environment, technologies and infrastructures: new ... · by 2035 lng will have overtaken pipelines...

© Wärtsilä 22 February 2016 Wärtsilä LNG Infrastructure solutions 1

LNG: A WÄRTSILÄ’S VIEW

ENVIRONMENT, TECHNOLOGIES AND INFRASTRUCTURES: NEW DEVELOPMENT SCENARIOS FOR LNG

Ing. Sergio Razeto - President & CEO Wärtsilä Italia S.p.A.

© Wärtsilä 2 22 February 2016 Wärtsilä LNG Infrastructure solutions

Table of Contents

About Wärtsilä

LNG Europe and Italy

Conclusions and recommendation

Overview of Wärtsilä’s LNG solutions


EFFICIENCY FLEXIBILITY ENVIRONMENTAL

SOLUTIONS

LE

AD

ER

IN

SOLUTIONS FOR

Marine/

Offshore

Power

Generation

Listed in Helsinki

5.0 billion €

turnover

Solid financial

standing

Net sales

by business

2015

18,800 Professionals

This is Wärtsilä

44%

34%

22% SERVICES

MARINESOLUTIONS

ENERGYSOLUTIONS


A leader in the global energy industry

GAS BASED

TECHNOLOGY

• A forerunner in gas and multi-fuel

engines, fuel systems,

technology and services

• Offering that covers gas value

chain from exploration to end

consumers

• Wide offering in small scale LNG

INNOVATIVE

SOLUTIONS

• Global track record in distributed

energy

• Project management and

engineering competence create

customer value

• Making use of digital technology

ENERGY EFFICIENT

SOLUTIONS

• Smart Power Generation

combining energy efficiency, fuel

and operational flexibility

• Most complete offering

of marine products and

integrated solutions, including a

broad portfolio of environmental

products

• Optimised asset performance

over the lifecycle


Deliveries

• More than 1900 MW

Personnel

• 1260 Employees

Wärtsilä Product Portfolio

• 26, 38, 46, 46F, 46DF, 50DF, 50SG,

LMTs, CPP, GB

Spare Parts

• Wärtsilä, Sulzer and GMT

Wartsila Italia S.p.A. 2015


Table of Contents

About Wärtsilä





EU is driving the LNG development

• EU is driving the development of LNG

infrastructure out of two reasons

o Environmental and the EU clean fuel strategy mainly related

to the transport sector both at sea and at land with stricter

emission legislation.

First SECA area that went into force 1 January 2015 was

the Baltic Sea and for part of North Sea with

Mediterranean and remaining part of North Sea to follow

in 2020 with the aim to have LNG bunkering facilities in

139 ports.

Blue Corridor with LNG truck filling stations each 400

km and CNG car filling stations each 150 km.


The Benefits of Natural Gas as a Marine Fuel

CO2

NOx

SOx

Particulates

Dual-Fuel engine

in gas mode

Diesel

engine

0

10

20

30

40

50

60

70

80

90

100

Emission

values [%]

-20-30%

-85%

-100%

-99%

• Reduced emissions

• Simpler machinery

• Fuel flexibility

• IMO TIER III Compliant

• Cost-efficient



• EU is driving the development of LNG

infrastructure out of two reasons

o Security of Supply, with the largely dependence on Russia for

EU’s natural gas imports, EU wants to diversify its natural gas

imports by both promote new pipeline like TAP and TANAP as

well as increase the number of LNG receiving terminals.

The recent decision for cancellation of the Russia’s South

Stream pipeline project has reiterated calls for the rapid

and structured development of an energy union within

EU, which will have an impact on the LNG imports and

purchasing developments.

Azerbaijan and Turkey are important countries in the

Southern Corridor and as partners to EU in this aspect.

DIRECTIVE 2014/94/EU

on the deployment of alternative fuels infrastructure



Consultation document for a National Strategy on LNG


By 2035 LNG will have overtaken pipelines as the dominant form of traded gas – BP Energy Outlook 2035

Global interest in LNG is driven by

• Energy security considerations

and lower energy costs

• Demand for sustainability and

emission reduction in power

generation and shipping

• Rapid growth of intermittent

renewable power generation

and escalating demand

fluctuation. LNG/gas is a perfect

balancing fuel.

Natural gas is conquering new markets


Growth of LNG

• LNG supply

1990 2005 2020 2035 0

20

40

60

80

Other Africa Australia US Russia Qatar

1990 2005 2020 2035 0%

10%

20%

30%

40%

• Shares of global gas consumption

Bcf/d Bcf/d

Total trade Pipeline LNG

BP Energy outlook 2035


Growth of LNG

DMA study LNG demand 1.8 -5.5 million ton in 2020. DNV high scenario 5.000 LNG fuelled ships globally by 2020. Availability and price will determine the market in 2020.


0

0,5

1

1,5

2

2,5

3

3,5

4

4,5

5

2000 2005 2010 2015 2020 2025 2030

0,1%

1,0%

4,5%

3,5%

Emissions Targets

SECA limits

non SECA limits

Max Sulphur content [% m/m] World and SECA

Utilization of MGO with

Low Sulphur content and

DeNox system if needed

Utilization of HFO with

installation of Scrubber

and DeNox system if

needed

Utilization of LNG for new

vessel or conversion

0,5%


Italy: a gas hub for Europe?

LN

G

LIBYA

ALGERIA

RUSSIA

NORWAY & NEDERLAND

AZERBAIJAN


Potential LNG volumes

78%

6%12%

4%

OIL

BIO

GAS

Elettricità

80%

4%12%

4%

Petrolio

Biocarburanti

Gas naturale

93%

3%2%2%

Petrolio

Biocarburanti

Gas naturale

Elettricità

Oil products

Bio fuels

Natural Gas

Electricity

Transport Sector Energy demand in Italy by sources 2013 vs 2030

Source:MIT

2013 2030


Impact on Italian Industries

Source:Assonave


Table of Contents

About Wärtsilä





As a forerunner in gas and multi-fuel engines, fuel systems, technology and services, Wärtsilä wants to participate in the global shift to gas also with LNG infrastructure projects.

• We provide our full range of

project and lifecycle support to

LNG liquefaction plants &

terminals to deliver EPC

projects worldwide.

• We have the capability to

develop the entire LNG value

chain in partnership with our

customers.

Wärtsilä’s involvement in LNG infrastructure development


Wärtsilä LNG solutions O

NS

HO

RE

O

FF

SH

OR

E

LIF

EC

YC

LE

Small LNG liquefaction plants Mini LNG liquefaction plants Small/Medium LNG terminals LNG satellite & bunkering

terminals

LNG storage & regasification

barge

LNG regasification BOG reliquefaction Cargo Handling System

Gas and LNG Carriers

Fuel gas handling system Ship and Cargo Tank design

Services Start–up support Project life time support Spares


Before: Conventional LNG value chain


After: Conventional + small-scale value chain


Table of Contents

About Wärtsilä





LNG : a great opportunity


• Availability of standard and norms for LNG

vessel construction

• Clear permitting procedures for LNG facilities

construction and operations (storage and

bunkering)

• Laws and norms stability

• Times certainty (180 days? 180 days!)

• Fiscal policies to facilitate LNG competitiveness

• Implementation of policies to support/promote

GNL industries including incentives or

dedicated fiscal system.

• Incentives for improving vessel performance

• Facilitate social acceptability of LNG and its

infrastructures via education and information

Enviromental conditions for LNG growth


Simplicity helps

Potential with fuel flexibility

22 February 2016 Wärtsilä vision on sustainable shipping 27 © Wärtsilä

• Global fleet is about 90 000 vessels.

• Global LNG fleet is about 119 vessels.

119

84

23 23

90

LNG Vessels

Global Europe EU EU

Northern

ECA

Wärtsilä

Source: Clarkson Research Services, World Fleet Monitor, Feb 2015 (Propelled Sea-going Merchant Vessels in excess of 100 Gross Tonnage). Excluded: Non-propelled vessels, Inland waterway vessels, Merchant vessels of below 100gt, or where gt is unknown, Fishing vessels, Military vessels, Yachts, Fixed and mobile platforms and barges primarily used for drilling and production in the offshore energy sector (with the exception of FPSO & Drillships). *Note LNG carriers are excluded.

LNG Vessles

0.1%

Global fleet

99.9% LNG

vessels

*

Promote Gas engines

28

MS Viking Grace – world’s biggest passenger vessel running on LNG

Considering the key role of gas engine technology both in global

energy production and maritime sector, gas engines should be

included in the Environmental Goods Agreement (EGA).

Wärtsilä propose the following engines and corresponding HS Codes

to be included in the EGA.

8407.90 gas engines (SG technology)

8408.10 gas engines (DF technology)

8408.90 gas engines (DF technology)


Mini/Small scale liquefaction plants

INPUT OUTPUT PLANT

Gas sources

• Pipeline gas

• Biogas

• Landfill gas

• Associated gas

• Coal seam gas

• Tight gas

• Shale gas

2,000 – 300,000 TPA (3,400 – 510,000 GPD)

Gas pre-treatment

Liquefaction • Mixed Refrigerant: 2,000 -

30,000 TPA

(3,400 – 51,000 GPD)

• Reversed Brayton: 20,000 –

300,000 TPA

(34,000 – 510,000 GPD)

Storage tanks

Jetty & Marine facilities

Export systems

LNG transport

• Carriers

• Tanker trucks

• Containers

• Rail cars

Peak shaving

gas send-out

Ship bunkering

TPA = Tonnes Per Year

GPD = Gallons Per Day


Small/Mid scale terminals

INPUT OUTPUT TERMINAL

LNG transport

• Carriers

• Tanker trucks

• Containers

• Rail cars

Tank capacity

100 – 160,000 m3 (26,400 – 42 Million gallons)

Jetty & Marine facilities

Unloading systems

Storage tanks

Boil-off gas handling

Re-gasification • Up to 1,000 TPH

(1,000 MMSCFD)

Export systems

LNG transport

• Carriers

• Tanker trucks

• Containers

• Rail cars

Gas send-out

Ship bunkering

TPH = Tonnes Per Hour

MMSCFD = Million Standard Cubic Feet per Day


Comparison between terminal options

FEATURE ON-SHORE OFF-SHORE NEAR-SHORE

Asset flexibility No Yes Yes

Weather sensitivity No Yes Yes

CAPEX Low-High Medium Low-Medium

OPEX Low High Low

Small size Yes No Yes

On-shore permits Yes No No

Delivery Time 1 – 4 years 2 – 3 years 1 – 2 years

Terminal FSRU Wärtsilä Mobile LNG


Option 3: Wärtsilä LNG storage & regasification barge

+ minimal marine infrastructure


• Storage capacity of up 1,000 – 30,000 m3 LNG and on-board

regasification

• Comparable to a small-scale FSRU

• Ideal for providing fast and flexible access to gas in new areas

– For land unsuitable for onshore LNG tanks or difficult to permit

– Where there is a lack of skilled labour and local construction material

• A mobile asset, possible to relocate or trade – ideal for temporary

demand and uncertain market conditions

Barges as alternative to onshore terminals


LNG carriers and bunkering vessels

Name Generic Generic Generic WSD50 20K WSD55 12K WSD59 10K WSD59 6.5K WSD59 3K

Type

LNG carrier

(Membrane)

LNG carrier

(Moss)

LNG carrier

(Membrane)

LNG carrier

(Type C)

LNG/LPG/LEG

carrier

LNG bunkering

vessel

LNG bunkering

vessel

LNG bunkering

vessel

Cargo capacity (m3) 140 000 90 000 40 000 20 000 12 000 10 000 6 500 3 000

Design Draught (m) 11.4 10.6 9.2 7.8 6.2 6.6 5.8 4.25

Length over all (m) 280.00 249.50 207.80 147.25 137.00 124.90 98.80 84.70

Design speed (knots) 19.5 18.0 16.0 15.0 14.5 14.0 13.0 12.0

Examples of Wärtsilä designs WSD55 12K

WSD50 20K WSD59 10K

WSD59 6.5K

WSD59 3K

environment, technologies and infrastructures: new ... · by 2035 lng will have overtaken pipelines...

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