The emerging role of LNG for OSV’s:The facts about LNG-fuelled vessels

TERJE NORDTUN Wärtsilä

OSJ Conference15-16 February 2012

1 © Wärtsilä

Factor trends: Environment

Factor trends: Environment

LOCAL

GLOBAL

LOCAL

LOCAL

Acid rainsTier II (2011)Tier III (2016)NOx

Greenhouse effectUnder evaluation by IMO

CO2

Acid rainsSulphur content in fuelSOx

Direct impact on humansLocally regulated

Particulatematter

Emission Controlled Areas

Established Emissions Controlled Areas

Emissions Controlled Areas under consideration

Factor trends: Fuel Availability and Prices

Sources: www.lngoneworld.com, www.bunkerworld.com, LR Fairplay

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USD

/MB

tu

LNG Japan average [USD/MBtu]

NG Henry hub [USD/MBtu]

HFO 380cst Rotterdam [USD/MBtu]

MGO Rotterdam [USD/MBtu]

Potential saving in fuel cost by LNG powering

(based on 950 USD/t for MGO and 630 USD/t for LNG)

1.150.000 USD annually (36% lower than MGO operation)

DUAL-FUEL (DF)

GAS-DIESEL (GD)

Gas burning technologies

SPARK-IGNITION GAS (SG)

1987 1992 1995

Dual-Fuel applications - References

4 segments >150 installations > 5’000’000 running hours

Power Plants

DF Power Plant51 installations186 engines2’600’000 rhOnline since1997

Merchant

LNGC• 89 vessels• 353 engines• 1’900’000 rhConversion• 1 Chem. Tanker• 2 engines conv.• Complete gas

train• Complete design

Offshore

PSVs/FPSOs• 17 vessels• 87 engines• Online from 1994New orders:• Harvey Gulf; the

first 3 LNG-PSV to be operated in the Gulf of Mexico!

Cruiseand Ferry

LNG ferries• 1+1 vessels• 4 engines per

vessels• Complete gas

train• 2800 passengers• In service in 2013

Navy

Costal Patrol• Coming…

Dual-Fuel advantages

Main advantages of the Dual-Fuel 4-stroke engine compared to SG:

• Redundancy, backup without interruptions in power or speed.• Able to operate on liquid fuel outside ECA-area• Simple system, no PTI/”take me home” or double gas system needed.• DP class fulfilled with single tank/gas supply system• Vessel re-routing possible, gas supply not a limitation

Emission advantage

CO2

NOx

SOx

Particulates

Dual-Fuel enginein gas mode

Dieselengine

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Emissionvalues [%]-25%

-85%

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-100%

Methane slip

Methane slip status

THC = 6 g/kWh corresponds to 8-10% reduction in GHG compared with MDF operation

LNG system in Principal

LNG filling line

LNG tank

Pressure build-up circuit

Water /glycol

Evaporator

Stop and Master valve

Gas Valve Unit

Tank room

Offshore supply vessel arrangement

LNG-Fuelled OSV’s in Operation – February 2012

Viking Energy - 2003 Stril Pioneer - 2003

Viking Queen - 2008 Viking Lady - 2009

Skandi Gamma - 2011 Normand Arctic- 2012

All equipped with Wärtsilä DF engines

LNG Fuelled OSV’s on order with Wärtsila DF engines

4 x PSV’s for Harvey Gulf

2 x PSV’s for Eidesvik Offshore

1 x PSV for REM Offshore

Conclusions – The facts:

• LNG is an environmental friendly fuel reducing shipping emissions

• Use of LNG as fuel will also reduce fuel cost

• Wärtsilä has proven solutions for complete LNG propulsion systems including storage and handling onboard ships

• Application of DF engines gives high flexibility and redundancy and is the preferred solution for OSV’s

• The Wärtsilä DF technology is well proven with more than 5.000.000 accumulated running hours

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