Fueling Freight Transport with LNG: Achieving the Promise by Overcoming the Challenges

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1 Fueling Freight Transport with LNG: Achieving the Promise by Overcoming the Challenges TRB July 18, 2013 Gerhardt Muller President, SanSail Institute Views expressed are those of the author only and do not necessarily represent those of SanSail Group or any other organization with which he is affiliated.

2 LNG: As an alternative/duel fuel for maritime operations offers Lower costs per measurement energy of fuel Adheres to new emissions regulations Technological and operational improvements in vessels and terminals

3 Issue: Increased interest by European and US maritime vessel operators Conversions Newbuilds In the development stage as a replacement for petroleum-based maritime power systems LNG fuel vessels in operation (not including inland and LNG cargo carriers\dnv): Globally 2013: 37 Globally 2016: 63

4 Infrastructure Safety Crew training

5 Peter Noble and Tony Teo, (DNV). History of LNG in USA, 2013 Tony Teo and Peter Noble, History of LNG in USA

6 National LNG Platform p.a. Deltalinqs, LNG Fuels Conference, Houston, TX, June 11 12, 2013

7 The Washington State Ferries Quebec-based ferry firm La Société des traversiers du Québec (STQ) has placed an order for two dual-fuel liquefied natural gas (LNG) Ro-Pax ferries.

8 Chad Verret, Senior VP, Harvey Gulf International Marine; LNG Fuel for Marine Transportation, Houston, June 2013

9 John Waterhouse, Elliot Design Group, Marine Log Tug and Barge Conference, May 2013

10 John Waterhouse, Elliot Design Group, Marine Log Tug and Barge Conference, May 2013

11 Pier side via truck Dedicated bunker berth Piped LNG to vessel s normal operating berth Bunker vessel alongside vessel berth Waller, David, Waller Marine, World LNG Fuels 2013

12 Germanisher Lloyd, LNG Fuel for Marine Transportation, Houston, June 2013

13 Norwegians Started about 10 years ago Vessels of all sizes in operation Port fueling stations/bunker vessels 2014: 22 LNG fueled ferries in operation Other Europeans: Vessel operators and ports Netherlands Germany Belgium United States Totem, Crowley, and Horizon Lines, among others LNG suppliers Ports Other Regions???

14 Port Safety and Risk Management Operating procedures and practices LNG shipping to date has an excellent safety record this must be maintained Regulations Lack of unified local and international regulations Current and interim IMO IGC code are applicable for natural gas fueled ships Environmental Assessments Mandatory Will be time consuming and uncertain Public opinion Based in part on Teekay, Delivering LNG as a Marine Fuel in the Pacific Northwest, presented at World LNG Fuel 2013, January 22, 2013

15 Public Awareness Training Onboard vessels Terminals Port and municipal managers Assure Highest Standards for Safety Accidents Terrorism Interface with Other Modes (pipelines, rail, and highway)

16 LNG fuel for maritime operations is coming Development will be slow but consistent Does not apply to all maritime operations, at least for now Needs to follow a carefully planned implementation process that is fully integrated (economic, technologically, public awareness, political, protect the environment, safety, etc.)

17 Who are or will be the leaders? Is the public aware of what is happening in its communities with LNG fuel? What role will the public agencies like the Army Corps of Engineers play in the future of LNG fuel?

18 Gerhardt Muller, President SanSail Institute