lng as a marine fuel...clean fuels • shipping facilitates over 90% of all global trade •...
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Who are SGMF?
• The Society for Gas as a Marine Fuel is• A non-governmental, non-profit making,
industry membership based organization
• Objective is to establish and encourage the safe and responsible operation of gas fuelled vessels and their fuellinginfrastructure
• SGMF is developing and delivering best practice and guidance on most aspects of the marine gas fuelled industry avoiding duplication and where it matters most
• As for regulations……• Gas as Fuel = SGMF + IGF code
• Gas as Cargo = SIGTTO + IGC code
TECHNICAL
SAFETY
ENVIRONMENTAL
CONTRACTUAL
TRAINING & COMPETENCE
Clean fuels
• Shipping facilitates over 90% of all global trade
• However, ship fuels contains 10,000 times the sulphur in road fuel meaning that shipping accounts for 2.7% of world CO2 emissions and 14% of sulphur oxide pollution.
• IMO stated in 2011
• “[Shipping must] make its fair and proportionate contribution towards realising the objectives [pollution control] … that the global community pursue”
ECAs
• Worldwide ship fuel contains 3.5% sulphur
• IMO wishes to reduce this to 0.5% by 2020 or 2025
• NOx is at Tier II level
• Environmental behaviours are being reinforced by lower limits in IMO’s Emission Control Areas (ECAs) (in green on map).
• Sulphur content in ship fuel today is 0.1%
• NOx moves from Tier II to Tier III in 2016
• Many more ECAs are proposed (in yellow)
Cleaner Fuel choices
Fuel Sulphur content
• HFO (RMA, RMB, IFO) <3.5%• MDO (DMB, DMC) <2.0%• MGO (DMA) <1.5%• MGO (DMX) <1.0%• LS HFO <1.0%
• LSMGO <0.1%
• ULSMGO <0.0015%
• LNG/CNG <0.0015%• Methanol <0.00005%• Hydrogen <0.00005%
Existing worldwide S limit 3.5%
Proposed worldwide S limit 0.5%
Existing inland waterway S limit 0.0015%
Existing ECA S limit 0.1%
ExhaustScrubbing
What is LNG?
• Methane rich gas (>80%)
• Liquefied at -160°C at 1 bar pressure to 1/600th
of its gaseous volume
• All hydrocarbons above pentane (C5) removed
• Sulphur removed to less than 15 ppm
• Colourless
• Odourless
• Non toxic
• Boiling liquid
• Non flammable but its vapour is flammable in the range 5 – 14% in air
Why does LNG work as a fuel?
• Worldwide commodity
• Growing transport fuel
• Non toxic
• Low sulphur content
• Relatively high energy density
Fuel energy densities
• HFO 37.3 MJ/litre
• MDO 35.9 MJ/litre
Alternative fuels
• LPG 26 MJ/litre
• LNG 22.2 MJ/litre
• Methanol 15.6 MJ/litre
• CNG 9 MJ/litre
• Hydrogen(l) 8.5 MJ/litre
• Pipeline NG 2.5 MJ/litre
Regulations and RulesInternational Code of Safety for Ships using Gases or Other Low-flashpoint Fuels (IGF)
Covers design standards for gas fueled ships
Adopted at IMO, Maritime Safety Committee (MSC) 95 with entry into force 1 January, 2017 based on contract, 1 July 2017 based on keel laying or 1 January 2021 based on delivery
Existing gas fueled ships grandfathered
Does not cover crew training requirements or bunkering interface
Does not address port specific or operational procedures
Status report: ships• 54 gas fuelled ships in service
• 59 vessels under construction
• Short Sea and Regional ferries currently make up the majority of the LNG fuelled fleet 26 (48%) in operation and 15 (25%) on order.
• Offshore support vessels make up the second largest contingent at 29% and 18% respectively
• Most types of ship now represented by a gas fuelled variant
• 15% of deep sea fleet (LR)
• 1500 Ships (DNV-GL)
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70
Norway Other Europe US/Canada Rest of World
Nu
mb
er
of
gas
fue
lled
sh
ips
Other (order)
PSV (order)
Ferry (order)
Other Ships
PSV
Ferry
• 70,000 ships - world fleet
• 250 – 2500 in next 5-7 years
• 9000 fold increase in transactions!
LNG AVAILABILITY• Everywhere and nowhere
• Delivery by road tanker can be arranged in most of Europe, North America and the Far East
• Bunker vessels under construction for US, Europe and China
• Many current projects are providing for themselves• Dedicated terminals for liner trades in
Norway, Denmark and US, so far• Not going to happen overnight
• Regulatory processes take time• Capital intensive
• Most excess LNG supply has already been allocated – new LNG facilities required
LNG Price
• Energy markets are changing
• Volatility in markets and no stability yet in crude prices• Further falls after resurgence in oil
production from Iran?• Falls in LNG price by restart of
Japanese Nuclear plants following Fukushima?
• LNG prices vary regionally• Gas vs oil differentials variable but
low• Economics remain attractive in
North America
Summary
• Gas is a clean marine fuel and has a future market share
• Technology is not an obstacle to market development• IGF Code is adopted
• Jan 2015 and ECA 0.1% has passed, global sulphur cap next…..
• Current crude price drop / HFO is masking the apparent cost benefit of LNG
• SGMF aims to establish and share best practice worldwide• Working groups lead industry thinking • Knowledge to become available to the whole industry
• SGMF looks forward to your assistance and input…so please join us and join in!
LNG fuelling manifold
How do you use LNG?
Photo from Wartsila website
Two, independent LNG fuel tanks
Pump/fuel vaporiser cabinets
Pipe-in-pipe gas pipework
Two independent gas fuelled engines/power generators
Hose or hard armconnection
Bunker vessel Road TankerBunker terminalContainer
LNG supply via LNG delivery system
LNG Geography 2014
Key: LNG producing country/projectLNG consuming country/project