CONFERENCE ON LNG FOR TRANSPORT ITALY AND MEDITERRANEAN AREA 3 rd CONFERENZA GNL Methanizing the Mediterranean Area Strategies and visions on LNG as fuel Rome, 11-12 June2015 Alessandro Fino Managing Director
SSLNG: 2015 European LNG terminals overview... European Framework Since 1 st January 2015 stringent sulphur emission standards took effect in the Baltic area; Many shipowners active in the North Sea are looking into switching to LNG in order to be in compliance. Some players have already ordered new ships (GDF SUEZ, Mitsubishi and NYK- Nippon Yusen Kabushiki Kaisha, have placed an order for an LNG bunker vessel that will start operating in 2016 from its home port of Zeebrugge). 3 th March 2015 European Commissions' study on LNG as a shipping fuel shows industry's support. The results show that stakeholders recognize the environmental advantages of LNG as a shipping fuel, but are still uncertain whether they offer a clear business case. "This study gives us a solid overview of the opportunities and remaining challenges for the use of LNG for shipping. More importantly: the outcome helps us to feed a public debate on LNG for shipping and provides arguments for a stakeholder debate at local level." said European Commission. The study takes into account the overall EU policy aiming at reductions of emissions from shipping and looking for alternative energy sources, inviewofgrowingconstraintsontheuseofheavyfuels. Fluxy s web site Fluxy s web site
SSLNG: 2015 European LNG terminals overview... Zeebrugge Terminal(Belgium) LNG for maritime transport Four LNG-powered inland navigation vessels are currently supplied via tanker trucks that take on LNG at the LNG terminal in Zeebrugge (truck-to-ship bunkering). A second jetty (it will be commissioned end of 2015) is under construction at the LNG terminal in Zeebrugge. It has been specially designed to also accommodate LNG bunker vessels, i.e. small LNG ships that load LNG and supply it to LNG-powered ships (ship-to-ship bunkering) or deliver it to small LNG bunker terminals in other ports. The Zeebrugge Port Authority is finalizing its LNG ship bunkering procedures for the Port of Zeebrugge and the accreditation of LNG bunker vessels. LNG for trucks Fluxys is actively involved in developing LNG refuelling infrastructure for long-haul trucks. Its first filling station recently opened in Veurne. This is the second LNG filling station in Belgium. The first one opened in Kallo (near Antwerp) a few months earlier. ThefillingstationinVeurneisco-fundedbytheEU. Zeebrugge Terminal (Fluxy s web site) (Fluxy s web site)
SSLNG: 2015 European LNG terminals overview... Gate Terminal(the Netherlands) Gate terminal to be expanded with harbour basin for small scale LNG with a maximum capacity of 280 berthing slots per year. New infrastructure will enable distribution of LNG as low emission fuel alternative to transporters all over Europe. Port of Rotterdam has started works for new multi-user LNG break bulk facility Commissioning and commencement of the first services scheduled towardstheendofh12016 Small-scale services aim to split up large-scale LNG shipments into smaller parcels. This enables the distribution and use of LNG as a cleaner fuel alternative for maritime vessels, ferries, trucks and industrial applications. The Port of Rotterdam Authority is involved in this project with the design and construction of a dedicated harbour basin for LNG break bulk operations and has already introduced new regulations that allow LNG bunkering for inland barges and ship-to-ship bunkering of seagoing vessels. Grain LNG Terminal(UK) On13 th March2015GrainsettoofferUK'sfirstBreakBulkservice Service could be available from 2016 if customers show interest First facility in UK to offer Small Scale Ship Reloading Customers will benefit from wider LNG distribution opportunities. Gate Terminal (Gate s web site) Grain Terminal (Ofgem s web site)
SSLNG: What about Italy? First pilot projects On 16 May 2014 the first truck to ship transfer took place in Civitavecchia port where36m 3 oflnghavebeentransferredtom/tbokntug Different industrial utilization plant have been designed and built by Liquigas to use LNG as fuel in the production process (Speziali MN, Acque Minerali di Calizzano SV, Vis SO): currently the LNG supplying such plants comes from Marsiglia and/or Barcelona March 2015, 3A milk plant in Sardinia is producing its own power with an LNG power plant April 2015 Gautier, first Italian LNG ferry built by Fincantieri reached Canada after successful trial in Castellamare di Stabia Discussions about how to methanize Sardinia island are ongoing with the related development of onshore storage facilities. This could lead to develop a huge LNG market: this scenario will definitely trigger and create a solid base for the development of the bunkering LNG business at least in the Tyrrhenian sea area To develop a sustainable market it is necessary to define a stable and clear regulation plan for bunkering operations and define clear measures (emission reductions, fiscal regime etc...) for the use of LNG for transport
SSLNG: Key Factors in the Logistic Model REGASIFICATION TERMINALS TRANSPORT END USERS Mini LNG carriers (1000-30000 m 3 ) Bunker barges (400-1000 m 3 ) Transport Industrial or civil facilities The main infrastructures onshore and offshore can receive the LNG carriers from the suppliers Trucks/Trains/ISO containers (50-80 m 3 ) Coastal deposit
SSLNG: Key Factors in the Logistic Model KEY FACTORS WITH SSLNG LNG Pricing vs Availability of alternatives MARKET LNG DEMAND GROWTH ENVIROMENTALIMPACTS(CO 2,SO x,no x,particlesandnoiseemissions) INFRASTRUCTURES (existing terminals to be modified; vessels and/or barges to be built; bunker locations; relevant costs) FISCAL REGIME and PERMITTING PROCESS EUROPEAN STRATEGY AND FUNDING( e.g. LNG Blue Corridors project; CEF) STANDARDIZATION of LNG transfer processes (both marine and land transportation) www.glmri.com Map of Four European LNG Blue Corridors All the above KEY FACTORS will have different impacts due to different local infrastructure availability Potential demand for maritime LNG
OLT Sea terminal study outputs (1/2) During 2015 OLT concluded a preliminary feasibility study to identify the capability of the terminal to perform the transfer of the LNG to LNG shuttle carriers and the consequent modifications needed. The study was cofinanced by European Union through the SEA Terminal project in cooperation with Valencia Port Foundation and Livorno Port Authority under the supervision of MIT. The terminal will be able to receive Small LNG carriers with the following characteristic: Mini LNGC between a cargo capacity between 1,000 m 3 to 7,500 m 3 Mini LNGC Length: between 60 m to 110 m Loading rate between 250 m 3 and 900 m 3 (the timing is the same requested for bigger LNG carriers) Manifold in accordance to OCIMF recommendation ESD in accordance to SIGTTO recommendation. (1,000 m3) 1,000 m3 Berthing Layout
OLT Sea terminal study outputs (2/2) About FSRU Toscana Terminal: Minor modifications will allow to perform the transfer of LNG from port side Purchase of new cryogenic hoses, reducers, fenders etc Detailed engineering study will follow upon market request A new permitting and authorization assessment will be necessary The estimated time required for the above activities and to make the bunkering services available to the market is at least one/two year(s) (7,500 m3) 7,500 m3 Berthing Layout
Thank you for your attention www.oltoffshore.it
Dott. Massimo PROVINCIALI Managing Director CONFERENCE ON LNG FOR TRANSPORT ITALY AND MEDITERRANEAN AREA 3 rd CONFERENZA GNL Methanizing the Mediterranean Area Strategies and visions on LNG as fuel THE MEANING INITIATIVE LIVORNO ROME, 11 12 JUNE 2015
THE DEFINITION OF LNG STRATEGY CONSULTATIONS SUMMARY REGULATIONS AND RESOURCES LNG NATIONAL STRATEGIC PLAN MIT/MISE SUBGROUPS G A I N N M E D GREENCRANES LIVORNO PORT AUTHORITY LNG STRATEGICAL PLAN FOR LIVORNO AND HIGH THYRRENIAN SEA SEATERMINALS GAINN-MED LIVORNO Off-shore / on-shore Plants LNG MediterraneanTraining Center LNG Bunkering for allfacilities (maritime, landand IntermodalTransportDevelopment industrial) Vessel Refitting Mini LNGc Railway development FUTURE ACTIONS Upgrade industrial plant Green Port vehicles Industrial Development of supply chain AU T O R I TÀ P O RT UA L E D I L I VO R N O - D o t t. M a s s i m o P R OVINCIALI 12
THE MEANING INITIATIVE LIVORNO SAVONA GENOVA LA SPEZIA CARRARA LIVORNO OBJECTIVE: LIVORNO CORE-SYSTEM LARGE SCALE LNG OFFSHORE STORAGE (OLT FSRU) LNG BUNKERING (via OLT FSRU MODIFICATION) LNG BUNKER VESSEL SMALL SCALE LNG ON-SHORE STORAGE LNG ON-SHORE STORAGE LNG DITRIBUTION FOR ROAD TRANSPORT LNG INTERMODAL DISTRIBUTION FOR INDUTRIAL USE LNG ON-SHORE REGASIF. & GAS DISTRIBUTION LNG BUNKER VESSEL S POTENTIAL RANGE LNG-FUELED FERRIES / Ro.RoVESSELS ORISTANO BASTIA PIOMBINO ELBA CIVITAVECCHIA INDUSTRIAL DEVELOPMENT INFRASTRUCTURE SOLUTIONS TECHNOLOGICAL AND INNOVATIVE SOLUTIONS FOR DEVELOPMENT OF THE LNG SUPPLY CHAIN AU T O R I TÀ P O RT UA L E D I L I VO R N O - D o t t. M a s s i m o P R OVINCIALI 13
THE MEANING INITIATIVE LIVORNO : THE STRATEGIC OBJECTIVES ACTIVITY AREAS IN-PORT OFF-SHORE ON-SHORE Livorno in the "core network" of European ports with sustainable and green solutions. Consolidate Livorno as an "OIL & Gas" and chemical port Introduce large-scale use of LNG port facilities Consolidate the role of the port as knowledge providers regarding LNG Livorno as the pivot of the distribution system for LNG use. Strengthen the centrality of Livorno in the MOS network by introducing large scale LNG solutions Rail-Road Intermodal Services for LNG. Develop intermodal LNG ISOtank-containers, by rail and road tankers. Mediterranean Training Centre for LNG (off-shore and on-shore, industrial and logistics systems ) Industrial Partners : APL, RINA, Pisa University, LITAV, CSA Consolidate the industrial role of the Tuscan coast and high Thyrrenian sea production centers with LNG as alternative fuel. Develop innovation and knowledge accumulation in high potential strategic sectors. Strengthen the port, industrial, operational and engineering skills related to LNG. AU T O R I TÀ P O RT UA L E D I L I VO R N O - D o t t. M a s s i m o P R OVINCIALI 14
THE MEANING INITIATIVE LIVORNO PILOT LEAD. PARTNER A1. OLT (FSRU) modifications for the supplying of LNG bunker vessels. OLT OFFSHORE LNG TOSCANA A2. Refitting of a LNG Bunker vessel SHIPOWNER- BUNKERING CO. A3. 1. Small scale dual-side onshore storage & distribution facility in Livorno ENI COSTIERO GAS A.3. 2. Pilot Cryogenic Connection A.3. 3. Pilot IsoTank Container / ITU for intermodal rail/road shift facilities GAS & HEAT GAS & HEAT B. Ferry or Ro.Ro vessel LNG engine refitting SHIPPING COMPANY C. Onshore storage & distribution facility in Sardinia. HIGAS D. LNG fuelling of Terminal Operations: large scale refitting of cargo handling vehicles. GLOBAL SERVICE E. Administrative/TechnicalCoordination; infrastructure ajustement; riskassessment& monitoring system; market analysis for LNG distribution in Northern Tyrrhenian. LIVORNO PORT AUTHORITY F. Mediterranean Centre for LNG Handling Personnel Training & Skills Certification APL LITAV RINA INDUSTRIAL PARTNERS: HIGAS AU T O R I TÀ P O RT UA L E D I L I VO R N O - D o t t. M a s s i m o P R OVINCIALI 15
THE «LNG» PROJECT FOR LIVORNO PORT: OLT FSRU TOSCANA INFRASTRUCTURE UPGRADE OLT Offshore LNG Toscana S.p.A. is the company that developed and now holds and manages the property of the floating regasification Terminal FSRU Toscana Shareholders: Gruppo IREN (49,07%) Gruppo E.ON (48,24%) Golar LNG (2,69%) Attività Detailed Study concerning the adjustmentstothe RegasificationTerminal FSRU TOSCANA Descrizione OLT requested the funding of a detailed Study which will deepen the evaluation of the infrastructure adjustements to be carried out to the regasificationterminal to allow the possible supply from mini LNGc and in order to verify the permitting steps that will be necessary with regards to the introduction of the new EU directive 2014/94. AU T O R I TÀ P O RT UA L E D I L I VO R N O - D o t t. M a s s i m o P R OVINCIALI 16
THE «LNG» PROJECT FOR LIVORNO PORT: Small scale dual-side onshore storage & distribution facility COSTIERO GASLIVORNOisalocalcompanysetupjustafterthesecondworldwar.It saleader in LPG storage and distribution at national level. Thanks to its underground storage facility, CostieroGasLivornocatersfor2/5ofanationalLPGdemand.Thecoastal deposit is locatedin Livorno s industrial port. It offers numerous services for LPG distribution. LPG handling is carried out efficiently thanks to railway links inside the facility and the vicinity of major road infrastructure(a12motorway e SGC FI-PI-LI highway). Activity Pilot for setting-up LNG on-shore deposit and related facilities Description The pilot envisages building an onshore LNG storage plant inside Livorno port. The first phase will be devising a 1,500 m3 tank and developing facilities for distributing LNG by sea andonland. AU T O R I TÀ P O RT UA L E D I L I VO R N O - D o t t. M a s s i m o P R OVINCIALI 17
THE «LNG» PROJECT FOR LIVORNO PORT: CRYOGENIC CONNECTION AND ISOTANK CONTAINER / ITU FOR INTERMODAL RAIL/ROAD SHIFT FACILITIES GAS & HEAT is a local company set up in 1996. It s a leader in designing, building, supplying and installing loading systems for transporting and distributing liquiefied gases at all three commericialization levels: LPG (FullyPress.,SemiRef.,FullyRef.),orloadssentat -48 C Ethyleneorloadssentat-104 C LNG,loadssentat-162 C The company is located on the Navicelli Canal near Livorno Port Activity Cryogenic Pipeline Iso Tank Container Description The pilot foresees designing and building a cryogenic pipeline system able to connect LNG loading arms located on the quay with an on-shore storage plant Building and testing a logistics facility in the vicinity of the LNG distribution plant for intermodal shift (by sea/road/rail) using LNG tank containers(itu) AU T O R I TÀ P O RT UA L E D I L I VO R N O - D o t t. M a s s i m o P R OVINCIALI 18
THE «LNG» PROJECT FOR LIVORNO PORT: CONTAINING SYSTEMS FOR ONSHORE LNG STORAGE PLANT IN ORISTANO Activity HIGAS SrlisthenameofthenewCompanybornfromthejointS.V.P. established bytwopartners: CPL CONCORDIA soc. coop is an Italian multi-utility cooperative group that operates in 4 continents, established in 1899, that includes 67 companies and 1800 employees. It is involved in every aspect of energy: from procurement and distribution to sales and accounting of gas and electricity as well as their production by means of traditional or renewable systems. GasandHeat:seepreviouspage Description Pilot for building containment systems for a battery of cryogenic tanks for an onshore LNG storage plant in Oristano (Sardinia) The purpose of the initiative is the construction of the containing systems for a battery of cryogenic tanks for an onshore LNG storage plant, capable to store up to about9.000cbm. net(95%)ofliquidnaturalgas. AU T O R I TÀ P O RT UA L E D I L I VO R N O - D o t t. M a s s i m o P R OVINCIALI 19
THE «LNG» PROJECT FOR LIVORNO PORT: MEDITERRANEAN CENTRE FOR LNG HANDLING PERSONNEL TRAINING & SKILLS CERTIFICATION AND INFRASTRUCTURE ADJUSTMENT Livorno port authority is a non economic public body overseen by the Ministry of Transport. Activity MediterraneanCentre for training and certifying LNG skills Activitiesconcerning infrastructure development and coordination Description Setting up an LNG training and certification centre for operators in the LNG supply chain in the Western Mediterranean area. The Centre will cover the training requirements of the following sectors: sea: crewmembers on LNG ships and personnel on off-shore LNG platforms Sea/land interface: LNG loading, unloading, bunkering and other related operations Industrial plants: LNG handling in industrial sites, facility maintenance (plants, tanks, pumps), particularly operating and maintenance of cryogenic pipelines and other related operations inland: handling storage of tankers and LNG Tank Containers, loading/ unloading railway tankers, and other operations related to LNG logistics. A series of activities (logistic/infrastructural/procedural implementations, administrative and technical coordination, studies and analysis on risk assessments and suitable emergency procedures) designed to support start up phase of an LNG supply chain in Livorno port AU T O R I TÀ P O RT UA L E D I L I VO R N O - D o t t. M a s s i m o P R OVINCIALI 20
LIVORNO AS A NEXT ITALIAN LNG HUB? WE ARE ALREADY WORKING FOR THIS... FOR OUR FUTURE AU T O R I TÀ P O RT UA L E D I L I VO R N O - D o t t. M a s s i m o P R OVINCIALI 21
AUTORITÀ PORTUALE DI LIVORNO Thank you for your attention Massimo PROVINCIALI Segretario Generale direzione@porto.livorno.it www.porto.livorno.it