Risk Assessment & Loss Prevention of LNG Carriers in Operation, Under Construction and Conversion

Transcription

1 Risk Assessment & Loss Prevention of LNG Carriers in Operation, Under Construction and Conversion K.S. Wang The Principal Surveyor for Japan BMT Marine & Offshore Surveys Ltd. (Incorporating The Salvage Association) Kobe Office, Japan Tel: +81 (0) Mobile: +81 (0)

2 Founded 1856 The Association for the Protection of Commercial Interests as respects Wrecked and Damaged Property Founded in 1856 by London Insurers & others Royal Charter in 1867 A Not for Profit Association Motto Quaerite Vera meaning Seek the Truth

3 Known as The Salvage Association Expanded to 100 surveyors with 35 offices worldwide Our previous owner: Underwriters at Lloyds Affected by downturn in London Market in 1990 s Corporated into British Maritime Technology Group. (BMT Group) in 2001 Renamed to BMT Marine & Offshore Surveys Ltd., in April 2007

4 Our worldwide network (35 Locations) Vancouver Seattle Montreal Oakland Houston New Orleans Balboa Halifax New York Maryland Miami Hamburg London Rotterdam Antwerp Varna Lisbon Alicante Malta Piraeus Dubai Abu Dhabi Mumbai Karachi Kandla Jamnagar Visag Singapore Busan Kobe Hong Kong Vina del Mar Santiago Santos Cape Town Durban Visit our web site Contact our regional offices Americas at New York: Europe at London: Asia Pacific at Singapore: Central Region at Dubai:

5 We Survey the Prevailing Risks in the Maritime industry Collision Grounding Machinery breakdown Natural disasters Fire Explosions War risks Water ingress Piracy Terrorism Most Common Risks Extensive ship wreckage Hull damage (30 %) Machinery damage(40 %) Damage to cargo (30 %) Loss of human life

6 Gas production Processing, Liquefaction & Storage at LNG Production Terminal LNG tankers LNG Receiving terminal Industries and Power Station Distribution pipelines Domestic Gas LNG FPSO Regasification LNG FSRU

7 LNG Exporting Countries (LNG Loading Terminals) LNG export from countries with natural gas reserves. QATAR More natural gas reserves are found in production/construction in Russia, Iran, and other countries. A very rough estimates (Billion of m 3 ) LNG export is faster and more flexible than pipeline gas.

8 LNG Importing Countries CHINA AND INDIA The major LNG importing countries are in Asia. Europe and USA are increasing the import of LNG. The Air Quality of Japan has improved since use of LNG for Power Generator and Heavy Industries A very rough estimates (Billion of m 3 ) China will be one of the major importers of LNG Singapore is next on line

9 Type of LNG Carriers No. of Crew: About 30 per Ship Life Span: About 40 + years Construction period: About 2 ½ Spherical type of LNG Carrier Sizes: ,000m 3 Membrane type of LNG Carrier (GTT Mark III, NO 96 and CSI) Sizes:- Standard: ,000m 3 Q-Flex: ,000m 3 Q-Max: 250,000m 3

10 SPB Type Spherical Type Moss Membrane Type GTT Aluminum Alloy Only two ships in operations Aluminum Alloy Invar steel or stainless steel Types: NO 96, Mark III and CSI

11 LNG FPSO - Floating Production Storage Offloading (Planning and Design Stages) Raw Natural Gas

12 LNG FSRU (In Operation and Under Conversion/Construction) No. of Crew on board: About 30 Life Span: About 40 years Conversion from existing LNG Carriers (1 ship under conversion and 1 ship under planning) New construction of LNG FSRU

13 Floating Storage and Re-gasification Unit (LNG FSRU)

14 Composite View of Offshore LNG Facilities

15 Spherical Type of LNG Carrier Almost 40% the LNG carriers in the world are of the Spherical type. 80% of LNG carriers coming to Japan are of the Spherical type.

16 Spherical Type of LNG Carriers Aluminum Alloy Spherical tank. 40m in diameter. Self Supporting 40% of the world s LNG carriers are of this type.

17 Aluminum spherical tank of about 40m - 45m in diameter Long dry docking schedule

18 MEMBRANE Type of Carrier

19 MEMBRANE Type of LNG Carrier Primary membrane holds cargo. Secondary membrane prevents leakage. Primary & secondary insulation to maintain cargo temperature at 161 C Ship s hull to support tank. 80% of the world s LNG carriers under construction are of membrane type. Almost 60% of the LNG Carriers in the World are this Type.

20 NO.96 Membrane System Two membranes made of 36% nickel-steel (invar) 0.7 mm to 1.5 mm thick. Two layers of insulation boxes made of plywood filled with expanded perlite. Cargo tank is supported by inner hull of the ship.

21 MARK III Membrane System Primary Barrier of Corrugated Stainlesssteel of about m/m thickness to be installed onboard Secondary barrier of Triplex Membrane Triplex is made of glass cloth/aluminum foil/glass cloth bonded by glue. These sections are to be installed onboard Secondary Barrier of Triplex Membrane Inner Hull Plate Polyurethane Insulation Panel, this sections are to be prefabricated in the Workshop

22 CS1 Membrane System New Design (Two ships in operation) Combination of Mark III & No. 96. Nickel-steel (invar) (0.7 to 1.5 m/m) primary membrane. Glass cloth/aluminum foil/glass cloth Aluminum/glass Triplex secondary membrane. Polyurethane insulation panel

23 Current Shipyards Building LNG Carriers Korea China Hudong Zhonghua Shipyard (GTT). One ship delivered on 3/04/08 and Four ships under construction Japan Kawasaki Shipbuilding (Moss) Koyo Shipyard, Imabari (GTT) Mitsubishi Heavy Industries (Moss/ GTT) Mitsui Engineering (Moss/GTT) Universal Shipbuilding (GTT) Ishikawajima-Harima Heavy Industries (SPB)- two ships were built Daewoo (GTT and Moss) Hyundai Heavy Industries (GTT and Moss) Samsung Heavy Industries (GTT and Moss) Hanjin Heavy Industries (GTT and Moss) STX Shipbuilding (GTT/Moss) 80% of world s LNG carriers are under construction in Korea. France Aker Shipyard (Chantier's de L Atlantique Shipyard)- GTT Spain Puerto Real Shipyard - GTT

24 LNG Ship Repair Yards The current boom of shipbuilding has also brought forth an expansion of ship repair yards mainly under home port or home doctor concept. Japan Mitsubishi Heavy Industries Kawasaki Heavy Industries Ishikawajima-Harima Heavy Industries Universal Shipyards Mitsui Engineering and Shipbuilding Singapore Sembawang Group of Shipyards Keppel Group of Shipyards Malaysia Malaysia Shipbuilding & Engineering European Yards. Sobrena-France. Izar Carenas-Spain. Blohm & Voss-Hamburg. CMR-Italy. San Giorgio del Porto-Italy. Lisnave-Portugal. Middle East. Dubai Dry-docks. Special Trainings and licensing are required.

25 Risks of LNG Carrier Accidents during sea voyage: Grounding Navigation error Striking a fixed object or a wreck Navigation error Collision (with vessel or object) Navigation error Unloading/Loading Sudden pull-away and damage of loading/discharging arms and human injury Cracking of ship steel hull due to spill of LNG (super cold shock of -161 ) Terrorism Missile attack, boat based explosive and hijacking. Cargo machinery and cargo containment failures Natural risks Lightning, typhoon, hurricanes, and tsunami. Other hull/machinery accidents, such as fire in engine room on bridge and in accommodation, boilers, steam turbines, main reduction gears, diesel engine damages, and hull structural failures Note: Apart from the above risk we must be aware of the high costs (millions of $) and long repair period (months) arising from ordinary damage on LNG Carrier.

26 Risks of LNG Carrier Major and Minor Casualties on LNG Carriers experienced by the speaker over the last 30 years LNG X (Moss) grounding in Japan 2,000 tons of steel, 4 months of repair 1979 LNG X (Membrane) water ballast tank leak to insulation space of a cargo tank ½ year of repair 1979 LNG X (Membrane) over pressure of insulation spaces causing building of membrane 9 months of repair 1980 LNG X (Membrane) grounding in Gibraltar 2,500 tons of steel and deformation of cargo tanks: 1 ½ years of repair and ship-ship transfer of LNG 1989 LNG X (Membrane) broke away from LNG Terminal due to very strong gale damaging to No. 1 cargo tank, deck deformation and loading arms 10 months of repair 2004 LNG X (Membrane) grounding in Korea 200 tons of steel, 8 months of repair 2005 LNG X (Membrane) sloshing damage in a LNG tank due to heavy weather, and with partially loaded LNG tank 6 months of repair 2006 LNG X (Membrane) sloshing damage during ballast voyage with minimum LNG, 4 months repair /2006/2007 LNG (Membrane) X, X, X, X, and due to cargo containment failures (leak) in secondary barrier 6 to 2 months of locating the leak and repairs Main Boiler damage Main Reduction Gear damage Main Turbine damage Main Propeller shaft damage Resulted in ship to ship transfer of LNG Cargo Machinery damage (Cargo Pumps and etc.) Cargo Pipe damages movement of vessel at LNG terminal due to natural risks and machinery failures Hull Structure Failures

27 A Minor Grounding Damage on LNG Ship

28 A minor crack (less than 1 meter) due to grounding on the steel bulkhead in a cofferdam next to a cargo tank caused sea water ingress to the cargo tank

29 Resuletd LNG Cargo Pumps Immersed in Seawater

30 Resulted rusts on the Primary Membrane of the Cargo Tank after Soaked in Seawater and moisture

31 Resulted insulation boxes soaked in seawater

32 Sloshing Phenomena of a Partially Filled Cargo Tank Latest allowable minimum level of LNG in a membrane type of cargo tank is 10% of the height of the cargo tank instead of 10 % of the length of the cargo tank

33 Another close-up view of sloshing damage in a LNG tank

34 Secondary barrier failure on the operating of GTT Mark III Cargo Tank (N2 leak detected during operations) Separation due to failure of Glue applied on the onboard installed Triplex Triplex Membranemade of (glass cloth/ Aluminum foil/ glass cloth) as secondary barrier

35 Risks and Loss Prevention during Construction Delivery delayed. Major Construction Casualties 1980 Three LNG carriers in a shipyard Total Constructive Loss. Due to cargo tank insulation failure One LNG Ship in a Shipyard Insulation system failure. Long delays in delivery Fire in cargo tank. Due to welding of reinforcement on Pump column. Bulging of primary and secondary barriers during tests. 2005/2006/2007 Failures of cargo containment system of LNG carriers in operations due to defects during construction. Our Recommendation: JH 143 Shipyard Risk Assessment and Loss Prevention Survey by BMT Surveys

36 Major Casualties in LNG both at Loading and Receiving Terminals Four Major accidents over 60 years of LNG usage Cleveland, Ohio Shortage of stainless steel leading to poor quality tanks after WWII. 128 fatalities, damage to facilities Staten Island, New York Construction accident. 37 fatalities, damage to facilities Cove point, Maryland LNG leakage ignited by faulty electrical circuit. 1 fatality, damage to facilities Algeria LNG liquefaction plant. Due to leaking gas drawn into a boiler fan. 27 fatalities, damage to facilities There have been other accidents leading to injuries, delays in production and damages to facilities.

37 As Low as Reasonable Possible Risks of LNG Carriers Gas cloud Collision events Fire in engine room, accommodation and navigation bridge Release of bunker oil Collisions, groundings of any kind Man overboard, or piracy Contact with Quay/cargo tank releases of LNG

38 Measures to reduce risk and loss prevention on LNG Carriers Gas detection safety and firefighting equipments: Manual and automatic gas detections, foam, powder, water curtain, and sea water fire fighting systems Safety and Operation Internal Inspection/Audit by crew: Monthly Safety and Operation Internal Inspection/Audit yearly by ship managers Safety and Operational and Management Inspection/Audit and Security Screening every 2 or 2 ½ years by External Surveyors (Class, Statutory, PSC, OCIMF, P & I Club) Pre-employment crew screening, continuous training, up-grading of license and selection of suitable crew Terrorist risk prevention based on ISPS Entry and Routine Condition Survey for P&I Clubs by BMT Surveys JH115A general condition survey for Hull Insurers by BMT Surveys JH2006/010 A, B,C, Engine room and office management and condition surveys for Hull Insuers by BMT Surveys JH143 Shipyard Risk Assessment and Loss Prevention Surveys during Construction / Conversion of LNG Carrier by BMT Surveys Preparation of Standard Maintenance Specification, Master Maintenance Plan and Priced Standard Maintenance Plan by BMT Surveys Use of Service Engineers for All the Vital Machinery and Equipments

39 New Risks on New Technologies LNG Carriers have proven experience of steam turbines propulsion system. New propulsion system is introduced Dual Fuel Diesel Engine Propulsion Systems Dual Fuel Diesel Engines + Electric Motors propolusion system Reliqefication Plant Re-gasification plant New Cargo Containment System (Mark III, CS I and so on...) LNG FPSO LNG FSRU We are going into new technologies accompanying with new risks.

40 Risks on Shipbuilders New Technologies More shipyards are building of LNG Carriers. High demand on trainned and experienced shipyard workers. Poching of Experienced Workers from One Shipyard to Another Shipyard Shortage of skill and trainned workers Major safety, quality and trainning issues

41 Risk Due To Shortage Of Experienced LNG Crew In year 2000 the number of LNG were about 130. In year 2007 it increased to 250. In yerar 2010 the number of LNGC increse to about experieced senior officers per LNGC are required. (Master, Chief Officer, Chief Enginner, 1 st Enginner, Cargo Engineer, Electrical Engineer) 2000: 1,000 Experienced senior officers 2007: 3,000 Experienced senior officers 2010: 3,600 Experienced senior officers In addition, due to increase in the construction of LNG Carriers, LNG FPSO, and LNG FSRU more experienced seafarers are employed as owner s construction and operation superintendants. The Seaman s Life is Not as Fun as Before due to 12 hours turn around at port at LNG Terminals There is a great shortage of experienced LNG senior officers in the marine industries. Trainning, licensing, security screening and better financial rewards and benefits are essential in order to attract seafarers to this industries.

42 LNG Receiving Terminals in the Pacific Note: India (2) + (?) China (1) + (?) Shanghai Singapore

43 LNG Receiving Terminals in Europe More LNG Terminals are under construction and planning

44 LNG Receiving Terminals in the USA More LNG Terminals and FSRU are under construction and planning in USA and the Americas

45 References Trade Winds Fair Play Use of Risk Analysis for Emergency Planning of LNG Carriers (Skramstad, E; Musaeus, S; Melbo, S-of DNV and Osprey) Nov Gastech. LNG Journals Hazardous Cargo Bulletin March LNG World Shipping Dec The Global Liquefied Natural Gas Market: Status and Outlook Department of Energy Report, US Government Images from: IMAGESMMIV/gaselys.jpg Energy Information Administration Oil and Gas Journal Gaztransport and Technigaz Naval engineering brochures Mark III System No. 96 System CS 1 System Moss Systems engineering brochures IHI-SPM Brochures

46 K.S. Wang - after the main engine damage survey wearing safety helmet, safety goggles, ear plug, mask, gloves, boiler suit, safety shoes and explosion proof torch lights A Marine Engineer, a Registered professional engineer, a Member of Institute of Engineers. Ten years shipyard experience as project manager. Twenty years experience as marine superintendent and fleet manager of LNG carriers in Japan. Three year s as operations manager for an LPG terminal in China. Seven years as Principal Marine Surveyor, specialized in Condition Surveys of LNG Carriers in Japan, JH143 Shipyard Risk Assessment and Loss Prevention Surveys in Japan, China, Taiwan and Vietnam. Languages: English, Chinese, and Japanese.