LNG as a marine fuel Rev2 - Council of Marine Carriers
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LNG as a Marine Fuel 21 st Tugboat Industry Conference 29 th May 2015
Transcript of LNG as a marine fuel Rev2 - Council of Marine Carriers
LNG as a Marine Fuel 21st Tugboat Industry Conference
29th May 2015
New Natural Gas Markets Off‐Grid power generation & heating
• Industry & mining • Communities
Exploration and Production • Drilling and exploration • Well completion
Transportation • Road • Rail • Marine
Cryopeak – Overview
A leading LNG Solution Provider in the “small‐scale” LNG industry
“Turn‐key” LNG solutions provider– Fuel sourcing & LNG transportation – Onsite storage and regasification systems – Emergency response, training, and service
ISO 9001:2008 certified by ABS
A leading LNG service provider
LNG Production Customer useLogistics Onsite Storage
LNG TransportationCryotrax monitoring
CryoStationsCryotrax monitoring
LNG SourcingExport approvals
Training Emergency response
LNG as a Marine Fuel
Source: Viking Line
Key Driver: Emissions Legislation
46,000 vessels trading globally
Shipping is the most efficient mode of transportation, however,
1 billion tonnes of GHG emissions (3% of the global total)
Specific legislation targets sulphurEmission control zones (Jan 2015)Sulphur limited to 0.1%Global sulphur cap – 2020 / 2025
Compliance options
Compliance options are; 1. Burn MDO 2. Exhaust gas cleaning systems 3. Alternative fuels – LNG is the front runner
Gas is the cleanest hydrocarbon fuel Sox – reduction by 100% Nox – reduction of 90% Co2 – reduction of 23% Particulate Matter – reduction of 100%
LNG is emerging as a viable fuel
Key Driver: Economics (ECA operation)
Distillate <0.1% sulphur
HFO & Scrubber LNG fuel
Low oil $800 / tonne $530 / DTE $500 / DTE (38%)
2013 $1100 / tonne $650 / DTE $500 / DTE (55%)
DTE – diesel tonne equivalent
LNG Fuel Value Chain
LNG Tanker – 55m3
LNG Bunker barge = 1,000 -8,000m3
Storage
15000 TEU = 8,000cbm
ECA Container = 2000m3
Coastal Ferry = 150m3
Shore Facilities – 1000m3
Uptake
Uptake of LNG as a fuel based on: Legislative drivers % time trading in an ECA Fuel Availability
Fuel Availability in BC
Source: www.FortisBC.com
2 facilities where LNG can be purchased todayTilbury, Delta Mount Hayes, Vancouver Island
Export projects? Not in the near term…Terminal escort tugs
Safe transfer of LNG
Minimize the risk of spills New specialized industry & transfer
technology Quick connection Break away connection Ship to shore ESD link
Training and new competencies required
Safety Zones
security zone: area around the bunkering facility where activities are monitored (and controlled)
safety zone: area around the bunkering station where only essential personnel and activities are allowed
Hazardous area: area where only certified electrical equipment can be used. Areas where gas might be present.
Other Challenges
RegulationsDraft IGF code now agreed (in draft form)
ISO Guidelines fuelling LNG to ships Effective risk based studies and Hazid are good practice
Implications for PortsOperating procedures and practices Simultaneous operations
Security of operations
Other challenges
Vessel design 1.6 times more storage volume required Additional onboard piping and design Location & type of cargo tanks
Contractual considerations Long term fuel supply vs spot Fuel availability Flexibility for ship owners
In summary
Global Shipping must continue to improve emissions.
LNG is a viable fuel and complies with Emission Control Areas.
Economics are favorable even at historic low oil prices.
Challenges remain, but a lot of work to over come barriers is being undertaken.
Cryopeak can support infrastructure design, logistics, permitting for LNG as a marine fuel.
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Contact
Cryopeak
Calum McClure – CEO [email protected]
Unit 110 – Verdun PlaceRichmond, V6V 1W5, BC, Canada
Tel +1 604 278 4430
