30th March 2015
Our Ref.: 55359-1450002/PMB
MINUTES
Gas Issues meeting
26 February 2015 (10:30 to 17:00)
Venue: Grand Salon, Conrad Hotel, Singapore
Agenda:
1. Introduction and Anti-Trust
2. Purpose of meeting
3. Cargo
1. Cargo blending alongside/at anchor (particularly difficult for VLGCs)
2. Filling rates, limits and reference loading temperature for fully pressurised gas
carriers Specific LPG issues
3. Specific LNG issues
4. Specific other gas issues
5. Ethane carriers: recommendation on tank type, Type B or membrane
6. Venting/Dumping of coolant during grade changes.
4. Technical
1. The use of loadicator for ships with LOA less than 100 meters
2. Application of Class societies' fatigue analysis models to vessels less than 150
meters
3. Design of cargo heater (cascade rather than direct heat exchangers)
4. Certification for use as fuel
5. Safety
1.
2.
3.
4.
ESD and ship shore issues, non-accepting of certain systems (no consistency)
Security issues
Training issues
Inclusion of the Cargo Compressor Rooms under the ambit of Enclosed Space
Entry Procedures
6. Vetting issues
1.
2.
3.
4.
5.
Rejections (cracks in non-structural members)
Application of OCIMF guidelines without account of vessel size
Request for ESP file for all vessels
VIQ requirement to inspect tanks at least once every 5 years
Requirements for CAP to vessels more than 15 years which is not applicable
for LPG
Minutes from the Gas Issues meeting
held in Singapore on the 26th February 2015
Our Ref.: PMB-16777301/ 1450002
Page 1 of 12
Issue No 3
6. The requirement for BHC adjustment in mooring winches which are non-split
type
7. CDI issues
7. Regional issues
1.
2.
3.
4.
5.
6.
China an emerging market
Japanese CG technical knowledge of gas issues particularly membrane
Chinese Navigational issues (Japan best practice)
Port issues
Canal issues
Standards observed for new terminals
8. The way forward
9. Any other business
1. Gas chartering issues GasVoy?
ATTENDEES:
Name
1. Chaired by: Captain Rajalingam
2. Sanjiv Sethi
5.
6.
7.
8.
9.
10.
Cpt. Tasos Bakolias
Captain Mukesh Yadav
Konstantinos Marinakis
Capt Ravi Somakumar
Konstantinos Chang
Capt. Sanjay Patil
Company
MISC Berhad
Anglo-Eastern Ship Management
(Singapore) Pte
Anglo-Eastern Ship Management
(Singapore) Pte
Bernhard Schulte Shipmanagement
(Singapore)
Consolidated Marine Management Inc.
Exmar Ship Management
GasLog LNG Services Ltd.
Global United
Jellicoe Tankers (Tsakos Group)
MISC Berhad
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
Mohd Denny Mohd Isa
Sothiraj Jayaraj
Mr. Shigeru Yokoyama
Mr. Masaki Kuwabara
Mr. Amit Bansal
Capt. Ramendra Joshi
Mr. Sanjay Sachdev
Mr. Chaudhari Prashant
Hermant Pathania
Steffen Tunge
Mr. Ryo Honma
Andrew Clifton
Capt RP Singh
Mr. Sameer Sarma
Mr. Sanjeev Namath
MISC Berhad
MISC Berhad
Mitsui O.S.K. Lines Ltd
Mitsui O.S.K. Lines Ltd
Mitsui O.S.K. Lines Ltd
Mitsui O.S.K. Lines Ltd
Mitsui O.S.K. Lines Ltd
Mitsui O.S.K. Lines Ltd
NYK Shipmanagement Pte Ltd
OSM Ship Management Pte Ltd
PHOENIX TANKERS(LPG Division)
SIGTTO
Synergy Shipping
Synergy Shipping
Synergy Shipping
3. Orson Lobo
4. Avinash Kadam
Minutes from the Gas Issues meeting
held in Singapore on the 26th February 2015
Our Ref.: PMB-16777301/ 1450002
Page 2 of 12
Issue No 3
26.
27.
28.
29.
1
Vikas Kapoor
Phillip Belcher
Tim Wilkins
Ian Harrison
V.Ships (Asia) Pte Ltd
INTERTANKO
INTERTANKO
INTERTANKO
Introduction and anti-trust.
The meeting was chaired by Captain Rajalingam who had been invited by the Executive
Committee to undertake this roll. The chairman welcomed all to the meeting and thanked
everyone for coming highlighting in particular those who had flown a great distance. He also
thanked Captain Andrew Clifton General Manager of SIGTTO for his attendance and this was
indicative of the close cooperation that INTERTANKO and SIGTTO share. The chairman then
explained that the meeting would be run in strict compliance with INTERTANKO’s as below:
INTERTANKO’s policy is to be firmly committed to maintaining a fair and competitive
environment in the world tanker trade, and to adhering to all applicable laws which regulate
INTERTANKO’s and its members’ activities in these markets. These laws include the antitrust/competition laws which the United States, the European Union and many nations of
the world have adopted to preserve the free enterprise system, promote competition and
protect the public from monopolistic and other restrictive trade practices. INTERTANKO’s
activities will be conducted in compliance with its Anti-trust/Competition Law Guidelines.
All noted this statement.
2
Purpose of meeting
The chairman then briefly outlined the reasons behind the holding of this meeting and why
it had become an issue for the membership. This entailed explaining that the Executive
Committee and Council had asked the secretariat to explore the issues surrounding the
carriage of gas as a fuel. Following this, the chairman invited the marine director, Phil
Belcher, to present the background in more detail. Belcher then explained that in order to
gain an understanding of the issues faced by the membership, members who had registered
their gas ships with INTERTANKO were identified and then contacted. Parallel to this,
contact was made with members who owned or operated gas ships in order to gain their
input. He explained that as the registration of gas ships was voluntary, then few members
undertook this. This was then reflected in the membership statistics were gas ships only
made up 4% of the INTERTANKO registered vessels. The input from the members was the
collated and a scoping/gap analysis meeting was then identified as the best way forward to
ascertain how to deal with gas as a cargo from the perspective of owners and operators.
Therefore, the intent and purpose of this meeting was to explore the concerns of the
members with regard to gas tankers and their operation. Whilst the intended outcome of
the meeting would be the identification of how to deal with the gaps, any technical issues
that could be resolved, provided they were already on INTERTANKO’s workplan, should be
done so. Additionally, when identifying issues, the group was to be cognisant of the role and
work of SIGTTO. In this, INTERTANKO should not overlap its work with others, unless it is
Minutes from the Gas Issues meeting
held in Singapore on the 26th February 2015
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Page 3 of 12
Issue No 3
complimentary and to the benefit of the membership. Belcher then stated that once the
scope of the work and the various gaps have been identified, INTERTANKO’s potential role in
resolving these should be discussed with the view to making recommendations to Council as
to the way forward. Such discussions should be undertaken agenda item 8.
In this the chairman stressed that there were several options open to how to take this
forward, including any resource implications which this entailed. With the scene set, the
chairman turned to the issues which had been identified and invited those members who
had proposed them to provide background prior to the wider group looking at them.
3
Cargo
3.1 Cargo blending alongside/at anchor (particularly difficult for VLGCs)
Following the ban on blending at sea contained within SOLAS Chapter VI Reg 5-1, several
members explained how this was now causing issues. The secretary provided some
background to the blending ban. In this he stated that this was due to concerns about the
blending of bio-fuels on board and that this had been expanded to prohibit the blending of
all liquids. SIGTTO explained that they had had a guidance note on the blending issue, but
had rescinded it following the prohibition of blending.
The group then discussed this issue at length. It was stated that blending was often banned
in the terminal due to perceived risks of over pressurisation on certain ship types. Similarly
blending at the manifold had also been a common practice but was reduced due to
concerns in terminals. Therefore blending between ports had become more common on
some specific trades. Following the ban, ships were now forced to undertake some blending
within port limits and this added several days to their port call times.
The group were of the general opinion that a prohibition that had been developed for a
chemical trade, should not be applied to a practice which could be undertaken safely at sea
on gas tankers. SIGTTO stated that this was an issue which was on the agenda for their
general purposes committee (GPC). SIGTTO further stated that OCIMF planned to develop
this issue further at PPR3 in 2016 at IMO and that this would be an opportunity for SIGTTO
to express their concerns. The secretariat then explained that INTERTANKO had not
supported the continuation of the issue at PPR2 due to it no longer causing problems for the
members with oil and chemical ships, however, this highlighted that there were differing
concerns for those members with gas ships.
Several members raised the issue of whether this practice could be prohibited by the
development of a charter party clause. The secretariat invited members to send them
examples of where this had been done on an individual basis and these could be further
developed by INTERTANKO’s documentary committee.
Action point: The chair summarised by stating that this was an issue which should be looked
at, but in order to avoid duplication the INTERTANKO concerns should be fed into the GPC.
One possible way forward could be for SIGTTO and INTERTANKO to issue a joint note
Minutes from the Gas Issues meeting
held in Singapore on the 26th February 2015
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Page 4 of 12
Issue No 3
providing additional guidance on blending at sea provided that it did not breach the
prohibition.
Members should submit the charter party exclusions on blending to the secretariat for
submission to the documentary committee.
3.2
Filling rates, limits and reference loading temperature for fully pressurised gas
carriers Specific LPG issues
The filling rates of ships were briefly discussed and the group agreed that this was an issue
that had come up some years ago but was no longer relevant. SIGTTO stated that they had a
circular on this and so the chair agreed that there was no need to discuss this further.
3.3
Specific LNG issues
This had been proposed as a generic catch all issue in which any member of the group could
raise issues as they saw fit. A question was raised regarding re-gasification and reliquefaction and whether they were covered by the new International Gas Carrier Code
(IGC). SIGTTO explained that they were in there but that they had not been updated for the
new code as there was no need to do so. It was noted that the IGC Code will come into force
on 1 July 2016 and will only apply to new buildings from that date and existing ships would
not be subject to retrospective action.
No further action needed on the issues raised.
3.4
Specific other gas issues
No issues were raised under this item.
3.5
Ethane carriers: recommendation on tank type, Type B or membrane
The chair invited comments and SIGTTO explained that they had been undertaking
considerable research in this area. SIGTTO stated that it was a particular challenge as this
was a gas that had been around for a long time and only now was this being shipped in any
quantities. The research was detailed and reference should be made to that, but as a
general guide vessels below 35,000c should use Type C tanks and those above should be
Membrane or SPB. Some large vessels were being built with Mark III Samsung tanks and
some were looking at Moss type. SIGTTO stated that they were considering guidelines as a
result of the research and this would be discussed at the upcoming GPC. Some vessels were
also being built to use these cargoes as fuel. It was stated that these fuels would require a
Flag State dispensation. SIGTTO had authored an article in the upcoming LNG World
magazine.
In the context of new cargoes coming on stream, it was noted that ammonia was starting to
be shipped in larger and larger quantities. The shipyards were building standard vessels
supplemented by cargo specific safety gear. However, this could require specific solutions in
Minutes from the Gas Issues meeting
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Issue No 3
the longer term. Some members provided their experiences of carrying ammonia and the
changeover arrangements. In this the gaskets to be used were of critical importance.
However, some mentioned that as ammonia could be detected by smell at low
concentrations, the small leaks could be present for other gases it was just that they could
be detected easily when ammonia was carried. However, specific areas such as gasket use
highlighted the differing carriage requirements.
Action point: The chairman stated that no action was needed on this issue, however, he
instructed the secretariat to promulgate this article from LNG World to the wider
membership subject to copyright.
3.6
Venting/Dumping of coolant during grade changes.
This issue related to what to do with the heel in a tank in preparation of a cargo change. It
was raised as to whether a cargo could only be vented to atmosphere. The group were of
the opinion that dumping cargoes such as ammonia direct to the sea should not be allowed
and that venting was the only appropriate method. In this context the secretariat
mentioned that the revised Annex V of MARPOL was intended to be a catch all regulation
which covered cargo residues. It was stated that many cargoes needed to be vented to
atmosphere for safety reasons and this must not be prohibited.
The discussion then turned to venting at terminals. It was stated that many terminals and
particularly ones operated by an oil major, prohibited venting to atmosphere. In this regard
SIGTTO explained that there were two pieces of work currently underway. SIGTTO were
themselves preparing an LPG ship to shore interface publication. This was subject to a
working group which would report at the end of 2015. Additionally, SIGTTO, CDI and OCIMF
were undertaking a ship to shore interface working group looking at the ESD link and how to
use the best practice from the gas industry to apply to all tanker sectors. This was further
discussed under agenda item 5.1.
On prohibition of venting in terminals for LNG vessels, in view of the sustainable
development embarked upon by the industry, old conventional terminals needs to be
educated on the practicality of having ZERO venting and ZERO flaring during gassing up
operations after dry dock.
Compounded by the existing limitations of the terminal to accept the mixture of inert gas
and warm vapour that may result into CO crystallization within the terminal system, creates
a deadlock situation where owners were hard pressed to manage the gas mixture returns
without returning to shore or venting, nor flaring.
Through SIGTTO and INTERTANKO, the industry needs to be educated on limiting venting or
flaring instead of full prohibition of the operations during gassing up in a conventional
terminal.
No further action was proposed under this item.
Minutes from the Gas Issues meeting
held in Singapore on the 26th February 2015
Our Ref.: PMB-16777301/ 1450002
Page 6 of 12
Issue No 3
4
Technical
4.1
The use of loadicator for ships with LOA less than 100 meters
The group agreed that this was an old issue that did not warrant discussion.
4.2
Application of Class societies' fatigue analysis models to vessels less than 150 meters
The group agreed that this was an old issue that did not warrant and further discussion.
4.3
Design of cargo heater (cascade rather than direct heat exchangers)
This had been brought to the attention of the group as some members had experienced
problems during CDI inspections where sea to sea cooling was brought up in the remarks
column. In this the CDI inspectors had stated that direct heating coolant was desirable
rather than a sea to sea system due to the remote possibility that a leakage of cargo could
result in a discharge to sea.
Action point: The chairman instructed the secretariat to contact CDI to seek clarification on
this point.
4.4
Certification for use as fuel
The group agreed that no action needed to be taken on this item.
The chairman then invited comments on any other issues under this item. Several members
raised the issue that maker specialists did not always have the correct skills to actually
undertake the repairs or maintenance that was required. This fed into a discussion on the
skills set that was required in the industry in general and it was noted that training was to be
dealt with in detail under agenda item 5.3. These concerns applied both to the shipboard
skills as well as the skills required for service engineers. Several members had encountered
considerable problems in sourcing service engineers at short notice.
The chairman summarised by stating that INTERTANKO could approach manufacturers when
safety concerns were raised, but no specific action should be taken at this stage.
5
Safety
5.1
ESD and ship shore issues, non-accepting of certain systems (no consistency)
Several members expressed concerns over the variability of systems relating to ESDs.
SIGTTO restated that they had a working group looking at this issue with the view to revision
of the existing guidance and that this would be reported back on at the end of 2015. SIGTTO
reported that the industry standard for LNG was fibre optic and that the only real link
available was an electric link. The chairman stated that this was in hand by SIGTTO and so
did not require any further input.
Minutes from the Gas Issues meeting
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Issue No 3
SIGTTO then restated that they were also involved in the OCIMF and CDI working group on
ESDs for all vessel types. This meant that the group were looking to extend the best practice
from the gas tankers and apply it to all vessels.
Action point: The chairman instructed the secretariat to contact OCIMF seeking clarification
on this working group as it applied to all tanker types. This should pass through the ISTEC
working group as they have the direct link with OCIMF in this matter.
5.2
Security issues
The secretary provided an update on the security situation around the World and
highlighted the South East Asia (SEA) area in particular. In this he stated that the Indian
Ocean had not experienced a pirate attack for several years. One member reported that
they had had two hijackings off Somalia some years ago. For the Gulf of Guinea, the
secretary reported on the various recent attacks and the general security situation in that
area. Turning to the SEA area, the secretary highlighted the numbers of attacks and
hijackings that had occurred in the area.
The group were concerned over the appearance of a lack of coordinated action between the
various States in the region. The group agreed that the secretariat should contact the focal
points for the parent ministries of the various littoral States in order to encourage better
cooperation to reduce the threat of piracy. The group were also of the opinion that the best
approach should be a coordinated one involving the whole Round Table. Additionally, the
group believed that specific guidance should be developed by the Round Table looking at
piracy and armed robbery in the SEA area.
Action point: The chairman stated that the group agreed that more action needed to be
taken by the Round Table in ensuring proper coordination between the various ministries.
Further that specific guidance should be developed for this area. These concerns should
then be passed to the advisory group on piracy which sits within the ISTEC committee.
5.3
Training issues
The shortage of trained seafarers was highlighted as one of the most pressing issues being
dealt with by the industry. The new vessels being launched in the very near future required
experienced seafarers to safely man them. SIGTTO highlighted the competence training
scheme that they had put in place. In this regard, several charterers had put the
requirement to use SIGTTO’s competence training scheme into their charter parties.
Similarly the secretary spoke about the updating that was taking place of the TOTS training
scheme and how this would be focusing upon the competence issue.
Several members outlined the processes that they had gone through to manage this issue.
The group agreed that experience sharing would be a good thing and that this should be
referred to the HEiSC committee for their expert input.
Minutes from the Gas Issues meeting
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Issue No 3
Action point: The chairman stated that this area was well in hand by SIGTTO, but there were
areas where the secretariats could share best practices and the experience of putting into
place competence systems and this could then be fed into the HEiSC.
5.4
Inclusion of the Cargo Compressor Rooms under the ambit of Enclosed Space Entry
Procedures
The secretary provided some background on how the compressor room became included
into the list of examples of enclosed spaces within the IMO Resolution A.1050(27). This was
due to a casualty involving several fatalities in a compressor room. The group did not believe
that the compressor room should be classed as an enclosed space as it did not fit with the
definition of an enclosed space. This was due to the frequent entries undertaken by the
crew and in particular the gas engineer. Further the space had fixed ventilation as well as
gas detection coupled with alarms. However, it is also identified as an enclosed space in the
VIQ. SIGTTO also agreed with this position. One of the members stated that due to
practical/ operational reasons the conventional permit to enclosed spaces cannot be applied
to Compressor room in its fullness.
Action point: The chairman instructed the secretary to pass this issue to the Vetting
Committee for their advice with the view to a joint approach by SIGTTO and INTERTANKO to
OCIMF.
6
Vetting issues
6.1
Rejections (cracks in non-structural members)
The group discussed this issue in the context of Conditions of Class. It was noted that the
Vetting Committee had looked at this issue and it remained on their agenda. The group
were of the view that CoCs were necessary to ensure transparency in the management of
ships and so having a CoC should not be viewed negatively. The secretary stated that having
a CoC did not necessarily result in an automatic rejection of a vessel, just that it then
required a manual check and assessment of the CoC by the charterers vetting department.
Action point: the chairman summarised by stating that this was an ongoing area which was
currently being looked at and that the concerns of the Gas owners should be forwarded to
the Vetting committee for their consideration.
6.2
Application of OCIMF guidelines without account of vessel size
The group did not see this as generating any issues and so was not discussed.
6.3
Request for ESP file for all vessels
The group did not see this as generating any issues for gas carriers as this did not apply to
that sector.
Minutes from the Gas Issues meeting
held in Singapore on the 26th February 2015
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Page 9 of 12
Issue No 3
6.4
VIQ requirement to inspect tanks at least once every 5 years
The group agreed that this was not an issue for the time being. One member stated that a
7.5 year inspection cycle could be looked at for the future, but that it would only be an issue
in the future. This will be more applicable to the cargo tanks on LNG vessels where an
extended inspection period could be considered.
6.5
Requirements for CAP to vessels more than 15 years which is not applicable for LPG
This was viewed as compliance issue and one that can be complied with by the membership.
6.6
The requirement for BHC adjustment in mooring winches which are non-split type
This was seen as a non-gas specific issue and one that applied to smaller vessels in
particular. Further, this did sometimes come up as an observation, but was something that
could be highlighted to the Vetting Committee as a general issue.
Action point: The chairman invited the secretary to inform the vetting committee of the
discussions.
6.7
CDI issues
No specific CDI concerns were raised beyond those raised elsewhere. One member
highlighted that CDI had recently issued a customer satisfaction survey. The chairman urged
all members to complete this form.
7
Regional issues
7.1
China an emerging market
Several members raised the issue that China had many new terminals and that safety
standards were variable. Further, SIGTTO’s guidance was not always followed by those
terminals.
Concerns re use of local language (rather than English) and standard of pilots in many of the
new terminals was also brought to the attention of the group. One member reported on an
initiative that they undertook whereby Chinese pilots sailed on their ships during the round
trip to Europe in order for them to gain a broader understanding of the practices found on
board.
As a general point, the secretary reminded the group that INTERTANKO has a terminal
feedback questionnaire that should be completed whenever a substandard terminal was
encountered.
Minutes from the Gas Issues meeting
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Issue No 3
Action points: the chairman guided the secretariat to raise the issue of the pilotage issue,
contact should be made both with IMPA and the MSA. Additionally, INTERTANKO should
feed into the GPC to encourage terminals to follow the SIGTTO guidance.
7.2
Japanese CG technical knowledge of gas issues particularly membrane
The members of the group reported some lack of knowledge of various membrane issues
shown by the JCG. The group was of the opinion that better communication should be
encouraged between SIGTTO, INTERTANKO and the JCG.
More frequent educational engagement would be required through SIGTTO and
INTERTANKO, representing the industry, would be an approach to pierce the barrier and
develop the relationship with JCG.
Navigational issues in Tokyo Bay and other Japanese inland waterways especially with
regards to pilotage exemption. A joint industry work group may need to look at this
regional issue.
7.3
Chinese Navigational issues (Japan best practice)
Several members raised concerns regarding the local navigational charts for several of the
new terminals. This was particularly common at LPG terminals for which only (Chinese)
paper charts were available and not covered by ENCs - the terminal itself was not shown on
BA charts. Amongst other issues, it was not possible to apply corrections to such charts. The
group agreed that the secretariat should look into this.
Action point: the chairman guided the secretariat to raise the issue of poor charting with
the MSA directly both at IMO delegation to NCSR and in country, as well as alerting the
UKHO on this issue.
7.4
Port issues
No additional port issues were raised.
7.5
Canal issues
It was noted that the Panama Canal has instigated various changes to the structure of fees
for the new locks. Additionally the technical requirements for passage are the subject of
guidance published by SIGTTO. This guidance has wider application than just for gas carriers.
SIGTTO also pointed out that to be classed as an empty vessel for Panama the vessel could
have up to 10% heel compared with just 3% for Suez.
No substantive issues were raised.
7.6
Standards observed for new terminals
Minutes from the Gas Issues meeting
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Issue No 3
No additional issues were raised.
8
The way forward
As to the way forward regarding gas issues, the chairman noted that many issues were
already dealt with by SIGTTO, most of the other issues could be possibly managed through
the remit of existing committees and the other issues needed to be directly dealt with from
a gas only perspective. This would be fed back to the ExCom for direction.
The chairman then spoke about resourcing and highlighted the concept of secondees into
INTERTANKO and these could provide the necessary support.
9
Any other business
9.1 Gas chartering issues GasVoy?
A question had been raised regarding the concept of the Documentary committee
producing a GasVoy charter party clause. There was no support for this from within the
group.
There being no other business, the Chairman thanked all participants for attending and
stated that this meeting will be reported to the Executive Committee and Council meeting in
Athens in May.
***
Minutes from the Gas Issues meeting
held in Singapore on the 26th February 2015
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Page 12 of 12
Issue No 3