Mapping LNG knowledge and competence in the SBSR. Joint Study

Transcription

1 MarTech LNG Project Component 3 LNG Knowledge and Partnership Platform Mapping LNG knowledge and competence in the SBSR Joint Study Status of the study: Final version Dated at: 18 February 2013 Compiled by: PP4 Wismar University of Applied Sciences: Technology, Business and Design

2 Acknowledgements This study has been part-funded by the European Union and has seen intellectual contribution from the project partners from the participating regions: Andrius Sutnikas (Klaipeda Science and Technology Park), Vytautas Paulauskas (Klaipeda Shipping Research Centre), Charlotte Vinding (Maritime Development Centre of Europe), Steen Sabinsky (Maritime Development Centre of Europe), Anatoli Beifert (Wismar University of Applied Sciences), Laima Maknyte (Wismar University of Applied Sciences), Stephanie Diercks (ATI, erc ggmbh), Stefan Jankowski (Maritime University of Szczecin), Lawrence Henesey (Blekinge Institute of Technology). Page 2 of 90

3 Table of Contents Acknowledgements... 2 Table of Contents... 3 List of Abbreviations... 5 Preface... 6 Abstract... 8 Introduction Methodological framework LNG-related research and training institutional profile Identification of relevant institutions Specification of LNG-related knowledge & competence potential Institutional cooperation patterns Specification of scientific LNG-related activities Challenges, obstacles and future perspectives faced by the SBSR scientific community Scrutinising LNG supply chain within the SBSR Anchoring present technological LNG-related capabilities LNG-related stakeholders and players LNG-related infrastructure LNG product portfolio LNG-related services LNG-related initiatives and projects LNG-related interests and future prospects LNG-related challenges Conclusions Summary in German Summary in Polish Page 3 of 90

4 List of References and sources List of Tables List of Figures Page 4 of 90

5 List of Abbreviations SBSR South Baltic Sea Region LNG Liquefied Natural Gas MarTech LNG Marine Competence, Technology and Knowledge Transfer for LNG (Liquid Natural Gas) in the South Baltic Sea Region LT Lithuania - Germany Denmark Sweden PL Poland LCNG Liquefied to Compressed Natural Gas CNG Compressed Natural Gas MGO Marine Gas Oil Page 5 of 90

6 Preface According to one of the topics of the Baltic Sea Region Strategy Energy independency most of the countries across the South Baltic Sea Region (SBSR), especially Lithuania and Poland, have declared their intentions to build up LNG terminals in order to mitigate their energy dependence on Russia. At the same time, the SBSR has to reduce its coal use as part of its climate policy obligations. Countries in the other part of the region Sweden, Germany and Denmark yield sound LNG technologies and record successful terminal operation. Against this background, it appears extremely effective to use knowledge and technology that are tested and proved to implement into the regions that plan to build LNG terminals. Problematic nature of the project initiative is based on a current situation indicating that declared investments in Poland and Lithuania will not benefit for the regional maritime industries. Because of the lack of technologies and relevant competences terminal construction and operation will be outsourced out of the countries of South Baltic Sea Region. Supporting the local maritime industries with the LNG building and operation knowledge will allow them benefit from the investments by gaining specialisation and efficiency. Maritime companies in the region will develop new products and competencies that are demanded in the global market. Created supply chain will establish cooperation in between regional maritime industries and scientific institutions. As a result, this will allow companies to improve them products using scientific knowledge and make them more competitive by forming consortiums for big international tenders cluster development. LNG appearance itself creates new business possibilities in transportation, port operations and energy sectors. That needs to be supported by scientific and technological knowledge to ensure benefit for the local companies. Implemented project activities will allow regional governments to benefit from energy security plans not just establishing a new energy source but also supporting local maritime industries. From these observations there can be deduced key aims associated with the project. In this light, the main aim of the project is to create a better access to technology and knowledge on LNG-related business activities to build up better competences and specialisation among the SBSR maritime business supply chain. Focus of the project is to foster know-how on LNG construction and operation within different South Baltic companies to help them define their business niche. Page 6 of 90

7 One of the core project activities is LNG Knowledge Partnership Platform (KPP) that will assist project partners to foster business support activities, scientists to commercialise their knowledge and companies to access required knowledge and partnership. Partners will ensure dissemination of the collected information to the direct customers of the services and products. All the information will be placed on LNG KPP web communication tool and web pages of all partners involved. LNG developments is new activity in the Baltic Sea, and the most of the local industries in the SBSR are lacking knowledge on such type of projects. Nevertheless, it is investigated that the region research institutions and engineering companies had worked on this type of projects. At the first step of the project, it is important to gather LNG knowledge available into the one structural database developing LNG knowledge and partnership platform. Database will allow fostering science and business cooperation in the field of developing competences for the local industries and promoting regions LNG supply chain abroad. This platform that constitutes one of the core components of the MarTech LNG project results from further activities, the present joint LNG mapping study being one of the contributors to this platform. Page 7 of 90

8 Abstract The paper at hand discusses LNG-related knowledge and competence development in the South Baltic Sea Region (SBSR). In exploring LNG-related knowledge and competence development patterns in the region concerned, the paper has built upon the methodological framework generated for the analysis purposes to reflect LNG-related knowledge development capabilities, capacity of the LNG supply chain in the SBSR as well as existing and future LNGrelated bottlenecks and LNG-related potential. LNG-related knowledge and competence portfolio accumulated by the respective education, research, training and consulting institutions reveals which institutions and in which parts of the SBSR demonstrate high potential to be employed in the LNG-related activities, what capabilities the region are lacking, what are the opportunities for the science and academia in the SBSR and what challenges do they cope with. In enhancing the institutional dimension of the SBSR by the investigation of the maritime supply chains within the SBSR, the paper outlines the evolving LNG supply chain of the SBSR and its capabilities to handle LNG-related activities, such as LNG infrastructure, LNG-related products and services as well as relevant research projects. By bringing together knowledge development (scientific dimension) and knowledge absorption (business dimension) arrays the study aims at filling the void between science / academia and business. In exploring available science and business capabilities across the South Baltic Sea Region Lithuania, Poland, Denmark, Germany and Sweden the study advocates LNG as a sound business opportunity in the region. Observations gathered and discussed in this study may serve as an impetus for increasing LNG discussions in the business array. Opening-up of LNG activities in the regional parts manifesting moderate involvement into LNG-activities at the moment, or upswing of LNG-activities in those ones that have been already recorded in relevant LNG-related discourses would be promising results, which, in turn, would catalyse growing competences and capabilities all over the SBSR in terms of LNG. Page 8 of 90

9 Introduction The EU cross-border project MarTech LNG carried out under the South Baltic Programme aims at fostering LNG development in the whole South Baltic Sea Region (SBSR) and supporting the cooperation between the key stakeholders of the region concerned. Since the involvement and intertwining initiatives related to stakeholders representing the science side and stakeholders from the businesses have been addressed as one of the current drawbacks in some parts of the SBSR, initiatives undertaken in order to stimulate their cooperation, thus enabling knowledge and competence transfer as well as exchange of best practices among representatives from both science and business realms, are one of the key aims of the LNG knowledge and partnership platform. This platform that constitutes one of the core components of the MarTech LNG project results from further activities, the present joint LNG mapping study being one of the key contributors to this platform. Since the involvement and intertwining initiatives related to stakeholders representing the science side and stakeholders from the businesses have been addressed as one of the current drawbacks in some parts of the SBSR, initiatives undertaken in order to stimulate their cooperation, thus enabling knowledge and competence transfer as well as exchange of best practices among representatives from both science and business realms, are one of the key aims of the LNG knowledge and partnership platform. Against this background, the present Joint LNG Study contributes to one of the key project deliverables. The study emerged as a result of significant content inputs, communication and dissemination activities of all project partners and lead by the partner responsible for its implementation. Compiled and communicated to the LNG stakeholders and the public at large, this study provides with information on regional research and training institutions working in the LNG industry, promotes LNG experts in the whole region and technological solutions as well as proposals for the LNG development, enables acceleration of research and training services for maritime industries and boosting of company register reflecting LNG supply chain, thus generating networking platform for cooperation proposals and industry related tenders. More specifically, this joint LNG mapping study aims at communicating reasonable and useful information for all potential stakeholders dealing with LNG, namely, policy makers, regional and local authorities, companies, scientists, researchers, representatives from maritime and other Page 9 of 90

10 industries as well as business stakeholders. The study can be regarded as point of departure or trigger to launch or deal with LNG-related initiatives and their practical implementation at a regional level. The study at hand focuses on the regions in the South Baltic Sea Region, i.e. Danish, German, Polish, Lithuanian and Swedish regions that due to geographical location and maritime proximity have declared their intentions to participate in the LNG activities. Figure 1: South Baltic Sea Region with the participating project regions Sweden Baltic Sea Denmark Lithuania Germany Poland Source: own draft 1 The study is built upon individual regional reports. Each individual report was compiled by the representatives of the regions involved in the project. Nevertheless, since the project underscores the cross-border initiatives and LNG development in the whole SBSR, the data in 1 Areas marked in green refer to the eligible areas of the South Baltic Sea Region, whereas the blue areas stand for adjacent regions. Page 10 of 90

11 the individual regional reports were analysed, compared and assessed. The key insights are reflected in this study. This study will be accompanied by the digital LNG knowledge and competence map, which embraces useful LNG-related information in a cartographic way. As a result, this study can be regarded as a new approach, since it gathers both science and businesses. The most valuable insights in the LNG context were gathered in terms of: Relevant science, research and consultation institutions across the SBSR and their potential to support regional and local businesses in LNG activities Peculiarities of LNG supply chains in the SBSR Key stakeholders from science and businesses Primary interests of regional partners from SBSR in terms of LNG development Greatest current and future challenges in terms of LNG to cope with. Wismar, February 2013 Page 11 of 90

12 1. Methodological framework When developing methodological framework for information gathering on LNG knowledge and competence within the framework of the MarTech LNG project, the focus has been laid on the South Baltic Sea Region (SBSR) and the participating project regions from Lithuania, Poland, Denmark, Germany and Sweden. Although the main emphasis has been put on the specific regions, as determined in the project and the South Baltic Programme, the light has been shed on relevant LNG activities on both local / regional and national levels. In this particular case, there has been seen a need to go beyond the boundaries of particular project regions for several reasons. First, due to the proximity of several involved stakeholders it appears to be reasonable to include stakeholders (institutions, business players and other actors and activities) across the borders of the clearly delimitated project regions, from areas adjacent to the project regions areas or thriving areas beyond these regions, since the identified stakeholders are significant for or can advance intense LNG activities to take place in the SBSR. Second, involving relevant stakeholders beyond the regional borders correspond with an attempt to exploit strong scientific, research and competence potential in the region as a baseline condition for effective academia and business collaborations in the SBSR. This thorough LNG study results from specification and analysis of three main realms: LNGrelated education, research, training, consulting and other relevant institutions knowledge developing stakeholders or supply side (Component 1 LNG Institutional Profile in the framework below); stakeholders from LNG-related businesses, relevant industries and technologies, stakeholders involved into LNG infrastructure, products and services knowledge absorbing stakeholders or demand side (Component 2 LNG Supply Chain ); LNG-related activities such as projects and initiatives (Component 3 LNG Initiatives and Projects ). Analysis of the three realms, which, it may be stated here, implicate tangible (effective) activities, e.g. operating stakeholders, projects realised, products and services launched etc. in the SBSR, is accomplished by two components (LNG-related future prospects and LNG-related challenges) that imply intangible (future-related) measures and activities. Taking into account knowledge absorbing stakeholders or demand side, this portfolio will be enhanced by pinpointing stakeholders in the SBSR who already record LNG solutions. Accordingly, these ones will be marked in the particular constellation with the MarTech LNG project logo. Page 12 of 90

13 A blurry delineation of the components in terms of their scope and extent is reflected in the figure 1 on the methodological framework. Finally, when combined, the LNG study accumulates key knowledge, research, business performance competences and practices in terms of LNG and evolves into comprehensive LNG Knowledge and Competence Map. Therefore, in this manner the study gathers together both arrays science and business. Thus, it provides a solid overview of LNG-related topics and issues from two different perspectives: scientific and business. Beyond this, the present study reveals the extent to which the science and the businesses interface, the knowledge and competence respective institutions can develop and provide with and, in turn, the stakeholders that may demand and absorb it. From the business perspective, it reflects significant LNG competences, technology and knowledge. To give more detailed information on the content issues covered in this study, it follows the guideline for information gathering generated as a basis to provide scientific LNG knowledge and competence profile in the SBSR. As a result, by building upon the mentioned guideline and the observations above, the methodological framework can be presented in the following way. Figure 2: Methodological framework 1. LNG institutional profile 2. LNG supply chain 3. LNG initiatives and projects 4. LNG future prospects 5. LNG challenges SBSR LNG knowledge & competence map Source: own draft The joint LNG profile below is based on the regional LNG-related profiles provided by the representatives of the participating project regions. In this respect, the joint LNG study is therefore a result of a comparative analysis of individual regional profiles from Lithuania, Poland, Denmark, Germany and Sweden. Page 13 of 90

14 The paper at hand follows a descriptive and comparative analysis approach. Mainly, it is built upon the secondary literature analysis approach, provided that there have been used existing primary data or the information and data were gathered for the purposes of this study. Page 14 of 90

15 2. LNG-related research and training institutional profile The following chapter generates the institutional dimension (institutional profile). More specifically, by identifying and specifying all relevant regional institutions involved in LNG-related activities, the chapter unveils the institutional capabilities of the region. The discussion starts by embracing the overall institutional dimension in the region concerned, then turns to the determination of the institutions. Afterwards, the light is shed on the precise scope and extent of knowledge and competences the institutions bring with, their key activities and the cooperation patterns. The institutional profile is finalised by challenges or bottlenecks faced by the academia and in the business discourses related to LNG scientific activities. 2.1 Identification of relevant institutions With regard to the region in question, there have been located several institutions either dealing with the LNG issues or yielding activities that due to their scope encompass strong potential to be integrated into the respective LNG-related discourses. Based on the examination of individual regional institutional profiles, there have been realised diverse types of the institutions, with four key groups of institutions constituting the institutional dimension in the SBSR: Figure 3: SBSR Institutional profile Source: own draft. For the research and project purposes, there were identified 86 institutions across the SBSR, which demonstrate high involvement into LNG-related activities. When comparing the distribution of the identified institutions in terms of specified four institutions groups, there might Page 15 of 90

16 be argued that these four groups of institutions are nearly equally spread over the region. At a closer look, research and training institutions yield the same scope and rank slightly higher than consulting and education institutions. A graphic distribution is shown in the following figure. Figure 4: Institutional portfolio in the SBSR Lithuania Poland Denmark Germany Sweden Number of institutions Research Education Training Consulting Source: own draft, based on regional profile data To particularise the identified research and training institutions, the following delineation has been generated: Table 1: Research and training institutions in the SBSR Research institutions SBSR Training institutions Klaipeda University 2 Institutes Coastal Research and Planning Institute (CORPI) Maritime Study Institute LT Lithuanian Maritime Academy Page 16 of 90

17 Research institutions SBSR Training institutions 4 Laboratories Marine Ecosystems Marine Chemistry Air pollution from the ships research laboratory Reliability of structures Klaipeda Shipping Research Centre LT Novikontas SCM, UAB Lithuanian Institute of Energetics LT Sabelija, UAB Lithuanian Maritime Academy LT Saugalita, UAB SGS Klaipeda Ltd, UAB LT DNV Wismar University 3 Departments Department of Maritime Studies Department of Mechanical Engineering Wismar Business School Maritime Education and Training Centre Rostock-Warnemünde 2 Institutes Maritime Institute Warnemünde e. V. ISSIMS Institute for Maritime Theory, Simulation and Maritime Systems FGW Forschungs-GmbH Wismar Maritime Institute Warnemünde e. V. MATVAV Institute for Maritime Automation Technology and Navigation e. V. Maritime Simulation Centre Rostock Rostock University European Cruise Academy Rostock Fraunhofer Application Centre for Large Structures in Production Engineering Marinesoft GmbH Rostock Page 17 of 90

18 Research institutions SBSR Training institutions Economics and Technology Academy GmbH Rostock-Warnemünde Alborg University 1 Department Department for Technique, Construction and Development DTU Technical University of Denmark 3 Departments DTU Mechanics DTU Transport DTU Chemical & Biochemical Engineering Danish Centre for Maritime Technology MARTEC Marstal Navigation School FORCE Technology FORCE Technology Szczecin Maritime University PL Szczecin Maritime University 4 Centres Marine English Centre Marine Officers Training Centre Marine Rescue Training Centre Marine Training Centre Gdynia Maritime University PL Gdynia Maritime University West Pomeranian University of Technology Szczecin PL Maritime Training Centre Zenit Szczecin Koszalin University of Technology PL Ship Handling Research and Training Centre Iława Gdansk University of Technology PL Bernhard Schulte Ship management Poland Chalmers University Chalmers University Page 18 of 90

19 Research institutions SBSR Training institutions Blekinge Institute of Technology Linnaeus University World Maritime University of Malmö SP Technical Research Institute of Sweden SSPA AB Source: based on regional profile data Regarding the distribution of research and training institutions across the SBSR, all involved regions yield quite similar distribution of these particular institutions. Whereas the eastern part of the SBSR with Lithuanian and Polish regions record an equal number of research institutions, the number of these institutions in the German region is slightly higher. The Danish and Swedish regions yield each the same number of institutions and lag slightly behind the rest of the SBSR regions. Beyond this, in terms of several identified institutions, it might be worth mentioning that some of them are simultaneously involved, for instance, into research and training activities. Therefore, such institutions can be ascribed to different typologies, as has been, for example, the case of FORCE Technology (). Hence, the overlaps cannot be excluded in this particular case. Turning now to the bundle of training institutions, it is apparent that the region reveals strong competences in providing training in terms of LNG transportation, navigation, marine engineering etc., thus meeting the potential requirements from diverse LNG-related businesses and, in turn, the demand from the business side. As it has been highlighted in the table above, the highest potential lies in Lithuanian, Polish and German regions followed by equal number of training institutions in Denmark and Sweden, it would be accurate to mention further training institutions. Looking at the breakdown of other types of the institutions, the third highest ranking in the SBSR demonstrate consulting institutions. Here, the highest capabilities can be ascribed to the Lithuanian and Polish regions, each with 6 consulting institutions. Taking a closer look at other project regions, the Danish, German and Swedish regions yield each 5 consulting institutions and are followed by Poland with 3 institutions involved into consultation activities, respectively. Page 19 of 90

20 Nevertheless, in this particular case, there is apparent correlation either with the research or education institutions. The overall distribution of consulting institutions in the SBSR is the following: Table 2: Consulting institutions in the SBSR Consulting institutions DNV Klaipeda Science and Technology Park Novikontas SCM, UAB Association Baltic Valley Klaipeda Shipping Research Centre Sweco Lietuva FGW Forschungs-GmbH Wismar ATI erc ggmbh ATI Küste GmbH IMAVIS Maritime Wirtschafts- und Schiffbauforschung GmbH Marinesoft - Entwicklungs- und Logistikgesellschaft mbh Gothenburg Energy FKAB Marine Design DNV White Smoke AB SSPA AB Swedish Maritime Forum Maersk Maritime Technology Force Technology Dansk Gas Technology Centre Gromiti Location in the SBSR LT LT LT LT LT LT Page 20 of 90

21 Consulting institutions Rambôll Olie & Gas DNV Polish Register of Shipping (PRS) SGS Polska Sp.z o.o. Location in the SBSR PL PL PL Source: based on regional profile data When dealing with education institutions, from the material gathered, it is apparent that these ones reveal the lowest records within the SBSR institutional profile. The Lithuanian, Swedish and Polish data yielded two key education institutions in each of these particular regions. Outstanding in this sense appears to be the education institutional environment in the Danish and German regions concerned, where each of them reveals 5 potential education institutions able to develop and transfer LNG-relevant knowledge and competence for the respective LNG activities. As a result, the following constellation of the education institutions in the SBSR has been proposed: Table 3: Education institutions in the SBSR Education institutions DTU Aalborg University MARTEC Marstal School of Navigation FORCE Technology Wismar Universtiy of Applied Sciences Maritime Simulation Centre Rostock-Warnemünde Navigation School Rostock-Warnemünde European Cruise Academy Rostock University Location in the SBSR Page 21 of 90

22 Education institutions Szczecin Maritime University Gdynia Maritime University Klaipeda University Lithuanian Maritime Academy Linnaeus University World Maritime University of Malmö Chalmers University DTU Aalborg University MARTEC Marstal School of Navigation FORCE Technology Location in the SBSR PL PL LT LT Source: based on regional profile data By drawing on the observations gathered, it might be argued that the SBSR does reveal strong competence in providing businesses with the LNG-relevant knowledge. Especially, research, training and consulting institutions yield sound command in LNG-based initiatives. Research activities in terms of LNG are of significant relevance, since they can contribute to the emergence of innovations related to LNG, pursue relevant science and research projects, e. g. when reasoning the practical application of LNG to the maritime businesses or dealing with the challenges faced by respective businesses. Dovetailed with competences of education institutions, research activities may significantly contribute in catalysing activities in the business environment. What is lacking here, it may be argued, synergy effects between these respective institutions across the SBSR, thus leading towards the increased capabilities to establish LNG business climate in the SBSR. Besides, a substantial number of consulting institutions identified so far imply that the SBSR possesses intermediaries who in this particular case could induce more cross-linking and fill the void between the science and the business what, in turn, appears to be needed when dealing with the topical LNG issues. Despite this fact it can be underscored that Page 22 of 90

23 the institutional shape or portfolio within the SBSR, when bringing together research, education, training and consulting institutions, tends to be equally distributed and therefore is plausible to make significant contribution to the LNG-related activities. Against this background it should be hinted at the fact that the scope of the SBSR institutional profile may expand due to several conditions. First, as has been mentioned in the methodological approach of this study, the core focus for the analysis has been laid on the regions eligible for the South Baltic Region. Thus, knowledge generation institutions in terms of LNG in the adjacent South Baltic regions, especially in case of German regions, such as Hamburg, were not subject for framing up this institutional profile. Second, due to the fact that LNG is gaining more resonance in scientific, economic and public discourses, the emergence of activities related to LNG cannot be excluded in the institutions not covered by this chapter. Taken together, the observations of the institutional shape in the SBSR suggest that research in the region has been highly driven by investments. Lithuanian and Poland demonstrate a significant number of research institutions as a result of infrastructural projects that have been conducted in these particular regions. Indications in the MarTech LNG project are clear as well pointing to the fact that infrastructural development catalyses possibilities for specialisation, and all respective competence gathered in the frame of the regional projects may be maintained and developed for the purpose to provide the breeding grounds for the evolvement of services that are capable to compete in foreseen markets and projects. 2.2 Specification of LNG-related knowledge & competence potential Regarding the extent and scope of competences and knowledge particular institutions of the SBSR bring with them, it can be emphasised that the institutions of the SBSR, as identified above, reveal respective competences in both: activities directly related to the LNG (1) as well as LNG-related (2) and maritime-base (3) activities. In terms of direct LNG activities, a special position in this respect take the institutions situated in Poland. To exemplify, the majority of the Polish institutions are involved into providing knowledge and competences into the LNG activities, i.e. Szczecin Maritime University is equipped with the LNG and LCH Simulation Centre as well as offers post-graduate studies Page 23 of 90

24 LNG Transport and Terminal Operation and Basic LNG course. The Bernhard Schulte Ship Management (LNG Cargo Handling Simulator Training Courses) and Gdynia Maritime School (Liquid Cargo Handling Simulator Trainings and courses in advanced liquefied gas tanker operations) possess similar competences. Besides, some of the institutions providing direct LNG activities are located in the Danish region, e.g. FORCE Technology offering modelling of LNG carries and developing of advanced mathematical models for LNG carries, or Marstal Navigationsskole offering course for working on LNG tankers. Regarding the Lithuanian project region, only a very tiny proportion of the institutions are already involved into direct LNG activities. To give more detailed information, NPPE Klaipeda Shipping Research Centre focuses on future implications of direct LNG activities for the Lithuanian region. SGS Klaipeda provides sound competences in LNG Contract Review and Consultancy, LNG Portable Sample and Testing Rig, LNG Ship Calibration and LNG Training etc. However, as it is apparent from the data gathered, institutions possessing strong command with the direct LNG activities are to a great extent absent. In this respect, there can be recognised only indirect impact of the institutions on LNG initiatives and activities. In terms of LNG-related activities of institutions involved, it can be argued that there exists a series of institutions revealing competences related to the LNG. These institutions are quite equally distributed over the SBSR. Taking a closer look at them, the SBSR reveals strong knowledge in providing command with LNG-related (mostly indirectly) technologies, i.e. maritime technologies, marine engineering and ship / shipping technologies. To give more detailed information, the Polish (Szczecin Maritime University, Gdynia Maritime University) and the Danish institutions (Maersk Maritime Technology) have great potential in providing with competences in the field of tanker familiarisation, technical services to different vessels, their operation, repair and new building as well as ship mechanics. An outstanding region in this light appears to be the German project region, since there have been located a number of essential institutions that reveal knowledge and competences in maritime-based activities. For instance, Department of Maritime Studies and Department of Mechanical Engineering / Processing and Environmental Engineering, Maritime Institute Warnemünde e. V., Institute for Maritime Theory, Simulation and Maritime Systems at the Wismar University of Applied Sciences and MATVAV Institute for Maritime Automation Technology and Navigation e. V. are involved into the maritime-based activities that cover nearly all for the LNG initiatives and activities relevant fields Page 24 of 90

25 or sectors, i.e. ship operation technologies, ship building, shipping, logistics, maritime navigation and maritime processes etc. Furthermore, when compared, a great bundle of competences the institutions bring with them lie in simulation and manoeuvring-related activities (Szczecin Maritime University (PL), Marstal Navigationsskole (), FORCE Technology (), Maersk Technology (), Maritime Institute Warnemünde e. V. (), ISSIMS Institute for Maritime Theory, Simulation and Maritime Systems at the Department of Maritime studies of the Wismar University of Applied Sciences (), Maritime Simulation Centre Rostock-Warnemünde (), Chalmers University (). In terms of institutions involvement into maritime-based activities and their respective knowledge and competences, although these ones do not directly refer to the LNG, it is argue here that the particular maritime-based know-how is essential, because it implies a great potential for the LNG activities in the SBSR, or is an important prerequisite to launch the LNG activities. More specifically, since the LNG initiatives and activities are bound not only to technological requirements or conditions, but are also subject to the recognition of such factors as, for instance, environment, safety etc., there is a great need to fill the void with knowledge and competences ascribed to these factors. Within the maritime-based activities, there can be differentiated such key aspects as environmental, safety, legal and maritime policy-related issues. Taking the SBSR into account, it is apparent from the institutions identified that relevant knowledge and competence is equally distributed in the region. To give more detailed information, all project regions have institutions dealing with safe shipping, risk management, environmental issues. For instance, Maersk Maritime Technology () has sound experience in ECO efficiency, Marstal Navigationsskole () has competence in dealing with heavy working environment, incident investigation and analysis as well as transport of dangerous goods, Gdynia Maritime School (PL) focuses of safe cargo transport. The Maritime Institute Warnemünde at the Wismar University of Applied Sciences addresses safety training, safe shipping etc. Other German institutions located reveal knowledge and competences in safe secure and ecological performance (Department of Maritime Studies at the Wismar University of Applied Sciences ()). A core competence in safety-related issues possesses ISV Institute for Safety Engineering and Ship Safety e. V. Warnemünde (). Important in terms of safety and environment are Swedish institutions as well. To give more detailed information, Linnaeus University () deals actively with relations between environmental influence and public Page 25 of 90

26 confidence in the shipping industry. World Maritime University of Malmö () carries out activities in the fields of maritime safety and environmental administration, marine environment and ocean management. When comparing the institutional profile within the SBSR, the greatest potential in terms of environment and safety tends to reside in the Lithuanian project region, where a series of institutions have been identified. For instance, Klaipeda University with its laboratories and Coastal Research and Planning Institute focus on marine environment, sustainable management of coastal resources, pollution and researches, marine ecosystems, reliability of maritime structures etc. Other relevant institutions address their competence in safety and health services of employees, fire safety, occupational risk evaluation, emergency management, security trainings and carriage of dangerous and hazardous substances. Beyond this, to the bundle of maritime-based activities the involved institutions carry out, there can be stressed institutional competences related to more soft-skills which, in turn, play a certain role for the implementation of safety and environment-related activities. For instance, Swedish Linnaeus University () place an important focus on the communication technologies and conditions in the maritime industry by carrying out projects related to breaking down of language barriers and other communication-based difficulties in dangerous situations which may lead to accidents, or projects pertaining to safety culture building in shipping etc. To sum up the knowledge and competence potential in the SBSR, it may be stated that the region in question reveals strong required potential in order to run or launch LNG initiatives and activities. Taken together, scientific and research-related know-how and competences highlight the following key topics in the SBSR that enjoy a great focus of the scientific and research community: Table 4: Key topics in SBSR science and research related to LNG development Environmental impact of floating LNG LNG ship navigation planning Safety on LNG in the ports Simulation and training in terms of LNG LNG transport operations Page 26 of 90

27 LNG shipping models LNG bunkering solutions Source: based on regional profile data What is at issue here is that all LNG relevant knowledge and competence is present in the region concerned. Technological, navigational, operational, training, educational, environmental, safe, secure and ecological questions can be answered when dealing with LNG activities. Of problematic nature appears, however, the aspect that the majority of institutions have experiences in the LNG activities, also most of them reveals strong potential and good command with activities and initiatives largely relevant for the LNG activities. Therefore, it can be argued that there is nothing that could hinder the respective institutions to support the businesses involved into LNG activities with the knowledge and competences demanded by them from the scientific side. 2.3 Institutional cooperation patterns With regard to the cooperation between and among the institutions identified, the data gathered reveals that the majority of institutions are cooperating, however, their cooperation appears to be limited to the respective project region. When it comes to the interregional cooperation, only some of them record cooperation with the institutions from other regions. For instance, the Danish and Swedish institutions underscore that there is no geographical limit for the possible cooperation. One of the existing cooperation patterns refers to possible establishment of a LNG Terminal at Hirtshals harbour when cooperating with Norway. Besides, some of the Danish education institutions offer international cooperation possibilities in terms of training courses, maritime studies and simulations. Regarding the situation of cooperation patterns in Sweden, some academic institutions, for instance, World Maritime University of Malmö has entered cooperation with Dalian and Shanghai in China. Taking a closer look at another project regions, the German institutions, especially, the Wismar University of Applied Sciences yields sound cooperation with such universities as Dalian Maritime University China, Sam Houston University USA, Institut Teknologi Sepuluh Nopember Indonesia, Semarang Growth Centre Indonesia, Gdynia Maritime University Poland, Calmers University Göteborg Sweden, WMU Malmö Sweden, Lloyds Register of Shipping London. Page 27 of 90

28 Nevertheless, of essential importance appears to be the insight that the most of the project regions are already involved into the cooperation between the science and business side, for instance, in the Danish, German and Lithuanian regions. To exemplify, the Danish ship owners (Maersk, Lauritzen and Clipper) make use of services provided by education and training institutions in order to generate their studies. Similar situation has been observed in the German region, where, for example, the Wismar University of Applied Sciences is involved into the cooperation with Nord Yards Wismar GmbH in order to increase the linkage between the education / academic and business arrays in the field of ship building and maritime-related issues. To give another example, the Maritime Institute Warnemünde e. V. is cooperating with such businesses as Germanischer Lloyd, German Association for Positioning and Navigation (DGON) e. V., Baltic Institute for Maritime, Environment and Infrastructure Law. Furthermore, close intertwining of the institutions located in Rostock-Warnemünde witnesses high science and research potential that is accomplished by the business dimension, for instance, through cooperation with the European Cruise Academy or other relevant consulting or business-led institutions either on regional, federal or state level. To exemplify the cooperation between the science and businesses, the institutions in the Lithuanian project region are cooperating for the same purpose. In this respect, it refers to the LNG terminal planning and building, where educational and research institutions (Klaipeda University and Klaipeda Shipping Research Centre are cooperating with the Achema Group, SC Klaipeda Nafta etc.). Besides, such LNGrelated initiatives as in case of Lithuania may stimulate the cooperation between state, private and public actors, since in terms of LNG terminal building in Lithuania there effective project implementation is bound to the cooperation of diverse institutions ascribed either to the scientific or business array. Additionally, similar cooperation patterns between the science and business yield the Klaipeda Shipping Research Centre due to cooperation with regional and international research and consulting institutions as well as business companies and authorities. Bearing in mind these observations it may be stated that the intertwining of science and business in the SBSR is evolving what, in turn, generates an essential prerequisite to support the businesses with the scientific knowledge and competences in terms of LNG activities. What is lacking, however, is more focus on interregional cooperation in order to increase the competences of the entire SBSR, thus gaining competitive advantage in terms of LNG-related activities. Moreover, when looking at the knowledge and competence portfolio in the SBSR at Page 28 of 90

29 the moment, the cooperation scope regarding the LNG topic appears to be to a great extent gathered along the SBSR, although the LNG topic is relevant globally. Against this background, it is necessary to establish a cooperation structure, which would enable to expand scientific and research activities of the SBSR institutions by entering into cooperation patterns with institutions already having established contacts with China, USA, Canada, Australia etc. As a result, internationalisation of the science and research activities would significantly influence the quality and commercialisation of services provided by the particular institutions. 2.4 Specification of scientific LNG-related activities When it comes to the LNG-related activities from the scientific and research perspective, there can be located a variety of diverse projects that reveal project competences of the participating regions. When compared the individual regions, every region records experiences in participating national, regional, interregional or international projects. To simplify the overview of all the projects or studies conducted in the SBSR, scientific activities can be grouped by using such determinants as content (LNG-related, safety-related, environment-related, navigation and operation-related) geographical proximity (regional, interregional, transnational and international as well as accumulation in certain parts of the region) and form of the activity (projects, researches, studies and other initiatives). When applying the content determinant, there can be generated diverse groups of projects and initiatives, depending on the key focus of them. However, as this study has been dovetailed with the LNG Knowledge and Competence Map within the project, as well as in order to yield better synergy effects between knowledge developing institutions (institutional profile) and knowledge absorbing groups (stakeholders of the SBSR LNG supply chain) the bundle of SBSR projects, research initiatives and other related activities has been classified into five key focus groups: bunkering-related (1), shipbuilding & repair-related (2), ports-related (3), shippingrelated (4) and end-user technologies-related (5) projects and initiatives, as carried out by respective knowledge generation and diffusion institutions. In terms of bunkering-related projects and initiatives, the following projects and initiatives have been conducted: Page 29 of 90

30 Table 5: Bunkering-related scientific-research projects in the SBSR Name of project / initiative LNG Infrastructure Project LNG in Baltic Sea Ports (Bunkering infrastructure) Gas Reservation Study related to LNG WS1 LNG/FO Combo Vessel ISO TC67 WG10 PT1 LNG STS Bunkering Procedures Clean Baltic Sea Shipping Project LNG ferry Viking Grace The LNG Northern Europe Project Innoship Project Location in the SBSR LT SBSR Source: based on regional profile data Figure 5: WS1 LNG/FO Combo Vessel Source: White Smoke Shipping 2 2 White Smoke Shipping, 2012, accessed on 12 January Page 30 of 90

31 Regarding the second group of the projects and initiatives, namely, shipbuilding & repair-related projects, the SBSR yields only several related projects: Table 6: Shipbuilding & repair-related scientific-research projects Name of project / initiative Machinery for High-Speed LNG-Ferries Location in the SBSR Source: based on regional profile data Looking at the ports-related projects, the SBSR recognises a huge potential of scientific and research activities, which have resulted in the following projects. Worth mentioning is here that to this group of projects and initiatives there have been allocated these ones who point to LNG terminal building. Figure 6: Floating Storage and Regasification Unit (FSRU) technology of the LNG Terminal project in Lithuania Source: LNG Terminal Lithuania 3 The reasoning behind this case is that a series of LNG terminals established or planned terminals are located in the ports or in the proximity of the ports. 3 LNG Terminal Implementation in Lithuania, 2011, pdf, accessed on 12 January Page 31 of 90

32 Figure 7: LNG Terminal Project in Swinoujscie, Poland Source: LNG Terminal Swinoujscie 4 Table 7: Ports-related scientific-research projects in the SBSR Name of project / initiative LNG in Baltic Sea Ports Concept of Wave Breaker Modernisation in Swinoujscie by Means of LNG Terminal Development (Port of Szczecin-Swinoujscie, 2007) Feasibility Study (Coordinator) LNG Terminal Construction in Police, Swinoujscie and Western Pomerania (2001) Location in the SBSR PL PL 4 LNG Terminal Project Poland, 2012, accessed on 12 January Page 32 of 90

33 Name of project / initiative R&D Project Development of Most Effective Solution For Sea LNG Terminal in Poland. Estimation of Optimal Parameters for Terminal and Sea Way, and Instruction of Safe Operation of Terminal ( ) Concept of LNG Terminal Localisation (Gaz Project, 2005) Concept of LNG Terminal Location 2006 Feasibility Study of Terminal Building as Coordinator Port of Szczecin- Swinoujscie, 2007). Wave Breaker for Outer Port in Swinoujscie Construction, Place of Refugee for Outer Port in Swinoujscie Construction, LNG Unloading Quay Construction Quantitative Analysis of Risk for the Sea Terminal in Swinoujscie 2010 Feasibility Study of LNG Import Terminal in Lithuania Planning and Designing Klaipeda Nafta LNG Terminal Planning Achema LNG Terminal (Navigational Part) Location in the SBSR PL PL PL PL PL LT LT LT Source: based on regional profile data With regard to shipping-related projects and initiatives, the SBSR reveals in this case strong capabilities and competences. In this category, there have been located the most projects implemented by scientific and research communities. Here, there can be allocated projects that point to navigation and operation-related issues. The following projects have been implemented: Page 33 of 90

34 Table 8: Shipping-related projects in the SBSR Name of project / initiative Natural Gas as Propulsion for the Shipping Sector in Denmark MARKIS Maritime Competence and Innovation Cooperation in the Skagerrak & Kattegat KOGAS Project The CNSS Project Clean North Sea Shipping Programme ICEMAR CIMET Centre for International Maritime Education and Training Clean Baltic Sea Shipping Pilot Navigation and Docking System for LNG Tankers and Sea Ferries Navigational Analysis of Entering LNG Carriers of Capacity m 3 to Gdansk and Swinoujscie Ports at Polish Coast Research Centre for Ships Operation Risk Analysis DGON Bridge Development of A Modular Integrated Navigation Bridge (DGON Bridge) ADANAV Adaptive Navigation System for the Precise Regulation of Position, Course and Speed of Ships with New Engines MUBES Multisensor-based Motion Regulation for the navigation of fast ships NACOM Navigation Support through Integrated Communication Location in the SBSR PL PL PL Page 34 of 90

35 Name of project / initiative NADAKOS Navigation data in shipping cooperative systems MultiMar Identifying and Generating Multi-Variable Parameters for Movement Models of Maritime Objects: Concept and Experimental Test in Rostock Research Port ZuMANZ Condition-Based Indication of Manoeuvres for Assistance in Vessel Management MARSPEED Training Simulator for High-Speed Maritime Craft VESPER Improving the Safety of Ferry Passengers SIPAS Methods for Identifying and Maintaining a Safe Passing Distance when Overtaking and Encountering Vessels in Restricted Waters MarNIS Maritime Navigation and Information Services: An European Research Project for Improving the Maritime Safety FAVECO Collision Avoidance and Stranding Prevention System for Fast Ships NAWI Nautical Knowledge Base for Collision Prevention of Sea-going Vessels ADOPTMAN Advanced Planning for OPtimised Conduction of Coordinated MANoeuvres in Emergency Situations Location in the SBSR Source: based on regional profile data Regarding the last group of the projects pertaining to end-user technologies, no key projects have been identified yet. Turning now to another determinant, namely, geographical proximity, it can be stated that most of the projects are concentrated recently in the Eastern part of the SBSR. This observation can be traced back, however, to the fact that Poland and Lithuania are actively involved into Page 35 of 90

36 research activities because of being on the threshold of establishment of the LNG terminals. However, a sound accumulation of the research projects or initiatives has been recognised in the Swedish region as well (when comparing the tables of the projects above). Beyond this, when overviewing the projects identified, beside the regional projects that address national priorities, there can be differentiated cross-border and transnational projects that enjoying the EU funding, for instance, Clean Baltic Sea Shipping, MARKIS, MarTech LNG and LNG Northern Europe Project etc., respectively. Hence, it is apparent that projects relevant or related to the LNG have gained attention not only on a national or regional level, but become of paramount importance also on interregional and international arenas, thus underscoring the potential and feasibility of LNG activities. In general terms, from the comparison of the scientific and research activities respective institutions have been involved in, it is evident from the data gathered that LNG-related projects have been dealt with recently in the Eastern part of the SBSR, especially in Lithuania and Poland. Nevertheless, it should be mentioned that such regions as the Danish and Swedish ones also render experiences in LNG-related scientific and research activities. What is surprising in this context is that such region as the German one does not demonstrate any sound participation into LNG-related activities, also the scientific and research knowledge and competence may provide a breeding ground for specific focus on LNG. In terms of the last determinant (scope or form of activity), the majority of the scientific and research performance can be ascribed to the local / regional studies (in case of the Polish and Lithuanian). The most research projects have been located in the Danish and German regions. By drawing on these observations it can be underpinned that the SBSR reveals a variety of diverse initiatives, either research studies or projects. What is lacking here when taking into account thematic highlights of the activities, is, however, more attention to the LNG-related initiatives or involvement of the LNG as topical subject into another maritime, shipping or navigation-based studies and projects in some parts of the region. Page 36 of 90

37 2.5 Challenges, obstacles and future perspectives faced by the SBSR scientific community When elaborating on challenges, obstacles and future perspectives within the scientific and research array, individual project regions do often point to diverse aspects. Nevertheless, one of the most frequently emphasised challenges addressed in the regional discourses point to the technological / technical terrain when discussing topical LNG issues. More specifically, there has been underscored the lack of and the need for more research, innovations and investments within the technical field, since installations (e.g. of LNG tanks) are very complex and require large space as well as private sector support. As a result, research-based challenges refer to future development of LNG products, whereby their evolvement is bound to presence of LNG-related infrastructure and investments of the private actors into the development of such products. Hence, science and research activities are challenged in a way that they should result in cost-efficient solutions that would catalyse the establishment of the LNG-related infrastructure, which, in turn, affects bringing out cost-efficient and sustainable LNG products, services etc. pertained to the respective LNG infrastructure. Besides, the second common challenges or bottleneck mentioned is the lack of cooperation with progressive partners, institutions and authorities as well as support for the LNG activities on the national or regional level. Although the significance of the scientific and research institutions has been recognised by regional, federal and to some extent state actors, the institutions appear to lack respective financial support, as the relevant research projects and studies carried out require outstanding infrastructure, i.e. equipment, facilities etc. Beyond this, while there has been identified cooperation between the academia and the businesses (in most of the project regions), the cooperation intensity tends to be of moderate extent. As a result, there is a need for more intense intertwining of the science / research and the business dimension as well as development and implementation of respective measures to attract the businesses for the maritime and respectively LNG-related activities what, in turn, would result in exploitation of the full potential and therefore enhance the economic strength of the whole SBSR. Finally, when taking into account the Eastern part of the SBSR region (especially Lithuania), the key drawback is lacking of knowledge and experience in dealing with LNG what, on the one Page 37 of 90

38 hand, implies limited R&D infrastructure specialised for LNG. On the other hand, such situation, however may serve as a trigger to advance LNG-related activities, thus balancing out the overall knowledge and competence in terms of LNG in the entire SBSR. Taken together, it can be underpinned that the scientific input to a better acceptance of LNG and related activities of the SBSR in the public realm is of crucial importance. Therefore, science and research institutions could be more actively involved in spreading research and information in terms of LNG, its safety and environmental aspects etc. for the public opinion. Page 38 of 90

39 3. Scrutinising LNG supply chain within the SBSR The present chapter focuses on the LNG supply chain in the South Baltic Sea Region. It starts with the specification of technologies, technical solutions in terms of LNG. Then it turns to the LNG-related stakeholders, i.e. all actors involved into LNG supply, delivery as well as end-user technologies. Aspects of LNG-related infrastructure, LNG products and services accomplish the manifestation of the SBSR supply chains. The chapter is rounded off by structural delineation of the supply chains in the SBSR elucidating what segments of the SBSR supply chains are strong developed and record significant suppliers and what components lack reliable suppliers, what, in turn, is thwarting the emergence and thrive of supply chains of the SBSR. 3.1 Anchoring present technological LNG-related capabilities To begin with, LNG supply and its investigation have been treated in respective discourses of paramount importance. Nearly most of the project regions have underscored the actual supply of LNG, the risk of LNG supply shortages or the LNG demand-related aspects. Furthermore, a significant issue appears to be in this particular context economic, financial, safety and risk as well as technical and operational aspects in terms of LNG supply chain. Regarding the more detailed information on all relevant LNG-related capabilities, it may be stressed that the SBSR brings with it diverse capabilities. Most of them lie in the ship building industry. The overview of the key current LNG-related capabilities is the following: Biggest LNG ferries (129.9 m long, 19.2 m wide with capacity for 242 passenger cars and 600 passengers, gas-electric system with 3 large LNG gas motors and alternators, thus enabling a speed of approx. 20 knots) 5 Terminal LNG cargo tanks made by using a slip-form construction method 6 5 MF Boknafjord the world s largest gas ferry, 2012, nafjord theworldslargest_gas_ferry.asp, accessed on 20 March Polskie LNG: Works on Second Swinoujscie LNG Tank Progressing Well, 2011, accessed on 9 July Page 39 of 90

40 Methods of regasification (evaporators heated by fuel itself Submersible Combustion Vaporizer (SCV) and Evaporators heated by air or sea Open Rack Vaporizer (ORV)) 7 Pilot navigation and docking system for LNG carriers to increase of safety of berthing ships by the construction and implementation of innovative information and telecommunication system 8 LNG-powered ships, i.e. cruise ferries with engine compartments enable to run them on LNG 9 WS1 LNG / FO Bunker vessel with a DWT, equipped with flexible cargo configuration (3 configurations possible) combining traditional HFO and MDO fuels with LNG and possessing a capacity for LNG between 700 m m 310. LNG Hybrid Barge as electricity supplier to the AIDA cruise ships with year-round utilisation of the system by feeding the produced energy in the cruise-off season into the municipal grid, thus supplying electricity and heat to approx households 11 LNG Hybrid Ferries Watten Link for use in the North Sea equipped with 3 proven LNG Gen sets, 2 electrical drive motors and 1 hybrid battery pack with LNG (only one fuel on board) supply for ferry service up to 4 days 12 LNG fuel tank containers 13 New generation passenger and car ferry powered by LNG Viking Grace 14 Cruise ferries run by LNG 15 Focus on investments into smaller ships with reduced emissions as a result. 7 Polskie LNG LNG Re-gasification Methods, accessed on 9 July L. Gucma, M. Gucma and A. Bak, 2012, Pilot Docking System New Tool for Safe Maritime Operation, pp Poland at Sea Review of Polish Maritime Industry, 2012, accessed on 9 July accessed on 19 November LNG Hybrid Barge, accessed on 19 November LNG Hybrid Ferry WattenLink, accessed on 19 November LNG fuel tank containers, 2013, accessed 12 January Viking Grace, 2013, environment/environment/viking-grace/, accessed on 11 January Fjord Line LNG cruise ferries, 2013, accessed on 11 January Page 40 of 90

41 In terms of the potential future capabilities, there have been located coherent innovative initiatives that would catalyse the capabilities to enhance technological strengths and potentials within LNG supply chain. To exemplify with two examples: (1) As key future themes have been listed LNG-powered bus public transport solution, where the focus is on the end-user technologies and end-users within the LNG supply chain. Besides, the introduction of the LNG-powered transportation would involve other actors of the LNG supply chain, e.g. supplies of the components for busses run with LNG. (2) Another potential capability resides in introduction of LNG stations that would allow operational cost reduction as well as alternative solution to CNG for different business models. Furthermore, LNG stations become a feasible solution when the number of LNG trucks is increasing and bearing in mind the fact that ISO Standards are being discussed for LNG and LCNG stations construction. Concrete actions pertaining to LNG stations have been planned in the Northern German ports, e.g. Lübeck, Brunsbüttel etc. 3.2 LNG-related stakeholders and players When taking into account potential stakeholders and players located in the SBSR, there can be differentiated between companies, associations, authorities, consultants, classification societies, ports, producers, distributors, ship-owners, storage and bunkering companies, system operators, end-user technologies as well as further organisations and institutions. On the basis of the data gathered from the project regions there can be generated the following stakeholders and players portfolio for the SBSR. Stakeholders and players ascribed to the portfolio refer to the following categories: (1) Bunkering (2) Shipbuilding & repair (3) Ports (4) Shipping (5) End-user technologies. However, it is noteworthy that only key stakeholders and players will be listed here. The full stakeholders and players profiles can be found in the annexes of the study at hand or online at Page 41 of 90

42 Beyond this, for the purpose of this study on LNG development patterns in the SBSR, it has been decided to incorporate into the study such stakeholders and players groups as (6) regulators (including authorities, classification societies and other relevant organisations and associations), (7) storage stakeholders, (8) distributing stakeholders and (9) consultants. Enhancing this study by these 4 stakeholders group enables a deeper insight into LNG supply chains development patterns revealing not only the business-side development, but also the general framework conditions and stakeholders that may significantly either accelerate or hamper the evolvement of the LNG and related activities. By drawing on the general accumulation and the distribution of the stakeholders along the supply chains in the SBSR, the present study has identified 191 relevant stakeholders. Allocation of the stakeholders to particular groups is depicted in the figure below. Figure 8: Profile of stakeholders in the SBSR Bunkering Shipbuilding & repair Storage Distributing Ports Shipping End-user technologies Authorities Classification societies Organisations / Associations Consultants Number of Stakeholders Distribution in the SBSR Source: based on stakeholder profile data Taking into account this breakdown of all relevant stakeholders across the SBSR, it is first important to accentuate stakeholders that are already equipped with LNG technological solutions, products and services, or do record LNG-related young or mature existing activities that have been mapped in the maritime industry discourses. In this respect, the first table on this Page 42 of 90

43 chapter elucidates key stakeholders that due to their activities can be referred to as LNG stakeholders. Table 9: Existing key LNG solutions in the SBSR LNG Stakeholders Specification of LNG scope Location in the SBSR Fiskerstrand BLRT / Western Shipyard LNG bunkering ships / ferries LT Fjord Line AS Cruise ferries powered by LNG Man Diesel & Turbo LNG fuelled two-stroke engines Rolls Royce Marine AS LNG carriers Wärtsilä LNG systems Viking Line LNG ferry Viking Grace White Smoke Shipping LNG Bunkering solutions & STS Bunkering Cryo AB LNG bunker tanks and systems Nordic Yards GmbH LNG tank systems for arctic use Marine Service GmbH LNG fuel tank container KAEFER Marine & Offshore Cryogenic insulation solutions for LNG tank and cargo systems Source: based on stakeholder profile data To provide more specific information on the constellation of the stakeholders and players, each of the identified group will be presented shortly by specifying the stakeholders. With regard to pinpoint stakeholders recording LNG activities, respective stakeholders will be marked in the following stakeholder tables with the project logo. To begin with, similarly, as in case of technological / technical capabilities within the SBSR, one of the largest groups of stakeholders behind the regulation and framework conditions providing stakeholders such as authorities, classification societies can be located in the shipbuilding-related industry. In this context, naval architects should be also allocated to this group of stakeholders, Page 43 of 90

44 since they are involved into design, construction and repair of marine onshore and offshore infrastructure and related structures. The following shipbuilding and repair industry-related stakeholders are present in the SBSR: Table 10: Stakeholders from shipbuilding & repair industry of the SBSR Shipbuilding & repair stakeholders Location in the SBSR Fiskerstrand BLRT / Wetern Shipyard Søby Yard Marstal Yard Fayard Yard LT Man Diesel & Turbo RollsRoyce Marine AS Wartsila ABB OSK Ship-Tech Schottel GmbH Wismar Nordic Yards GmbH Becker Marine Systems Hamburg Frauenhofer Anwendungszentrum Rostock Ingenieurtechnik und Maschinenbau GmbH Muehlhan Rostock GmbH R & M Ship Technologies GmbH KAEFER Marine & Offshore Neptun Ship Design GmbH Rostock IMAVIS Maritime Wirtschafts- und Schiffbauforschung GmbH Page 44 of 90

45 Shipbuilding & repair stakeholders BaltiCo GmbH bei Rostock Marine- und Automatisierungstechnik GmbH Rostock-Warnemünde SDC SHIP Design & Consult GmbH SC Western Shipyard Gdanks Shiprepair Yard Remontowa Location in the SBSR LT PL White Smoke Shipping Cryo AB Source: based on stakeholder profile data When taking into account shipping companies and related stakeholders, in some cases it is hard to allocated them distinctly to the shipping stakeholders category. In fact, these can be in some cases placed either in shipbuilding & repair or shipping-related group. Nevertheless, this study made an attempt to identity key shipping stakeholders in the SBSR: Table 11: Stakeholders from shipping industry of the SBSR Shipping stakeholders Location in the SBSR Lauritzen Kosan Mæersk LNG Evergas Clipper Group Fjord Line Denmark AS Mæersk Line Ltd Mols linien AS Rederiet færgen Nordic Yards GmbH Page 45 of 90

46 Shipping stakeholders SDC SHIP Design & Consult GmbH DFDS Seaways Swedish Marine Forum Stena Viking Line White Smoke Shipping Source: based on stakeholder profile data Location in the SBSR LT Turning towards stakeholders capable to distribute or storage gas, especially with the focus on LNG, there are located relevant 17 distributing and 10 storage companies able to provide demanded services currently and in the future. As a result of the data, the following constellation of the distributing companies has been generated: Table 12: Stakeholders involved into distribution activities across the SBSR Distributing stakeholders Dong gas Distribution Energi Aalborg gasforsyning Naturgas fyn HNM Naturgas EON Klaipedos Nafta Gaz-System Budnaft Petrolinvest PL Energia Polskie LNG PGNiG Swedish Gas Association Stockholm liquefied Methane gas station Location in the SBSR LT PL PL PL PL PL PL Page 46 of 90

47 Distributing stakeholders Enagas S.A. E.ON Source: based on stakeholder profile data Location in the SBSR As the main storage companies can be distinguished: Table 13: Storage services providing stakeholders of the SBSR Storage stakeholders Dong Storage Energinet Gaslager Location in the SBSR Marine Service GmbH Hamburg JSC Klaipedos Nafta LT Budnaft PL PL Energia PL Polskie LNG PL PGNiG PL AGA AB in Nynäshamn port Royal Vopak in Gothenburg port Source: based on stakeholder profile data Dovetailed with the storage companies are bunkering companies that are of paramount importance when dealing with LNG-related issues. However, bearing in mind the bunkering solutions landscape in the SBSR it appears to be scarce with a record of only 5 bunkering service providing companies: Table 14: Bunkering solutions providing stakeholders of the SBSR Bunkering stakeholders Dan-Bunkering Ltd OW Bunker & Trading Location in the SBSR Page 47 of 90

48 Bunkering stakeholders Location in the SBSR White Smoke Swedish Marine Technology Forum SSPA Sweden AB and ÅF AB Source: based on stakeholder profile data Distributing, storage, shipbuilding & repair as well as shipping stakeholders are significant only in a case, where there exists respective LNG-related sufficient room to operate for the identified stakeholders. Here, this particular room or space to operate has to be understood as infrastructure. Coming back to the LNG-related discourse, usually the infrastructure is located in ports, and often, in in the immediate proximity. Taking the SBSR into account against this background, the SBSR possess a series of ports that are relevant for LNG-activities. At the second glance, however, 23 identified ports along the SBSR manifest different degree of relevance for the LNG-activities and infrastructure. In order to provide a clear insight into the significance of the identified ports, it was decided to build the following discussion concerning the ports upon a proposed classification of these particular ports. After having studied the information on the ports, there was made an observation that SBSR can be divided into some groups in terms of their current participation into LNG activities (1), future participation into LNG activities (2), high level of maturity / potential for LNG activities (3) and having potential, but necessary to undergo further development (4). Based on these categories, following allocations of the ports have been generated. Ports below are currently integrating into LNG-related operations in a sense that there are established and function LNG import / receiving terminals and / or other bunkering facilities etc. Accordingly, ports that specify these activities are concentrated in the Northern part of the SBRS, i.e. Sweden. Table 15: Ports of the SBSR with LNG-related activities Ports currently involved into LNG activities Location in the SBSR Nynäshamn Port Source: based on stakeholder profile data Page 48 of 90

49 With regard to the second determinant, LNG-related activities will be mushrooming highly in the Eastern SBSR part, in the Swedish, Lithuanian and Polish coastal regions, respectively. Based on the available data, there will be established LNG terminals and / or small-scale bunkering facilities in the following existing ports: Table 16: Ports of the SBSR with forthcoming LNG-related activities Ports involved into LNG activities in the near future Gothenburg Port Port of Klaipeda Port of Swinoujscie Source: based on stakeholder profile data Location in the SBSR LT PL Ports that fall into the category of high level of maturity, or ports that are relevant because of evolvement of LNG activities in the neighbouring regions (e.g. in case of Germany) are the following: Table 17: Ports of the SBSR revealing high potential for the LNG-related activities Mature Ports and / or ports of high potential for LNG activities Hirtshals Port Port of Hamburg Rostock Port Port of Wilhelmshafen Port of Brunsbüttel Port of Lübeck Source: based on stakeholder profile data Location in the SBSR Finally, the information gathered revealed that there exist a certain number of ports in the SBSR that have potential and could step in LNG-related activities. However, these ports underlie the necessity to develop further and / or undergo some technical, infrastructural, political and investment-related modifications in the regions concerned. The list of potential ports is the following: Page 49 of 90

50 Table 18: Ports of the SBSR under development for LNG-related activities Ports having potential for LNG activities but requiring certain modifications Esbjerg Port Rønne Harbour Aarus Harbour Port of Copenhagen and Malmö Port of Sjællands Odde Rødby Færgehavn Gedser Port Helsingor Port Spodsbjerg Port Tårs Port Port of Gdynia Port of Gdansk Port of Szczecin Source: based on stakeholder profile data Location in the SBSR PL PL PL By bearing on the potential stakeholders identified so far, the potential for the LNG development in the SBSR appears of solid nature. However, solid supply chain is ground not only on the private sector stakeholders, but involves actors from the public sphere that may be crucial in changing, for instance, the perception of the development of LNG in the SBSR. Hence, stakeholders that take significant decisions are involved into relevant ruling procedures, or outlines, e.g. regulations pertaining to maritime industry etc., such as standards etc., provide normative grounds that in the particular context of LNG development shows up as significant. This study reveals that there are a number of such regulators involved into respective processes. As key authorities can be listed: Table 19: Authorities of the SBSR relevant for LNG-related activities Authorities Danish Maritime Authority Location in the SBSR Page 50 of 90

51 Authorities Danish Ministry of Business and Growth Danish Ministry of Transport Danish Ministry of Climate, Environment and Building BSH Federal Maritime and Hydrographic Agency Federal State of Mecklenburg-Vorpommern German Ministry of Transport (federal and / or regional) German Ministry of Environment (federal and / or regional) German Ministry of Regional Planning (federal and / or regional) Lithuanian Ministry of Energy Lithuanian Ministry of Transport and Communications Lithuanian Ministry of Finance Lithuanian Ministry of Environment Lithuanian Ministry of Foreign Affairs Klaipeda State Seaport Authority Maritime Office Szczecin Maritime Office Gdynia Maritime Office Slupsk Swedish Ministry of Defence Swedish Ministry of Transport Swedish Ministry of Enterprise Swedish Ministry of Energy and Communications Swedish Ministry of Environment Swedish Maritime Administration Source: based on stakeholder profile data Location in the SBSR LT LT LT LT LT LT PL PL PL Key identified authorities (alongside a large number of regional municipalities and regional authorities) are accompanied by the relevant organisations and / or associations, which may have an important impact when developing LNG in the SBSR: Page 51 of 90

52 Table 20: Associations of the SBSR relevant for LNG-related activities Associations Danish Ship-owners Association Danish Maritime Danish Gas Association Danske Havne Society for Naval Architecture and Marine Engineering DTL German Association for Positioning and Navigation (DGON) e.v. German Ship-owners Association Association of Lithuanian Stevedoring Companies Lithuanian Ship-owners Association Association of Polish Maritime Industries Polish Ship-owners Association Swedish Maritime Administration Swedish Ship-owners Association Swedish Gas Association Swedish Transport Agency Gothenburg Transport Agency Source: based on stakeholder profile data Location in the SBSR LT LT PL PL The last group of regulators refer to classification societies. When overviewing these ones in the SBSR, the distribution of them tends to be equal. However, most of them refer to the same organisations, but have a status of branch or are established in the particular region. There can be listed following classification societies in the SBSR: Table 21: Classification societies of the SBSR relevant for LNG-related activities Classification societies Bureau Veritas DNV Germanischer Lloyd Location in the SBSR,, LT,,, LT, PL,, Page 52 of 90

53 Classification societies Lloyds Register Polish Register of Ships SIS CIMET Source: based on stakeholder profile data Location in the SBSR, PL PL Beside the regulation institutions providing with the norms and normative information, there can be consulted companies, organisations or associations that may assist in LNG-related issues. To the key consultants in the SBSR can be ascribed: Table 22: Consultation services providing stakeholders of the SBSR Consultants Danish Gas Technology Centre Rambøll Oil & Gas Grontmij Force Technology IMAVIS Maritime Wirtschafts- und Schiffbauforschung GmbH Marinesoft Entwicklungs- und Logistikgesellschaft mbh ATI erc GmbH ATI Küste GmbH FGW Forschungs-GmbH Wismar DNV Lithuania Klaipeda Science and Technology Park Novikontas SCM, UAB Association Baltic Valley NPPE Klaipeda Shipping Research Centre Sweco Lietuva DNV Poland Polish Register of Ships Location in the SBSR LT LT LT LT LT LT PL PL Page 53 of 90

54 Consultants Location in the SBSR AGA AB CRYO AB Skangass AS White Smoke Consulting Frederiet AB FKAB Marine Design Samson Mann-Teknik AB CIMET DNV Source: based on stakeholder profile data To finalise the stakeholder profile, it is inevitable to look at the end-users that will be approached in terms of LNG products, services etc. and thus are regarded of paramount importance for demanding and absorbing the knowledge and competence accumulated in the SBSR. Relevant for identification of end-users are, first, end-user technologies stakeholders that are already available in the SBSR. As end-user related technologies are understood technologies that refer to (1) ship-owners and ship operators, (2) land infrastructure (e.g. trucks, cars), (3) industry power generation and (4) gas grid: Table 23: Stakeholders of the SBSR involved into end-user oriented technologies End-user technologies stakeholders Østkraft produktion A/S Dong Energy A/S Clipper Group Specification of end-user technology, if available Looking at LNG but no concrete initiatives planned Location in the SBSR Page 54 of 90

55 End-user technologies stakeholders Specification of end-user technology, if available Location in the SBSR FjordLine A/S LNG-powered ferries launch soon Lauritzen Kosan A/S Carrying LNG but no concrete initiatives to run on LNG Maersk Line Ltd Research to create individual business cases for ships to run on LNG Maersk LNG Carries LNG Mols linien AS Rederiet færgen LNG fuel tank container, 40 feet Marine Service GmbH Hamburg standard Energobaltic PL AGA AB Propane sold in cylinders ETG Electric and LNG services Volvo AB Volvo FM Methane Diesel Wayne Production of compressed natural gas (CNG) Alfa Laval Cargo condenser and / or heater aboard liquid petroleum gas (LPG) carriers Supplying LNG for Viking Line s new AGA Gas AB passenger ferry AGA / Volvo Trucks First refuelling station for liquefied methane gas, LNG / LBG in Statoil Järna Source: based on stakeholder profile data Page 55 of 90

56 Bearing in mind the overview of the main stakeholders and players within the SBSR, it is, however, apparent that some of the identified actors across the SBSR can be ascribed to more than one type of the stakeholders and players, since some of them are simultaneously involved into more activities. Therefore, overlappings cannot be excluded. Nevertheless, when making a comparison of the key stakeholders pinpointed, it is evident that the highest proportion of the stakeholders and players consists of companies, where most of them are involved into maritime-related activities, i.e. shipping, ship repair and construction as well as gas and oil supply. What appears to be at stake at the moment is the involvement of the authorities and public institutions into LNG activities and infrastructure. Hence, the promotion of LNG and awareness of LNG advantages might be limited to the business sector, thus gaining little consent in the public sphere and political support. Furthermore, when it comes to the assessment of the stakeholders and players, it can be argued that also the SBSR in general has available stakeholders and players relevant for the LNG supply chain, the bottlenecks tend to lie in LNG itself as a primary resource and its supply or export. On the contrary, when it comes to those components of the LNG supply chain that refer to LNG shipping, potential locations for LNG importing (terminals), regasification, its storage, distribution and marketing, the region seems to reveal a sound potential for the utilisation of LNG in the future. From the data gathered it is apparent that there are actors capable of taking over the particular LNG activities within the LNG supply chain, for instance, ports, manufacturers, shipyards, consultants etc. 3.3 LNG-related infrastructure Regarding the infrastructure relevant to LNG in the SBSR, it is apparent that direct LNG infrastructure facilities in the SBSR are very scarce. Certain involvement into LNG infrastructure demonstrates the Swedish region, which possesses the LNG import (receiving) terminal in Nynäshamn port. Page 56 of 90

57 Figure 9: LNG Import Terminal in Nynäshamn Source: LNG Import Terminal in Nynäshamn 16 Additionally, planes have been generated to establish a new terminal at the Port of Gothenburg. Looking at the other parts of the SBSR, there are no existing LNG terminals or bunkering facilities at the moment, thus revealing very limited upstream LNG infrastructure with the case of Sweden. Nevertheless, as the observations reveal, the potential for the developing LNG downstream infrastructure in the region is present, especially when taking into accounts knowledge, competences, stakeholders etc. prevailing in the SBSR. As the situation of the ports in the SBSR demonstrates there are tangible initiatives to set up LNG terminals in Hirtshals, Klaipeda and Swinoujscie. It may be argued that other regional ports would follow breakthrough of the first LNG terminals, thus contributing to the evolving LNG infrastructure and attracting other stakeholders, projects, initiatives etc. Beyond this, project regions do advocate the establishment of LNG import or receiving terminals and building of offshore vessels and 16 LNG Import Terminal in Nynäshmn, 2012, accessed on 12 January Page 57 of 90

58 regasification vessels, regasification, storage and bunkering stations as well as gas pipeline systems. 3.4 LNG product portfolio When dealing with LNG products, the situation is similar to that of the LNG infrastructure. Since LNG products, services and other LNG-related initiatives and processes underlie synergy effects with the infrastructure, scarce infrastructure results into rare LNG products in the SBSR. Thus, leading is in this situation the Swedish region again listing some relevant LNG products, such as tank and bunkering system design and building for the world s first Marine LNG supply vessel for ship to ship bunkering, standards for LNG bunkering, combo bunkering vessels, procedures for bunkering operations of LNG in terms of safe and efficient technologies etc. Compared to the Swedish region where the LNG-related products are mushrooming, other regions in the SBSR are on development stage, and record very scarce LNG product range by now, e.g. Becker Marine Systems LNG ferries and LNG barge as well as LNG fuel tank container (Marine Service GmbH Hamburg (Germany). Page 58 of 90

59 Figure 10: LNG Hybrid Barge developed by Becker Marine Systems GmbH, Hamburg Source: LNG Hybrid Barge17 However, based on the observations in the participating regions, although the LNG product range appears to be at the moment of quite limited extent, technological, knowledge and competence capabilities spread over the SBSR underpin high potential for LNG product evolvement. The point of departure for product evolvement can be found in the shipbuilding and repairing industry (yielding especially strong competences) that is able to provide products directly related to LNG, for instance, LNG bunkering and tank facilities, ferries run on LNG, LNG tankers and containers, bunker / feeder vessels, trucks etc. 17 LNG Hybrid Barge, 2012, accessed on 12 September Page 59 of 90

60 3.5. LNG-related services When it comes to LNG-related services in the SBSR, similarly, as in case of products, the majority of the services has been allocated to the shipbuilding industry providing services in building LNG fuelled vessels, unloading LNG from carriers and tankers, processing LNG storage and regasification, monitoring and testing etc. To exemplify, the Swedish stakeholder White Smoke plays important role in catalysing LNG-related services. More specifically, since the start of the activities by the company, significant investments have been made to develop supply chain for LNG as a marine fuel. By assisting with technical, commercial and regulatory expertise as well as project management services in terms of LNG and LNG bunkering this particular stakeholder accelerates LNG service development. Nevertheless, as it is apparent from the data gathered, LNG activities should not be limited to one directly linked with LNG as a marine fuel, bunkering and accompanying measures. By contrast, overview of LNG activities in the SBSR implies the need of further relevant services, such as special software for LNG-related solutions, services provided by design and construction companies, R&D and consultation services required to assess, e. g. environmental impact, safety, feasibility of LNG use or to conduct LNG-related cost and benefit analyses as well as engineering assessments etc. Furthermore, in order to utilise LNG effectively, there are needed efficient LNG distribution and trading services provided by respective service provides. Nevertheless, when bearing in mind the bundle of services related to LNG, number of these particular services can be provided by the ports, which have been identified as significant stakeholders. As a result, it may be stated that currently important services pertaining to LNG refer to (1) LNG utilisation as efficient and clean marine fuel, (2) bunkering facilities and related solutions. What direct with LNG linked services are still lacking to a certain extent (except Sweden), are these ones that point to LNG liquefaction, processing, safety, competitiveness etc. Taken together, the analysis of the supply chain segment covered here revealed what segments of the supply chain are covered with the relevant stakeholders and which parts are very scarce and lack relevant stakeholders. Generally, the current stage of the supply chain in the SBSR can be elucidated as follows: Page 60 of 90

61 Figure 11: Distribution of stakeholders capabilities along the LNG supply chain in the SBSR Liquefaction Shipping, LT,, LNG Import Terminal (PL, LT) End-users, (PL),, Source: based on stakeholder profile data In particularising the observations regarding the SBSR supply chain it is apparent that the single segments of the SBSR supply chain are covered, however, some of them are subject to more intense capability building or are of quite moderate nature. Capabilities of the regions put in brackets indicate their evolvement in the near future, since at the date of compiling this joint LNG study such capabilities did not exist, but are planned to be launched and implemented soon. To anchor the capabilities presented in the region concerned, the following matrix was delineated. On the one hand, this matrix embraces the information reflecting what parts of the supply chain and to what extent entail developed knowledge and competence portfolio, which, in turn, is capable to support businesses to with the LNG-related knowledge and technologies. On the other hand, the matrix unveils the capabilities of the SBSR supply chain more specific how LNG-related infrastructure has been handled at present and will be dealt with in the next future. Page 61 of 90

62 Table 24: Specification of present LNG-related activities of the SBSR supply chain Segment of Short specification of the Distribution of capabilities Evaluation the Supply capabilities along the SBSR criteria chain of the SBSR Existing ++ Developing + Planned 0 Missing - Shipping LNG feeder vessels - LNG bunker vessels ++ Ship-to-ship bunkering (STS) ++ LNG Terminals LNG onshore infrastructure LNG Import terminal / LT & PL ++ / + Small-scale export / bunker,, LT, PL 0 facilities LNG bunker stations, 0 LNG filling stations 0 LNG fuel tank containers ++ LNG trucks ++ End-users Tank & bunkering solutions, ++ Shipping, ++ / + Source: based on stakeholder profile data 4. LNG-related initiatives and projects On basis of the data gathered from the project regions it is evident that LNG initiatives and projects in the SBSR are mushrooming. However, most of the initiatives pinpointed are at the beginning stage, and there have been implemented limited to LNG related projects, e.g. in Sweden. However, in this vein the SBSR in terms of LNG projects and initiatives appears to be Page 62 of 90

63 very unbalanced, since other parts of the region have not communicated topical finalised projects. By drawing on observations it is apparent that nearly all the participating regions are currently involved into LNG-related initiatives, thus generating more or less an equal concern for LNG in the whole SBSR. Besides, by looking at the catalogue of initiatives and projects, these ones can be categorised in the same manner as the stakeholders and correspond to the respective LNG supply chain segments. Against this background initiatives have been launched and projects implemented in the following categories: bunkering (1), shipbuilding & repair (2), ports and infrastructure (3), shipping (4) and end-user oriented technologies (5). Table 25: Overview of LNG-related initiatives and projects across the SBSR Project specification Allocation to the category Location in the SBSR Building LNG Terminals and LNG Ports and infrastructure LT, PL onshore infrastructure LNG in Baltic Sea Ports Ports and infrastructure Baltic Sea Region Clean Baltic Sea Shipping Ports and infrastructure Baltic Sea Region North European LNG Infrastructure Project Ports and infrastructure Baltic Sea Region LNG filling stations and small-scale bunker solutions Bunkering liquid gases in German ports 2012 Fjord Line LNG ferries MS Stavangerjford & MS Bergensfjord MS Viking Grace Ports and infrastructure & end-user oriented technologies Bunkering Shipping, shipbuilding & enduser oriented technologies Shipping, shipbuilding & enduser oriented technologies,, PL Bunker vessels Bunkering POLAR Shipping & shipbuilding Source: based on stakeholder profile data Page 63 of 90

64 At a closer look, the majority of the initiatives and projects refer to such segments as shipping, shipbuilding and end-user oriented technologies. However, worth mentioning is that some of the initiatives and projects can be allocated to the same segment, for instance, projects on building passenger ferries can be allocated to shipping, shipbuilding and end-user oriented technologies. To provide more detailed information at this point, the Danish, Polish, German and Lithuanian regions have launched initiatives for LNG terminal sites at respective regional ports, for instance, at Klaipeda (LT) and Swinoujscie (PL). Interests to introduce LNG-related activities have been also recorded in the context of Hirtshals (), Rostock, Brunsbüttel, Hamburg (). However, at the date of this study, there seems to be no consensus prevailing. The plans appear to be of more indicative nature and have not found concrete approval in the political and business discourses. In this respect, the building up of the respective LNG terminals would enable to establish the SBSR LNG cluster, facilitate cross-border gas transfer etc. In this particular case, of special importance is the project regarding new facilities of the gas pipeline between Swinoujscie and Szczecin and Szczecin-Gdansk. This project can be regarded as important trigger for the development of the cross-border gas transfer across the SBSR. In addition to the initiatives concerning the LNG terminals on national and regional level, there have been conducted sound projects in the SBSR. Such projects have been implemented on the interregional or transnational level and benefit for more regions and countries at the same time. Some of them were mentioned in the previous chapters, e.g. Clean Baltic Sea Shipping project or projects ascribed to the Swedish region. Regarding the project Clean Baltic Sea Shipping launched in 2011, this project has been part-financed by the European Regional Development Fund and European Neighbourhood and Partnership Agreement in the frame of the South Baltic Sea region Programme In accordance with the EU strategies the project aims at developing clean shipping strategy, harmonising environmental differentiated port dues and developing technical solutions for the ports. Of special importance is in the context of this study development of technical pilot systems gas and LNG supply in Baltic Sea Region ports Clean Baltic Sea Shipping, 2013, accessed on 13 January Page 64 of 90

65 Furthermore, the SBSR records further projects relevant for LNG development that have been implemented on the transnational level and can be referred to as multi-country projects, as they involved more partners and regions from the SBSR and the adjacent regions, similar as in case of the Clean Baltic Sea Shipping. To mention some recent activities, the LNG in Baltic Sea Ports, which started in 2011, and the LNG Northern Europe Project run by Danish Maritime Authorities have gained resonance not only on national but as well as on international arenas. Regarding the project LNG in Baltic Sea Ports it was initiated to foster new a harmonised approach towards LNG bunker filling infrastructure across the Baltic Sea Region. This project emerged as a response to new sulphur content limits in marine fuels sailing in Emission Control Areas, covering, among others, areas of the Baltic Sea. Seven ports as partners from the Northern part of the Baltic Sea aim at developing port infrastructure to offer LNG bunker stations to ship-owners that are to a large extent missing across the Baltic Sea, what, in turn, hampers LNG business development 19. In terms of the latter project, North European LNG Infrastructure Project, this project resulted in a feasibility study for an LNG filling station infrastructure and test of recommendations across the Baltic Sea, which was compiled in When looking at initiatives and projects on regional scale, all participating project regions record respective activities. Regarding Lithuania, Poland and Germany, most of the identified projects refer to the scientific-research array, whereas projects in Danish and Swedish regions can be treated as more business-oriented, since some of them have already resulted in tangible products or technological solutions. To exemplify some of them, projects conducted in the Swedish region refer to development of reliable solutions for shipping and bunkering in case of using LNG. The project on LNG/FO Bunker vessel WS1 carried out by White Smoke Shipping AB and White Smoke AB aims at a technological solution with a flexible cargo configuration combining traditional fuels with LNG. As a result, designing and launching such a vessel enables change the cargo mixes in line with a changing market etc. 21. Moreover, in the context of LNG, Sweden has been involved the projects on international standards for LNG bunkering and LNG 19 LNG in Baltic Sea Ports, 2013, accessed on 12 January North European LNG Infrastructure Project, 2011, accessed on 12 January LNG/DO Bunker vessel WS1, 2013, accessed on 12 January Page 65 of 90

66 STS Transfer Procedures 22. Beside bunkering-related projects, Sweden demonstrates sound results in the shipping and end-user oriented technologies segment with the project Viking Grace. Figure 12: MS Viking Grace passenger as novel LNG technological solution Source: Viking Grace23 As a result of initiatives, there has been designed and constructed MS Viking Grace passenger / cruise ferry running on LNG and combined with traditional heavy fuel oil (dual-fuel and engine technology). It was build by Wärtsilä and represents a new generation of ferries. This ferry is owned and utilised by Viking Line (FI) and will operate between Turku (EE) and Stockholm ()24. Projects of similar nature have been carried out in Denmark. Design and construction of new generation ferries run on LNG by Fjord Line have brought already positive results. MS Stavangerfjord will be put in operation between Bergen, Stavanger and Hirtshals end of May 2013 and run exclusively by LNG with a single LNG engine. Since it will be the first cruise ferry in the world with single LNG engine employing environmental technology, avoiding emissions 22 White Smoke Consulting: Projects, 2013, accessed on 12 January Introduction to MS Viking Grace, 2012, accessed on 15 January Viking Grace, 2013, accessed on 15 January Page 66 of 90

67 from sulphur or heavy metals, thus meeting all environmental standards, this technological solution can be labelled as an important stepping stone for further evolving of similar LNGrelated activities, what, in turn, accelerated LNG business development across the SBSR 25. The second LNG cruise ferry MS Bergensfjord is planned to be launched for operation from autumn Figure 13: MS Stavangerfjord LNG ferry with single LNG engine Source: Fjord Line MS Stanvangerfjord 26 Under scrutiny of Lithuania, it can be underscored that although the majority of the projects is allocated to the scientific-research array, scientific-research solutions have been already transferred into products and exploited. In this particular case it is important to mention LNG fuelled double-ended ferry Fjord1, which was built in cooperation of Norwegian and Lithuanian companies Fiskerstrand BLRT AS and Western Shipyard in 2011 and delivered to Norway for operation in the Norwegian waterways. 25 Fjord Line: MS Stavangerfjord, 2012, Line-worlds-first-cruise-ferry-powered-by-natural-gas-alone/?backUrl=1, accessed on 16 January Fjord Line: MS Stanvangerfjord, 2012, Fjord-Line-worlds-first-cruise-ferry-powered-by-natural-gas-alone/?backUrl=1, accessed on 15 January Page 67 of 90

68 Figure 14: LNG fuelled Fjord1 ferry built in the Lithuanian shipyard Source: Fiskerstrand BLRT AS, Taking into account projects carried out in the German region, worth mentioning is the project POLAR Production, Operation and Living in Arctic Regions Rostock ( ), where one of the key concerns is LNG ship and platforms building as well as LNG tanks and LNG peripheral system development for regions with extreme climate and geographical conditions 27. Beside initiatives in the shipbuilding and shipping sector, the German region yields activities in terms of LNG bunkering. The Feasibility study on bunkering liquid gases in German ports 2012 elucidates current LNG infrastructure in North Europe and Germany as well as focuses on current stage of maritime projects in terms of LNG. As a result, there has been analysed and discussed the paradigm of logistics chain on the basis of one German sea port in the context of legal and competence-related conditions. Thus, this study implies respective conclusions and 27 POLAR, 2013, accessed on 12 January Page 68 of 90