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LNG as fuel – recent development
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The backpicture
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Global Ship Traffic
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Shipping: 3% of global CO2 emissions
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Shipping is lagging land-based industry
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Sulphur emission requirements
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EU sulphur Directive - revision highlights
Revised Directive agreed
by EU;
– Alignment with MARPOL
Annex VI
– Agreement on 0.5% in EU
waters in 2020
– PAX vessel requirements at
1,5% in all non-ECA EU
waters until 2020 (200 NM)
– State aid for technology
investments (scrubbers,
LNG, infrastructure)
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Shipping in a complex regulatory landscape
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LNG Fuelled Ships
LNG as fuel has impact on health and environment
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0%
20%
40%
60%
80%
100%
CO2 NOx PM SOx
CO2:
~20% reduction
NOx:
~90% reduction
Particulate matters:
>95% reduction
SOx:
>95% reduction
HFO
LNG
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Other drivers than ECA for LNG fuel market
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Existing ECAs Upcoming ECAs?
2010: Sulphur < 1.0% 2015: Sulphur < 0.1%
ECA sulphur requirements
2011: NOx Tier II, -20% 2016: NOx Tier III, -80%*
*New builds, only m ECA
NOx requirements
2020 / 2025*: Sulphur < 0.50% * Date TBD pending 2018 review – but 2020 will apply in EU waters
Global requirements
3 to 5 $/mmBTU 9 to 12 $/mmBTU
HFO approx 18 $/mmBTU
MGO approx 25 $/mmBTU
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A look into the rear mirror
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14 years LNG as ship fuel for “non gas carriers”
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First LNG fuelled ship: GLUTRA in 2000
LNG fuelled cruise liner type ferry: STAVANGERFJORD in 2013
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LNG fuelled ships – Rules and Regulation in place
2000
2013
2001 first DNV Class rules for gas fuelled ships
2004 NMD proposal to develop the IMO IGF Code
2010 IMO MSC.285(86) in force
2013 DNV Rules Part 6 Ch 13: Gas Fuelled Ship Installations (Ver. Jan 2013)
2013 IMO IGF-Code: International Code of safety for ships using Gases or other low-flashpoint Fuels (Draft Feb 2013)
2013 DNV: Crew Training SoC 3.325 The use of LNG as a fuel on board vessels (Ver. April 2013)
2013 ISO Guidelines for systems and installations for supply of LNG as fuel to ships (OGP Draft 118683) (draft published in June 2013)
DNV-RP-G106: Recommended Practice for the development and operation of LNG bunker facilities (published Nov. 2013)
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Key questions are answered/worked on
Tank locations below accommodations are possible
Low pressure prismatic tanks for large LNG volumes
will be built
Tank distance from side shell still under discussion
(discussed at IMO SDC 1, January 2014 and forward
to MSC)
Tank length also under discussion in IMO
Crew training addressed to IMO, ongoing work in
SGMF
Harbour regulations: first regulations to be
published by port of Antwerp in QA-1 2014
Bunkering with passengers on board is not creating
an unacceptable risk
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LNG Fuelled – from niche segment to
world wide shipping
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LNG fuelled ships
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LNG Fuelled Ships today
LNG Fuelled ships tomorrow
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LNG as fuel for cruise ships
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Engine arrangement M/S Stavangerfjord
Bergen marine gas motor; 4 pcs B35:40V12PG with GRU
LNG fuelling system; 2 pcs 300m3 LNG tanks with cold boxes, 2 pcs bunkering stations, associated piping
ACON LNG control and monitoring system
All existing vessels use Type C tanks. This will change for large amounts of LNG!
Source: Rolls Royce Bergen
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LNG Fuelled ships– running fleet and
orderbook
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47 LNG fuelled ships in operation worldwide
Year Type of vessel Owner Class
2000 Car/passenger ferry Fjord1 DNV
2003 PSV Simon Møkster DNV
2003 PSV Eidesvik DNV
2006 Car/passenger ferry Fjord1 DNV
2007 Car/passenger ferry Fjord1 DNV
2007 Car/passenger ferry Fjord1 DNV
2007 Car/passenger ferry Fjord1 DNV
2007 Car/passenger ferry Fjord1 DNV
2008 PSV Eidesvik Shipping DNV
2009 PSV Eidesvik Shipping DNV
2009 Car/passenger ferry Tide Sjø DNV
2009 Car/passenger ferry Tide Sjø DNV
2009 Car/passenger ferry Tide Sjø DNV
2009 Patrol vessel Remøy Management DNV
2009 Car/passenger ferry Fjord1 DNV
2010 Patrol vessel Remøy Management DNV
2010 Car/passenger ferry Fjord1 DNV
2010 Patrol vessel Remøy Management DNV
2010 Car/passenger ferry Fjord1 DNV
2010 Car/passenger ferry Fjord1 DNV
2010 Car/passenger ferry Fosen Namsos Sjø DNV
2011 PSV DOF DNV
2011* Chemical tanker Tarbit Shipping GL
2011 Car/passenger ferry Fjord1 DNV
2011 PSV Solstad Rederi DNV
Year Type of vessel Owner Class
2012* Car/passenger ferry Fjord1 DNV
2012 PSV Eidesvik DNV
2012 PSV Olympic Shipping DNV
2012 PSV Island Offshore DNV
2012 General Cargo Nordnorsk Shipping DNV
2012 PSV Eidesvik Shipping DNV
2012 PSV Island Offshore DNV
2012 Car/passenger ferry Torghatten Nord DNV
2012 Car/passenger ferry Torghatten Nord DNV
2012 Car/passenger ferry Torghatten Nord DNV
2013 PSV REM DNV
2013 RoPax Viking Line LR
2013 Car/passenger ferry Torghatten Nord DNV
2013 Harbor vessel Incheon Port Authority KR
2013 General Cargo Eidsvaag DNV
2013 RoPax Fjordline DNV
2013 High speed RoPax Buquebus DNV
2013 Tug CNOOC CCS
2013 Tug CNOOC CCS
2013 Car/passenger ferry Norled DNV 2014 Car/passenger ferry Norled DNV 2014 Tug Buksér & Berging DNV
Updated 23.01.2014 Excluding LNG carriers and inland waterway vessels
Ships in operation
* Conversion project
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48 confirmed LNG fuelled newbuildings
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Year Type of vessel Owner Class
2014 RoPax Fjordline DNV
2014 Ro-Ro Norlines DNV
2014 Ro-Ro Norlines DNV
2014 Patrol vessel Finish Border Guard GL
2014 Car/passenger ferry Society of Quebec LR
2014 Car/passenger ferry Society of Quebec LR
2014 Car/passenger ferry Society of Quebec LR
2014 Tug Buksér & Berging DNV
2014 PSV Harvey Gulf Int. ABS
2014 PSV Harvey Gulf Int. ABS
2014 PSV Harvey Gulf Int. ABS
2014 PSV Harvey Gulf Int. ABS
2014 Gas carrier SABIC BV
2014 Gas carrier SABIC BV
2014* Product tanker Bergen Tankers LR
2014 General Cargo Egil Ulvan Rederi DNV
2014 General Cargo Egil Ulvan Rederi DNV
2014 PSV Remøy Shipping DNV
2014 Car/passenger ferry AG Ems GL
2014* Car/passenger ferry AG Ems GL
2014 Car/passenger ferry Samsoe Municipality DNV
2014 Ro-Ro Sea-Cargo DNV
2014 Ro-Ro Sea-Cargo DNV
Year Type of vessel Owner Class
2015 PSV Siem Offshore DNV
2015 PSV Siem Offshore DNV
2015 PSV Simon Møkster DNV
2015 PSV Harvey Gulf Int. ABS
2015 PSV Harvey Gulf Int. ABS
2015 LEG carrier Evergas BV
2015 LEG carrier Evergas BV
2015 LEG carrier Evergas BV
2015 Container Ship Brodosplit DNV GL
2015 Container Ship Brodosplit DNV GL
2015 PSV Siem Offshore
2015 PSV Siem Offshore
2015 Container Ship TOTE Shipholdings ABS
2016 Container Ship TOTE Shipholdings ABS
2016 PSV Siem Offshore
2016 PSV Siem Offshore
2016 Chemical tanker Terntank
2016 Chemical tanker Terntank
2016 Car/passenger ferry Boreal Transport
2016 Car/passenger ferry Boreal Transport
2017 RoPax Brittany Ferries BV
2017 Container Ship Crowley Maritime DNV GL
2017 Container Ship Crowley Maritime DNV GL
2018 Container Ship Matson Navigation DNV GL
2018 Container Ship Matson Navigation DNV GL
* Conversion project Updated 23.01.2014
Excluding LNG carriers and inland waterway vessels
Confirmed orderbook
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What is the operational experience?
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Damage experience from our own class records
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Collecting operational feedback from different stakeholders
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LNG Fuel - Technical and operational experience
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LNG Bunkering
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Global LNG bunker demand by 2020
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South America
North America
Europe & the Baltic Sea
Middle East & India
SEA
Japan & Korea
Australia & NZ
LNG Bunkering demand 2020 Equivalent to 4 -7 million tons of LNG
LNG Bunkering demand 2012
0.9 – 1.4 million
China
0.3 – 0.4 million
1.4 – 2.2 million 0.3 – 0.8 million
0.3 – 0.7 million
0.4 – 0.7 million
0.1 – 0.2 million
0.3 – 0.5 million 0.07 – 0.09 million
4-7 million tons of LNG p.a is required for 1000 ships in 2020. This corresponds to 0.2-0.3% of global gas production of 2010
Source: DNV study - early 2012
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LNG Bunkering ISO and RP issues
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Availability of LNG for bunkering
42 vessels
Local traffic along the
Norwegian coast and in the
Baltic
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A snapshot from LNG Fuelled vessels February 4th 2014
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Ready for LNG or not?
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Are you ready for the future fuel?
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LNG Ready
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The stepwise approach enables clients to benefit from DNVs expertise where needed
‘LNG Ready’ – Service Overview
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The path to become ‘LNG Ready’
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1. STRATEGY – FUEL DECISION
• High level technical feasibility
• Fuel consumption estimates
• Financial feasibility
• Cost, pay-back time and sensitivity analysis
• Fuel availability
2. CONCEPT CAPTURE
• Detailed technical feasibility study
• Performance benchmarking
(Machinery and tank evaluation and
optimization)
• Concept Design Review
(Statement - class acceptance)
• HAZID
CLASS APPROVAL (after vessel is ‘LNG Ready’)
3. INITIAL DESIGN
• Approval in Principle
4. RISK ASSESSMENT
• Gas fuel safety risk assessment (mandatory
by IMO)
Decision Points. Proceed with the LNG option or not.
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LNG Ready – more than an option
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Will LNG be the future fuel?
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A look to the past may light the future
20 years after 1. vessel
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Selandia – first diesel powered ocean going vessel - 1912
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Warning: Never mistake a clear view for a short distance (Paul Saffo, Stanford)
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