LNG Future Interest

Vessel Supply Options

Shore Supply - Permanent

Fixed storage tanksHard piping to pierRegulated 33 CFR Part 127

Design

Equipment

Operations

Maintenance

Training

Firefighting

Security

Hot Work Permits

NFPA 59A - IBR

Shore Supply - Mobile

Tank TrucksHose connectionsArea where transfer takes place - Regulated 33 CFR Part 127

- Same Requirements ApplyTank Truck regulated by

- DOT/PHMSA 33 CFR Part 177

Vessel Supply

46 CFR Subchapter “D” Tank Vessel Regs

Classification Rules IMO IGC Code Vessel using LNG as fuel

covered by Policy

What’s Not Covered by US Regs LNG Fuel System Details Operational

Procedures for Bunkering

Personnel Training

Interface between supplier and receiver

What Exists Elsewhere? IMO – IGC Code

Rules for Bunkering Vessel IMO – IGF Code

Rules for Vessel using Gas as Fuel SIGGTO

Guidelines for LNG Transfer Classification Society Rules

ABS, DNV, LR, GL Swedish Marine Technology Forum

LNG Ship to Ship Bunkering Procedures ISO (Under Development)

Guidelines for Systems and Installations for Supply of LNG

USCG Current Approach

Coast Guard analysis has been on a Case-By-Case Basis

● Concepts have used IMO Interim Guidelines as a baseline standard

● Additional requirements tailored to each specific review

● Design Basis – framework of standards and requirements

Equivalent level of safety to Title 46 CFR

Bridging Gaps

Design Shore - 33 CFR Part 127 + Policy Ltr Ship – IMO Guidelines + Policy Ltr pointing to 46

CFR cites Policy (Until regs are developed)

CG-ENG 01-12 (Ship – published 4/19/2012) CG-OES XX-12 (Ops & Trng – Under development)

CG-ENG 01-12 Policy Letter

Establishes design criteria for natural gas fuel systems that provides an equivalent level of safety compared to traditionally fueled vessels designed to US regulations

Outlined to align section by section with IMO Res. MSC.285(86) Provides direction to specific US standards (e.g. ASME B31.3, ASME

BPV Code, ANSI, NFPA, etc.) Provides direction to specific US regulations (e.g. 46 CFR Part 56,

154) Establishes requirements beyond those required by IMO in several

areas (e.g. gas detection, testing of gas tanks and gas piping) Rulemaking underway to establish regs based on current policy

CG-OES Policy Letter

Interim guidelines for fuel transfer operations and training for personnel working on vessels that use natural gas as fuel

Specifies acceptable fuel sources Aligns with existing regs concerning fuel transfer procedures (33 CFR

Part 154, 155, and 156) Aligns with existing regs concerning LNG waterfront facilities (33

CFR Part 127) Aligns with IMO Res. MSC Circ.285(86) & Swedish Marine Forum Requires Operations, Maintenance, Training, and Emergency Manuals Outlines requirements for personnel training & PIC quals Policy is going through internal clearance Concepts to be part of Rulemaking effort

References

U.S. Energy Information Administration (EIA), http://www.eia.gov/

American Clean Skies Foundation, Natural Gas for Marine Vessels: U.S. Market Opportunities by M.J. Bradley & Associates, April 2012, http://www.cleanskies.org/wp-content/uploads/2012/04/Marine_Vessels_Final_forweb.pdf

Swedish Marine Technology Forum, LNG ship to ship bunkering procedures, Linde Cryo AB | FKAB Marine Design, Det Norske Veritas AS, LNG GOT, and White Smoke AB, http://www.smtf.se/fileadmin/documents/LNG02_projektrapport_appendix_www.pdf Danish Maritime Authority, Full Report – Northern European LNG Infrastructure Project, A Feasibility Study for an LNG Filling Station Infrastructure and Test of Recommendations, www.dma.dk/News/Sider/FinalReport.aspx Marintek, Norweigian Marine Technology Research Institute, LNG as a Fuel for Ships in Short Sea Shipping, www.sintef.no/upload/MARINTEK/Review 2-2009/MR-2_2009.pdf DNV Presentation, The Age of LNG is Here, Most Cost Efficient Solution for ECAs, www.cleantech.cnss.no/wp-content/uploads/2011/06/2010-DNV-The-age-of-LNG-is-here.pdf DNV, Article, LNG Fuel Supply to the Ship Side, I.M. Skaugen’s vision for an ECA port in the near future, http://www.dnv.com/industry/maritime/publicationsanddownloads/publications/updates/ferry/2010/01_2010/lngfuelsupplytotheshipside.asp

Questions?

(Illustration by I.M. Skaugen)