MARITIME LNG, REGULATION AND LOCAL DEVELOPMENT FRAMEWORK 25 November 2014 Andrew Morris, Director

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1 MARITIME LNG, REGULATION AND LOCAL DEVELOPMENT FRAMEWORK 25 November 2014 Andrew Morris, Director

2 INTRODUCTION Providing clarity to the regulatory issues around LNG for marine transport SOx emission limits for ships are being reduced meaning unscrubbed HFO cannot be used in ECAs EC is keen to develop a LNG bunkering network at 139 EU ports through the TEN-T programme LNG is a competitive alternative to Marine Diesel Oil and the installation of scrubbers on existing ships LNG is already established as a marine fuel in the Nordic area and more ships are on order to operate worldwide LNG has an excellent safety record with only 1 fatal incident worldwide in the last 35 years, but until recently this has been on a relatively limited number of points of transfer at large-scale facilities Regulations at large-scale plant in the energy chain do not translate directly to small-scale facilities in the transport sector What is being done to develop the regulations and standards to make it work for marine transport? MARITIME LNG, REGULATION AND LOCAL DEVELOPMENT FRAMEWORK 2

3 SUMMARY Regulations and guidelines are being developed for use of LNG as a marine fuel and for bunkering Guidelines for the use of LNG as a fuel were developed by Norwegians 10 years ago, but a code that will be applicable worldwide is being developed by International Maritime Organisation (IMO) Bunkering can be from ship to ship or from the shore to ship using a tanker or directly from a fixed tank or even by means of a portable tank and regulations are different for each type. Guidelines for the technical specification of LNG bunkering are being developed by International Organization for Standardization (ISO) MARITIME LNG, REGULATION AND LOCAL DEVELOPMENT FRAMEWORK 3

4 GUIDELINES FOR THE USE OF LNG AS A FUEL Interim guidelines developed by Norwegians in 2004 and adopted by IMO in 2009 LNG has been used as bunker fuel in Norway without negative incidents for more than 10 years. As a result, the technical solutions for LNG as a bunker fuel are considered to be proven. Guidelines developed here are the basis for international regulations currently under development 2000: The world s 1st LNG fuelled ship, Glutra : Ferries, supply ships, cargo ships, the Norwegian coast guard > Cruise ships, product tankers, barges, outside Norway MARITIME LNG, REGULATION AND LOCAL DEVELOPMENT FRAMEWORK 4

5 GUIDELINES FOR THE USE OF LNG AS A FUEL International Code of Safety for ships using gases or other low flashpoint fuels (IGF Code) will be an internationally adopted and legally binding regulatory instrument Goal provide safety measures for ships using gas as fuel, including liquefied gas tankers address natural gas fuel as well as other gas fuel types, such as butane, propane, hydrogen address issues not already covered by the International Convention for the Safety of Life at Sea (SOLAS) 1 Scope is to provide the requirements for a safe operation of gas-fuelled vessels Includes: requirements for the bunkering systems on the receiving vessel and general operational requirements on board before during and after the bunkering process Excludes: specific operational guidance taking into account all types of bunkering modes and transfer systems 1. SOLAS does not allow fuel with a flashpoint of less than 60 o C to be used. MARITIME LNG, REGULATION AND LOCAL DEVELOPMENT FRAMEWORK 5

6 SUMMARY Regulations and guidelines are being developed for use of LNG as a marine fuel and for bunkering Guidelines for the use of LNG as a fuel were developed by Norwegians 10 years ago, but a code that will be applicable worldwide is being developed by International Maritime Organisation (IMO) Bunkering can be from ship to ship or from the shore to ship using a tanker or directly from a fixed tank or even by means of a portable tank and regulations are different for each type. Guidelines for the technical specification of LNG bunkering are being developed by International Organization for Standardization (ISO) MARITIME LNG, REGULATION AND LOCAL DEVELOPMENT FRAMEWORK 6

7 BUNKERING LNG industry is subject to the same routine hazards and safety considerations that occur in any industrial activity Risk Mitigation Systems Reduce Hazards Loss of Containment Fire / Explosion Unsafe operations / operator error Protect the Local Community and Environment Guidance on LNG bunkering had been derived from: ISO Ship-shore interface and Port Operations IMO: draft IGF Code SIGTTO LNG STS Transfer Guide (rules for transfer of LNG as a cargo, rather than as fuel) SIGTTO ESD Systems BS EN 1160 Properties and Materials for LNG IMO: Recommendations on the Safe Transport of Dangerous Cargoes and related activities in Port Areas Etc MARITIME LNG, REGULATION AND LOCAL DEVELOPMENT FRAMEWORK 7

8 BUNKERING ISO set up a Working Group in 2011 to develop international guidelines for bunkering of gas-fuelled vessels ISO s draft Guidelines for systems and installations for supply of LNG as fuel to ships was published for review in 2013 Includes: minimum requirements for design and operation of LNG bunkering facility, including ship/bunkering facility interface Procedures for connection and disconnection Emergency shutdown interface LNG bunkering process control recommendations for operators and crew competencies functional requirements for equipment for safe operations Some limitations Only a guideline, not a standard No standard for gas quality or procedures for measuring and sampling LNG Connection and disconnection of portable tanks is not covered Does not cover inland waterways Furthermore, common guidelines for approval of LNG bunkering facilities and port rules on LNG bunkering procedures are not developed and each port is responsible for its own standards MARITIME LNG, REGULATION AND LOCAL DEVELOPMENT FRAMEWORK 8

9 CONCLUSION Regulations and guidelines are being developed for use of LNG as a marine fuel and for bunkering, but still a way to go before they cover every detail and are international legal Standards The LNG industry is very proud of the safety record and wants to maintain this for public support, so it is operating to high standards even without them being formalised MARITIME LNG, REGULATION AND LOCAL DEVELOPMENT FRAMEWORK 9

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