The Future Use of Natural Gas as Vessel Fuel
(Illustration by I.M. Skaugen)
Ken Smith
Asst. Division Chief - General Engineer
Office of Vessel and Facility Operating Standards
U.S. Coast Guard Headquarters
Marine Chemist Association's
54th Annual Seminar
Chicago, IL
14 August, 2012
Outline
 LNG Marine Activity Past and Present
 Driving Factors
 LNG Interests
 Delivery Options
 Regulations and Standards
 Gaps
2003 - 2007 Outlook
20
LNG Imports (BCF)
15
10
5
0
1970
1975
1980
1985
1990
1995
Source: EIA - Annual Energy Outlook 2005
2000
2005
2010
2015
2020
2025
1990-2011
5000
US LNG Imports
US LNG Exports
4500
4000
3500
3000
2500
2000
1500
1000
500
0
90
91
92
93
94
95
96
97
98
99
00
01
02
03
04
05
06
07
08
09
10
11
EIA Annual Energy Outlook 2012
Driving Factors for use of LNG
 Lower cost compared to ultra low
sulpher marine diesel
 ECA (Emission Control Area)
requirements:
 Maximum level of sulphur in fuel,
all ships:
 10,000 ppm by 1st July 2010
 1,000 ppm by 1st January 2015
 Nitrogen emission for newbuilds:
 80% reduction in NOx emission
from 2016 on.
Current US Interests
LNG Future Interest
Vessel Supply Options
Shore Supply - Permanent
Fixed
Hard
storage tanks
piping to pier
Regulated
33 CFR Part 127
Design
Equipment
Operations
Maintenance
Training
Firefighting
Security
Hot Work Permits

NFPA 59A - IBR
Shore Supply - Mobile
Tank
Trucks
Hose
connections
Area
where transfer takes place
- Regulated 33 CFR Part 127
- Same Requirements Apply
Tank
Truck regulated by
- DOT/PHMSA 33 CFR Part 177
Vessel Supply
 46 CFR Subchapter “D”
Tank Vessel Regs
 Classification Rules
 IMO IGC Code
 Vessel using LNG as fuel
covered by Policy
What’s Not Covered by US Regs
LNG Fuel System
Details
Operational
Procedures for
Bunkering
Personnel
Training
Interface
between
supplier and
receiver
What Exists Elsewhere?
 IMO – IGC Code
 Rules for Bunkering Vessel
 IMO – IGF Code
 Rules for Vessel using Gas as Fuel
 SIGGTO
 Guidelines for LNG Transfer
 Classification Society Rules
 ABS, DNV, LR, GL
 Swedish Marine Technology Forum
 LNG Ship to Ship Bunkering Procedures
 ISO (Under Development)
 Guidelines for Systems and Installations for Supply of LNG
USCG Current Approach
Coast Guard analysis has been on
a Case-By-Case Basis
● Concepts have used IMO
Interim Guidelines as a
baseline standard
● Additional requirements
tailored to each specific
review
● Design Basis – framework of
standards and requirements
Equivalent level of safety to
Title 46 CFR
Bridging Gaps
 Design
 Shore - 33 CFR Part 127 + Policy Ltr
 Ship – IMO Guidelines + Policy Ltr pointing to 46 CFR
cites
 Policy (Until regs are developed)
 CG-ENG 01-12 (Ship – published 4/19/2012)
 CG-OES XX-12 (Ops & Trng – Under development)
CG-ENG 01-12 Policy Letter
 Establishes design criteria for natural gas fuel systems that provides an
equivalent level of safety compared to traditionally fueled vessels
designed to US regulations
 Outlined to align section by section with IMO Res. MSC.285(86)
 Provides direction to specific US standards (e.g. ASME B31.3, ASME
BPV Code, ANSI, NFPA, etc.)
 Provides direction to specific US regulations (e.g. 46 CFR Part 56,
154)
 Establishes requirements beyond those required by IMO in several
areas (e.g. gas detection, testing of gas tanks and gas piping)
 Rulemaking underway to establish regs based on current policy
CG-OES Policy Letter
 Interim guidelines for fuel transfer operations and training for
personnel working on vessels that use natural gas as fuel
 Specifies acceptable fuel sources
 Aligns with existing regs concerning fuel transfer procedures (33 CFR
Part 154, 155, and 156)
 Aligns with existing regs concerning LNG waterfront facilities (33
CFR Part 127)
 Aligns with IMO Res. MSC Circ.285(86) & Swedish Marine Forum
 Requires Operations, Maintenance, Training, and Emergency Manuals
 Outlines requirements for personnel training & PIC quals
 Policy is going through internal clearance
 Concepts to be part of Rulemaking effort
References
U.S. Energy Information Administration (EIA), http://www.eia.gov/
American Clean Skies Foundation, Natural Gas for Marine Vessels: U.S. Market Opportunities by M.J.
Bradley & Associates, April 2012, http://www.cleanskies.org/wpcontent/uploads/2012/04/Marine_Vessels_Final_forweb.pdf
Swedish Marine Technology Forum, LNG ship to ship bunkering procedures, Linde Cryo AB | FKAB Marine
Design, Det Norske Veritas AS, LNG GOT, and White Smoke AB,
http://www.smtf.se/fileadmin/documents/LNG02_projektrapport_appendix_www.pdf
Danish Maritime Authority, Full Report – Northern European LNG Infrastructure Project, A Feasibility Study
for an LNG Filling Station Infrastructure and Test of Recommendations,
www.dma.dk/News/Sider/FinalReport.aspx
Marintek, Norweigian Marine Technology Research Institute, LNG as a Fuel for Ships in Short Sea Shipping,
www.sintef.no/upload/MARINTEK/Review 2-2009/MR-2_2009.pdf
DNV Presentation, The Age of LNG is Here, Most Cost Efficient Solution for ECAs,
www.cleantech.cnss.no/wp-content/uploads/2011/06/2010-DNV-The-age-of-LNG-is-here.pdf
DNV, Article, LNG Fuel Supply to the Ship Side, I.M. Skaugen’s vision for an ECA port in the near future,
http://www.dnv.com/industry/maritime/publicationsanddownloads/publications/updates/ferry/2010/01_2010/ln
gfuelsupplytotheshipside.asp
Questions?
(Illustration by I.M. Skaugen)