Society for Gas as a Marine Fuel

Transcription

1 Mark Bell Society for Gas as a Marine Fuel June 2015

2 CONTENT 1.0 Highlight current issues facing the industry Price Availability 2.0 SGMF update who what where when. 3.0 Current projects Work Groups, Outputs

3 Why gas as a marine fuel? For whoand just what are the issues? Regulation & Rules Performance Competition ENVIRONMENT Public Perception Ship Types Safety New Build or Retrofit? Technology Price Availability 3

4 Price Energy markets are changing Crude price change rate Any differential to gas right now is low Market uncertain what will happen when crude price rises? When it does what will happen to gas prices? Gas prices vary widely Regional price proportional to local energy Base cost < Crude but

5 AVAILABILITY Everywhere and nowhere Many current projects are also providing for themselves Not going to happen overnight Capital intensive Other fuel candidates

6 LNG supply chain Gas Production and Delivery Bulk LNG Liquefaction Liquefaction plant Bulk LNG Shipping Small, local Liquefaction plant Bulk LNG Import Terminal LNG to Market Small scale LNG Liquefaction

7 Status report: ships gas fuelled ships in service 59 vessels under construction Car ferries currently make up the majority of the LNG fuelled fleet 26 (48%) in operation and 15 (25%) on order. Offshore support vessels make up the second largest contingent at 29% and 18% respectively Most types of ship now represented by a gas fuelled variant Number of gas fuelled ships Norway Other Europe US/Canada Rest of World 70,000 ships - world fleet in next 5-7 years 9000 fold increase in transactions! Other (order) PSV (order) Ferry (order) Other Ships PSV Ferry

8 Status report: markets and drivers Worldwide gas as fuel market starting to fragment into regional activities What does this mean for marine fuel supply? Current crude price drop / HFO is masking the apparent cost benefit of LNG Jan 2015 and ECA 0.1% has passed, global sulphur cap next.. Norway North America Europe China SE Asia PRICE SUBSIDY GEOGRAPHY

9 So What is SGMF? The Society for Gas as a Marine Fuel is A non-governmental, non-profit making, industry membership based organization Objective is to establish and encourage the safe and responsible operation of gas fuelled vessels and their fuelling infrastructure SGMF is developing and delivering best practice and guidance on most aspects of the marine gas fuelled industry avoiding duplication and where it matters most TECHNICAL SAFETY ENVIRONMENTAL CONTRACTUAL TRAINING & COMPETENCE As for regulations Gas as Fuel = SGMF + IGF code Gas as Cargo = SIGTTO + IGC code

10 Who and where are SGMF London based Secretariat 3 Staff Global Board Governance 16 Organisations across the business 3 Meets and 1 AGM per year Technical Committee 17 Individuals from across membership Meets twice per year Work Group Activity Based 6 Current, various outputs Member Type Focus Groups

11 Our membership 88 members worldwide from a wide range of industries including Port authorities Ship owners and managers LNG suppliers and facility operators Energy majors Bunkering providers Equipment manufacturers Port and National Authorities Consultants and Designers Founding board members

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13 Our vision..mission. INSPIRING RESPONSIBLE FUTURE SHIPPING Leading the industry, using our collective knowledge and experience, to help and provide insightful guidance, for safe and responsible use of gas as a commercial marine fuel.

14 Four Key Areas of Activity ENVIRONMENT Emission levels ECAs Scrubbing Alternative fuels SAFETY Handling Cryogenic fluids Safety distances Designing in safety Risk assessment Simultaneous Operations Emergency procedures Training & Competence Salvage of LNG TECHNICAL Worldwide infrastructure Ship fleet projections Ship fuel systems Bunkering systems and procedures CONTRACTUAL Commercial agreements Quantity measurement Sampling & quality calculation

15 WHAT? Output and Publications 1. Mini guide 2. Overview / Training by subject 3. Detailed technical guidance Mini guide Subject overviews Technical guidance Mini Guide SGMF s first general publication available since Oct 2014 Guide is downloadable and free from the SGMF website ( Bunkering Safety Guidelines SGMF s first official work group output March 2015 Bunkering Safety Guidelines Available to members only Quality & Quantity Issues SGMF s second official output July 2015 Contractual Guidelines Available to members only

16 How? Working groups & the Technical Committee Meetings of members to discuss specific issues Capturing of industry experience and best practice for distillation into publications for the rest of the industry - authoritative All members welcome to join or observe Technical committee controlled Last TC in Rotterdam April 2015 Next TC in Jacksonville Sept Current working groups Safety Guidelines Safe Working Distances Salvage of LNG Training and Competence Quality and Quantity Issues Essential Equipment Components Under consideration SIMOPS Emergency Shut Down Systems Risk assessment application Methane slip Environmental performance well to wake Efficiency of 2 and 4 stroke engines EEDI ship plots for gas fuelled vessels

17 Conclusions Gas was, is and will continue to be a clean marine fuel and has a future market share The question is how fast will it grow and where in which segments Many factors affect its selection meanwhile SGMF aims to establish and share best practice worldwide Working groups lead industry thinking Knowledge to become available to the whole industry Gas as a Marine Fuel : safe and prosperousfor all SGMF is only as good as its growing membership and associated fellow NGOs IAPH,SIGTTO,IACS,IBIA,INTERTANKO,GIIGNL SGMF looks forward to your assistance and input so please join in

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