Sustainable Shipping for Reduction of Emissions 18-19 November 2014, Gothenburg, Sweden Poseidon-Med Project: The Global Project for the Adoption of LNG as Fuel in the Easter Mediterranean Sea Dr. Panayotis G. Zacharioudakis
Project Presentation Outline Introduction Poseidon-Med Project @ a Glance Facts and Figures Consortium Conclusions 2
Project Introduction POSEIDON-MED is the First Cross European Border LNG bunkering project in the Easter Mediterranean and Adriatic Sea: 3
Project Why POSEIDON-MED Sulphur Cap in ECAS, EU and Worldwide LNG is The Most Efficient Alternative For the Forthcoming Emission Targets in SOx, NOx, Particles & CO2!! 4
Project Why POSEIDON-MED The Directive For Alternative Fuels Infrastructure Establishes The Exact Requirements For Natural Gas Bunkering Facilities In The TEN-T Network In Sea, Road, & Cities. 5
Project Why POSEIDON-MED Any LNG Import & Storage Infrastructure Addresses Comprehensively the European Energy Security Strategy : Diversification of Sources & Strategic Reserves New Supply Sources: Qatar (QEnergy RasGas Agreement) High Potential from Gas Fields in Cyprus, Israel, Libanon, Egupt & Greece!!!! 6
The Global Project Mainly Scope: Create LNG Bunkering in East Mediterranean with Piraeus as a Hub by Establishing an FSRU Facility But it can also: Divert LNG Cargoes to Satellite Ports and LNG Import Terminals Feed European Gas Pipeline Grid Provide CNG & LNG for TEN-T Urban & Transport Network Provide Security of Supply 7
LNG as Fuel in Shipping Introduction About POSEIDON-MED 8
The First Phase POSEIDON-MED Study Phase (end 2013- end 2015) : Studies for: LNG Network. Supply and Demand Legislations and Regulatory framework in Offshore and Onshore installations LNG Infrastructure & Installations Risk Assessment Sustainable Financing 9
The First Phase Integrated Maritime Supply Chain for LNG in Italy Local Assessments - Master Plans on LNG as Fuel for NAPA & other Italian Ports
Facts & Figures Why LNG as Fuel: Baseline scenario[ $ / Baseline scenario[ $ / ton ] mmbtu ] MGO 24,25 970 HFO 15,5 620 LNG 12,1 690 11
Facts & Figures Design a Dedicated Financing Product Establish a Formal Rating Process to Reveal Good Projects Pay as you Sail Scheme Explore EU Co-funding Opportunities Low Initial Capital Use TEN-T Umbrella to Get a Good Rating and a Low Interest Loan from EIB 12 Balloon Payment
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 cm of LNG Facts & Figures LNG Bunkering Flow: Bunkering Port Piraeus cm of LNG No of LNG Ships 4,500,000 70 4,000,000 3,500,000 3,000,000 44 44 45 46 47 47 50 50 50 52 52 53 54 54 55 56 58 59 60 60 60 50 2,500,000 2,000,000 1,500,000 1,000,000 500,000 6 10 14 18 22 26 30 34 37 38 40 30 20 10 13 0 0
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 cm of LNG Facts & Figures LNG Diverting Cargos Flow: Annual Demand: 0,16 Million cm of LNG Annual Demand: 1,04 Million cm of LNG 2018 2020 600,000 500,000 400,000 300,000 200,000 100,000 0 Piraeus Bunkering Satellite Ports Piraeus Patrai Thessaloniki Volos Limassol La Spezia Venice Trieste Ravenna Gioia Tauro Cagliari Brindisi Bari Rijeka Luka Koper Malta Marmara 14
Facts & Figures NG Pipeline Flow: Annual Demand: 0,22 bcm NG 2018 Annual Demand: 0,26 bcm NG 2020 Annual Demand: 0,46 bcm NG 2021 Annual Demand: 0,51 bcm NG 2022 Annual Demand: 0,59 bcm NG 2025 Annual Demand: 1,1 bcm NG 2035 Annual Demand: 1,8 bcm NG 2047 Greece Greece Bulgaria Greece Bulgaria Romania Serbia FYROM Albania Greece Bulgaria Romania Serbia FYROM Albania Transit Italy Greece Bulgaria Romania Serbia FYROM Albania Transit Italy Greece Bulgaria Romania Serbia FYROM Albania Transit Italy Greece Bulgaria Romania Serbia FYROM Albania Transit Italy 15
The Consortium Project Leader : Project Technical Manager: Technical Services: Classification Society 16
The Consortium Ports: Operators: 17
The Consortium Supporters: 18
Conclusions Towards the LNG Era in Easter Med LNG has an Exceptional Momentum for Bunkering & NG supply Mandatory Regulations in Near Future: Directive for LNG Bunkering Stations @ Core Ports (Supply) Low Sulphur Cap in Med (Demand) Energy Security and Diversification of NG Sources (Supply & Demand) EU Co-funding Mechanism for Ports & Vessels CEF 2014-2020 TEN-T works 30% TEN-E Synergies +10% Cohesion Funds <85% 19
Dr. Panayotis Zacharioudakis R&D Director E pzacharioudakis@oceanfinance.gr Trireme Olympias 5th century BC OceanFinance Ltd 23 Psaron Street, 185 46 Piraeus, Greece The sole responsibility of this publication lies with the author. The European Union is not responsible for any use that may be made of the information contained therein.