Lloyd’s Register Asia

What do you need to know about

LNG as a marine fuel
David Power
Marine Manager – Hong Kong & Taiwan
Lloyd’s Register Asia

26th June 2012

Lloyd’s Register Asia

Which came first, the chicken or the egg?

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The Betamax vs VHS format war

To be a high
end specialist
or
the market
dominator…
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What do you need to know…

• Legislative drivers

• Commercial drivers

• Critical technical issues

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Environmental Roadmap

MARPOL Annex VI

Energy Efficiency
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MARPOL Annex VI Requirements – SOx

1.1.2012
Revised SOx control on
4.50%
basis of fuel loaded
2016 NOx
1.1.2020* 1.1.2025
Tier III
3.50%

Outside ECA-SOx
Fuel oil
sulphur
limits 1.7.2010
1.1.2015
1.50%
1.00%
0.50% ECA-SOx
0.10%
* Depending on the outcome of a review of fuel oil availability,
to be completed 2018, the 2020 date could be deferred to 2025
Lloyd’s Register Asia

Emission Control Areas (ECAs) and more...

Coming ECAs:
North American Coasts – SOx from Current ECAs – the
1st August 2012 / NOx from 2016 Baltic Sea and North
Sea since 2006/2007
Central America (region of Puerto
Rico and US Virgin Islands) ~ 2013

Not only ECAs –

regional emission
control

Not only ECAs – the

Antarctic HFO ban Future ECAs – ??
from 1st August 2011
Lloyd’s Register Asia

International Controls on Greenhouse

Gases (GHG) from Ships – Combustion CO2
Revision to MARPOL Annex VI under consideration

Technical approaches:
• Energy Efficiency Design Index – new buildings from 2013
• Ship Energy Efficiency Management Plan
• Energy Efficiency Operational Indicator

Market based instruments

Future progress and eventual outcome – to be decided

 Lloyd’s Register Asia Shore-based
Rules and Guidelines Regulations

Gap?
LNG Terminal
Bunkering LNG Tanker
Station (Pipeline)
Liquefication Plant
IGC Code /
SIGTTO Class Rules
Guidelines
Gas Field
Bunker Ship

MSC.285(86) /
Class Rules LNG Fuelled Ship
Gap? Gap? LNG Terminal
Future IGF Code
Bunker Truck

LNG Supply Chain

Vaporiser
Bunkering Options Pipeline System
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What do you need to know…

• Legislative drivers

• Commercial drivers

• Critical technical issues

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LNG as Bunker is not yet commercialised…

LNG AS BUNKER
GAS

MDO / HFO

LOW SULPHUR BUNKERS

Lloyd’s Register Asia

Why being directed to “LNG as Fuel”?

• Future cost of Carbon

- New Regulations being induced
- High increase of HFO price
- Low-Sulphur Premium price added

• Operational Benefits
- Economical
- Clean burning should mean less
maintenance
- No need to change over fuels
when in SECA or in port
- No uptake scrubbers or other
exhaust gas treatment equipment is
required

• Technology becomes available

Lloyd’s Register Asia

Constructing New Ships

• Dual fuel engine / gas engine

• Hull integrated fuel tank / on-deck tanks / design loads / motions
• Fuel capacity / Hull containment
• Steel grades / weight – structural reinforcement
• Piping system
• Ventilation system
• Other specialised equipment – cold box / gas valves
• Class Rules / IGC Code / MSC.285(86) compliance
Lloyd’s Register Asia

Converting an Existing Ship/Fleet (1)

Options to comply the ECA requirements:

• Switch to low sulphur fuels/distillates
• Install a exhaust gas cleaning system
• Replace with a gas engine or dual fuel engine
• Change auxiliary engine to gas turbine or fuel cell

Commercial considerations:
• Cost difference and pay back time
• Structural changes
• Machinery changes
• Length of off-hire period and docking arrangement
 Lloyd’s Register Asia

Converting an Existing Ship/Fleet (2)

Further operational costs and potential profit/loss for using LNG
propulsion system:
Good company reputation for CSR / environmental commitment
Chartering preference
Compliance flexibility

+ Securing a competitive advantage

Better crew retention rate due to better working environment
Fuel cost saving / availability – SOLUTION: Bunkering Market evolving fast
Maintenance cost of equipment and systems – SOLUTION: MCM LR Notation
Storing – engine store/spares / lubricants: SOLUTION: MCM LR Notation
Insurance approach
+/– Ship resale value
Development technology: SOLUTION: LR’s new Rules and Risk Methodology
Possible time constrains of berthing for bunkering – SOLUTION under development at
Key Ports around the World

–
Possible loss of profit due to reduced cargo space/capability – SOLUTION by New
Designs
Investment of crew training to cope with more complex systems – SOLUTION by
external Training Providers and LR Marine Training Services
Lloyd’s Register Asia

Developing Shore-based Infrastructures

• Existing facilities & confirmed

development projects

• Possible future development &

emerging gas suppliers

• Supply and demand of LNG

bunkering – key trade routes,
ship types and sizes

• Small-scale distribution

• LNG bunkering hubs

Port of Rotterdam
Lloyd’s Register Asia

What do you need to know…

• Legislative drivers

• Commercial drivers

• Critical technical issues

Lloyd’s Register Asia

What are these issues?

• LNG fuel storage

• Bunkering system/equipment
• Bunkering operation
• Gas Tank Location
• Gas Fuel Piping
• Ventilation
• World Firsts
Lloyd’s Register Asia

LNG Ship-to-ship (STS) transfer

• Regasification Operations – Shuttle

LNG carriers to LNG RV provide
continuous cargo for long term gas
export to pipeline/jetty
• Lightering Operations – ‘Mother’
carrier to smaller LNG carriers enable
transit routes to estuaries/swallow
waters for LNG Terminal offloading
• Bunkering Operations – Small LNG
carriers to gas fuelled vessels enable
fuel transfer at ports.
• FLNG Operations – FLNG to shuttle
LNG carriers enable continuous LNG
export directly from offshore gas field.
Lloyd’s Register Asia

LNG STS cargo transfer and bunkering

In-shore Waters: Estuary Terminal & Port :

Class / Flag / Port Class / Flag / Port/ Land
Authority /Coast Guard Regulatory Authorities

Bunkering
& Regas
FLNG
& GBS
Lightening

Offshore Location:
Class / Flag/ National
Field Authority
Lloyd’s Register Asia

Ship’s Critical Issues – LNG fuel storage

Conversions
• Fuel capacity /Deck space
• Structural/cryogenic protection
• Tank relief, venting, drainage
• LNG piping path tank/ER
• Proximity to safe critical areas
• Risk identification/Mitigation
• Lay-out optimisation
New Builds
• Fuel capacity/ Hull containment
• Tank type/design loads/motions
• Supporting structure/steel grades
• Cold Box/gas valves location
• Safe/Dangerous zones
• Class/IGC/IGF compliance
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Ship’s Critical Issues – LNG bunkering system

• Ability to bunker STS/STJ

• Bunker station position/segregation
• Manifold size/compatibility
• Deck loads/ cryogenic protection
• Deck lay-out / equipment impact
• LNG piping path to tanks
• BOG management/Boiler system
• Fire protection/detection/ESD
• Ships Compatibility/Checklists
• OCIMF, IGF, IGC, SIGTTO
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Ship’s Critical Issues – LNG bunkering system

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Equipment Critical Issues – LNG bunkering

• Hydraulic marine arm 16” dia

• Cryogenic hose 4”, 8”, 10” dia
• Emergency Release System (ERS)
• Vapour management system
• Hose support system
• Hose certification to IGC Code
Chapter 5.7
• Compliance with EN 1474-2 LNG
Transfer Hose Standard.
• ESD Pneumatic by plastic break away
hose between vessels
Lloyd’s Register Asia

Vapour management – critical issues

Potential large quantity of vapour due to:

• State of the tank (temperature, heat capacity)
• Method used to transfer (velocity of liquid)
• Mechanical energy input (pump, piping)
For pressurised tanks operation:
• Pressure relief sizing/setting
• Vapour liquefaction in tank
• Re-condensing system
For non-pressurised tank operation
• Vapour return can seriously limit the transfer rate
(LNGC STS 6000 m3/hr to 1000 m3/hr @ 2 bar pressure)
Lloyd’s Register Asia

STS LNG Transfer – critical equipment

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Ship’s Operations Critical Issues (1)

• Ship / Bunker compatibility for STS

• Port Authority traffic / piloting
• Land Authority Compliance
• Ship / Bunker approach turning circle
• Fendering / mooring arrangements
• Communications / Safety Check-Lists
• Electrical isolation / Area Class
• Lifting of hoses, manifold connection
• Warm ESD testing
• System cool down
• Fuel transfer / Turnaround time
• Vapour management
Lloyd’s Register Asia

Ship’s Operations Critical Issues (2)

• Adverse weather, traffic motions

• Shutdown, locked-in inventories
• System/hose purging
• ESD Levels (I,II) ERS operation
• Partial fill cargo in Bunker
• Weather, day/night time
• Emergency Response procedures
• Impact on cargo/passengers/cars
• Potential societal impact
• Risk identification/quantification
Lloyd’s Register Asia

Gas Tank Location (1)

• Where - Gas storage tanks may be above or below deck with the
following considerations:
• Tank design, Gas leak, Ventilation, Fire protection, Mechanical
damage protection

• What type of tanks

Lloyd’s Register Asia

Gas Tank Location (2)

• Some guidance is provided in MSC 285(86)

• 2.8.3 for open deck (B/5 from ship side)

• 2.8.4 for enclosed space:

Minimum lesser of B/5 or 11.5m from ship side

Minimum lesser of B/15 or 2m from bottom plating
Not less than 760mm from shell plating

* In any case a hazard assessment must be completed

Lloyd’s Register Asia

Gas Fuel Piping (1)

• Seamless Pipes, butt welded, minimum flange connections, post

weld treatment.
• Materials to comply with IGC Code.
• Valves, expansion joints and components to be of approved type.
• All gas pipes are to have double wall arrangement.
• Double wall pipes (inert gas or continuous ventilation) are to have
a gas tight secondary barrier construction.
• Machinery spaces are considered inherently gas safe under all
conditions.
Lloyd’s Register Asia

Gas Fuel Piping (2)

• For some installations it may not be possible to have all gas pipes
to be of double wall construction.

• The design should be done in accordance with a recognized

hazardous area classification standard. e.g. IEC 60079:10
(Explosive Atmospheres) to allow for “non hazardous” designation
of the surrounding space.
Lloyd’s Register Asia

Ventilation (1)

Source: Hart Fenton

• Complete separation between gas safe and gas dangerous spaces.

• Direct access between gas safe and gas dangerous spaces should
be fitted with an airlock in accordance with IGC code.
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Ventilation (2)

Gas Bunker
Ventilation

Ventilation

Gas Storage

• Special ventilation requirements for engines and equipment using

single wall gas piping located in the machinery space
Lloyd’s Register Asia

Ventilation (3)

Source: Inec B.V., G.C.M. Deen shipping

Lloyd’s Register Asia

Compliance of Rules and Guidelines

• IMO International Code for the Construction and Equipment of

Ships Carrying Liquefied Gases in Bulk (IGC Code).

• IMO Interim Guidelines on Safety for Natural Gas-Fuelled Engine

Installations in Ships MSC 285(86)

• Lloyd’s Register New Rules and Regulations for the Classification of

Natural Fuelled Gas Ships, - Issued July 2012

• International Association of Classification Societies Unified

Requirements

• Risk Assessment: New LR Risk Methodology for Novel Technology

and Designs, issued July 2012
Lloyd’s Register Asia

Risk Assessments – World Firsts

• BP/HHI - LNG Dual Fuel Propulsion Systems
• EE Energy Bridge - Offshore Regas/ LNG STS
• EE Teesside GasPort - Regas/ LNG STS Terminal
• Repsol/YPF Bahia Blanca - Regas/LNG STS Terminal
• Repsol/YPF Buenos Aires Gateway - Regas/LNG STS Terminal
• Petrobras Guanabara - Regas/LNG STS Terminal
• QatarGas/STASCO – Nigg LNG STS Terminal
• Viking Line – Fuel LNG Risk Assessment
• Gutteling LNG Hoses – Certification Approval
• EN 1474 - Working group LNG transfer systems
• SIGTTO - Working group STS – ESD Lead
• ExxonMobil/ DSME - MEGI HP Dual Fuel Propulsion
• MHI – SSDGi HP Dual Fuel Propulsion
Lloyd’s Register Asia

Is LNG propulsion system an economy and

variable option for compliance?
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Chicken and Egg Mystery Solved?

 Lloyd’s Register Asia

LNG as Fuel for LR Class Ro-Pax latest project

Lloyd’s Register is classing the latest Ro-Pax Newbuilding project for a

fully Gas Fueled Ships
• Viking Line Cruise-Ferry - the most environmentally friendly large
passenger vessel to date
- Construction at STX Turku shipyard for delivery at the beginning of 2013
- Designed for 2800 passengers with 880 passenger cabins served by 200 crews
- 1300m cargo lanes and 500m passenger cars on a separate car deck
- Ship propulsion system: Wartsila 8L50DF, 4-Stroke engine
- Key feature: 214m long, 57,000GT, 23knot speed, Ice class 1AS, Dual Fuel M/E
- Type C LNG Fuel Storage tanks onboard for approx. 140 ton of liquid LNG storage
- Bunkering: STS LNG bunkering (HAZID & HAZOP study by collaboration work )
Lloyd’s Register Asia

LNG as Fuel – LR leading the cutting edge technology

STQ 130m ferry Canada

and more…
- Societe Des Traversiers Quebec (STQ) 130m ferry Canada
- Societe Des Traversiers Quebec (STQ) 90m ferry Canada
- New Stena Seabird Class ferries (LNG option)
- Inland waterways vessels, Rotterdam
- Pilot boats
• Other possible gas fuelled projects such as….:
- Shell Nigeria Offshore Supply Boats
- Other European ferries
• LR is currently undertaken R&D Projects for ‘LNG as Fuel’ with shipbuilders
- JIP with DSME
- JIP with STX
Lloyd’s Register Asia

“LNG as Fuel” – becomes available….

HiVAR system developed by DSME

• Key System constitution: Re-condenser + HP Pump + HP Vaporiser

• Principle: Boil-off-gas (BOG) is re-condensed and burned as fuel together
• Fuel Feeding method: Fuel gas is supplied with high pressure of 250bar
• Key characteristics:
- Small power consumption
- Low vibration
- Easy maintenance
• LR is involved for the development by JIP (Joint Industry Project)
Lloyd’s Register Asia

Any questions?
For more information, please contact:

David Power
Marine Manager – Hong Kong & Taiwan

Lloyd’s Register Asia

Suite 3501, China Merchants Tower
Shun Tak Centre
168-200 Connaught Road Central
Hong Kong

T +852 2287 9333

D +852 2287 9363
E david.power@lr.org
w www.lr.org/marine

Services are provided by members of the Lloyd's Register Group.

For further information visit www.lr.org/marine