Flammable Cryogenic Liquid Carriers
Thank You to the Seminar Sponsor
Saturday, March 19, 2016
Newport County, Rhode Island, USA
Seminar Provider
and Host
Copyright © 2016 United States Maritime Resource Center, Inc. All Rights Reserved.
1
Agenda & Topics
Morning 0830 - 1230
01 Introduction
02 LNG Properties and Characteristics
03 LNG Hazards
04 LNG Industry overview
Afternoon Interactive Work Shop
1330 – 1630
05 LNG Fuel Vessel Design and Construction
06 Fuel Tanks and Fuel Supply Systems
07 Gas Atmosphere Measuring, Control and Monitoring,
Venting, Inerting, unique repair hazards
Copyright © 2016 United States Maritime Resource Center, Inc. All Rights Reserved.
2
04 LNG Industry
LNG Industry Overview
Copyright © 2016 United States Maritime Resource Center, Inc. All Rights Reserved.
3
Liquefaction: How LNG is made
Copyright © 2016 United States Maritime Resource Center, Inc. All Rights Reserved.
4
Why LNG?
Emissions Reduction:
May reduce requirement for potentially expensive, limited supply low sulfur MDO / HFO
Doesn’t require exhaust aftertreatment- scrubbers, SCR
Potential cost advantage over MDO / MGO
Copyright © 2016 United States Maritime Resource Center, Inc. All Rights Reserved.
5
Environmental Requirements - ECAs
Source: Dieselnet.com
Copyright © 2016 United States Maritime Resource Center, Inc. All Rights Reserved.
Arctic Shipping
6
Marine Fuel Sulfur Limits
40 CFR 80.510 Non-Road, Locomotive, Marine
(NLRM) diesel fuel:
(c) Beginning June 1, 2012. all NRLM diesel fuel
is subject to the following per-gallon standards:
(1) Sulfur content 15 ppm (.0015%) maximum.
(2) (40CFR 80.511) …and shall apply to all NRLM
diesel fuel beginning December 1, 2014 for
all locations.
Table 2. MARPOL Annex VI Fuel Sulfur Limits
Date
2000
2010.07
2012
2015
2020a
Sulfur Limit in Fuel (% m/m)
SOx ECA
1.5%
1.0%
Global
4.5%
3.5%
0.1%
0.5%
a - alternative date is 2025, to be decided by a review in
2018
Copyright © 2016 United States Maritime Resource Center, Inc. All Rights Reserved.
7
Economics
Natural Gas in the US is priced at the Henry Hub (Erath, LA) Published daily Recent price $4.60 /MMBtu
LNG per gallon price $0.38 = DGE price (1.7x) = $2.33 Recent diesel price = $3.78 , savings = $1.43 / gal
Copyright © 2016 United States Maritime Resource Center, Inc. All Rights Reserved.
8
2015 World LNG Prices
Copyright © 2016 United States Maritime Resource Center, Inc. All Rights Reserved.
9
Availability
Copyright © 2016 United States Maritime Resource Center, Inc. All Rights Reserved.
10
LNG use in the marine sector
Copyright © 2016 United States Maritime Resource Center, Inc. All Rights Reserved.
11
North American LNG fueled vessels
Harvey Gulf : 6 OSVs in GOM
Tote: 2 3000teu container ships
Crowley: 2 3000teu container ships
APT: 6 LNG-ready tankers
STQ Ferries: 2 car/pass ferries for St Lawrence
SeaSpan: 2 truck ferries for BC
BC Ferries: 3 car/pass ferries for BC
Transport DesGagnes: 2 asphalt carriers
Copyright © 2016 United States Maritime Resource Center, Inc. All Rights Reserved.
12
LNG Barges
Above: Bunker Barge for Ferry Viking
Grace (Sweden)
Top Left: bunker barge now building
at Conrad, Orange TX, for TOTE LNG
bunkering service
Left: LNG America Concept barges
with deck mounted type C
Copyright © 2016 United States Maritime Resource Center, Inc. All Rights Reserved.
13
HGIM Storage in Port Fourchon
Initially for HGIM use
LNG fuel service may
be made available for
3rd party users
Supplied by truck
External fixed pump
500gpm, ~100m3/hr
Up to 210,000 gal/~800
m3 storage (subject to
confirmation)
Copyright © 2016 United States Maritime Resource Center, Inc. All Rights Reserved.
14
Planned LNG Facility in Jacksonville
Copyright © 2016 United States Maritime Resource Center, Inc. All Rights Reserved.
15
Proposed LNG Facility in Tacoma
Puget Sound Energy (PSE),
plans to build a $275 million
Liquefied Natural Gas (LNG)
facility at the Port of
Tacoma
The facility will provide LNG
fuel for maritime vessels
owned by TOTE
Expected to be completed
and fully operational by
2018
Copyright © 2016 United States Maritime Resource Center, Inc. All Rights Reserved.
16
Methane Pioneer: 55 years of LNG shipping
On January 25th 1959, the MV Methane Pioneer left the Calcasieu River on the
Louisiana Gulf coast with the world’s first ocean cargo of
LNG and sailed to the UK where the LNG was delivered
Copyright © 2016 United States Maritime Resource Center, Inc. All Rights Reserved.
17
LNG Fuel Vessel Considerations
•
•
•
•
•
LNG fuel is not the solution for every operator– the more fuel you burn, the more
economically viable it is likely to be
The more time spent in the ECA, the more viable it is likely to be
Most newbuilds indicate a 20% premium to construction cost vs conventional
Generally cheaper to build new than convert - design one, build many (?)
Consider ALL costs:
– Additional infrastructure for transportation, storage and distribution
– Regulatory compliance, regulatory authority engagement, public relations
– Crew training, terminal and vessel manpower requirements, limitations on
simultaneous operations
– Additional planning, risk assessment, engineering, project management and
development costs
– Insurance and risk management
– Documentation: Operations Manuals, Fueling Procedures, Approvals,
Certifications
– Future air emissions / carbon compliance requirements
– Future availability and cost of diesel
– Game Changer / Disrupter : Engine or fuel technology, external event,
accident, regulatory change
Copyright © 2016 United States Maritime Resource Center, Inc. All Rights Reserved.
18
End of Section
Questions?
Copyright © 2016 United States Maritime Resource Center, Inc. All Rights Reserved.
19