Srj Octnov 2011 Lng

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A special LNG supplement to SRJ Volume 9 Issue 4 October/November 2011


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5/40A special LNG supplement to SRJ Volume 9 Issue 4 Page 5

Although every effort is made to ensure accuracy and

reliability of the material published, Ship Repair Journal cannotaccept any responsibility for the verity of the claims made bycontributors or the wording contained within advertisements.

2011 Ship Repair Journal. All rights reserved in all countries.No part of this publication may be reproduced by any meanswhatsoever without the written permission of the publishers.

Subscriptions: Annual airmail/rst class subscription rates are:Europe 55/$114, rest of the world 63/$120. Send remittanceto: Subscription Manager, Ship Repair Journal, 131a FurtherwickRoad, Canvey Island, Essex SS8 7AT, United Kingdom. Existingsubscribers should send change of address details to this address.

Ship Repair Journal is published bi-monthly by A&A Thorpe,131a Furtherwick Road, Canvey Island, Essex SS8 7AT, UnitedKingdom. Telephone: +44 (0)1268 511300,Fax: +44 (0)1268 510467Web: www.shiprepairjournal.com Email: [email protected]

EDITORAlan Thorpe, 131a Furtherwick Road, Canvey IslandEssex, SS8 7AT, United Kingdom.Telephone: +44 (0)1268 511300Fax: +44 (0)1268 510467Email: [email protected] EDITOR

Paul Bartlett.Telephone: +44 (0)1844 273960Email: [email protected] EAST BUREAU

Contact: Ed Ion.Telephone: +65 6222 6375Mobile: +65 9111 6871Email: [email protected]

All details are on www.shiprepairjournal.comor contact Sue Morson at A&A Thorpe

Telephone: +44 (0)1268 511300Email: [email protected] FACILITY FOR ADVERTISEMENTS

http://paulhayes.vincej.co.uk/PRODUCTION

Paul Hayes, 45 Lower Fowden,Broadsands, Paignton, Devon TQ4 6HS, UKTelephone: +44 (0)1803 845533Email: [email protected] WEBSITE

www.shiprepairjournal.com

A website is available for readers to nd out the latest detailsabout SRJ (Ship Repair Journal). Details of upcoming features,ship descriptions, news and back issues are available as are alldetails of how to contact this ofce or any of the staff of SRJ.

Front Cover

The Front Cover shows the SembawangShipyard team involved in the repair of the LNGtankerNorthwest Snipe. Sembawang Shipyardis the leading repairer of such vessels in Southeast Asia.

6 Shipyards

8 LNG League Table

LNG Market

15

24 LNG as a Fuel

33 LNG Facilities

37

39 Shipyard Contact Directory

Calibration

Floating LNG

12

A special supplement to SRJ (Ship Repair Journal)

Welcome to this year's LNG Tanker Repair Supplement, which is published alongside the October/Novemberedition of SRJ (Ship Repair Journal). During this year two new shiprepair yards, both located in the Middle East at Ras Laffan, Qatar and Duqm, Oman have made their debut onto the LNG tanker repair market a concernfor Drydocks World, which was the leading shipyard in that area. The LNG market, in all the newbuilding repairand conversion markets, is one of the most promising throughout the marine world, and, with more and moredemand industrially and commercially and ships now turning to LNG as a fuel to combat upcoming environmentalregulations, it is likely to stay that way. ALAN THORPE

LNGRepairs


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LNG skills shortage

a concern

There is growing concern in some quarters overa looming skills shortage which could affect allaspects of the LNG supply chain. The longevityof LNG carriers generally, the recent re-commissioning of elderly laid-up units, recordeet expansion and the development of newtrades and terminals are all adding pressure tothe availability of experienced personnel.

LNG remains the only shipping sector in which

a signicant number of steam-turbine vesselsoperate. But steam engineers are becomingfew and far between. Their expertise, as well asthe availability of spare parts for steam turbineequipment whose original manufacturers mayhave left the business, are growing challenges.But it is not only shipboard engineering staff whoare in short supply. The availability of experiencedLNG crews generally will become very tight whenthe delivery of large numbers of new vesselsbegins in earnest in 2013.

However, experts point out that the skillsshortage covers shore staff too. Competentsuperintendents, they point out, are usuallyrecruited from the ranks of experiencedshipboard personnel, but that source of supplyis drying up. And some question whether theterms of such positions ashore are sufcientlyattractive. Then there are the terminalsthemselves, handling both imports and exportsat both ends of what may be relatively new LNGtrades. Experienced terminal operators are alsoin increasingly short supply.

Whether or not there will be sufcient LNGrepair capacity in the areas where it is needed is

also an issue. There is a relatively small numberof repair yards worldwide with the expertise toundertake LNG carrier repair. Yet the eet is set toexpand by more than 10%, and the maintenancerequirements on board existing vessels as they getolder, can only increase further.

Jurong wins

FSRU contract

Singapores Jurong Shipyard, a wholly-ownedsubsidiary of Sembcorp Marine, has secureda contract worth some S$20m contractfrom Golar LNG Energy to convert the LNGKhannur, a Liqueed Natural Gas (LNG) tanker,to a Floating Storage and Regasication Unit(FSRU) to be renamed West Java FSRU.

The 125,000-cbm LNG tanker, which arrivedin Jurong Shipyard recently, will be converted

into a FSRU capable of producing 500 MCFD(million cubic feet per day) of gas, with aregasication capacity of approximately 3.8MTPA (million metric tonnes per annum).

The West Java FSRU represents Golarsfourth FSRU project for PT Nusantara Regas,a joint venture between Pertamina and PGN.On conversion completion, the vessel willbe installed 15 kms offshore Muara Karang,Jakarta Bay, in Indonesia, where it is contractedto operate until the end of 2022, with provisionfor further automatic extension options to 2025subject to certain contract conditions.

The West Java FSRU project will beIndonesias rst LNG regasifaction terminal andrepresents the rst FSRU project in Asia.

Keppel wins FSU project

During September this year Singapores KeppelShipyard, part of Keppel Offshore & Marine,secured a number of offshore conversioncontracts worth a total of S$142m. Thesecontracts included one to convert a LNG tanker

to a Floating Storage Unit (FSU).On the matter of all the conversion contracts,

Nelson Yeo, Managing Director of KeppelShipyard, said, We are glad to have the trustand condence of the global industry for arange of conversion projects. Working closely

with our customers, we will continue to enhanceand extend our capabilities, and ensure safeand high quality deliveries.

The LNG tanker conversion contract is for the

fast-track conversion of the LNG carrierTenagaEmpat into a FSU for Malaysian customer MISCBerhad. When completed in second quarter ofnext year (2012), the FSU will have a storagecapacity of 130,000 m3 and operate in thenewly-developed Melaka LNG Import Terminal.

Teekay Marine agreement

with Sembawang

During this year Singapores Sembawang

Shipyard, another wholly-owned subsidiaryof Sembcorp Marine, has signed a long-termalliance contract with Teekay Marine Services,Canada, to provide ship-repair, refurbishment,upgrading and related marine services for itseet of 137 ships. Teekay Marine Services is asubsidiary of Teekay Corporation, an internationalleader in energy shipping which serves the worldsleading oil and gas companies.

This long-term maintenance and ret alliancecontract signed in Vancouver, by CaptainGraham Westgarth, President of Teekay Marine

Services and Wong Lee Lin, Executive Directorof Sembawang Shipyard, commits to offerthe repairs, refurbishment and upgrading ofTeekays eet of vessels docking in Singaporeto Sembawang Shipyard. It also supports jointplanning, information and experience sharing,thus leveraging complementary resources toachieve sustainable targets in the areas of HSSE(Health, Safety, Security and Environment),quality, cost-efciency and timely deliveries.This partnership will lead to process-basedimprovements in rets and ship maintenanceusing best practices of both companies.

Captain Graham Westgarth, President ofTeekay Marine Services said, This ship-repairalliance is between two companies whichare keen on having continuous improvementin their organisations thus enhancing theircompetitiveness. The alliance will benetboth organisations as we will maximise ourships trading days through safe repairs,better planning, quality enhancement andmaximisation of resources utilization. Throughsuch processes, we will be able to carry outour dry dockings and upgrades in a safe,

efcient and cost-effective way. The selection ofSembawang Shipyard as our exclusive alliancepartner in Singapore is in line with Teekaysglobal ret strategy to work towards achievingsuch continuous improvement in repair

Shipyards

The LNG Khannurin JSL for conversion to FSRU

Continued on page 10 >>>


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LNG League TableVessel m3 Cargo

System*

Ship Operator

Navantia Fene Ferrol (Spain)

Gimi 126,277 S Osprey Marine

LNG Port Harcourt 122,000 M STASCOGolar Grand 145,880 M Golar Shipmanagement

Excaliber 138,200 M Exmar

LNG Delta 126,540 M STASCO

LNG Mostafa Ben Boulaid 125,260 M SNTM-Hyproc

Iberica Knutsen 138,000 M Knutsen OAS

British Ruby 155,000 M BP Shipping

British Merchant 138,000 M BP Shipping

Larbi Ben MHidi 129,767 M SNTM-Hyproc

Gaselys 153,500 M NYK Line

Mostefa Ben Boulaid 125,260 M SNTM-Hyproc

Gimi 126,277 S Osprey MarineLNG Fimina 133,000 M STASCO

British Sapphire 155,000 M BP Shipping

LNG Edo 126,530 S Anglo-Eastern Management

LNG Port Harcourt 122,000 M STASCO

LNG Matthew 126,540 M Hoegh LNG

British Diamond 155,000 M BP Shipping

Arctic Princess 147,200 S Hoegh LNG

Navantia Cadiz (Spain)

LNG Lokoja 148,300 M BW Gas

SCF Arctic 71,500 M Sovcomot

Excelerate 138,000 M Exmar

Isabella 35,500 M Chemikalien Seetransport

DDW-D (Dubai)

Exquisite 150,900 M Exmar

Maersk Qatar 145,000 M Maersk Gas

Maersk Arwa 165,500 M Maersk Gas

LNG Aries 126,300 S Pronav

Golar Maria 145,959 S Wilhelmsen Ship Mngmt

Disha 136,026 M Mitsui OSK Line

Umm Al Ashtan 137,000 S National Gas Shipping

Al Hamra 137,000 S National Gas Shipping

Gallina 134,425 S STASCO

Express 150,900 M Exmar

Seri Balhaf 152,000 M MISC

Sembawang (Singapore)

Dapeng Star 147,100 M China LNG

BW GDF Suez Paris 162,400 M BW Fleet Management

Tangguh Towuti 145,700 M NYK LNG

Dapeng Sun 147,000 M China LNG

Min Rong 147,000 M China LNG

Tangguh Palung 155,000 M NYK LNG

Tangguh Batur 145,700 M NYK LNG

SK Summit 138,000 M SK Shipmanagement

Hanjin Muscat 138,200 M Hanjin Shipmanagement

SK Supreme 138,200 M SK Shipmanagement

K Mugunghwa 151,800 M Korea Line

Methane Rita Andrea 145,000 M BG LNG

Methane Jane Elizabeth 145,000 M BG LNG

Vessel m3 Cargo

System*

Ship Operator

Northwest Shearwater 127,500 S NWSSSC

Tangguh Hiri 155,000 M Teekay Marine

Polar Spirit 89,880 M Teekay MarineK Jasmine 145,700 M Korea Line

Echigo Maru 125,568 S NYK LNG

Wilgas (ex Dewa Maru) 125,000 M V Ships (Glasgow

Bluesky 145,000 M Stena Line

Tangguh Foja 155,000 M K Line

Jurong Shipyard (Singapore)

SK Sunrise 138,306 M SK Shipping

Northwest Swan 138,000 M Chevron

Oman Drydock Co, Oman

Muscat LNG 149,172 S Oman Shipping

N-KOM (Qatar)Lijmiliya 261,700 M STASCo

Al Sheehaniya 210,100 M STASCo

Ejnan 145,000 M NYK LNG

Doha 137,350 S NYK LNG

Al Marrouna 151,700 M Teekay Marine

Two LNG Tankers from Teekay Marine Under repair at N-KOM

South Korean LNG tanker in MMHE



LNG League Table

Vessel m3 Cargo

System*

Ship Operator

Al Areesh 151,700 M Teekay Marine

Al Khattiya 210,100 M STASCo

Onaiza 210,100 M STASCoAl Sadd 210,100 M STASCo

Fuwairit 138,000 M MOL LNG

Al Karaana 210,100 M STASCo

Simaisama 145,700 M Maran Gas Maritime

Fraiha 210,100 M K Line/NYK Line

Al Wakrah 135,358 S Mitsui OSK Line

Al Hamla 216,200 M Overseas Shipholding

Golar Maria 145,959 S Wilhelmsen Ship Mngmt

Al Ghuwairiya 261,700 M STASCO

Al Daayen 151,700 M Teekay LNG

Al Nuaman 210,100 M STASCoKeppel (Singapore)

LNG Ebisu 145,000 S MOL LNG

Wakaba Maru MOL LNG

Vessel m3 Cargo

System*

Ship Operator

Al Khor 137,354 S NYK LNG

Al Zubarrah 137,573 S MOL LNG

Northwest Swift 127,590 S NYK LNGEnergy Progress 145,000 S MOL LNG

LNG Dream 145,000 S NYK LNG

Taitar No. 1 145,000 S NiMic Shipmanagement

LNG Aquarius 126,300 S MOL LNG

LNG Taurus 126,300 S MOL LNG

LNG Barka 153,000 S NYK LNG

Tenaga Empat (conv to FRSU) 130,000 M MISC

Gaselys 153,500 M Gazocean

Grace Acacia 150,000 M NYK LNG

MMHE (Malaysia)

Seri Bijaksana 152,300 M MISCPuteri Nilam Steu 137,100 M MISC

Seri Amanah 148,000 M MISC

Puteri Zamrud 130,405 M MISC

Tenaga Satu 130,000 M MISC

Sohar LNG 138,000 S Oman Shipping

Ibri LNG 147,200 S Oman Shipping

Ibra LNG 147,000 M MISC

Hyundai Utopia 125,182 S Hyundai Merchant Marine

Hyundai Greenpia 125,000 S Hyundai Merchant Marine

Hyundai Technopia 135,000 S Hyundai Merchant Marine

STX Kolt 126,400 M STX Panocean

Seri Anggun 145,000 M MISC

Sobrena (France)

GDF Suez Global Energy 74,500 M Hoegh LNG

Provalys 154,500 M Gazocean

Arctic Lady 147,200 S Hoegh LNG

GDF Suez cape Anne 145,000 M Hoegh LNG

LNG Benue 145,700 M BW Gas

LNG River Niger 141,000 S Anglo-Eastern

Bachir Chihani 129,767 M SNTM Hyproc

Mourad Didouche 126,130 M SNTM Hyproc

LNG Bayelsa 137,500 S STATSCo

Arctic Voyager 140,000 S K Line

MHI Yokohama (Japan)

This yard has two on-going agreements with Malaysias Petronas and UKs STASCo (theLNG tankers running between Brunai and Japan)

Mitsui Yura (Japan)

Bishu Maru 125,000 S K Line

Grand Mereya 147,200 S Mitsui OSK

Northwest Swallow 127,708 S Mitsui OSK

Wakaba Maru 125,000 S K Line

Kawasaki Sakaide (Japan)

Energy Navigator 145,000 S Mitsui OSK

LNG Flora 127,705 S NYK LNG

Subic Shipyard (Philippines)

Polar Spirit 89,880 M Teekay Marine

Arctic Spirit 89,880 M Teekay Marine

*CARGO SYSTEM Membrane (M) or Spherical (S)

LNG Tanker repairs in Drydocks World Dubai



processes and implementing best practicesacross Teekays entire eet. SembawangShipyard is internationally recognised for its

safety track record and as one of the mosttechnically competent and efcient repairyards in the world. We have had many positiveexperiences with Sembawang Shipyard, whichlaid the foundation for us to enter into this long-term partnership arrangement with the Shipyard.More than these, the alliance is about trustand commitment between our two companies.We thus look forward to a long and successfulpartnership with Sembawang Shipyard.

Wong Lee Lin, Executive Director ofSembawang Shipyard said Teekay is a worldleader in global shipping and we are indeed

pleased to be Teekays chosen partner. TheTeekay- Sembawang Shipyard alliance is theresult of a close collaborative relationshipbetween two like-minded organisations with theintent of accomplishing mutually compatiblegoals. This innovative alliance enablessynergistic value creation resulting from the co-sharing of knowledge, skills and experienceson the technical repairs, the operation of theships and systems improvements. SembawangShipyard has a good track record in deliveringalliance benets to our partners. Our alliance

structure and processes will bring aboutcontinuous improvements in the way Teekayships are being repaired and upgraded. Welook forward to a long-term partnership whichwill deliver visible mutual benets to bothcompanies, especially in the areas of HSSE,quality, planning and cost efciency.

With the signing of this long-term contract,Sembawang Shipyard can anticipate the retand/or upgrade of 6 to 8 Teekay vessels eachyear. In February 2011, Sembawang Shipyard

repaired Teekays shuttle tanker, Navion Savonita,which is operated by Teekay Brazil. There arethree other vessels scheduled for repairs inSembawang Shipyard in the rst half of 2011.

The above contract is not expected to haveany material impact on the consolidated nettangible assets per share and earnings pershare of Sembcorp Marine for the year ending31 December 2011.

Teekay Marine Services is a subsidiary ofTeekay Corporation, a recognized internationalleader in energy shipping and responsible for

approximately 10% of the worlds seaborne oiltransportation. Teekay Corporation has builta signicant presence in the liqueed naturalgas shipping sector through its publicly-listedsubsidiary, Teekay LNG Partners L.P., is furthergrowing its operations in the offshore oilproduction, storage and transportation sectorthrough its publicly-listed subsidiary, TeekayOffshore Partners L.P., and continues to expandits conventional tanker business through itspublicly-listed subsidiary, Teekay Tankers Ltd.

Gimi re-activated in

Navantia, Ferrol

In Spains Navantia Ferrol the yardcommenced the re-activation of the GolarLNGs 126,277, 1976-built LNG tankerGimi, which was then redelivered in July. TheMoss Rosenberg type LNG tanker, which hadalready been repaired at the Ferrol yard in2002, 2004 and 2007, had spent the past

few years in lay-up.The repairs of LNG Gimi, with an estimatedrepair period of around 45 days, includesimportant Steel work and surface treatmentin its ballast tanks; complete overhaul of itssteam propulsion plant, boilers, turbines, etc;complete overhaul of its ballast, steam andcargo lines, cryogenic equipment, pumps,valves, etc; renewal of accommodation spaces;and a wide range of overhaul, maintenanceand repair work to restore the vessel to its fullyoperative condition.

At the same time as the Gimi was in theFerrol yard, Navantia also worked on schedulerepairs to the LNG Gaselys, and, in September,the yard completed the repairs of LNG BritishSapphire, which was delivered to BP Shippingafter the succesful completion of the relevantsea trials, and continued in Fene the workalready started on the vessels Matthew, L NGFinima, LNG Edo and LNG Port Harcourt.

As usual in gas carrier repairs, the mainrepair work corresponded to the usualinspection, overhaul and repair works associatedwith LNG repairs, especially in connection

with their propulsion systems, natural gascargo tank containment systems, cryogenicpumps and equipment, cargo and inert gaslines, mechanical repairs of equipment andmachinery, hull surface treatment and ballasttank coating, structural steel renewals, etc.

Shipyards

>>> continued rom page 6

Sembawang has a number of agreements with LNG tanker operators

including Australias North West Shelf Shipping Service Co (NWSSSCo)

LNG Edo in Navantia Ferrol



Oman Drydock wins frst

LNG tanker contract

Early in its development as one of the biggestand most modern ship repair yards in theMiddle East, Oman Drydock Company (ODC),Duqm, which is managed by South KoreasDaewoo Shipbuilding & Marine Engineering(DSME) has drydocked its rst LNG tanker, the149,172 m Muscat LNG, owned by OmanShipping Corporation SAOC.

As part of its mid-life service, the MuscatLNG stayed at the yard for some 11 days,redelivered one day early after an initial 12days was estimated. The workscope on-boardthe Muscat LNG included the mechanical

cleaning of the main boilers and the resides. She was pressure tested and the LNGcargo pumps, ballast pumps and the safetyand mounting valves for the main boilerwere overhauled. The cable hangers andcables were renewed on the ying bridge (atve locations) and new cable supports (20sets), for the cable way, were installed duringpassage and the core wires were modiedin tube type uorescent light. As part of theregular maintenance work, the hull was

painted. After the successful repair at ODC,the ship loaded LNG at Qalhat Terminal andleft for the Far East.

Since its soft launch in April 2011, ODChas been moving prudently towards a gradualramp-up of its operations. Starting withhandling of relatively small vessels, ODC has

since then handled a total of 32 ships of varyingsizes, the largest, prior the Muscat LNG, beingthe Hermann Buss, a 1,608 teu containershipowned by German Shipping Line. With currentlysix ships under repair and four projects booked,ODC is all set for its commercial launch inFebruary 2012. SRJ LNG

Shipyards

The Muscat LNG entering ODC



Fortune smiles onLNG sector

Owners of LNG tankers have becomeaccustomed to lack-lustre earnings over recentyears when tonnage supply has consistentlyoutpaced vessel demand. But unlike mostother ship sectors in which owners have toaccept much of the blame when over-orderingdepresses earnings, the highly specialised LNGmarket has unique characteristics of its own.Overcapacity in the sector is largely a resultof issues outside of owners control such asproject construction delays, lengthy consultationprocesses and, of course, the impact of theglobal downturn on energy demand in variousregions, mostly outside Asia.

As one senior industry source explains, newships are fundamentally a commodity as anowner, you know exactly what youre buyingand when youre getting it. After all, ships areinvariably delivered on time and on budget.On the other hand, the development of new

gas reservoirs is fraught with uncertainty thesize and nature of the reserves may not beproperly dened at the outset, and there isusually a good deal of change during thedevelopment and construction process. It isalmost inevitable, therefore, that new LNG

projects are prone to delays and cost overruns,and the ships built to service them cantherefore become surplus to requirements for asignicant period of time.

However, a range of factors over recentmonths has transformed the sectorsbackdrop, and although there is still a degreeof uncertainty over various issues includingproject timing, the repercussions of shale gasdevelopment on ocean LNG trades, and thelikely scale of steadily rising demand, notably in

Asia, LNG owners now have a certain spring intheir step which hasnt been seen for years. Thisoptimism is immediately evident in the level ofcontracting activity in the year to date. With thepossible exception of the large containershipsector, new orders across other shippingsectors have declined to a trickle this year asmany owners wrestle with rock-bottom rates,wide-scale oversupply and increasingly reticentshipping bankers.

Not so in the LNG sector, however. So farthis year, no fewer than 45 LNG tankers havebeen ordered, representing more than 10% ofthe existing eet, and taking the orderbook as

a whole to 59 vessels, according to Clarksongures. And although some of the contractshave been placed based on servicing long-termtrades on established routes, others have beensigned on spec by newcomers to the sector whoare presumably hoping that the long-awaited

evolution of a signicant spot market will offerinteresting earning opportunities in the mediumterm. Finance for the LNG sector, therefore, doesnot appear to be a constraint at the moment.

Many in the business also believe in anew era of opportunity. Douglas-Westwoodslatest World LNG Market report is optimisticon the sectors outlook and estimates capitalexpenditure on LNG projects of around $93bnin the period between 2011 and 2015.Strong demand will be evident in Asia, Europeand emerging countries in South America,according to the energy consultants. Meanwhileanother report from Barclays Capital is alsopositive on LNG business in the years ahead.

The International Group of Liqueed NaturalGas Importers, whose statistics are thoughtby many to be amongst the sectors mostreliable, estimated that worldwide shipmentsof LNG rose by a record 21.2% in 2010, toreach just over 220m tonnes. The pace ofexpansion, according to the organisation, wasfour times faster than energy consumptiongrowth generally. Spot and short-term business,with a duration of four years or less, rose at

an even higher rate, increasing by more than40% compared with 2009 and accounting forclose to one fth of shipments. The statisticsidentied strong growth in output at exportplans in Qatar, Nigeria, Indonesia and Russiaas key contributors to expansion, as well as new

LNG Marketby Paul Bartlett

LNG tanker building is dominated by South Korea



liquefaction capacity in Qatar, Yemen and Peru.Certainly, rapidly rising demand for LNG is

already underpinning a much rmer market andsome owners are seeing rates two or three times

the levels prevailing a couple of years ago.Over that time, global export volumes of LNGare estimated to have doubled. Growth is beingseen in both the conventional LNG trades andin new ones too. Japan has consistently been

Asias largest LNG importer by far, but demandthere during 2011 has risen sharply since theearthquake and tsunami disaster took out someof the countrys nuclear generating capacity.

Analysts calculate that Japans LNG importsrose by 10% over the rst half of this year anda record nine spot cargoes were booked overthe period. The winter months could see LNG

shipments to Japan spiking further, some energyanalysts suggest, with gas prices climbing assupplies are diverted from elsewhere in Asia.

Although Japan still ranks number one, LNGdemand is rising steadily in other Asian nations.Demand in South Korea, number two to Japan,is also growing steadily, with year-on-yeardomestic demand growth up by 16% over therst nine months of the year. Re-stocking inSeptember, meanwhile, saw imports shoot up bynearly 60% compared with August gures.

Meanwhile Chinese imports over the rst half

of this year were up by more than a quarter on2010 volumes, according to industry statistics,and the countrys four existing import terminalswill soon become ve, as a new terminal inHainan is due to be commissioned in justover two years time. Imports there are likelyto exceed two million tonnes a year by 2016,according to estimates. LNG imports to other

Asian countries are also rising fast, with volumesto India and Thailand up sharply this year.Thailands Rayong terminal, with an importcapacity of 5m tonnes a year, has just beencommissioned and represents a key step inthe countrys strategy to meet growing energydemand with more imported LNG.

Outside of Asia, market fundamentals arealso positive, with new seaborne trades inLNG between the Middle East and Europe,and within the Atlantic Basin. However, thereremains one big question-mark over theeffects of shale gas developments in variousregions. Most important of these, at least forthe moment, is the development of shale gasin the US, a move that is radically changing thecountrys energy prole. So much so, in fact,

that LNG import terminals at Sabine Pass inLouisiana and Freeport, Texas, are likely to beconverted into export terminals, though muchwill still depend on the landed price of USgas exports as compared with internationallyprevailing prices.

Dont mention

the F-word

Whilst it comes as a relief of many to know thatshale gas has been identied in vast quantitiesin a number of parts of the world, there isgrowing disquiet over the methods used toproduce the gas and, in some regions, powerfullobby groups could de-rail its developments.There are far-reaching implications for globalgas trades.

The process of hydraulic fracturing fracking is highly controversial, involving the high-pressure injection of water, sand and chemicalsinto gas-bearing geological formations to breakup rock and release gas. In the face of growing

public opposition to the process in variousparts of the US, there are moves in some areasto ban the process completely. Legislators inNew Jersey, for example, passed a state-widefracking ban earlier this year, the rst US stateto ban the process. The decision was made, itsaid, on the basis of fears over public healthand drinking water issues. However, whilstopposition to fracking may be most evident inthe US, opposition to the process is mountingin other parts of the world. In June, France, forexample, opted to ban fracking completely.

Part of the problem is that energy companieshave been remarkably opaque about theprocess itself and the chemicals that areinvolved. This lack of transparency, according tosome observers, has fuelled the re of frackingopponents who claim that the chemicals causea range of adverse health effects includingburning eyes, rashes, asthma and nausea in theshort run, and cancer and organ damage overthe long term.

Proponents, on the other hand, point to theobvious benets of fracking as a means ofproducing shale gas which would not otherwisebe available. ExxonMobil, for example, as

described the unlocking of more than 100 yearsof natural gas supply in the US as nothing shortof revolutionary, pointing out that plentiful USgas is now cheap and sells of some 40% lessthan in Europe. Supporters say that frackingtechnology has been successfully developedover more than 60 years during which timemore than one million wells have been fracked.They claim that there are thousands of feet ofrock between natural gas deposits where thefracking takes place, and the water table. Risksof water supplies and air quality are offset bygood well design and best industry operating

practice, they say.But there is no question that concern over the

environmental impact of fracking is growing.It is a highly emotive issue, particularly in theUS, and one that is not likely to go away anytime soon. For those involved in the seabornecarriage of liquid natural gas, it poses one verylarge question-mark and could constitute a keyfeature in the sectors development over thenext few decades.

Tonnage to remain tightthrough 2012

Rising demand and increasing shipments ofLNG has led to the reactivation of several olderlaid-up vessels in recent months. Earlier in theyear, Golar took the decision to recommissionthe 25-year-old 125,000 m Gimi which hadbeen laid up for almost two years. The owner

LNG Market

Golar LNGs Gimi reactivated



is understood to have paid some $10m inreactivation and upgrade costs.

Older Japanese vessels have also re-joinedthe eet. NYKs 28-year-old Echigo Maru,

which had been laid up of Malaysia sinceMarch 2010, has been recomissioned ashas the 127,200 m Wakaba Maru, also laidup off Malaysia. And the pace at which themarket has improved this year is demonstratedby the recomissioning of Nissho Shippings126,750 m LNGAquarius which was laid upoff Malaysia in February this year, but broughtback into service and reactivated at SingaporesKeppel in July.

The recommissioning of older tankersdemonstrates just how tight the tonnage supplysituation has become. And with just ve contractsfor new LNG tankers placed in 2010 and noneat all the previous year, delivery volumes over thecoming months will be limited to just a handfulof new vessels, ensuring tight tonnage supplyand giving owners the whip hand when it comesto rate negotiations. Rates have already climbedsharply in recent months, but sources in themarket anticipate further rate hikes as the eetoperates at maximum utilisation, owners seekto wring every last dollar out of their assets, andfresh demand keeps coming.

According to Clarkson, there are only four

new LNG tankers due to be commissionedin 2012. One 147,100 m unit underconstruction at Hudong Zhonghua is due to bedelivered to China LNG, whilst the MiNT LNGwill take delivery of the second of two 160,400m vessels from Samsung HI. Two 160,500 m

vessels are also scheduled for delivery toAngolan state energy rm Sonangol.

However, with the pace of contracting activityup sharply this year 45 new contracts have

been signed so far this year delivery volumeswill pick up sharply from 2013 onwards.In that year, Clarkson gures suggest thatno fewer than 22 new LNG tankers will becommissioned, delivering to owners including

Angelicoussis, Awilco, Chevron, Dynacom,Frederiksen, GasLog, Mitsui OSK, NYK,Sovcomot and Thenamaris. Similar deliveryvolumes will continue through 2014, with someof those owners and others including BW Ltd,Cardiff Marine and Stena AB taking delivery ofanother 23 vessels, leaving six more to join theeet in 2015.

The high delivery volumes forecast for 2013and 2014 would have put the sector underconsiderable strain at virtually any time over thepast decade or two. However, with seabornevolume already rising fast and possible newtrades being created as a result of new gasdevelopments and possible shale gas exportsfrom the US, many anticipate that the marketwill take the new supply into its stride and theships will be absorbed without disruption.

The appearance of a number of Greeknames on the LNG orderbook is an interesting

development. The countrys owners have shownlittle interest in the sector historically, probablybecause most vessels have been built to servicespecic projects and there is, as a result,no signicant secondhand market. But thefundamentals are denitely changing and the

long-awaited evolution of an LNG spot marketnally appears to be taking place.

As a result, a number of the orders placedthis year have been on a speculative basis an

unusual development in this highly capital-intensive sector. Traditionally, LNG carriercontracts have been signed and ships nancedon the strength of long-term contracts with endusers. A few of the new orders are believedto have been placed as a result of ownersswitching out of other ship types in an effortto reduce their exposure to the over-tonnagedtanker and bulk carrier markets.

No fewer than 49 of the LNG tankers onorder are under construction in South Korea,with Samsung Heavy Industries (SHI) leading theway (25), followed by Daewoo (13), HyundaiHeavy Industries (6), STX (3) and HyundaiSamho (2). Yards building LNG tankers outsideof South Korea include Japans MitsubishiHeavy Industries (MHI), with a 145,400 m unitunder construction for NYK which has a second,larger vessel on order at Kawasaki HeavyIndustries (KHI), and Hudong Zhonghua whichis building four 170,000 m vessels prices at$220m each for Mitsui OSK.

The orderbook also includes three smallervessels designed for the carriage of LNG,ethylene and LPG. Anthony Veder has one such

unit of 15,600 m on order at Meyer Werftin Germany whilst Teekay has a 12,000 mvessel under construction at Dingheng Jiangsuin China. Meanwhile I.M. Skaugen have a10,030 m ship building at Taizhou Wuzhou,also in China. SRJ LNG

LNG Market

Building of one of the Qatar Gas LNG tankers in Samsung



Floating LNG technology

opens new arena or

shiprepair frmsTapping offshore gas reserves promises a newopportunity for ship repair rms as oatingtechnology promises to revolutionise the worldsoffshore gas production. Reserves which, untilnow, have remained inaccessible and thereforeuneconomic, promise now to be transformedby the new technology which is underpinned byhigh energy prices and buoyant gas demand.

So far, oating LNG technology has beenlimited to a handful of cargo-handlingfacilities at end of the supply chain, but various

companies including oil majors and sector-specic independents are now poised to begina new era in global LNG development. TheLNG carrier orderbook, which has taken offdramatically this year with one new vesselcontracted on average every week so far comprises mostly of large main-haul vesselswhich will be deployed on long-haul trades.Floating technology, however, now opens upa whole new arena of LNG shuttle tankers,smaller vessels and facility support craft.

First off the mark is oil major Shell which

made a nal investment decision on itsPrelude project in May this year. This will seethe company building a oating LNG facility,probably the largest-ever man-made oatingstructure, for the production and export ofnatural gas in the Browse Basin, off the coastof West Australia. The Prelude gas eld wasdiscovered in 2007, but it is understood thatthe worlds energy economics have altered thelikely timescale of eld development which hasmoved forward by some years. Now, it is likelythat Prelude production could begin by 2016.

The vast oating plant, 488 m long and74 m wide, will have a displacement of some600,000 tonnes, making it the worlds largestoating offshore facility. Shell has signed upa consortium comprising Samsung HeavyIndustries (SHI) and Technip to engineer,procure, construct and install the plant whichis to be built at Samsungs Geoje Islandyard. On completion, the plant will be towedto its location 475 kms off the Australiancoast before being moored and hookedup to subsea infrastructure in preparation foroffshore production.

Once fully operational, the Prelude FLNGfacility will produce at least 5.3m tonnesof liquids a year; 3.6m tonnes of LNG;1.3m tonnes of condensate; and 400,000tonnes of liquid petroleum gas. LNG, LPGand condensate will be stored on board the

unit before being transferred to gas tankersalongside. Technip has contracted GE Oil& Gas to supply two steam turbine- drivencompressors, key elements in the liquefactionprocess which cools the gas to a liquid state.Noting that this represents the rst order inthe oating LNG sector for main refrigeranttrains, GE Oil & Gas president and CEO of

turbomachinery equipment commented: Thisis a very promising market and will be a focusof our growth efforts in the future. The value ofthe contract was not revealed but the companydid say that the latest deal brought the totalvalue of onshore, offshore and oating LNGcontracts awarded to GE in the rst nine monthsof 2011, to $1bn.

Having received environmental approvalfrom the Australian Government in November2010, Shell is keen to push ahead with thePrelude project as quickly as possible. It ispossible that production may commence justten years after the gas eld was discovered in2007, a relatively short period for projects ofthis nature. The facility has been designed towithstand the most powerful of tropical cyclonesand will remain permanently moored on sitefor 25 years, before needing to be docked forinspection and overhaul.

Shell claims that the Prelude project shouldprovide a range of benets, creating around350 direct jobs and many more indirect oneswhilst generating signicant tax revenues for the

Australian Government. Meanwhile producing

the gas on location will reduce impact onsensitive coastal habitats and there will be noneed for shoreline pipe crossings, dredging andjetty construction. Ships will sail well away fromcoastal reefs and whale migration routes. And,the oil major says, the Prelude FLNG project will

use signicantly less materials, land and seabedarea than developing the same gas via a similaronshore facility.

Shell may be in the vanguard of oatingLNG development, but a number of othercompanies are close behind with a rangeof other oating LNG developments. A nalinvestment decision is expected any time now,

for example, on the Gulf LNG Project offshorePapua and New Guinea, which has beendescribed as an under-discovered frontier andwhich looks set to become a major gas supplierin the Asian arena. A oating liquefaction unit,to be built at SHI, will liquefy natural gas fromthe onshore Elk and Antelope gas elds in thecountrys Gulf Province. Although the projecthas run into some political issues in recentweek, it is still likely to go ahead and thoseinvolved, including project leader InterOil andpartners Flex LNG, LNGL, Pacic LNG andSamsung Heavy Industries, anticipate that LNGexports could commence as early as 2014.Initial production of 1.8m to 2m tonnes of LNGper annum could increase signicantly in future.

According to Flex LNG, oating LNG

Floating LNGby Paul Bartlett

The Shell Prelude project

Hegh LNGs Sthle

intends to bid on

FSRU conversionprojects



production offers a range of compellingadvantages including short lead time, atypical reduction in capital expenditure ofaround 50%, increased taxation revenue for

host governments as compared with onshoredevelopments, and a considerable reductionin environmental impact. The technology willallow LNG supply projects to be developedin locations that are unimaginable today, FlexLNG says, forcing onshore liquefaction projectsto innovate and become more cost-effective toremain competitive.

Excelerate Energy, meanwhile, has beendeveloping its Energy Bridge Regasication

Vessel (EBRV) concept since 2007 and workingin partnership with SHI for hull design andintegration, Black & Veatch for liquefaction

technology, and Exmar for technical managementservices, the company completed its front-end

engineering design programme for a three milliontonnes per annum liquefaction in 2010.

Earlier this year, the company established asubsidiary Excelerate Liquefaction Solutions

to focus on the development of oatingliquefaction projects around the world. It isunderstood that the company is in talks with anumber of interested parties, including investors,natural gas producers and gas reserve ownersbut Edward Scott, the companys Senior VicePresident of Development, stated: Were takinga pragmatic approach towards the pursuit ofliquefaction projects. With the scope and scaleof investment required, its better to be rightthan rst.

Oslo-listed Hegh LNG also aims to featureamongst the rst in the oating LNG eld.

Its current eet comprises ve LNG tankersand two shuttle regasication vessels and the

purchase of the 1979-built LNG Libra fromBGT Ltd, a Mitsui OSK subsidiary, with deliveryin the rst half of 2012, means the companywill be well-placed to compete on future oating

storage regasication unit (FSRU) contracts.Commenting on the acquisition, HeghLNGs president and chief executive ofcerSveinung Sthle said: We are very excitedabout acquiring the LNG Libra as it improvesour competitive position by enabling us totake advantage of both the strong time-charter market and bid on a broader set ofFSRU conversion projects. We are now inan improved position to offer interim FSRUsolutions for projects that have an earlierstart-up date than the delivery dates for ournewbuildings as well as offer smaller oating

re-gasication solutions where conversions aremore suitable.

The company has two FSRUs on order atHyundai Heavy Industries, with options for up tofour more.

Floating LNG conversions

one to watch

Executives at Hegh LNG are gearing up for

strong growth in the oating LNG sector andwhilst many of the highly sophisticated unitswill be purpose-built, other plant is likely tobe based on existing modied hulls with newtopsides installations. The volume of oatinggas trade remains a matter of conjecture butadvocates of the wide-scale use of natural gasas a fuel believes many new and convertedunits of various types will be required.

Hegh LNG, which operates a eet ofeight LNG tankers including two shuttle andregasication vessels, is focusing future strategyon the entire oating LNG supply chain from production through transport, storage,regasication and reception facilities. Accordingto Steinung Sthle, President and CEO, anal investment decision (FID) on one newregasication facility is likely later this year, anda second FID on a oating production facilitycould be made within the next 18 months.

Depending on your point of view, thecompanys strategy may be one drawn up atjust the right time. Global energy supplies areunder serious pressure: politically troubledproducers in the Middle East have cut back

on output, with Saudi Arabia playing its usualswing-producer role by pumping more crude tocompensate. But whether all of the shortfall canbe met and for how long remains unclear.

This view is supported by ABS. ABS VicePresident of Global Gas William J Sember says

Floating LNG

Hoegh LNGs Sveinung Sthle



the classication society is in advanced stagesof design review for a number of Floating LNG(FLNG) concepts, as this technology moves evercloser to reality.

Speaking at the Gastech 2011 conference,where he chaired the technical session onFLNG terminals and systems, Sember noted thatas recently as ve years ago, oating solutionsfor the import and export of LNG were stillconsidered new and novel concepts.

Today emerging proprietary technologiesand transport designs have come of age andindustry is poised for the rst projects. Withmore than one-third of global gas reservesstranded by their location or eld size withoutcommercially viable access to world markets theattractiveness of FLNG cannot be denied, he

told attendees.Major projects in progress include Shells

Prelude eld in the Browse Basin off WesternAustralia, which gained environmental approval inlate 2010 and has a target production start dateof 2016. Also being closely followed are severalprojects offshore Papua New Guinea and Inpexs

Abadi Field gas project offshore Indonesia.FLNG offers a number of advantages over

land-based terminals. FLNG installations canresult in lower overall project costs and reducedenvironmental footprint because facilities

such as long pipelines to shore, onshoredevelopment and offshore compressionplatforms are not needed. With gas depositsoften in remote or stranded areas far fromthe coast the marinizing of production,liquefaction and export facilities offers greatpotential for many future development projects.

Sember noted that the shipping and offshoreindustries have spent the past ve yearssuccessfully advancing both the technologyand commercial attractiveness of the FLNG

concept as a means of delivering new sourcesof cleaner energy.

Technology developments have addressedissues as the integration of subsea architecturewith FLNG; ofoading systems, in particular forharsher environments with tandem congurationsbased on cryogenic hoses or exible pipes; andthe qualication and testing of components withregard to LNG transfer systems.

From a class society perspective thereare no technology showstoppers for FLNG.

Liquefaction plants have been suitably optimizedin order to efciently use deck space whiletaking into account the safe and efcientoperation of process equipment, said Sember.The advances and level of sophistication inall these subjects are evident. The time for

commercialisation and the rst project is now.Meanwhile, further east, the repercussions of

Japans shocking earthquake and subsequenttsunami are also unknown. But one thingis already certain: Japan is likely to requiresignicantly more energy in the months aheadas its massive re-building task gathers pace,and it is not yet clear for how long its nuclearoutput will be dented. In other countries, andto the puzzlement of many energy analysts, theanti-nuclear brigade appears stronger than

ever. Yet, despite an earthquake of almostunimaginable severity and a tsunami thatexceeded all worst fears, no-one has actuallydied as a result of damage at the strickenFukushima nuclear installation.

So, if you are an advocate of LNG as a

Floating LNG

Today emerging

proprietary

technologies and

transport designs

have come o age and

industry is poised orthe frst projects

ABS William J Sember



potential and fairly prompt alternative source ofpower, why and for what reasons? Well, apartfrom the millions of column inches written aboutLNGs green merits as compared with oil, and

to a lesser extent coal, one of its chief attractionsis that it is now technologically possible to locateLNG production plant on oating facilitiesoffshore. These can be serviced by shuttle andregasication vessels or conventional LNGtankers, delivering gas in liquid form to oatingstorage and regasication units, for onwarddistribution by pipeline or quayside storage.

According to executives at Hegh LNG,oating facilities have a number of keyadvantages over land-based LNG plant. For astart, they are much cheaper to build, whethernewly constructed or converted. Sthle saysthat conversions will certainly be more suitablefor certain projects in certain places, and areunquestionably quicker, although they may notincorporate all of the very latest technology.Secondly, oating facilities generally are farfaster to build and commission, imposing lessof a strain on cash ow and reducing the timefrom FID to rst gas. Thirdly, oating units of alltypes are far more exible, affording operatorsa chance to relocate them in due course toother appropriate projects.

The results of a recent study, headed by DNV,

into LNG power generation (and, incidentally,its potential as a fuel for regional shipping) inSouth East Asia should have come as music tothe ears of Hegh LNG executives. The JointIndustry Project included representatives fromrms including the BW Group, Gazprom, Hanjin

Shipping, I.M.Skaugen, Keppel, Rolls-Royce,Wrtsil and the Port of Singapore Authority. Itconcluded that for many multiple-island regionsin South East Asia without access to a pipeline

grid, relatively small power plants based ongas would be very suitable. Up to 70 plants of50MW could be required in Eastern Indonesia,the experts concluded, while the SouthernPhilippines could require up to 45, and Northern

Vietnam a further seven installations.Hegh LNG could be ahead of the game.

The company is already working with Daewooand Petromin PNG, the state energy companyof Papua and New Guinea, on a possibleoating gas export plant, to be sited off thecountrys coast. Land-based gas would beexported via the oating terminal and LNGtankers to receivers elsewhere in Asia. So far,the three companies are working in a JointDevelopment Agreement, but possible buyersfor the gas could sign long-term deals beforethe end of this year.

Excelerate and LNG

Earlier this year Excelerate Energy announcedit is continuing its commitment to bringinginnovative offshore LNG solutions by

formally developing partnership and projectopportunities in oating liquefaction of naturalgas. With the increasing global demand forenergy and timely, cost-effective solutions,Excelerate Energy has been developing theEnergy Bridge Liquefaction Vessel (EBLV)

oating liquefaction solution since 2007 andis targeting to have the rst vessel in servicein the 2014 to 2015 time frame. The EBLVleverages the companys proven experience

and expertise from its highly successful EnergyBridge Regasication Vessel (EBRV) oatingLNG regasication solutions.

To advance its efforts, Excelerate Energyhas formed Excelerate Liquefaction Solutions(ELS) a subsidiary company focused on thedevelopment of oating liquefaction projects

Floating LNG

According to Hegh LNG, oating facilities have anumber of key advantages over land-based LNG plant.

Floating liqueaction

through the EBLVdesign will allow

Excelerate Energy to

urther capitalise on

its unique experience

as a market leader

in oshore LNGsolutions



worldwide. At present, ELS is progressingdiscussions with potential partners, investors,natural gas producers, and reserve ownersin order to advance specic projects. Were

taking a pragmatic approach towards thepursuit of liquefaction projects. With thescope and scale of investment required, itsbetter to be right than rst, noted EdwardScott, Excelerate Energy Senior Vice Presidentof Development.

Working in partnership with Samsung HeavyIndustries (SHI) for hull design and integration,Black & Veatch for liquefaction technology,and Exmar for technical management services,Excelerate Energy completed its front-endengineering design (FEED) programme for a3m tonne/annum (mtpa) liquefaction vessel

design in 2010. The focus of this effort was toconrm project viability, design decisions, andcosts ahead of advancing project opportunities.

As a result, Excelerate Energy is condent in itsability to deliver a oating liquefaction solutionat a fraction of the cost of a conventional land-based facility.

Floating liquefaction through the EBLVdesign will allow Excelerate Energy to further

capitalise on its unique experience as a marketleader in offshore LNG solutions, said RobBryngelson, Excelerate Energy President andCEO. This technology has the potential to be

a considerable growth driver for the company,and to provide more direct access to LNG forour global trading and regasication activities,he added.

Excelerate Energy applies the samephilosophy to its liquefaction vessel design as itdoes to its regasication vessel eet essentiallyusing proven technology in an innovative wayto provide more efcient and timely solutions tothe LNG industry.

Meanwhile, Excelerate Energy has recentlywon a 15-year time charter party with Petrobrasto provide an advanced oating storage

and regasication unit (FSRU). This vessel,designated by Petrobras as VT3, will deliver20m m3/day of natural gas to the SoutheastRegion of Brazil.

In addition, from July 2013 until the arrivalof the VT3 newbuilding, the Guanabara BayTerminal will make use of the 151,057 m3

Exquisite, one of Excelerate Energys existingFRSUs with an increased regasication plant,

expanding the terminals delivery capacity from14 to 20m m3/day.

The VT3 newbuilding design is based onExcelerate Energys existing eet and Petrobras

requirements, and will have a storage capacityof 173,400 m3 making it the largest FSRU inthe industry. Capable of operation as both anFSRU and a fully tradable LNG carrier, thisvessel is expected to enter into service in Mayof 2014.

Excelerate Energy has selected DSME forthe construction of the new vessel, the sameshipyard that built its previous eight FSRUs.Working with DSME, Excelerate is continuingthe evolution of a highly reliable and provendesign, while at the same time, expanding itseet of compatible vessels.

We are extremely pleased with theselection of Excelerate Energy to provide thisindustry-leading vessel, and we are condentthat with our experience and expertise inoating regasication that we will providea high standard of service to justify thecondence that Petrobras has placed in ussaid Rob Bryngelson, President and CEO ofExcelerate Energy.

Floating LNG

One of Excelerate Energys existing LNGRVs


20/40


21/40



DNV issues guidelinesRising demand for oating offshore gasterminals has resulted in the development of

new technologies and specialised units, leadingto a number of innovative design concepts.Based on DNVs extensive experience in thissegment, the company has prepared a detaileddesign and construction guidance, scheduled tobe released shortly.

According to Conn Fagan, DNVs Businessdevelopment manager for offshore gasprojects, the FLNG segment is developingrapidly. A number of FSRUs (oating storageand regasication unit) and SRVs (shuttle andregasication vessel) are currently in operation,and many more oating import gas terminals

are now in different phases of development,he says. At the same time, the rst LNG FPSOs(oating production, storage and ofoading)are entering into detailed design phase, and weexpect construction of these units to begin in thenext two years.

Mr Fagan says that while DNVs previousRules and guidance issued in 2007 were wellreceived by the industry at the time, the rapiddevelopment of this segment required a freshlook. We recognised a demand for an up-to-date, fully comprehensive overview of the many

unique technical challenges faced by designersand yards in this segment, covering both designand construction, he says. We are condent this

Floating LNG

We recognised

a demand or an

up-to-date, ully

comprehensiveoverview o the many

unique technical

challenges aced by

designers and yards

in this segment,

covering both designand construction

DNVs Conn Fagan



guidance will be a useful tool for the industry.DNVs Offshore technical guidance on

gas terminals will cover a broad range ofissues, including classication and regulatorycompliance, conversion of gas ships,structural design, sloshing assessment, fatigueassessment, corrosion issues, regasication andliquefaction plant, assessment of novel conceptsand qualication of technology, among others.

Mr Fagan, who presented the Guidanceat OTC in Houston last spring, says that theOffshore technical guidance (OTG-02),applies to different types of oating units,but is specically directed towards oatingship-shaped designs. In addition, the issuesgenerally discussed in the Guidance may beadapted to address related options such asLPG units, GTL (Gas-To-Liquids) units andCNG (Compressed Natural Gas) units. DNV

has been fortunate to work closely with anumber of major players active in the FLNGindustry to resolve a broad range of technical,safety and reliability issues, says Mr Fagan.This Guidance is grounded in our extensiveexperience in this segment.

Hamworthy wins worlds

frst newbuild FSRU

regas orders

Hamworthy has secured a contract for thesupply of regasication technology on boardwhat are understood to be the worlds rstnewbuild Floating Storage and RegasicationUnits (FSRUs). Two 170,000m3 storagecapacity vessels, owned by Hoegh LNG, arebeing built at the worlds largest shipbuilder,Hyundai Heavy Industries. Under the terms ofthe contract, Hamworthy will deliver systems tothe Ulsan-based yard, one apiece in December2012 and February 2013.

The oating regasication market is

experiencing strong growth. On signing itsletter of intent with HHI earlier this year, Hoeghprojected annual growth in the LNG marketoverall of 6-7% over the coming few years.

The initial two FSRU ships will featureHamworthys propane-seawater regasication

system, which has already proven itself onboard two Golar liqueed natural gas tankers inoperation (in Brazil and Dubai) that have beenconverted into FSRUs. The same system will alsobe delivered as part of two new projects underconstruction in Indonesia and Malaysia.

We will deliver a complete regasicationmodule for each FSRU, which will haveslightly less in capacity and pressure thanwas the case for the Golar Winterproject,said Tore Lunde, Hamworthy Gas SystemsManaging Director. The units, whichwill weigh in at 550 tonnes and measure20m by 18m by 10m, will be delivered inmodule form with all the necessary processequipment installed for ease of integrationon board the vessels.

Once installed Hamworthy will run allnecessary mechanical and electrical tests

within the module, so that the number ofconnections can be limited and hook-up canbe relatively fast. Mr Lunde said: One of themain benets of our modular design is that wecan install in parallel with the building of themain ship. SRJ LNG

Floating LNG

A FRSU on station



The great gas debateThe use of liquid natural gas a ships fuel maystill have plenty of sceptics, but the fact is that

its adoption is gathering pace across a wideraudience and a broader range of ship types thananyone previously imagined. As the emissionsdebate heats up and the clock ticks on towardsJanuary 2015 when Marpol Annex VIs low sulphurregulations enter force, LNG is increasingly seen asa possible ships fuel of the future.

There are, however, still plenty of people whoare only too happy to point to the challengesassociated with ships running on LNG. They pointto price uncertainty, the lack of infrastructure andthe challenges of safe handling. But try telling theNorwegians about this. With typical pragmatism,

the Norwegian eet of LNG-powered vessels isgrowing steadily and its LNG bunker network isexpanding in parallel.

The pros and cons of LNG as a fuel arewell documented but none of the cons isinsuperable, according to experts. The mostobvious of these is indeed the lack of a globalbunkering network but, as LNG proponentspoint out, there werent any petrol stations untilthe motor car came along. And bunkeringinfrastructure is developing fast, particularlyin northern Europe and the Baltic where

progressive companies are spearheading theadoption of LNG as a fuel for new ferries,offshore vessels, short-sea cargo ships and

coastal vessels.Other challenges associated with its use

include the issue of the extra fuel storage spacerequired which could potentially reduce cargo

space and revenue-earning capacity. But DNVsconceptual VLCC design the Triality hadLNG storage tanks positioned on deck andof sufcient capacity to enable the vessel tocircumnavigate the globe if required to do so.There is, admittedly, extra cost associated withLNG-powered vessels, but advocated believethese can be easily offset through lower fuel billsand possibly reduced engine wear and tear.

Although retrots are possible, many experts seemost potential in the newbuilding market.

There is a question over price uncertainty.Natural gas prices in the US are typically the

lowest, with Europe in the mid-range and Asianprices the highest. Whereas there has been amarked de-coupling of oil and gas prices inthe US and to some extent in Europe Asiangas prices still correlate closely with those ofoil. But many energy experts believe that morede-coupling is inevitable as new gas reservesare discovered and exploited, and oil suppliescontinue to dwindle.

Against all the cons, there are a wide rangeof pros, primarily the emissions prole of naturalgas. Although it is a hydrocarbon and, as

such, carbon dioxied emission reductionsof about 20% are relatively modest it is aclean-burning fuel. There are no SOx, an

80-90% reduction in NOx, and virtually noparticulates. For the operators of ships tradinginto emission control areas (ECAs), which arethemselves proliferating there will be no need

to switch fuel, no requirement for scrubbers orother exhaust gas treatment systems, and thelikelihood of less maintenance because of theclean-burning nature of the fuel.

Amongst the class societies, DNV has ledthe way in promoting LNG power for ships andnow has some 25 LNG-powered vessels inits class, with others under construction. Theyinclude passenger vessels, ferries, platformsupply vessels and coastguard vessels. But theclass society believes it is only a matter of timeuntil owners of other ship types seriously weighup the LNG option. Owners of feeder vessels,

for example, particularly those operating inregions where LNG infrastructure is developing,such as the Baltic, could well see benets.

Germanischer Lloyd is also an advocateand believes that there may be a casefor considering the conversion of largeelectronically-controlled two-stroke engineswhich can be retrotted, as opposed tomechanically controlled units which cant.The class societys dominant position in thecontainer ship sector could see the adoption ofLNG power on boxships before long, although

the issues of fuel storage and the simultaneousloading of fuel and cargo handling operationsremain challenges to be addressed.

LNG as a Fuel

OSVs, such as the Olympic Shipping vessel buildingat STX Finland, are now getting LNG minded


25/40



LNG catching on across

shipping sectors

Most existing LNG-powered vessels are classedby DNV and comprise ferries, coastal vesselsand offshore support vessels, mostly working inNorwegian waters. However, construction of theworlds rst large ro/pax ferry to be powered byLNG has begun at STX Finlands Turku shipyard.Classed by Lloyds Register, the 56,850 gtvessel is to be delivered in January 2013 andwill operate on a route linking Turku, Finlands

land Islands and Stockholm in Sweden. The iceclass 1 A Super ferry, with 800 cabins, will havecapacity to carry 2,800 passengers and 200crew at a maximum speed to 22 knots. Cargo

capacity will be 1,275 lane metres, with another1,000 lane metres reserved for passenger carsdivided between two separate decks.

According to Lloyds Registers ProjectManager Matti Niskala, the vessel will be therst newbuilding to comply with LRs provisional

rules for LNG propulsion. We also carried outa detailed risk analysis for Viking Line on thebunkering process to identify and minimise risksassociated with the movement of the bunkerbarge and ship within the connes of the port,the risks associated with the simultaneousloading of passengers, cars lorries and LNG,and to help ensure compatibility betweenbunker barge capacity and the ships systems,he said. LR also advised on the development ofLNG storage facilities and process piping.

Niskala explained that LNG suits ferries betterthan many other types of vessel as they follow xedroutes between ports with LNG terminals in theneigbourhood which makes then easy to bunker.The same bunkering facilities arent yet availablefor other ships inlcuding cruise ships, he added.

As well as being what the class society claims the

worlds most environmentally friendly passengership, the new vessel will be designed to minimisewave formation and noise generation.

Meanwhile, Germanischer Lloyd (GL) andSouth Koreas DSME have recently completeda feasibility study proving that large container

ships can be successfully run on LNG. At arecent press conference in South Korea, thetwo organisations reported on progress todate which includes the in-principle approvalby GL of a 14,000 teu container vessel. DrGerd-Michael Wuersig, deputy head of GLsEnvironmental Research Department and amember of the IMO Correspondence Groupfor the development of the Code for Gas asShip Fuel (IGF-Code), explained that ensuringsafe bunkering procedures is a key issue. Butrelevant solutions are under evaluation and willbe available soon, he said.

He pointed out that there is no reason forowners to hesitate in building these vesselson the basis that only interim guidelines areavailable so far. Vessels built according to theinterim guidelines, he said, would certainly be

allowed to operate when the IGF-Code comesinto force. SOx enission regulations in 2015and the 80% reduction in NOx as comparedwith 2010 levels, as required from 2016, willmake conventional fuel unattractive, Dr Wuersigexplained, adding that he expects LNG-fuelled

LNG as a Fuel

The Bit Viking


27/40



cargo ships to emerge on a large scale inthe latter half of this decade. There is greatpotential for container ships to become one ofthe rst cargo vessels using LNG as ship fuel,

he said.GL has also been involved in conversion ofthe twin-screw 25,000 dwt products tankerBitViking from conventional bunkers to a dual-fueldiesel-natural gas vessel. Swedish owner TarbitShipping signed up Wrtsil to undertake theconversion, which involved replacing two six-cylinder in-line Wrtsil 46 engines running onheavy fuel oil with six-cylinder in-line Wrtsil50DF engines running mostly on LNG. Thecontract also involved adjustment to the shipssystems, the supply and installation of theWrtsil LNGPac system, including two 500 m3

LNG storage tanks and the updating of thevessels classication certicate.

The tanker is on charter to Statoil and workson the Norwegian coast, so the conversionhas enabled the vessel to qualify for lowerNOx emission taxes under the NorwegianGovernments successful NOx Fund scheme,which is designed to reward owners of shipsoperating in the countrys waters for loweremissions. Proceeds of the Fund are alsoavailable to support the development ofemission-reduction technologies. Commenting

on the conversion, Bjrn Ullbro, managingdirector of Wrtsil Sweden in Gothenburg,commented; The Bit Viking will be ttedwith the rst-ever Wrtsil 50DF enginewith mechanical drive and is, therefore, abreakthrough for both the company and theindustry as a whole.

Wrtsil wins orders or

new LNG powered vessels

Environmental regulations are becomingincreasingly stringent. The IMOs (InternationalMaritime Organization) Tier III regulations,which will come into force in 2016, stipulatethat NOx (nitrogen oxides) emissions must becut by 80% compared to the IMO Tier I levels.

The use of LNG as a marine fuel is widelyseen as being the most realistic means ofreducing the marine industrys environmentalfootprint. When operating in gas mode, vesselemissions of nitrogen oxide (NOx), sulphuroxide (SOx), carbon dioxide (CO2), andparticle matter are heavily reduced. At the

same time, LNG fuel is often found to be morecompetitively priced than conventional liquidfuels, thus enabling ship owners and operatorsto achieve important operational cost savings.Wrtsil has recently won orders from Norwayand the US.

Wrtsil has more than 40 years ofexperience in gas engine applications for themarine sector. However, the real breakthroughcame with the introduction of the companysdual-fuel engine technology in the mid-1990s.Today, Wrtsil is the recognised global leader

in gas engine applications for both the marineand power plant industries. Wrtsil has alsorecently announced that its dual-fuel mediumspeed engines have exceeded three millionrunning hours in both land-based and marineapplications. This milestone represents a dual-fuel technology track record that cannot be

matched by any other engine manufacturer.Wrtsil has been contracted by Kleven

Maritime of Norway to design a new LNGpowered Platform Supply Vessel (PSV) of the

Norwegian operator Rem Offshore. The scopeof the order also includes the propulsionmachinery, automation and other equipment forthe same vessel.

Rem Offshores new LNG powered PSV, therst such vessel for its eet, will be a WrtsilShip Design VS499 LNG PSV, a state-of-the-artvessel based originally on the successful VS489LNG PSV design. The ship features outstandingenergy efciency, a unique hull form, fuelexibility, and exceptional performance in areassuch as fuel economy and cargo capacity.

In addition to the complete design of the

vessel, Wrtsils scope of supply for the newPSV includes the dual-fuel main engines andgenerating sets, the electrical power andpropulsion systems, integrated automation, andthe power management system. The selectionof Wrtsils dual-fuel (DF) technology, whichenables the use of clean gas as the main fuel,is in line with Rem Offshores ambition to growits eet in environmentally sustainable PSVs. TheDF engines can also operate on marine dieseloil if required. The vessel is to be built at theKleven Verft yard in Norway.

This order represents the third new contractfor LNG powered PSV within a short periodof time that Wrtsil will design and equip.Wrtsils ability to offer total concept solutionsthat include the design of the vessel, thepropulsion plant, electrics and automation,and a host of fuel saving and environmentallysustainable options, has given the company anotable competitive edge, particularly in thearea of specialty vessels such as Gas PSVs.

This Rem Offshore new-build order is furtherevidence of the growing global demand forWrtsils unique gas electric propulsion systemconguration. This is based on a combinationcomprising the Low Loss Concept for ElectricPropulsion, the Wrtsil 34DF main engines, andthe recently introduced Wrtsil 20DF engine.

The unique combination of our designcapabilities and technology strengths enablesus to provide a big picture perspective that hasreal value, particularly in special vessels such asthis one, commented Tor Henning Vestbstad,Sales Manager, Wrtsil Ship Design.

The integrated solution, utilizing Wrtsilsdual-fuel engines and Low Loss Concept,

means that the customer will have the highestpossible redundancy and reliability anda highly efcient vessel, for operation in allconditions. The energy efciency, cargo capacityand overall performance are all outstanding,he adds. Vestbstad also emphasises the

LNG as a Fuel

Kleven Maritime has contracted the VS499 LNG PSV design from Wrtsil



companys excellent collaboration with bothRem Offshore and Kleven, which has been animportant factor in the success of this project.

The Wrtsil 20DF engine is the latest

addition to the companys complete portfolioof dual-fuel engines. This industry leadingtechnology offers the marine sector numerousbenets, including the primary advantage ofhaving the exibility to utilize different fuels. Ata time of uncertainty in the cost of liquid fuels,and as environmental legislation becomesincreasingly stringent, this exibility enablesthe use of cost-efcient and environmentallyfriendly LNG as the main fuel. In case ofinterruption to the gas supply, Wrtsil DFengines automatically switch to diesel modeoperation without any loss in speed or poweroutput. Single fuel installations obviously lackthis additional level of operational safety.

For the US market, Wrtsil will deliver anintegrated propulsion system based on the useof LNG for two offshore support vessels foroperation in the Gulf of Mexico. This is the rsttime US agged offshore supply vessels willrun on clean and efcient LNG, which offersoperational savings and environmental benets.

Wrtsil was awarded a contract in October2011 to supply LNG propulsion equipment fortwo advanced offshore supply vessels owned by

Harvey Gulf International Marine. These supplyvessels will be the rst ever US agged platformsupply vessels (PSV) to be powered by clean,safe and efcient LNG. The contract includesoptions for supplying propulsion equipment foradditional follow-on vessels.

Wrtsil will deliver an integrated system thatincludes the dual-fuel machinery, electrical andautomation package, complete propulsion,and also the LNG fuel storage and handling

components. The STX Marine Inc SV310DFOffshore Support Vessels will be powered byWrtsil six-cylinder 34DF dual-fuel engines.The LNG storage capacity of 290 m3, enablesmore than a week of vessel operational time.In addition, the vessels will carry 5520 tonsof deadweight at load line and have a transitspeed of 13 knots. The vessels are scheduledfor delivery in two years and will operate in theGulf of Mexico.

Shane Guidry, Harvey Gulf InternationalMarines Chairman and CEO, states that thestringent governmental demands for reducedemissions, together with predictions thatavailability of ultra-low sulphur diesel fuel willbe restricted, caused the company to considerthe use of gas as fuel. Were committed tobringing the worlds best technologies to ourcustomers, and these vessels with Wrtsilsintegrated system based on the use of LNGfurther demonstrates Harvey Gulfs GoingGreen Vision, he says.

Pete Jacobs, Business Development Manager,Offshore at Wrtsil North America adds Itsa pleasure to work with a company such as

Harvey Gulf whose management is dedicatedto introducing advanced, clean, natural gassupply vessels. These modern supply vesselsshowcase Wrtsils leading position as acomplete solutions provider of LNG propulsionwith electric drive systems.

We are witnessing a transformation of themarine industry as it charts a course towardsa new era for natural gas. Its exciting forWrtsil to be a trusted partner in this launch

with industry leader Harvey Gulf, whosenatural gas supply vessel investment actions oftoday signal a coming paradigm shift. This isaimed at capturing operational savings whilesimultaneously reducing emissions, says JohnHatley, Vice President Ship Power, WrtsilNorth America.

Co-operation between

Wrtsil and Shell

Wrtsil and Shell Oil Company have signeda Joint Co-operation Agreement aimed atpromoting and accelerating the use of LNGas a marine fuel. The agreement was signedin August 2011 and will run for several years.Supplies of low cost, low emissions LNG fuelwill be made available to Wrtsil natural gaspowered vessel operators, and other customersby Shell. The Joint Co-operation Agreement willfocus rst on supplies from the US Gulf Coast,and then later expand their efforts to cover abroader geographical range.

Gas fuelled marine engines are seen asbeing a logical means for ship owners andoperators to comply with increasingly stringentenvironmental legislation. This agreement aimsat increasing and easing the availability ofnatural gas for marine engine use, as well as

LNG as a Fuel

The Harvey GulfOSV



developing the supply chain and infrastructureto facilitate the bunkering of LNG fuel. The twocompanies will jointly move these developmentsto marine markets in order to enhance its rapidintroduction and use.

Wrtsil has been at the forefront in thedevelopment of dual-fuel engine technology,allowing the same engine to be operatedon both gas and diesel fuel. This dual-fuelcapability means that when running in gas

mode, the environmental impact is minimisedsince nitrogen oxides (NOx) are reduced bysome 85% compared to diesel operation,sulphur oxide (SOx) emissions are completelyeliminated as gas contains no sulphur, andemissions of CO2 are also lowered. Natural

gas has no residuals, and thus the production ofparticulates is practically non-existent.

In addition to the environmental benetsthat LNG fuel offers, the shipping industry isincreasingly looking to gas as a means ofreducing operating costs. With fossil fuel prices,and especially the cost of low carbon marinefuel, likely to continue to escalate, gas is anobvious economic alternative. In promoting gaspropulsion, the two companies aim at reducing

client risk, thereby accelerating market demand.Its an exciting time for the industry to haveShell, a major player, committed to increasingthe availability of clean natural gas as a marinefuel. The marine community is becomingincreasingly aware of the benets provided

by Wrtsil natural gas engines as a meansof reducing both costs and the environmentalfootprint. Natural gas engines represent a rarewin-win, capturing emissions reduction and

operational savings, says Christoph Vitzthum,Group Vice President, Wrtsil Services.Drawing from decades of experience in the

development and application of natural gasengines for both the power generation andmarine industries, Wrtsil is the global leader inthis advanced technology. Clean, safe naturalgas represents a true shipping paradigm shift;years ago it was sail to steam, then came themove from steam to diesel, and now its a newera for gas propulsion, says Jaakko Eskola,Group Vice President, Wrtsil Ship Power.We are pleased to work with Wrtsil to move

forward with this signicant step in introducingLNG-powered vessels into the US market,providing a clean, abundant and affordable fueloption, said David Lawrence, Shells executivevice president Exploration and Commercial.

Wrtsil the

recognised rontrunner

Wrtsil is the recognised frontrunner in dual-

fuel engine technology. The Wrtsil DF engineseries is increasingly the power solution choicefor utilities and energy companies, as well as forall segments of the marine industry, worldwide.With the engines having passed 3m hours ofreliable and efcient operation, the effectivenessof this technology is proven. Today, the totalnumber of Wrtsil DF engines delivered to bothmarine and land-based applications is 470.

Dual-fuel engine technology provides theexibility to switch between the use of naturalgas and heavy fuel oil (HFO), light fuel oil (LFO)and various other liquid fuels. This exibility infuel choice offers numerous tangible benets,both economic and environmental. With oilprices uctuating and environmental regulationsbecoming increasingly stringent, the operatorhas the freedom to select the most cost-effectiveand readily available fuel, whilst also having theability to utilise natural gas in order to complywith emission limitations. For the power plantbusiness, Wrtsils dual-fuel technology offersthe perfect bridging solution for switching fromliquid fuel to natural gas. The use of natural gasin power generation is rapidly increasing, but

many locations are currently without a readygas supply. Our dual-fuel technology enablescustomers in such areas to generate electricity,rst with HFO and then to switch later to gasonce it becomes available.

Having now exceeded 3m hours of reliable

LNG as a Fuel

Today, the total number of Wrtsil DF engines deliveredto both marine and land-based applications is 470



and efcient operation, there can be no doubtas to the effectiveness of this technology, says

Vesa Riihimki, Group Vice President, WrtsilPower Plants. A transition to LNG fuel is one

of the most realistic options for signicantlyreducing the environmental footprint in marinetransportation. Carbon-based greenhouse gasemissions can be reduced by at least 15%,while sulphur and nitrogen oxide emissionsare practically entirely eliminated. Dual-fueltechnology is the spearhead of Wrtsilsengine portfolio, and is leading the marinesector towards a more sustainable future,says Juhani Hupli, Vice President, Ship PowerTechnology, Wrtsil Ship Power.

Wrtsil began developing dual-fuel gasengines in 1987, the rst concept being the

gas-diesel (GD) engine with high-pressuregas injection. This was initially developed forthe marine offshore market, where it has beensuccessfully applied in numerous oatingproduction units. The second generation of gasengines was introduced in the early 1990s asspark-ignited (SG) pure gas engines. The realbreakthrough, however, came when the dual-fuel (DF) engine was introduced by Wrtsil in1995. The DF engines utilize low pressure gas,and combine fuel exibility with environmentalperformance and fuel efciency.

ABS provides guidance

or gas uelled ships

With rising fuel costs and todays global intereston emission reduction, LNG is considered apromising alternative fuel for all type of ships.In response to industrys need for technicalguidance for new construction and existingvessel conversion, leading class society ABSrecently announced the release of its Guidefor Propulsion and Auxiliary Systems for GasFuelled Ships.

The new ABS Guide, considered to bethe most comprehensive available to theindustry, provides criteria for the arrangements,construction, installation and operation ofmachinery components and systems for vesselsfueled by natural gas. The objective of theguidance is to minimise operating risks andpromote the protection of the vessel, its crewand the environment.

Christopher J Wiernicki, ABS CEO and

President says that the shipping industryneeds to examine the issues surrounding thetransition from traditional fuels to LNG, to verifythat solutions provide an equivalent level ofsafety and reliability to those established forLNG storage and transportation. With ship

operators facing economic pressures from fuelcosts combined with impending regulationsaimed at reducing exhaust gas emissions,particularly for sulfur oxide (SOx), LNG fuelled

propulsion systems could be a practical andbenecial solution. It is a matter of when, not if,LNG will be a commonly-selected fuel sourceand we need a sound basis for ship designs,says Wiernicki.

More than 50 years of ABS experience withthe handling and storage of LNG on boardships, many with dual-fuel diesel propulsionplants was incorporated into the Guide.Consideration was also given to industrystandards including the IMO ResolutionMSC.285(86) Interim Guidelines on Safety forNatural Gas-Fuelled Engine Installations in

Ships, the International Gas Carrier Code andthe IMO International Code of Safety for Gas-Fuelled Ships, currently under development.

Signicant contributions to the Guide alsocame from a joint research project with DSMEand A.P. Moller Maersk to develop a LNG-

fuelled containership. Concluded earlier thisyear, the project addressed the design andtechnical issues surrounding the use of a 7,000teu containership burning LNG as fuel for both

propulsion and power generation, with ABSproviding Approval in Principle for the resultingdesign. The study also assessed operational,economic and regulatory impacts from the useof LNG as a fuel source.

Results from the study were presented byDSME in March during industrys premiere gasconference, Gastech, in Amsterdam. Found tobe of particular interest were the considerationsgiven to the type and arrangement of fuel tanksused to provide the utmost safety for the crewand to minimize capacity reductions. The studyfound that the initial costs for LNG fuelled

propulsion could be recouped within a three to10-year period, depending upon the appliedLNG prices.

Natural gas has been used as a fuel forsmall regional non-LNG carriers working inenvironmentally sensitive areas, says ABS

LNG as a Fuel

ABS Christopher J Wiernicki With ship operators facing economic pressures from fuel costs combinedwith impending regulations aimed at reducing exhaust gas emissions, LNG fuelled propulsion systemscould be a practical and benecial solution"



Director, Environmental Technology Yoshi Ozakiwho led ABS involvement in the project Thisstudy further supports technical feasibility ofLNG fuel and suggests promise for a viableextended business line for LNG suppliers.

Founded in 1862, ABS is a leading

international classication society devoted topromoting the security of life, property and themarine environment through the developmentand verication of standards for the design,construction and operational maintenance ofmarine-related facilities.

IBIA to engage in

LNG issues

The International Bunker Industry Associations(IBIA) board has taken a formal decisionto become mor

Documents

Srj Octnov 2011 Lng