Transcript DNV - Innovasjon Norge

LNG as ship fuel
- market potential and necessary fuel infrastructure
Audun Grimstad, Principal Consultant, Maritime Advisory
31 May 2013
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ELIMINATING RISK IS NOT AN OPTION
It’s how you manage
your most critical risks
LNG as ship fuel
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DNV’s core competence
identify
assess
manage
LNG as ship fuel
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risk
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Turn risks into rewards
BUSINESS CHALLENGE
BUSINESS RESPONSE
• Manage risks
• Get relevant
decision support
• Build trust and confidence
towards stakeholders
• Achieve and maintain safe and
sustainable performance
LNG as ship fuel
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DNV – a global company with strong Indian presence
300
100
10,500
offices
countries
employees
LNG as ship fuel
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DNV: Advise to stakeholders throughout
the entire LNG value chain
Subsea
Subsurface
Offshore production
facilities (incl. storage,
Onshore
liquefaction
Transport vessel
Terminal/storage
(LNG carriers)
End-user
(gas distribution/
power generation)
processing & liquefaction)
Piping
transportation
(multiphase and gas)
LNG used as a fuel for
power plants
LNG as ship fuel
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LNG used as a
maritime fuel
Break-bulk and small
scale distribution
EU invests 2.1 bn € for 139 LNG bunker ports by 2025
LNG as ship fuel
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Forecasting
LNG as ship fuel
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World Energy Outlook scenarios
IEA oil price scenarios
140
WEO 2008
WEO 2012
WEO 2009 WEO 2011
WEO 2010
120
Crude oil import price (real)
WEO 2000 (Reference)
100
US$/barrel (2011)
WEO 2002 (Reference)
WEO 2005 (Reference)
80
WEO 2006 (Reference)
WEO 2007
WEO 2006
60
WEO 2007 (Reference)
WEO 2008 (Reference)
WEO 2009 (Reference)
WEO 2005
40
WEO 2000
WEO 2010 (New policies)
WEO 2002
WEO 2011 (New policies)
WEO 2012 (New policies)
20
0
1995
2000
LNG as ship fuel
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2005
2010
2015
2020
2025
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2030
2035
2040
FINDINGS
Sensitivity
From “Shipping 2020”
Relative fuel price differences have a significant influence on uptake on LNG
fuelled vessels
Regulatory requirements on EEDI and SOx in particular drives technology uptake
Fuel prices, investment horizon and fuel burden are important drivers
Uptake of smaller engine/de-rating
Uptake of LNG fuelled vessels
Scenario D+ is Scenario D with increased fuel burden and investment horizon
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FINDINGS
Finding 1
From “Shipping 2020”
More than 1 in 10 new buildings in the next 8 years will be delivered with gas
fuelled engines
LNG price, sulphur limits and EEDI are the
main drivers
From 2012-2019 the LNG price is the main
contributing factor
When approaching 2020, EEDI and sulphur
limits will create additional motivation for
LNG as fuel
- In Scenario D, 35% of newbuildings will be
delivered with LNG engines
In scenario D, we foresee about 1,000
newbuildings from 2012-2020 and some 6700 retrofits
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Share of LNG fuelled newbuildings
Scenario D
Decision making criteria for a bunkering facility operator
1. Availability of LNG
2. Potential benefits of providing LNG bunker in a port
(new business opportunities, cargo turnover, etc.)
3. The risks of providing LNG as bunker fuel in port
(safety & operational risks, security risks, etc.)
4. The risks of not providing LNG as bunker fuel in the
port (environmental non compliance, missed
business opportunities, etc.)
5. Expected bunker volumes
6. Logistics solutions
7. Technical and operational roadblocks limiting the
LNG bunkering operations
Potential
locations for
bunkering
8. Financial support
GATE Terminals
LNG as ship fuel
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Examples of LNG for fuel value chains
The 3 main scenarios for LNG bunkering are intermediary tank to ship transfer
(ITTS), truck to ship transfer (TTS) or ship to ship transfer (STS)
ITTS
TTS
STS
LNG as ship fuel
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DNV is the leading Class Society on LNG fuelled ships
1
CLASS SERVICES
 Class activities
 Class related activities
2
ADVISORY SERVICES
 Strategic advice,
market & feasibility study
 Planning & design
 Class related activities
 Operational risk study
LNG as ship fuel
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DNV Class Rules
 Tank arrangements

Tank types and tank connections leakage protection

Tank arrangement –can be vacuum insulated tank
with tank connection space

Portable tanks, tank containers
 Bunkering arrangements & piping
 Engine room arrangements

Gas safe configuration

Emergency Shut Down (ESD) protected configuration
LNG as ship fuel
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Class services overview and selected reference
Class activities
Class related activities
 35 out of 37 LNG fuelled vessels in operation globally
have DNV class (as per 10.01.2013)
 Design Reviews of ship concepts with gas fuel
 Contribution to the development of the
International Code for Gas Fuelled Ships
(IGF code)
 Approval in Principle (AiP) and certification for tank
systems
 Contribution to the ISO standard (ISO TC-67
WP10) on LNG bunkering
 Approx. 90 gas only & DF engines and 2 gas turbines
certificated to DNV Class
 “LNG ready” - Preparing future newbuildings
for easy retrofit
 Approved engine types:
- 2 types of medium speed spark ignited gas-only
engines
- 1 type of high speed spark ignited gas-only engine
- 4 types of medium speed dual-fuel engines
- MAN ME-GI slow speed dual-fuel engine
- 1 type of gas turbine
- Several engine types from several makers under
evaluation/discussion
 JIP with several parties on the use of fuel
cells running on LNG onboard cruise ships
Class activities
LNG as ship fuel
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37 LNG fuelled ships in operation worldwide
SHIPS IN OPERATION
Year
2000
2003
2003
2006
2007
2007
2007
2007
2008
2009
2009
2009
2009
2009
2009
2010
2010
2010
2010
2010
2010
2011
2011
2011
2011
Type of vessel
Car/passenger ferry
PSV
PSV
Car/passenger ferry
Car/passenger ferry
Car/passenger ferry
Car/passenger ferry
Car/passenger ferry
PSV
PSV
Car/passenger ferry
Car/passenger ferry
Car/passenger ferry
Patrol vessel
Car/passenger ferry
Patrol vessel
Car/passenger ferry
Patrol vessel
Car/passenger ferry
Car/passenger ferry
Car/passenger ferry
PSV
Chemical tanker
Car/passenger ferry
PSV
Owner
Fjord1
Simon Møkster
Eidesvik
Fjord1
Fjord1
Fjord1
Fjord1
Fjord1
Eidesvik Shipping
Eidesvik Shipping
Tide Sjø
Tide Sjø
Tide Sjø
Remøy Management
Fjord1
Remøy Management
Fjord1
Remøy Management
Fjord1
Fjord1
Fosen Namsos Sjø
DOF
Tarbit Shipping
Fjord1
Solstad Rederi
Class
DNV
DNV
DNV
DNV
DNV
DNV
DNV
DNV
DNV
DNV
DNV
DNV
DNV
DNV
DNV
DNV
DNV
DNV
DNV
DNV
DNV
DNV
GL
DNV
DNV
Year
2012
2012
2012
2012
2012
2012
2012
2012
2012
2012
2013
2013
Type of vessel
Car/passenger ferry
PSV
PSV
PSV
General Cargo
PSV
PSV
Car/passenger ferry
Car/passenger ferry
Car/passenger ferry
PSV
RoPax
Owner
Fjord1
Eidesvik
Olympic Shipping
Island Offshore
Nordnorsk Shipping
Eidesvik Shipping
Island Offshore
Torghatten Nord
Torghatten Nord
Torghatten Nord
REM
Viking Line
Class
DNV
DNV
DNV
DNV
DNV
DNV
DNV
DNV
DNV
DNV
DNV
LR
Updated 10.01.2013. Excluding LNG carriers and inland waterway vessels
LNG as ship fuel
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31 confirmed LNG fuelled newbuilds
CONFIRMED ORDERBOOK
Year
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
Type of vessel
Car/passenger ferry
Harbor vessel
High speed RoPax
Ro-Ro
Ro-Ro
RoPax
RoPax
General Cargo
Car/passenger ferry
Car/passenger ferry
Ro-Ro
Ro-Ro
Tug
PSV
PSV
Patrol vessel
Car/passenger ferry
Tug
Tug
Owner
Torghatten Nord
Incheon Port Authority
Buquebus
Sea-Cargo
Sea-Cargo
Fjordline
Fjordline
Eidsvaag
Norled
Norled
Norlines
Norlines
Buksér & Berging
Harvey Gulf Int. Marine
Harvey Gulf Int. Marine
Finish Border Guard
Society of Quebec ferries
CNOOC
CNOOC
Class
DNV
Year
2014
2014
2014
2014
2014
2014
2014
2014
2014
2015
2015
2015
DNV
DNV
DNV
DNV
DNV
DNV
DNV
DNV
DNV
DNV
DNV
ABS
ABS
GL
LR
CCS
CCS
Type of vessel
Car/passenger ferry
Car/passenger ferry
Tug
PSV
PSV
Gas carrier
Gas carrier
PSV
PSV
PSV
Container Ship
Container Ship
Owner
Society of Quebec ferries
Society of Quebec ferries
Buksér & Berging
Harvey Gulf Int. Marine
Harvey Gulf Int. Marine
SABIC
SABIC
Remøy Shipping
Siem Offshore
Harvey Gulf Int. Marine
TOTE Shipholdings
TOTE Shipholdings
Class
LR
LR
DNV
ABS
ABS
BV
BV
DNV
DNV
ABS
ABS
ABS
Updated 10.01.2013. Excluding LNG carriers and inland waterway vessels
LNG as ship fuel
31 May 2013
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DNV is the leading Class Society on LNG fuelled ships
1
CLASS SERVICES
 Class activities
 Class related activities
2
ADVISORY SERVICES
 Strategic advice,
market & feasibility study
 Planning & design
 Class related activities
 Operational risk study
LNG as ship fuel
31 May 2013
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DNV could unlock your potentials
from strategy to operational issues
Planning & Design
Operation & Risk study
Stakeholders challenges
Market & Feasibility study
 What does strategic
investment fit us –
newbuild or retrofit?
 How much
investment needed to
retrofit?
 Will funding be
available?
 What kind of
incentives available
 Is bunkering facility
available outside ECA
zones?
 How to identify the right
locations for
bunkering?
 Will demand be big
enough in the future?
 Which bunkering
operations fit your
needs?
 What type of
intermediate
solutions needed?
 What are the hazards
during bunkering
operations?
 What are the hazard
& risks during ships
design and
development?
 How to convince
public that LNG is
safe?
DNV Services
Strategic advice
 Strategy advice
 Regulations advice
 Business
development
 Enterprise risk
management
 Market assessment
 Logistics modelling
 Logistics modelling
 Value chain
analysis
 Project DD
 Project risk
management
 LNG operations
safety study
 LNG bunkering safety
study
 HAZID
 Environmental risk
 Navigational risk
LNG as ship fuel
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Advisory services overview and selected reference
Strategic advice, market
& feasibility study
 Feasibility assessment for
LNG bunkering JIP in
Singapore
 Feasibility study for the
supply of LNG as shipping
fuel in Belgian ports
 JIP LNG fuel bunkering in
Australia – Infrastructure &
regulations
 Feasibility study for mobile
LNG fuel tanks
 Cost efficient ECA
compliance for a shipping
company
 Shipping 2020
LNG as ship fuel
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Planning & Design
 Concept ships
- ECO-ship 2020, concept design
for an open hatch bulk carrier
with Oshima
- Ecore, concept design for a
VLOC with FKAB, TGE Marine,
Cargotec and MAN D&T
- Green Dolphin, Concept design
for a Handysize bulk carrier
for SDARI
 Kawasaki Heavy Industries
Approval in Principle for LNG
fuelled container vessel
 Risk analysis & design safety
verification of onshore LNG plant
in Risavika, Norway
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Operational risk study
 BunGas JIP
 LESAS JIP LNG bunkering
in Rotterdam
 JIP LNG bunkering
Ship-to-Ship for RoPax
 Frame agreement with the
port of Brunsbüttel
 Consultancy services for
Gasnor Brunsbüttel LNG
Terminal
 Environmental Impact
Assessment for Eckelmann’s
power barge
 Harbour toolkit for the Port
of Rotterdam
LNG is now key to DNV corporate strategy
LNG as ship fuel
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Safeguarding life, property
and the environment
www.dnv.com
Please contact: [email protected]
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LNG as ship fuel
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