LNG as Fuel - Bunkering

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1 LNG as Fuel - Bunkering Summit 1st Blue Shipping Environmental Cpt. Stephen BLIGH June 2011

2 LNG as a Fuel Increased focus on environmental emissions from the shipping industry is materialising as new requirements, particularly for Environmental Control Areas (ECA), Limits on sulphur content in fuel are causing the most immediate concern for ship owners. Most studies have commented on or estimate the cost of installing exhaust gas scrubbers. The cost of scrubber installation and operation are expected to have a few years payback time, compared to operation on costly ECA compliant oil fuels. The installation however will still be a significant cost to the ship owner. DNV has performed extensive case studies for several ship types including container ships, tankers and general cargo ships evaluating in detail the economical and environmental aspects of LNG Operations. However this paper discusses the problems associated with LNG operations and Bunkering and the technology challenges associated with this. Det Norske Veritas AS. All rights reserved. 2

3 The LNG challenge Today s distribution of LNG fuel Local storage tanks on quay-side, refuelled by small scale LNG carriers or semi-trailers Pricing of the LNG fuel is based on long term contracts; not market driven Possible Solutions Make LNG fuel available at existing bunkering stations Already established quay capacity, safety zones and operational procedures Import of LNG from international markets has clear economic advantages compared to local small-scale LNG liquefaction. Det Norske Veritas AS. All rights reserved. 3

4 So what is going on today plans for bunker network is developing Det Norske Veritas AS. All rights reserved. 4

5 LNG fuel distribution Challenge Speed and standardisation Det Norske Veritas AS. All rights reserved. 5

6 Ship to ship LNG bunkering project Bunkering during loading and unloading procedures, typically Ro-Ro and Ro-Pax ships LNG bunker boat - larger volumes than for truck solutions, more flexibility than the onshore tank solution Bunker operation should not prolong stay in port Bunkering in port close to urban areas Total bunker operation, max 50 minute LNG transfer rate, approx 150 ton (300 m3)/hour Det Norske Veritas AS. All rights reserved. 6

7 LNG bunkering today Truck to boat Dedicated terminal to boat Pictures: GAS NOR Det Norske Veritas AS. All rights reserved. 7

8 How bunker a bigger vessel Det Norske Veritas AS. All rights reserved. 8

9 What needs to be clarified before LNG bunkering can be performed? Pictures: LNG ship to ship bunker project Det Norske Veritas AS. All rights reserved. 9 Port to be approve for LNG activities Authorities Bunkering: Port Close to urban areas Bunkering procedure (including HAZID and Risk Assessment) to be approved from Handling of passengers Authorities & Port societyclass Handling of cargo Bunkering area to be approved for LNG Authorities Port Handling of trucks and cars

10 Many technical solutions penetrated Receiving vessel Bunker vessel LNG/Vapour return/diesel Lube oil/sludge Drip free break away couplings Spill tray Bunker port position Bollards position Mooring plan Pictures: LNG ship to ship bunker project Det Norske Veritas AS. All rights reserved. 10

11 The project have developed LNG ship to ship bunkering procedure including relevant checklists Technical conceptual solution for fast and safe bunkering of LNG Pictures: LNG ship to ship bunker project Det Norske Veritas AS. All rights reserved. 11

12 DNV classification assessment of Ship to ship LNG bunkering project DNV classification branch has examined the output from the Ship to ship LNG bunkering project. DNVs assessment is that the output form the project is a suitable solution for a LNG ship to ship bunkering scheme, provided that bunker vessel and receiving vessel fulfils class rules and other relevant rules and regulations. I.e. DNV acknowledge the solutions developed and they are deemed feasible from a class society perspective Det Norske Veritas AS. All rights reserved. 12

13 Final product! Det Norske Veritas AS. All rights reserved. 13

14 Conclusions The distribution of LNG for marine applications is a challenge for the industry - but development is ongoing at many places Bunkering during loading and unloading procedures is from a risk point of view achievable LNG bunker boat will ensure larger volumes than for truck solutions and more flexibility than the onshore tank solution Bunker operation must be business as usual i.e. should not prolong stay in port or intervene with vessel schedule Fast transfer of large volumes possible Pictures: FKAB & Gasum Det Norske Veritas AS. All rights reserved. 14

15 Safeguarding life, property and the environment Det Norske Veritas AS. All rights reserved. 15